CPA Exam fees and review courses are generally not tax-deductible for individuals, as the IRS views them as qualifying you for a new trade or business. However, if you are self-employed, you may deduct these as business expenses, and some employer-reimbursed fees may be tax-free.
In general, CPA fees can be deducted for businesses but not for personal use. According to the IRS, businesses can typically deduct any ordinary and necessary expenses that are related to the operation of the business.
Basically, the de minimis safe harbor allows businesses to deduct in one year the cost of certain long-term property items. IRS regulations set a maximum dollar amount—$2,500, in most cases—that may be expensed as "de minimis," which is Latin for "minor" or "inconsequential." (IRS Reg. §1.263(a)-1(f) (2025).)
Five Most Overlooked Tax Deductions
The TCP Discipline section tests the knowledge and skills a CPA must demonstrate with respect to: U.S. federal tax compliance for individuals and entities with a focus on nonroutine and higher complexity transactions, U.S. federal tax planning for individuals and entities, and personal financial planning.
The IRS does not allow CPA Exam fees to be deducted because they fall into the category of qualifying for a new profession rather than maintaining or improving skills in an existing job.
How many people pass all four CPA Exams on the first try? Around 20% of people pass all four parts of the CPA Exam on their first try.
Expenses from the use of a company or business vehicle, such as tolls, maintenance fees, licenses, and insurance, are usually 100% deductible; however, it's vital to keep detailed records of how the business is using the car, including tracking the mileage.
In 2021, Congress lowered the threshold for reporting income on payment apps from $20,000 and 200 transactions annually to $600 for a single transaction.
While a $10,000 tax refund might sound like a dream, it's achievable in certain situations. This typically happens when you've significantly overpaid taxes throughout the year or qualify for substantial tax credits. The key is understanding which credits and deductions you're eligible for.
The IRS allows taxpayers to deduct up to $3,000 of realized investment losses ($1,500 if married filing separately) against ordinary income each year. This deduction applies only to losses in taxable investment accounts and must be realized by December 31st to count for that tax year.
If you're under 65 and filing as an individual, you must declare your hobby earnings if they total $12,400 or more when combined with your other income. If you're married and filing jointly, the threshold is $24,800 if both spouses are under 65.
According to the rule, an expense is incurred and deductible in the tax year if it meets the “all-events test” and the economic performance in question occurs within 8½ months after the close of the tax year. The all-events test is threefold: All events have occurred that establish liability.
Tax Preparation: If you hire an accountant to prepare your tax return, these fees are typically 100% deductible. Tax Advice: Similarly, if you consult with your accountant for tax advice, those fees can also be deductible.
A good CPA does more than file returns. They help reduce tax liability, keep filings accurate, and support smarter financial decisions year-round. Without professional guidance, issues like misclassified expenses, missed deductions, or late filings can quietly add up.
Under the Tax Cuts and Jobs Act of 2017, many miscellaneous itemized deductions, including tax preparation fees, were suspended for tax years 2018 through 2025. This means that, for most taxpayers, these fees are no longer deductible on their federal tax returns.
The law requires trades and businesses report cash payments of more than $10,000 to the federal government by filing IRS/FinCEN Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business PDF. Transactions requiring Form 8300 include, but are not limited to: Escrow arrangement contributions.
Does Zelle Report Payments to the IRS: Form 1099-K Details. IRS Form 1099-K reports payments received for goods or services during the tax year from credit, debit, or stored value cards and TPSOs. The 2025 reporting threshold is $2,500 or more, which will be reduced to $600 in 2026.
The OBBB retroactively reinstated the reporting threshold in effect prior to the passage of the American Rescue Plan Act of 2021 (ARPA) so that third party settlement organizations are not required to file Forms 1099-K unless the gross amount of reportable payment transactions to a payee exceeds $20,000 and the number ...
Child and Dependent Care Credit
So missing one is even more painful than missing a deduction that simply reduces the amount of income that's subject to tax. But it's easy to overlook the Child and Dependent Care Credit if you pay your childcare bills through a reimbursement account at work.
The $20,000 limit under the measures applies on a per asset basis, so small businesses can instantly write off multiple assets. Assets valued at $20,000 or more can continue to be placed into the small business pool and depreciated at 15% in the first income year and 30% each income year after that.
Cell phones and internet deductions
The answer is, you have to prorate the expense and only deduct the business use portion. So if 30% of your calls are personal, for example, you can only deduct 70% of the phone's expense.
It's definitely harder than the BAR exam and maybe even some medical board exams. And it's nearly impossible to pass once you're a working professional.
A CPA's salary is often in the high five figures, with senior CPAs in management earning six figures. CPAs work in a variety of sectors, including forensic accounting, tax preparation, auditing, bookkeeping, and information technology, in both the commercial and public sectors, as well as for the federal government.
The overall pass rate across all sections averages approximately 50%, though this varies considerably by section and quarter. In 2024, the states with the highest pass rates were Nebraska with 61.9%, Utah with 58.6%, and Montana with 57.4%.