Tax deduction for return prep for deductible payroll
Posted: 14-Mar-2019 7:31pm
Taxpayer has a disabled family member who requires 24/7 at-home nursing care of the clearly deductible type. Uses payroll service to pay the nurses, remit withholdings, and prepare all necessary state and federal payroll tax returns, W-2s, and Schedule H. Payroll company sends packet each year to taxpayer for use in 1040 preparation. This year's packet says
. In this taxpayer's case, that's nonsense, right? If it was a household employee such as a housekeeper, ok, I see it. But if the nurses' pay, their meals, the employer's share of their payroll taxes, are all deductible as medical expenses, along with the payroll company's charges, the small part that applies to return prep is not carved out as misc itemized deduction. Right? Right!Please note, due to the Tax Cuts and Jobs Act, Tax Prep Fees (XYZ Service Fees) can no longer be claimed as deductions on your personal income tax return