Tax Return Fees by CPA

[younginvestor2013]

How much does your CPA charge you for your tax returns? Just getting some comps.

Mine charged me $285 this year, which I thought was kind of high. I did sell off about ~20% of my portfolio for downpayment on a house purchase in 2014, so there was a little (not much) more leg work there computing my CGT.

Other than that, all I have is a 401k, roth IRA, brokerage account, savings account, HSA account, and mortgage interest deduction.

 

[target2019]

After reading your post, I though there must be a source of data for this, like from the friendly folks at IRS. And there was...
Tax Preparation Costs and Fees | US Tax Center

 

[Big_Hitter]

$500 for a 1041 is worth it, IMO - I couldn't get past the instructions

 

[38Chevy454]

$500 for a 1041 is worth it, IMO - I couldn't get past the instructions

I do 2 trust returns with 1041. Fortunately both are fairly simple and I just use the IRS provided fill-in pdf forms and file the old fashioned paper copy method. You can download the instruction forms as well, it does take reading them a couple times to get a decent understanding of what you are supposed to do.

For OP, depending on the complexity of your return, consider doing it yourself with a software program.

 

[Big_Hitter]

this was for my late FILs estate, what a pita

 

[2B]

How much does your CPA charge you for your tax returns? Just getting some comps.

Mine charged me $285 this year, which I thought was kind of high. I did sell off about ~20% of my portfolio for downpayment on a house purchase in 2014, so there was a little (not much) more leg work there computing my CGT.

Other than that, all I have is a 401k, roth IRA, brokerage account, savings account, HSA account, and mortgage interest deduction.

Have you ever looked at any of the available tax software? For most people it's pretty intuitive. The software walks you through the different items. Much of the data can be downloaded from your bank, brokerage, employer and mutual funds. Capital gains is easy to calculate with all of the software I've used. With discounts, you can get almost any of them for under $50.

$500 for a 1041 is worth it, IMO - I couldn't get past the instructions

I can see using a CPA if you have "complicated" activities. This would be limited partnerships outside of a tax deferred account and multiple transactions in depreciated properties. Even then, I think you could learn to do them yourself. A key think for using a CPA is to keep up on the ever changing tax regulations but here you need to be dipping into unusual tax situations.

My FIL had used a CPA for decades. When DW and I took over the finances, I started doing his taxes. He only needed a simple tax return with itemized medical deductions for his assisted living and nursing home costs. Before I took over, his CPA was charging him $600 for a 1040EZ.

 

[pb4uski]

I just read an article in Accounting Today that stated that the average fee for a 1040 with Sch A and a state tax return is expected to be $273 this year. 1040 with state but no Sch A is expected to be $159.

I suggest that you consider DIY for 2015 if you have a simple return.

 

[meierlde]

It should be noted that Turbotax business will do 1041s both estate and trust, as well as 1065s for partnerships, and for corporations. As compared to the individual if your doing an investment partnership, you just have to enter the details on details entries and worry about making the books balance. (Probably harder if the partnership actually is a non passive entity)

 

[TimSF]

I used to pay $600 for a 1040 with K-1s and multiple state income. Now I do it myself.

 

[Beldar]

I would urge the OP to look at what the CPA has prepared for him/her this year and try to re-create it themselves. Although sometimes time consuming, most tax returns even for small business owners (having been one) are not ~difficult~ to prepare. The issues involved that the OP describes with their return are well within the means of most people provided they gather the necessary IRS instructions and publications.

I will say that I am a DIY'r and having my tax life in order from a very early age has helped me achieve FI. But that may not interest alot of folks; if so, the software path for tax return perparation may be better. I though, prefer the hands on approach. I'd rather make the error myself than some programmer in India.

_B

 

[Ronstar]

I used to pay $700 to have our company's CPA do my personal taxes. Thought it was very high, so I did a few years on turbotax. Then I went with a new CPA because I had some issues that turbotax and I couldn't handle, and he charges $150.

 

[marko]

$450 this past year.

Previous accountant was $750 but that was back in our days of quite complicated taxes. Some years now, I just go with TT.

 

[Mulligan]

Have you ever looked at any of the available tax software? For most people it's pretty intuitive. The software walks you through the different items. Much of the data can be downloaded from your bank, brokerage, employer and mutual funds. Capital gains is easy to calculate with all of the software I've used. With discounts, you can get almost any of them for under $50.



I can see using a CPA if you have "complicated" activities. This would be limited partnerships outside of a tax deferred account and multiple transactions in depreciated properties. Even then, I think you could learn to do them yourself. A key think for using a CPA is to keep up on the ever changing tax regulations but here you need to be dipping into unusual tax situations.

My FIL had used a CPA for decades. When DW and I took over the finances, I started doing his taxes. He only needed a simple tax return with itemized medical deductions for his assisted living and nursing home costs. Before I took over, his CPA was charging him $600 for a 1040EZ.

Ouch....FIL better have been receiving a nice birthday and Christmas card from CPA or he was really getting ripped off!


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[Jack_Pine]

I have used Turbo Tax for years. this year I was going to owe a lot so went to CPA. He was going to charge me $390.

I had started my return on TT before going to him. His calculations said I was going to owe twice what I had calculated. I dug into it and found he made a mistake and pointed it our to him. He just sent me an email yesterday apologizing and said he was waving his fee.....................

 

[Mo Money]

Wow. I guess I'm paying too much: $850 last year -- though there were some K-1s involved. My taxes should get a lot simpler after this year's (2015) returns are filed, since I w*rked at my law firm at the beginning of this year and therefore still had K-1 income.

 

[MichaelB]

Wow. I guess I'm paying too much: $850 last year -- though there were some K-1s involved. My taxes should get a lot simpler after this year's (2015) returns are filed, since I w*rked at my law firm at the beginning of this year and therefore still had K-1 income.

It's hard to say. Many tax preparers have set charges for specific forms, so each K-1 and each 1099 adds to the total fee.

Many of us have found that after employment ended our tax prep simplified and we are able to do it with one of the tax SW paskages.

 

[Amethyst]

Usually around $1700 for 1040, state return, and 2 rental properties (next year it will be one) with all the accompanying forms. That's with a 10% discount for providing all the documentation before the end of February.

I would use Turbo Tax, but have never been able to get the hang of the rental property portion. It seems simple enough at first, but the loss carryovers and suchlike throw me. As I've posted elsewhere on the forum, TT throws curve balls - asks for information from last year's return, but calls it something I can't recognize or translate to what the CPA used.

Amethyst

 

[Amethyst]

Ours charges $10 for each 1099. So if you have a lot of accounts, it can get expensive. Some of our accounts barely pay more than $10 in a year.

A.

It's hard to say. Many tax preparers have set charges for specific forms, so each K-1 and each 1099 adds to the total fee.

 

[Fishingmn]

My guy is extremely cheap. Think I pay about $195 which includes -

1040 with schedule A itemized & electronic filing
State of MN return - electronic filing
Schedule C business return
Return for my 11 rental properties

I use an accountant who works from his home so low costs.

 

[travelover]

I'm amazed at what some are paying. I use TaxAct year after year and it populates the basic information and pulls forward long term losses generated during the recession. Inputting our simple information only takes an hour at most. Fortunately, our situation is no complicated.

 

[target2019]

Each tax situation is different. It takes varying amounts of time to do the work, depending on the book-keeping you do, how well you present the data, etc.

Some charge by the form, others have a fixed amount for ordinary taxpayers and might add additional costs for some forms. Some include one state, some not.

If you been using tax software XYZ for 10 years, then you're probably more organized and competent than others.

If my time is worth is $50 per hour, and my tax package costs $500.00, then I break even at 10 hours. With a business, rental, and various 1099's, DIVs, INT, you could easily spend a few days on this.

Each year I gain additional knowledge, and discover something that causes me to track things a little different in the current year. So if you have no interest in numbers, and totally trust your tax preparer, then let them drive.

OTH, I think everyone needs to look under the hood and understand a bit more. The comparison of free software > $49.95 > $495 means something, but fixating on the prep/software cost alone doesn't maximize your long-term benefits.

 

[Hawkeye]

I just paid $425 to have my taxes (state and federal) done.

I used to use turbo tax. One day, I came home from work a bit early to change to play in our golf league. Checked the mail. IRS says I owe them something north of $3K. Instead of what I would have normally done, get frustrated and play poorly, I decided I would turn it over to an accountant. I remember I played well that evening because I had decided to delegate the task to a pro. Got a recommendation for an accountant, paid only a couple of hundred bucks for 3 years of amended returns, and, found the IRS owed me about $2K.

So, how much did I save using turbo tax? It cost me. What goofed me up was stock awards, HSA contributions, and 529/College Savings withdrawals…. I thought I carefully answered all of the questions, but, apparently did not.

In retirement (next year) my returns should get more simple. I'll go back to doing them myself.

 

[panacea]

There's a tax and accounting firm that our company is affiliated with and they seem to charge about $450 for a pretty basic return. I think that's above average in general but probably about average for larger firms. I've used TurboTax for years and the most complicated thing we've had to do so far is Roth contributions combined with conversions. A little tricky but still very manageable once you work through it. I guess I would have a hard time paying typical professional fees for tax prep unless I had something really complex.

 

[Mulligan]

I just paid $425 to have my taxes (state and federal) done.

I used to use turbo tax. One day, I came home from work a bit early to change to play in our golf league. Checked the mail. IRS says I owe them something north of $3K. Instead of what I would have normally done, get frustrated and play poorly, I decided I would turn it over to an accountant. I remember I played well that evening because I had decided to delegate the task to a pro. Got a recommendation for an accountant, paid only a couple of hundred bucks for 3 years of amended returns, and, found the IRS owed me about $2K.

So, how much did I save using turbo tax? It cost me. What goofed me up was stock awards, HSA contributions, and 529/College Savings withdrawals…. I thought I carefully answered all of the questions, but, apparently did not.

In retirement (next year) my returns should get more simple. I'll go back to doing them myself.

I think Turbo is very clumsy on the HSA deduction from self and not employer. My taxes are simple and I can eyeball what I am supposed to get so I knew the HSA part was done wrong. Every year I have to redo it before I hit the send button because of the wording they use.


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[panacea]

I think Turbo is very clumsy on the HSA deduction from self and not employer. My taxes are simple and I can eyeball what I am supposed to get so I knew the HSA part was done wrong. Every year I have to redo it before I hit the send button because of the wording they use.


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I found that using the worksheets/forms section to complete the HSA part is much easier. I answer their questions and then go back and fix it if something is on the wrong line.