Tax preparation fees can be deducted in several possible places on a tax return, according to the Internal Revenue Service. Most individuals claim tax prep expenses on Schedule A as a miscellaneous deduction, which is subject to a 2 percent limit.
Taxpayers who report self-employment income and expenses on Schedule C can deduct the directly related portion of tax preparation on that form. Schedules E, rent or royalties, and F, farming, can be handled the same way. Any remaining portion is deducted on Schedule A. Allowable fees include tax preparation software, electronic filing and reference materials used by the taxpayer, and professional fees charged by a third party. The expenses are deductible on the return for the year paid, according to IRS Publication 529.