What if you were punished for your financial success?
When it comes to taxes, that’s exactly how it feels. In general, the more money you make, the likelier you are to get audited by the IRS.
You’re even more likely to get audited if you don’t have your taxes prepared by a professional. Unfortunately, many people hold off on professional tax preparation because they worry about the cost.
How much does tax preparation cost, and how can it benefit you? Keep reading to discover the answers!
How Much Does Tax Preparation Cost?
How much does tax preparation cost? The short, honest answer is that it depends on your taxes.
For example, if you only have a basic tax form, the cost is lower. In that case, your tax preparation cost is likely to be somewhere in the $200-$250 range.
However, the more complex your taxes are, the higher the fee will be. The reason for this is simpler: when your tax forms are more complex, it takes a tax preparation expert longer to prepare them, and the expert passes those costs along to you.
Different Kinds of Rate Structures
Another reason that tax preparation costs can vary is that different experts have different rate structures. Some experts charge by the hour, and some charge by the specific services they perform.
As an hourly rate, many experts charge somewhere between $100 to $200 per hour. As we noted before, the longer your taxes take to prepare, the higher the final fee will be.
Other tax experts may charge flat fees for specific forms. For example, you may pay one fee for a basic 1040 with a schedule A and another fee for a Schedule C.
Either way, if your taxes are more involved and complex, you can count on the tax preparation fee being higher.
Other Factors Affecting Tax Preparation Cost
So far, we have focused on one factor affecting tax preparation costs: the complexity of your tax forms. But what are the other factors that may affect how much you pay?
Sometimes, you pay more for tax experts with certain qualifications. For example, you will pay more for a tax expert with a CPA, but that expertise will be worth it in case you get audited.
Other times, you pay less if your paperwork is very organized. If the tax expert charges by the hour, then simply organizing your paperwork beforehand will save them time and, therefore, save you money.
In some cases, average rates are different in different parts of the country. If you want to make sure you are getting a fair rate, it’s important to compare rates in your area rather than in other cities or states.
Get the Best Tax Preparation Today
Now you have an answer to the question, “how much does tax preparation cost.” However, do you know where you can find the tax preparation expert you deserve?
Here at Sterling, we specialize in taking care of all your tax and accounting needs. To discover the difference Sterling makes, all you have to do is contact us today!
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