Are Bookkeeper Fees Tax Deductible? Yes — Here's How to Claim Them on Schedule C
100%
Deductible
Line 17
Schedule C
Legal and professional services
Category
$200–$800+/mo
Typical cost
Bookkeeper fees and accounting software subscriptions are fully deductible business expenses for self-employed individuals and single-member LLCs. Whether you hire a bookkeeper or use cloud-based accounting software, these costs qualify as professional services on your tax return. Claiming this deduction can save you hundreds or thousands annually, depending on what you spend.
Who qualifies?
You qualify if you're self-employed, a sole proprietor, or own a single-member LLC filing Schedule C. This includes freelancers, contractors, and small business owners who pay for bookkeeping services, accounting software (QuickBooks, FreshBooks, Zoho, etc.), or hire someone to manage your business records.
How to claim it
- 1 Gather all invoices and receipts for bookkeeper fees, accounting software subscriptions, and bookkeeping-related services paid during the tax year.
- 2 Add up the total amount spent on these professional services.
- 3 Report the total on Schedule C, Line 17 (Legal and professional services) when filing your Form 1040.
Pro tip
Use accounting software or a bookkeeper from day one—not just at tax time. Keeping clean records throughout the year makes the bookkeeper's job faster and cheaper, maximizes your deduction, and reduces audit risk by providing clear documentation of all business income and expenses.
Source: IRS Publication 535: Business Expenses
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