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The tax preparation fee for any individual depends on how complex his tax return is. The more complicated the return, the higher would be the fee. This holds true for all accountants who would charge for a tax return file on a flat rate, an hourly rate or quote a price for separate tax forms.

Tax Fees For Different Kinds Of Returns

• An uncomplicated tax return for income from interests, salaries, dividends and no itemization accounts can be prepared between $125 and $200.
• Self-employed people, landlords and those who have brokerage trades would have to pay somewhere between $200 and $450.
• If one claims an Earned Income Credit then he would have to pay around $150 and $200. Here the fee is due to the complex nature of the EIC tax form.

You can expect to pay more than the above mentioned prices if you are going to deal with CPA firms. Other retail and independent tax offices would be comparatively cheaper.

Tax Preparation Fees Includes:

• Electronic filling of the form
• Extra copies of the return
• A brief consultation before the tax return is filed
• Discussion on any kind of concern about the tax return at any point of time till the return is filed

Go For A Reputed Firm To Pay Your Tax

One can expect fixed tax preparation fees from national chains and outsourcing solutions. But then the kind of pricing that these chains offer might seem like a disfavor to the taxpayer after the job is done. It is best if the taxpayer sticks to a reputable firm to prepare the taxes for him. Low initial costs might save a taxpayer some amount but he also might be hit by a bill for thousands of dollars from the IRS for incorrect tax filing.

Another disadvantage of filing taxes with low end national chains is that they report the preparation expenses of Schedule A. This adds a lot more to the tax returns. On the other hand, if one hires an accountant from a CPA firm then his trade would get qualified as a business trade and they would get complete business tax deductions on Schedule C.

Fixed Fees vs. Hourly Rates

Fixed charges do not offer a fair deal to the accountants. Some tax files are complex and some are extremely simple and quick. In such a situation it is not practical to use fixed tax preparation fees. Professionals who charge their client on the basis of the time spent would be more credible and more likely to do a better job.

Sample Tax Preparation Fees

Here is a brief overview of sample tax preparation fees on an hourly basis where it has been assumed that the taxpayer has submitted legible, organized and complete paperwork.

• Basic tax return: $200
• Tax returns with itemized deductions: $250
• Registered domestic partners, cost of combined returns: $150
• Income from small, side businesses with limited deductions: $350
• Income from full time business with standard deductions: $450
• Self employment wit itemized deductions: $500
• Rental income with standard deductions: $450
• Rental income from first year set with standard deductions: $500

To avoid such fees, visit your nearest volunteer tax preparation service.