What Are Some Typical Tax Preparation Fees?


Quick Answer

Typical tax preparation fees include charges for Form 1040 without itemized deductions; Form 1040 with itemized deductions and a state return; and Form 1040 with a state return, itemized deductions and business income, according to CBS MoneyWatch. Fees also vary according to geographic region as well as the tax preparation firm's gross annual income, notes AccountingWeb.

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Full Answer

The taxpayer's specific tax situation and income also impact the overall cost of preparation, according to CBS MoneyWatch. Having well-organized tax records can save a person money on the overall cost of fees, as tax preparers may charge more for incomplete and/or jumbled records. Having taxes done sooner rather than later might save taxpayers on fees while ensuring the tax preparer has adequate time to review and prepare returns. There is also a fee for filing an extension.

Some tax preparation firms base their fees on what they charged in previous years, notes CBS MoneyWatch. Others charge for the total amount of time spent on a return or a flat fee for every customer. It's recommended that individuals not do business with firms that charge fees based on a portion of their total tax returns. Tax preparers who receive a commission for the number of tax returns prepared may not do a very thorough job on customers' taxes.

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