Are CPA & Accountant Fees Tax Deductible? Yes — 100% Deduction Guide
100%
Deductible
Line 17
Schedule C
Legal and professional services
Category
$500–$2,500+/yr
Typical cost
If you pay a CPA or accountant to prepare your business tax return or handle accounting services, that's a fully deductible business expense. Whether you're a sole proprietor, single-member LLC, or freelancer filing Schedule C, these professional fees reduce your taxable income dollar-for-dollar. This is one of the most straightforward deductions available to self-employed individuals.
Who qualifies?
Self-employed individuals, sole proprietors, and single-member LLC owners filing Schedule C can deduct CPA and accountant fees for business-related services. This includes tax prep, bookkeeping, payroll processing, and accounting consultation—as long as the work is directly tied to your business operations.
How to claim it
- 1 Gather all invoices and receipts from your CPA or accountant for the tax year, ensuring they're labeled as business-related services.
- 2 Calculate your total professional services fees paid during the year (typically $500–$2,500+, but varies by business size and complexity).
- 3 Report the total amount on Schedule C, Line 17 (Legal and professional services) when filing your federal tax return.
Pro tip
Keep detailed records linking each CPA invoice to specific services (tax prep, quarterly estimates, bookkeeping, etc.). If you use an accountant for both personal and business matters, only deduct the business-related portion—ask your CPA for an itemized invoice to separate the two.
Source: IRS Publication 535: Business Expenses
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