How much should you pay for tax prep?
How complex have the U.S. tax code and tax returns become? Even IRS Commissioner John Koskinen said in a recent interview that he hires tax professionals at the accounting firm of CohnReznick to prepare and file his returns, adding they charge him a few thousand dollars.
When the head of the IRS needs to turn to tax pros, it's no surprise that more people are finding themselves in the same boat.
But if you're using a tax professional, especially for the first time, how much should it cost, and how should you be charged for their services?
In its annual survey of Tax Return Preparation Fee Averages, the National Society of Accountants reports the following average fees its members charged to prepare 2014 tax returns:
- 1040 with state return with no itemized deductions: $159
- 1040 with Schedule A (itemized deductions) and state return: $273
- 1040 with Schedule A, Schedule C (business income) and a state return: $447
The average fee at the national tax service firms H&R Block and Liberty Tax Service is $147 per return and $191 per return, respectively, according the firms' annual reports (information for Jackson Hewitt wasn't available, but it should be in that range).