There are also CPAs that do not prepare taxes, like my wife. She is a CPA and won't touch taxes with a ten foot pole, but she makes the most beautiful corporate financial statements you've ever seen.
Tax preparation cost shock
- Thread starter Bailey28
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That's my whole return! That's terrible.
All of that and a the end my dads advice, you should be somewhere in the get a couple hundred back or pay a couple hundred. That means you had almost all your available money to use each month and didn't give the government a free loan. It means all your stuff and dependent's etc was correct, adjusted some for investments.
I got a large return once. Wife bought a new TV that needed a new cabinet to fit it in. All in more than the tax return.
I got a large return once. Wife bought a new TV that needed a new cabinet to fit it in. All in more than the tax return.
No argument with you. CPAs do more than just tax returns. My daughter is a partner at KPMG and does not even do her own tax return. She does audits of financial statements, a kind of work I never liked. She thinks it is amusing that her mother in law calls her with tax questions.
Ours are complicated. Wife is a retired CPA, we keep up on quarterly payments, and keep track of everything. Also have a Tax Attorney make sure we're in compliance. I'll know the total cost for the year, after we file a day before the deadline.
That means you're doing it wrong getting a return over $1K.
I have been DIY with taxes for 40 years. For the past few years I have been using FreeTax USA and I like how the program works.
This entire endeavor was to "see" if we are doing the taxes correctly because of the large amount I pay every year. There is no refund. However, I think the issue lies in my withholding status where I keep most of my gross throughout the year rather than loaning it to the government. Married claiming zero seems to withhold almost nothing and single claiming zero withholds way too much. There is no in between.
It even sounds like my original 3-5 hundered dollar estimate is on the high side according to most of your replies. I will not proceed with them and just keep DIY>
This entire endeavor was to "see" if we are doing the taxes correctly because of the large amount I pay every year. There is no refund. However, I think the issue lies in my withholding status where I keep most of my gross throughout the year rather than loaning it to the government. Married claiming zero seems to withhold almost nothing and single claiming zero withholds way too much. There is no in between.
It even sounds like my original 3-5 hundered dollar estimate is on the high side according to most of your replies. I will not proceed with them and just keep DIY>
I can understand a business owner using a professional service but just can't see paying someone for tax preparation for the average tax filer.
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I started using Turbo Tax years ago after I compared what it cost vs using a tax preparation service I had been with for over 15 years.
For the first two years of using Turbo Tax I also used the tax preparation service and compared not only the questions both asked me (virtually the same questions and number and breadth of questions), but also the deductions each made and what I owed or was to receive as a refund. In all cases, the amounts were within $5.00 of each other.
As a result, I switched over to using Turbo Tax and have been very happy with it. Additionally the cost difference between using the tax preparation service and Turbo Tax was essentially nonexistent.
The other thing I have learned over the years is that not all CPAs are tax experts and not all tax experts are CPAs or attorneys. The handful of CPAs I have interviewed over the years who did do taxes more often than not, did not fully understand the tax codes even when using software to prepare customers returns.
I've been very happy with Turbo Tax.
For the first two years of using Turbo Tax I also used the tax preparation service and compared not only the questions both asked me (virtually the same questions and number and breadth of questions), but also the deductions each made and what I owed or was to receive as a refund. In all cases, the amounts were within $5.00 of each other.
As a result, I switched over to using Turbo Tax and have been very happy with it. Additionally the cost difference between using the tax preparation service and Turbo Tax was essentially nonexistent.
The other thing I have learned over the years is that not all CPAs are tax experts and not all tax experts are CPAs or attorneys. The handful of CPAs I have interviewed over the years who did do taxes more often than not, did not fully understand the tax codes even when using software to prepare customers returns.
I've been very happy with Turbo Tax.
That does seem high for an individual return with no business involved. My wife's small business spends about $5k a year for tax services, but that is for much more services than an individual needs.
As far as "audit protection" that's nonsense. No one can "protect" you from IRS audit, and anyone who is good at defending an audit will want more than that, much more than that, just to get the process rolling.
For an individual return, depending on the schedules, and whether you have state and local taxes or any other odd situations, having a professional do it (not a storefront) should go anywhere from a few hundred dollars to maybe $1k at most.
Long way of saying I agree with you, fwiw. Find someone else.
Self-employed (LLC not S Corp) + w2(s). I have always used Turbo Tax. The small business version is $~100 at Costco. Also let's me do the rest of the family with free federal e-file for all included; state e-file is not included so I usually print/mail those (e-file mine, kids are mailed). I am my own accountant and keep detailed records through the year for my self-employed geologic consulting business so it's fairly straightforward to file my taxes using the software (fairly...
). I pay estimated quarterly fed/state. I spend time each tax season/throughout the year staying up-to-date on any pertinent tax law changes that may impact me. My system includes a "model" of my taxes (just a spreadsheet version of TT essentially) that I keep updates throughout the year as my income/expenses progress so I can adjust my quarterlies accordingly; I usually am close at the end but had a few whoopsies over the last 9 years of doing this This year is one...I overpaid as my self-employed income dropped off as I picked up full-time W2 work again.
). I pay estimated quarterly fed/state. I spend time each tax season/throughout the year staying up-to-date on any pertinent tax law changes that may impact me. My system includes a "model" of my taxes (just a spreadsheet version of TT essentially) that I keep updates throughout the year as my income/expenses progress so I can adjust my quarterlies accordingly; I usually am close at the end but had a few whoopsies over the last 9 years of doing this This year is one...I overpaid as my self-employed income dropped off as I picked up full-time W2 work again.
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Typical sucker filter.
They have enough business, can't bother, so they put an insane number because it can't hurt. If you say no - no skin off their backs. If you accept - welcome to the suckers drawer.
JTK
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$95.70 all in for Intuit/TurboTax prep and E-file for Fed and State. It took some doing to keep the cost that low. The way the software guides your "clicks", you can easily upgrade yourself to something 'premium' or agree to various up-charges for speedy this or speedy that. Married, filing jointly, one income and I could only claim one of my 4 kids anymore.
It's about opportunity cost. If they were specialized in business tax it would still take them a lot of time to do personal taxes and they would rather not do it unless you really have to have them do it for some reason (privacy, family tie, etc).
This is like someone wanting me to do a $25/hr work when I am already making $170/hr. Sure that's the market rate for the $25/hr work, but that's not what I typically do and I would probably rather do the $170/hr work.
Why do you want them to do it is probably the question instead of why they charge so much.
This is like someone wanting me to do a $25/hr work when I am already making $170/hr. Sure that's the market rate for the $25/hr work, but that's not what I typically do and I would probably rather do the $170/hr work.
Why do you want them to do it is probably the question instead of why they charge so much.
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Question is answered in the first post:
As long as they advertise on doing personal taxes as well, I'd ask questions if they omit the fact that they do that at business tax prices.
My expertise is the same price for business or personal taxes. Why would personal taxes be a lower, or higher, price? Do you believe personal taxes are somehow simpler?
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If your position is that the OP should've avoided the place altogether OR have been prepared for a sticker shock just because the shop said "Business taxes" in the description - we'll have to disagree.
Even my car dealership has different hourly rates for different types of operations. Clearly stated on the wall. Electrical work is more expensive per hour, working on EV vehicles - even more so.
And the issue in our specific case is not even that the rates should or would be different. They don't have to be. It is that they seem to be quoting the OP for the amount of time they would quote a business. Or, that they are quoting him about $800 per hour. Or, that there's something we don't know, and the OP's tax return will take a full day to churn through.
This would get us at the last part - yes, I believe that filing from a W2 or two that the client throws at you is easier work than having to go through how much tip a company expensed on 150 business diners in 27 states while counting through a million tariffs and schedules.
We have a similar situation. That's about right. Ours runs from $500-$750, and we have lots of real estate we have to handle.
I don't think that is conflicting. They CAN do personal tax but that doesn't mean they have to do at a lower price because their opportunity cost is still the same.
That's like going into a steak house to order a scoop of ice cream would cost more than going into Baskin Robins even if they say they are serving that same ice cream on the menu. Will they serve it? Sure, but that doesn't mean it is a cheaper price.
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