Looking for tax prep services? The video “How Do Tax Preparers Set Their Rates?” by LX News covers differences in tax preparation fees in the U.S. The video opens with people on the street telling Miguel Estrada, the reporter, how much they paid to have their taxes prepared, and the prices ranged from $49 to $350 for an individual who works with an accountant.
Generally, tax preparers charge by the hour, by the form, or by setting a fee to handle a client’s taxes. Those fees only cover preparing someone’s forms and may charge more to those needing tax planning, electronic filing, or other services.
Besides differences in how they charge, there can be significant differences in the amount charged. Clients are often charged less if they are from states that do not have an income tax since they do not need to prepare a state form. The tax preparer’s location also comes into play due to cost-of-living differences.
Charges can differ based on the tax preparer’s credentials and experience, such as whether they are a CPA or an Enrolled Agent. Last, the client’s organizational skills matter since organized clients are easier to deal with and do not require bookkeeping before doing the return.
The recommendation is to save money by matching the preparer’s skills with your needs and to be an organized client.