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Tax Returns Cost

How Much Do Tax Returns Cost?
 
low cost Low: Free, $20-$90
 
average cost Medium: $90-$130+
 
high cost High: $200-$400+
 



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Typical costs:
  • If your income is less than $50,000, you may qualify for Free File, a partnership between the IRS and the Free File Alliance, which should let you e-file your taxes for free.
  • Software, such as Intuit's TurboTax, typically costs between $20-$90, depending on the complexity of your returns and whether you need to complete a state return. During the past two years, retail discounts during February and March have been common. An online version, Web TurboTax, is also available.
  • Tax preparation fees at retail outlets such as H&R Block and Jackson Hewitt can run $90-$130, but Refund Anticipation Loan fees, electronic filing fees, and check cashing fees can triple the amount. In March, 2006, the New York Attorney General sued H&R Block for its business practices.
  • A part-time tax-preparer who operates out of a home may charge around $100 for a relatively simple return.
  • A professional CPA operating out of an office might charge $200-$400 for a relatively straightforward return, depending on the complexity of the return, the local cost of living, and the size of the office. More complicated returns - with significant stock transactions, real estate, and other deductions and earnings - may cost over $500.
  • A relatively straightforward return might include typical job-related deductions, interests and donations, mortgage deductions, and a few straightforward stock transactions.
What should be included:
  • No matter which you choose, you should receive a copy of your tax return with clear instructions of where to send them to, how much you need to pay (or how much you will be refunded), and how to complete the forms. You should also receive a copy of your tax forms for your personal records, as well as more detailed worksheets, if applicable.
  • Some higher-end accountants will provide you with addressed, stamped envelopes; others will give you only instructions.
Additional costs:
  • At a CPA, more complicated returns with unique situations requiring hours of additional work, or close work by a partner (versus an associate) can make a return costly.
Discounts:
  • Generally, you can find better retail bargains or have an easier time negotiating with an accountant if you start early - in January or early February.
Shopping for tax returns:
  • TurboTax for the Web is available online.
  • You can find local branch offices for H&R Block and Jackson Hewitt online.
  • If you're looking for a tax prepare or CPA, referrals are a great place to start; ask friends and co-workers.
Article updated November 2006
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Recent Posts
Amount: $300.00 $300 for a medium complexity return - fair price?
Posted by: a user in Mountain View, CA.Purchased: April, 2006
Type of Firm: small CPAComplexity of Return: homeowner, some stock
My CPA charges me $300 a year for my returns. I own some stock, have a fair number of work-related deductions, and have mortgage deductions. My accountant is a referral from a friend who works in a 2 person small office. I used to use a CPA in a fancy 10 person office in an expensive part of town, and they charged $475, and the results didn't seem any better (in fact, they complained a lot more and their admin kept losing my address).
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