Find a Tax Accountant near you
The average rating for Bark Tax Accountants is 4.89, based on 214,256 reviews
5/5
based on 214,256 reviews
Ready to file your taxes? Read our handy guide to find out how much your tax preparer will charge for their services.
If you need help filing your taxes, then it’s time to consult a professional like a tax preparer or tax accountant. For small business owners, freelancers, or just about anyone in the US, comprehending the nuances of tax preparation charges is key to making informed and lucrative decisions. You could also ask a local general accountant, but a tax preparation specialist is more likely to be able to help you with your specific tax return needs.
Tax preparation involves collecting all of the information relating to your business or personal income. It will be used to determine how much tax you need to pay to the government. Plus, to check what money you may be owed back too. Your tax accountant will help you create a record of your expenses, and ensure all the forms you need to file are completed correctly. Simple!
Ready to get started? Find a local tax accountant here.
In the US, hiring a tax professional can cost between $170 and $250 for average returns. For individuals with more complex finances or those seeking the expertise of top-tier specialists, the fee can ascend to $450 and beyond. These costs have been relatively stable in recent years but can still fluctuate based on your tax situation and the geographic location of the specialist.
| Average cost | $250 |
| Minimum cost | $170 |
| Maximum cost | $454 |
If you opt for an accountant charging hourly, the ideal range is $100 to $200 per hour, with CPA rates falling around the higher end of the spectrum due to their additional certification and expertise.
For those with a larger volume of accounting needs, day rates can be employed, ranging from $800 to $1,500 a day, which is more cost-effective for extensive tax consulting or audit-preparation engagements.
While the cost of hiring a tax preparer may seem expensive, compared with filing your own taxes, it will save you a lot of time and hassle. Plus, given it’s so easy to make mistakes, it’s always worth having a professional take care of your taxes for you.
Given one of the goals of tax preparation is also to look for savings, you will likely find that the investment will actually save you money overall.
Understanding the factors that affect tax preparation costs can help you anticipate and manage your expenses more effectively. Here's how certain variables can influence the bill:
Complicated tax situations, which might involve multiple income streams, rental property, or significant investments, will naturally demand more time and expertise, thus leading to higher charges.
Take the time to consider your tax preparation needs, as to the type of tax preparer you choose. Each brings different skills to the table and also has varying costs.
On the cheaper end of the scale, an enrolled agent can cost as little as $115. Enrolled agents have unlimited representation rights before the IRS.
The most expensive preparer is attorneys, who can charge $425 and above their services. As licensed professionals in taxation laws, they have extremely advanced knowledge in all things tax.
| Type of tax preparer | Highest average price | Lowest average price |
| Attorney | $425 | $220 |
| Certified public accountant (CPA) | $273 | $176 |
| Enrolled agent | $300 | $115 |
The more aspects your tax return has to incorporate, the more costly the preparation will be. So even if you’re self-employed, if your income is extremely complex (especially if it involves foreign income) then the cost of tax preparation will likely be higher.
Depending on how much you earn, this will determine not just how much tax you have to pay, but how complex your return will be. Generally speaking, if you’re on a lower income your tax preparation will be easier to complete, therefore cheaper.
As you hit the top tax bands, there are a lot more sections to complete and aspects to consider. Plus, you’ll want your accountant to make sure they are saving you as much money as possible, which will take extra time.
If you want to save time, money, and hassle with your tax preparation, don’t turn up to your accountant’s office and empty a bag of receipts on their desk! It’s essential you keep a good record of every penny that comes into your business and leaves it.
Consider hiring a bookkeeper if you don’t have time to do this yourself, as ultimately it will impact your tax preparation. Your accountant needs a good overview of the state of your finances, which can’t happen without diligent record-keeping.
Accountants offer a wide range of services from business forecasting to estate planning. You may wish to have tax preparation included as a package or add in other services as you need them. Or, some services may be added on that are essential for the proper completion of your tax preparation if applicable. All of which will affect the total cost.
Tax preparers don’t typically charge by the hour anymore, though the amount of time your tax preparation will take will be factored into their quote. Complex financial affairs will require more time to sort through, therefore those individuals can expect to pay more for tax preparation.
As with any service you wish to hire, you will find tax preparers who are newly qualified, and those who have decades of experience. Expect to pay more for seasoned professionals, versus those who have only just graduated.
Tax preparers will charge different rates depending on where they are based. This is due to the difference in living and operational costs. Tax professionals in larger cities like New York or San Francisco often command higher fees compared to their counterparts in smaller towns.
The cheapest location to hire a tax preparer is Wisconsin, costing $170 on average. This increases to $250 in California.
| Location | Average tax preparation cost |
| California | $250 |
| Texas | $195 |
| New York | $235 |
| Wisconsin | $170 |
| Colorado | $210 |
It’s also possible to hire tax preparers remotely, which means you can select the best professional for your tax preparation, regardless of your location.
Though it’s worth keeping in mind that the true cost will depend on not just where you are based, but also the complexity of your accounts.
One of the modern dilemmas confronting taxpayers is the choice between an in-person or online tax specialist. While the traditional route might provide a more personal touch, online platforms can often offer cost savings due to reduced overheads.
With online tax services, expect to pay between $120 and $200, a marginally lower cost than in-person specialists. However, more complicated online returns may still incur additional fees.
Not all tax preparation services are created equal, nor are their corresponding prices. Different filers with unique tax situations may need specific expertise:
For individuals with straightforward tax situations, such as the employed who earn a single income and standard deductions, prices can remain within the $200 range.
The complexity of business taxes, encompassing both state and federal obligations, often results in costs ranging between $1,200 to $2,500 for small businesses, with larger corporations paying over $5,000.
Estate and trust tax preparation, often intricate and subject to its own set of complex regulations, can command sizable fees, averaging around $3,000.
The prospect of filing taxes may not elicit joy, but there is joy to be found in smart spending, even in this arena. Here are practical tips to reduce your tax preparation costs:
The more prepared you are when you meet with a tax professional, the less time they’ll need to spend sorting through your documents, saving your pocket from undue strain.
Don’t shy away from asking for discounts, especially if you have a longstanding relationship with a tax professional or they’re angling for your business during non-peak seasons.
If the scope of your finances allows, consider partially taking on the tax preparation yourself to minimize the specialist’s billable hours.
The prospect of locating a tax accountant within your budget may seem like a labyrinthine quest, but it needn’t be daunting. Use these steps to find a tax specialist that's the right fit for you:
Search for specialists in your area, ask for quotes, and compare the services offered against your tax situation to pinpoint the most cost-effective choice.
Ensure that the professional you're considering has the appropriate certifications and a history of reliability. A good tax accountant is an investment in peace of mind.
Peer reviews and personal referrals often lead to both competitive pricing and quality service, as satisfied clients are the best indicators of a trustworthy professional.
In conclusion, by breaking down the costs associated with tax preparation, we've demystified the process of financial planning around this essential element of economic citizenship. What remains is for you to approach this tax season with a keen eye for savings while not compromising on the competence your taxes deserve. Remember, the expertise of a tax professional can often pay for itself in the forms of deductions discovered and pitfalls avoided. Make the informed choice and the fiscal year shall unfold with the sweet sound of savings.
The average rating for Bark Tax Accountants is 4.89, based on 214,256 reviews
5/5
based on 214,256 reviews
