Tax Talk with Audrey
Happy New Year! Another tax season is underway and we are looking forward to seeing you soon. You are important to us and we are ready to answer your questions and help you meet this year's tax deadline which is Thursday, April 15, 2010. Of course, new clients are welcome, too!
How Much Should You Pay For Tax Preparation?
01/17/2009 by Audrey Griffin, EA
We spend literally hours on the phone each tax season fielding questions such as "How much do you charge?". When we reply "That depends on the complexity of your return", the response is "Oh, it is just a simple return" (without mention of the landscaping business on the side). It is difficult to give an estimate without a series of interview questions to determine filing status and scope of tax issues involved.
Quite frankly, in the middle of tax season there is not enough time to spend on telephone shoppers to gather the information needed to provide an accurate estimate. We provide the basic starting price and explain the fee will increase from there based on complexity. Unfortunately, the caller only hears the basic fee and expects that to be engraved in stone as "their" cost.
I recently came across the following blog posted by Esther Hastings, EA. It gives an excellent synopsis of the cost ranges you can expect. Keep in mind that other factors can push the fee higher.
These comments are by no means intended to discourage you from calling us with your questions. As always, the only dumb question is the one that is not asked.
Quite frankly, in the middle of tax season there is not enough time to spend on telephone shoppers to gather the information needed to provide an accurate estimate. We provide the basic starting price and explain the fee will increase from there based on complexity. Unfortunately, the caller only hears the basic fee and expects that to be engraved in stone as "their" cost.
I recently came across the following blog posted by Esther Hastings, EA. It gives an excellent synopsis of the cost ranges you can expect. Keep in mind that other factors can push the fee higher.
How Much Should You Pay For Your Tax Preparation?
The price you will pay for tax preparation services depends upon one thing: How complex your tax return is. The more complicated your return, the higher the price will be.
This is true whether your preparer charges a flat-rate, an hourly rate, or has a price for each tax form.For a relatively straightforward tax return (for income such as wages, interest, and dividends, and no itemization), expect to pay between $125 and $200. If you are self-employed, a landlord, or have brokerage trades to report, expect to pay between $200 and $450. If you claim the Earned Income Credit, expect to pay between $150 and $200 due to the complexity of the EIC tax form.
In my experience, retail and independent tax offices tend to charge about the same for tax preparation. It is advisable and wise to seek the services of either a CPA or an Enrolled Agent. Enrolled Agents are Federally licensed by the IRS in the specific area of taxation.
Your tax preparation fee should include electronic filing of your return, or extra copies of the return to file on paper, as well as a brief consultation before or after your taxes are prepared to discuss any concerns you have.
Feel free to visit our website at www.efileflorida.com for more informative articles and tax tips.
Posted by Esther Hastings, EA at http://efileflorida.blogspot.com/2009/01/how-much-should-you-pay-for-your-tax.html
The price you will pay for tax preparation services depends upon one thing: How complex your tax return is. The more complicated your return, the higher the price will be.
This is true whether your preparer charges a flat-rate, an hourly rate, or has a price for each tax form.For a relatively straightforward tax return (for income such as wages, interest, and dividends, and no itemization), expect to pay between $125 and $200. If you are self-employed, a landlord, or have brokerage trades to report, expect to pay between $200 and $450. If you claim the Earned Income Credit, expect to pay between $150 and $200 due to the complexity of the EIC tax form.
In my experience, retail and independent tax offices tend to charge about the same for tax preparation. It is advisable and wise to seek the services of either a CPA or an Enrolled Agent. Enrolled Agents are Federally licensed by the IRS in the specific area of taxation.
Your tax preparation fee should include electronic filing of your return, or extra copies of the return to file on paper, as well as a brief consultation before or after your taxes are prepared to discuss any concerns you have.
Feel free to visit our website at www.efileflorida.com for more informative articles and tax tips.
Posted by Esther Hastings, EA at http://efileflorida.blogspot.com/2009/01/how-much-should-you-pay-for-your-tax.html
These comments are by no means intended to discourage you from calling us with your questions. As always, the only dumb question is the one that is not asked.