How Much Does It Cost To Get Taxes Done?

Every year during tax time, many people worry about whether they are preparing the tax return correctly.  In order to stop your confusion, you may want to have a company such as H & R Block do it for you.

How much is it?

• The cost to prepare your taxes can vary based on how much you make, whether or not you have itemization, and what you do for a living.  It can also vary according to how many people you have living in your household and what city you live in.  The cost to prepare the basic tax forms can cost as little as $25-$50.  The more complex your tax return is, the more it will cost.  Tax returns with multiple deductions can cost $50-$100 while tax returns with itemization can cost $100-$350.
• In 2009, the National Society of Accountants surveyed stated that the average return was around $229.  A Schedule C, which is used for profit and losses from a business added an additional $212.  A schedule E, which is for rental real estate and supplemental income added an additional $190 and a Form 7061 which is used for federal estate tax can cost upwards of $2,000.
• For example, a user located in New York City had a professional complete their taxes for $350.  This included both the federal and state returns.  For another user located in Portland, Oregon, the cost ranged from $170 to $250.
• A professional company such as H&R Block will charge anywhere from $29 to $120 to complete the entire tax forms for an individual.  This price will greatly depend on the geographical location.  A city such as New York City is going to cost a lot more than a place in the middle of Iowa.

What is going to be included?

• The tax consultant will go through all of your paper work and fill out your 1040 correctly.  They will then figure what you will be getting back from both state and federal.
• Most tax consultants also send in your tax return for you or file it online.

What are the extra costs?

• Some companies charge a fee as discussed above, but only have it apply to either state or federal.  They will then charge another fee to file the other.  Be sure to establish this price before you continue with the process!
• Some companies also charge a percentage of your return in the case that you get one.
• Adding on other items such as a child, home and business can all make the taxes complicated.  The more complex your finances are, the more the preparation process is going to be.
• Some accountants may charge an additional fee that have an additional side business.  If you own a business, this return can be completely separate from the personal return.
• If any problems happen with the IRS such as an audit, the accountant may charge additional fees for representation.

How can I save money?

• You can file a free return online through the IRS or through services such as Turbo Tax.  If you have a fairly easy return, this is a good option.  However, if your return is complex, you may be better off to pay a professional.
• For those that have a simple return that only requires a 1040-EZ, it may be ideal to completely bypass the professional as filing out a tax return for this type of form is rather easy to do.
• If your AGI (adjustable gross income) falls under a particular threshold, you may qualify for a free return.  Calculate your AGI to see if your return would qualify.

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