Tax preparation cost shock

B

Bailey28

Joined
Sep 30, 2004
Messages
439
Location
North FL
For the first time in 40 years I have decided to ask for professional help figuring out family income taxes. This effort is to check whether we are paying the correct amount or not.

I find a local company that specializes in mostly business but will do personal taxes as well. I submit documents and wait for an estimate. Our return is not that complicated, I do not own a business.

Yesterday I receive the 'estimate' to prepare and file. $1,300.... and they want an additional $550 for audit protection.

Huh... talking with other family and friends everyone says they are in the 3-5 hundered dollar range for personal tax return fees if they have them done by someone if at all.

Seems like a soaking. Maybe I should just let H&R block do it or go back to the online tax program I have been using.
 
That seems outrageous. My tax returns are rather simple but the place that I use only charges about $130 ($95 US) and they usually have it done in ten minutes while I wait. I realize that more complicated returns would take longer but I’ve never heard of anyone paying more than $500 even with boxes and boxes of paperwork (like with my girlfriend)
 
Bailey28 said:
For the first time in 40 years I have decided to ask for professional help figuring out family income taxes. This effort is to check whether we are paying the correct amount or not.

I find a local company that specializes in mostly business but will do personal taxes as well. I submit documents and wait for an estimate. Our return is not that complicated, I do not own a business.

Yesterday I receive the 'estimate' to prepare and file. $1,300.... and they want an additional $550 for audit protection.

Huh... talking with other family and friends everyone says they are in the 3-5 hundered dollar range for personal tax return fees if they have them done by someone if at all.

Seems like a soaking. Maybe I should just let H&R block do it or go back to the online tax program I have been using.
Click to expand...
There is no hard fast rule on price. But 400-500 is about what we pay. Depending on how the last year played out. It really depends on how much work they have to do. If you just do the standard deduction with some W-2’s then yeah that’s a lot. And the audit protection sounds like BS. The accountant should be standing behind their client as a standard practice. And don’t think H&R Block isn’t going to try to sell you stuff either. I’m sure they have a menu of crap they want to add too.
 
H&R Block already offers audit protection for no extra fees although I think you need to have been using them for a few years in order to get that
 
Our is usually about $400 which is a rip off since it doesn't take that long. I can tell the tax preparer is just wasting time looking at documents that he has complete knowledge of and acts as if he is scrutinizing them in extreme detail. He will look at the computer screen and do nothing. I don't talk at all because I feel the bill will increase more for wasted time. I am finding a new one next year.
 
Forms DIY are relatively easy but maybe not simple yet very inexpensive.

Professional forward looking advice can be very fruitful and cost varies
joekingcorvette said:
Our is usually about $400 which is a rip off since it doesn't take that long. I can tell the tax preparer is just wasting time looking at documents that he has complete knowledge of and acts as if he is scrutinizing them in extreme detail. He will look at the computer screen and do nothing. I don't talk at all because I feel the bill will increase more for wasted time. I am finding a new one next year.
Click to expand...
I would avoid this route!
 
I pay $1750 but that includes personal returns, business returns, book keeping for the year for the business, and quarterly review and tax planning.
 
Used to use a local H&R Block and our preparer was very good. Was about $350 with the couple additional schedules we had to use. Dropped them like a hot potato when the manager failed to notice we were mistakenly filed under a disaster relief status and we got a huge refund, which we don't normally get. They didn't want to help us with their Peace of Mind program (which we paid extra to have them do) when the IRS asked for the money back. Even though it was their mistake on the return that caused it. Never again.

Use a local CPA now that is a small family owned firm and they are very good. $180 for state and federal returns.
 
Mine was $550 last year. I haven't done them this year yet. That covers my family as it's one bill. Their program of course does what it does. Both of my kids had income from 2 states each (daughter NY, CT) (son NY, CT). This year will be the same except a different state. Both have multiple interest/dividend/school/scholarship statements also.

My wife and I have NY W2's, all the house stuff, fire department pensions, interest/dividends etc.
 
Mine is right at $300., standard returns with extra docs for all my investments.
I just consider it one of my indulgences, because the couple of times that I have had issues, one phone call to my CPA, and he made it all go away. That, and he is really good at making suggestions that save me money, and offset his fee.
 
Rand said:
I use freetaxusa.com
relatively simple taxes with some non-standard income etc.
I pay them the 15.99 for state because I want them to stay in business ( I could do state on ohio.gov)
Click to expand...
I’ll second freetaxusa.com. I had a CPA do them when I had rental property, them did my own via HR Block. I switched to freetaxusa.com when HR Block had some issue with a form and haven’t looked back. I pay for them to file my state too since it’s so cheap and I like their product.
 
My daughters tattoo supply company costs her I think $500, but she has her books pristine for the CPA, he actually reduced his price for her. I go to him too, he told me if only all my clients would be so organized.
 
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