How much do you pay your tax professional?
How much do you pay your tax professional?
I realize this is a loaded question with a great deal of caveats depending on how complex your tax situation is.
For context, DW and I live in CA and are W2 employees. We've been seeing an EA for the last several years. I used to use tax software to do it myself, but shifted over to a professional to see if they could do better.
This year we were charged $475 for State and Federal (1040, Schedulers A, B, D, E, Foreign Tax Credit, Child Care Expense, Passive Activity Loss, and Noncash Contributions). Additionally, another $120 for 1099 Div and Stock Sales, for a total of $595.
Is this in line with market rates? What are you paying?
For context, DW and I live in CA and are W2 employees. We've been seeing an EA for the last several years. I used to use tax software to do it myself, but shifted over to a professional to see if they could do better.
This year we were charged $475 for State and Federal (1040, Schedulers A, B, D, E, Foreign Tax Credit, Child Care Expense, Passive Activity Loss, and Noncash Contributions). Additionally, another $120 for 1099 Div and Stock Sales, for a total of $595.
Is this in line with market rates? What are you paying?
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Re: How much do you pay your tax professional?
We are also in CA and had the same schedules. Last year we paid our CPA $400 + $170 to get our 2 kids returns done as well.
A fair price for excellent work
$400 this year. Same family firm since 1980.
SS
W2
UI benefits
tiny business
tiny pension
RMDs
QCDs
Roth conversions
HSA - in/out
SS
W2
UI benefits
tiny business
tiny pension
RMDs
QCDs
Roth conversions
HSA - in/out
Old fart who does three index stock funds, baby.
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Re: How much do you pay your tax professional?
I pay him all of my money. Because I am a tax professional (though I do corporate tax law, not individual returns).
I think it will be tough to get a really good read on what tax prep should cost. You can do anything from free file yourself, to $20 tax software, to shady strip mall joint, to hiring a Big4 accounting firm, to hiring a staff for your family office. $595 sounds like a reasonable ballpark for a relatively ordinary individual return.
I think it will be tough to get a really good read on what tax prep should cost. You can do anything from free file yourself, to $20 tax software, to shady strip mall joint, to hiring a Big4 accounting firm, to hiring a staff for your family office. $595 sounds like a reasonable ballpark for a relatively ordinary individual return.
Re: How much do you pay your tax professional?
I don’t get paid anything for the excellent tax preparation services I provide to myself.
Re: How much do you pay your tax professional?
$49.90 for Turbotax Deluxe.
Re: How much do you pay your tax professional?
Seems reasonable to me. For the tax year my father died (2009) I had my mom use dad's tax preparation firm. The return was not terribly complicated and she was charged $500 for federal & state (VA) and had to mail in the returns herself.OnBoard wrote: ↑Tue Mar 02, 2021 12:58 pmThis year we were charged $475 for State and Federal (1040, Schedulers A, B, D, E, Foreign Tax Credit, Child Care Expense, Passive Activity Loss, and Noncash Contributions). Additionally, another $120 for 1099 Div and Stock Sales, for a total of $595.
Is this in line with market rates? What are you paying?
Thereafter I did her returns myself using TT or HRB software.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
Re: How much do you pay your tax professional?
If you think of the process, I have to do some/most of the work even if someone else inputs the data.
1. Gather tax documents, W2, etc
2. Input into tax software or paper forms
3. Verify accuracy of forms
4. File and pay (E-file or paper)
One year I paid someone to do our taxes for $375. I did 1, 3 and they did 2 and 4.
Doing #3 required me to pretty much do #2 again. I caught a bunch of errors/omissions.
In CA, $575 might be well worth it.
I went back to doing it myself with TaxAct.com.
1. Gather tax documents, W2, etc
2. Input into tax software or paper forms
3. Verify accuracy of forms
4. File and pay (E-file or paper)
One year I paid someone to do our taxes for $375. I did 1, 3 and they did 2 and 4.
Doing #3 required me to pretty much do #2 again. I caught a bunch of errors/omissions.
In CA, $575 might be well worth it.
I went back to doing it myself with TaxAct.com.
Re: How much do you pay your tax professional?
That sounds about right if you were in my MCOL area. You have a Sch E and Passive Activity Loss so there is apparently something going on that bumps the return up a notch. And you are itemizing and taking credits that require additional time. Surprised it is not more in CA.
- lthenderson
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Re: How much do you pay your tax professional?
I used to go to "professionals" but one year after paying a professional what I thought was an exorbitant amount, I bought tax software and did it myself and got the same exact answer. I've been paying myself zero dollars a year since for doing the same thing.
Re: How much do you pay your tax professional?
~$500 US
~$2000 for abroad - though someone else foots the bill
~$2000 for abroad - though someone else foots the bill
Re: How much do you pay your tax professional?
When I did taxes for my parents, they would pay for a dinner out, but I had to drive.
Re: How much do you pay your tax professional?
0.28% of our adjusted gross income last year. In the range of full retail on one G.Loomis-Shimano Conquest bass rod. Some years more, some less.
I did my taxes from '65 to '16 and my parents' taxes from '05 to '17 and it's worth it now to have somebody else do the whole mess for us - the SSA worksheet, the this worksheet, the that worksheet, the foreign taxes paid, the AMT worksheet (is there even an AMT anymore?), the capital gains, the excess this and excess that, losses, dividends, interest, carryovers, and the 40-some pages of numbers I printed out yesterday from my decades-old taxable account. They tell me how much to pay in estimated to reach safe harbor each year (and I write a check to cover it) and then how much we owe in addition if it's been one of those good years. They call me when it's ready, I go in and sign it and write the checks and they take care of it.
I'd rather go fishing. We'll be in Nags Head NC next week and on Ocracoke for a few days, too.
I did my taxes from '65 to '16 and my parents' taxes from '05 to '17 and it's worth it now to have somebody else do the whole mess for us - the SSA worksheet, the this worksheet, the that worksheet, the foreign taxes paid, the AMT worksheet (is there even an AMT anymore?), the capital gains, the excess this and excess that, losses, dividends, interest, carryovers, and the 40-some pages of numbers I printed out yesterday from my decades-old taxable account. They tell me how much to pay in estimated to reach safe harbor each year (and I write a check to cover it) and then how much we owe in addition if it's been one of those good years. They call me when it's ready, I go in and sign it and write the checks and they take care of it.
I'd rather go fishing. We'll be in Nags Head NC next week and on Ocracoke for a few days, too.
- Taxapalooza
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Re: How much do you pay your tax professional?
I'm a Tax professional and CPA. Though I now specialize in corporate tax I did stint in high net worth tax for the first few years after graduation.
Unless your family has significant issues requiring a professional like estate taxes, trusts, and/or a family-owned business in an S-Corp or passthrough structure, I think the amount you pay your CPA should be viewed as how much time you save to pursue other activities or simply relieve yourself of the stress. My folks use Turbotax for a financial profile involving a few dependents, capital gains and Company stock options, and significant Schedule A items. While it saves them the $400-$500 they'd pay otherwise for a personal CPA, they do spend a solid weekend (2 days or so) getting their taxes done themselves. The flipside is they also don't feel comfortable handing their personal information over to a third party (a CPA like myself) so DIY is their preferred approach. Money spent - on software or a professional - that helps you relax and sleep at night is likely the best metric in this case.
Unless your family has significant issues requiring a professional like estate taxes, trusts, and/or a family-owned business in an S-Corp or passthrough structure, I think the amount you pay your CPA should be viewed as how much time you save to pursue other activities or simply relieve yourself of the stress. My folks use Turbotax for a financial profile involving a few dependents, capital gains and Company stock options, and significant Schedule A items. While it saves them the $400-$500 they'd pay otherwise for a personal CPA, they do spend a solid weekend (2 days or so) getting their taxes done themselves. The flipside is they also don't feel comfortable handing their personal information over to a third party (a CPA like myself) so DIY is their preferred approach. Money spent - on software or a professional - that helps you relax and sleep at night is likely the best metric in this case.
Don't give up the ship.
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Re: How much do you pay your tax professional?
I have done our taxes for years, but my wife wanted to build a relationship with a CPA to help if she has to prepare taxes alone. Federal / State with Schedules A,B,C and D with some additional complexity - $500 with local firm. Was quoted $1500 from regional firm (seems very high).
Re: How much do you pay your tax professional?
IIRC, the last couple of years have been in the $250-$275 range. Will see what it is this year soon.
Re: How much do you pay your tax professional?
\$300. Switched to a new firm this year as the person I worked with the last 20 years retired.
- bhwabeck3533
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Re: How much do you pay your tax professional?
I volunteer for RSVP and prepare and file taxes for the public. I have also volunteered with AARP's TaxAide service in the past. Both great organizations. The service is free. Very few "scope" limitations, we help just about everyone who walks in the door. We do try to steer high-income individuals to a paid preparers so we can spend our time with clients who cannot afford to pay for tax prep services.
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Re: How much do you pay your tax professional?
If you pay for your tax returns to be done, do you check it? How extensively? Or is all your trust placed into the results with no checking? How do you know they did it right?
If you pay someone, how do they do it? Do they just use Turbo Tax to input your data?
When paying someone, do you provide all info all organized, or do you just dump the paperwork on them in a box.
It seems to me that if you pay someone and you don't check it and you provide an organized folder and they may simply use commercially available software, then you may as well do it yourself. And, why would you not check it? Seems as if BHs are so penny oriented they would not skip any chance to see if maybe they were paying a dollar when they could save a nickel.
If you pay someone, how do they do it? Do they just use Turbo Tax to input your data?
When paying someone, do you provide all info all organized, or do you just dump the paperwork on them in a box.
It seems to me that if you pay someone and you don't check it and you provide an organized folder and they may simply use commercially available software, then you may as well do it yourself. And, why would you not check it? Seems as if BHs are so penny oriented they would not skip any chance to see if maybe they were paying a dollar when they could save a nickel.
Re: How much do you pay your tax professional?
Last year I paid him $525
This year he charged me $550
This year he charged me $550
Re: How much do you pay your tax professional?
I think my total is around $350, but I'm taking a guess on the split because I know I pay him around $900 for personal/business taxes. I know that I could do it myself, but I've just run into some situations where I like having him available to help me out. I could easily do my personal taxes on my own.
Re: How much do you pay your tax professional?
$395 for state and federal this year. Past years anywhere from $500-$1500 because of K-1's and more complicated tax issues.
Dave
Dave
"Reality always wins, your only job is to get in touch with it." Wilfred Bion
Re: How much do you pay your tax professional?
Same guy for 15 years...W-2 and 1099 couple , until I retired. Simple process and billing. We walk in, he has our previous info all set up to roll over and he does the return in front of us on a large screen. He says "Give my your..." until we have no more relevant year end statements left. Runs it through his software, he prints out everything, we sign it and he submits it first to software co and then onto State and Fed.
! hour appointment, his next client is usually waiting out in the hallway when we leave.
Fee? $200 and $10 per page for any other reporting that kicked out. $250 this year. Oh, and he subjects us to the same off color jokes each year and we dutifully laugh like it was the first telling! Only problem is he is in his mid 70's so at some point we will have to find a new preparer.
NB: We had our taxes done last Friday afternoon. We have a refund this year due to starting a new job and overpaying SS. He warned us that he is hearing they are way behind in processing so it may be a month before we see our refund. This morning, we went into our bank account and the refund is "pending" which means they received it last night and this is only the 3rd business day since it was submitted! We were very suprized.
! hour appointment, his next client is usually waiting out in the hallway when we leave.
Fee? $200 and $10 per page for any other reporting that kicked out. $250 this year. Oh, and he subjects us to the same off color jokes each year and we dutifully laugh like it was the first telling! Only problem is he is in his mid 70's so at some point we will have to find a new preparer.
NB: We had our taxes done last Friday afternoon. We have a refund this year due to starting a new job and overpaying SS. He warned us that he is hearing they are way behind in processing so it may be a month before we see our refund. This morning, we went into our bank account and the refund is "pending" which means they received it last night and this is only the 3rd business day since it was submitted! We were very suprized.
Re: How much do you pay your tax professional?
Used many over the years-
two w2s, couple investments and rental property
first guy- used for 2 years- 200-250$-- missed filing my wifes w2 entirely in the 2nd year with him
2nd guy-- 1000$--- did not file form 8606 and kept offering financial advice 'services'
3rd guy-- 200-250$, He does an okay job- I double check what he does line by line. I feel reasonably confident in understanding and filing tax returns over the years now.
If I have to check everything the cpa does anyways-- I might as well pay them the least amount for that advice.
two w2s, couple investments and rental property
first guy- used for 2 years- 200-250$-- missed filing my wifes w2 entirely in the 2nd year with him
2nd guy-- 1000$--- did not file form 8606 and kept offering financial advice 'services'
3rd guy-- 200-250$, He does an okay job- I double check what he does line by line. I feel reasonably confident in understanding and filing tax returns over the years now.
If I have to check everything the cpa does anyways-- I might as well pay them the least amount for that advice.
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Re: How much do you pay your tax professional?
$450.
Have a K1 that gets calculated in so that probably takes a little longer than normal.
Have a K1 that gets calculated in so that probably takes a little longer than normal.
- Go Blue 99
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Re: How much do you pay your tax professional?
About $600 to H&R Block. I haven’t been happy with them (guy tried to tell me last year that Backdoor IRA is now banned). I’m trying a local firm this year so we’ll see how that goes. I’d normally do them myself but we have K-1 income/losses that I want professional help with.
Re: How much do you pay your tax professional?
$0.00 do it myself with pen and paper I mean using pdf fillable forms.
"Know what you own, and know why you own it." — Peter Lynch
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Re: How much do you pay your tax professional?
Used to pay around $500/yr. Realized that me and my wife were doing most of the work. My tax situation really isn’t that complicated so have been doing HR Block download software for the last few years. I like being able to chip away at the process.
Jerry Garcia: If I knew the way...I would take you home.
- abuss368
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Re: How much do you pay your tax professional?
Federal - $0 - using Freetaxusa.com
State - Either 40 of state portal (which is being updated) or $12 using Freetaxusa.com
Local - 40 - using local tax collector online portal.
Tony
State - Either 40 of state portal (which is being updated) or $12 using Freetaxusa.com
Local - 40 - using local tax collector online portal.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
- abuss368
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Re: How much do you pay your tax professional?
Hi Dave -
Are you missing a few zeros there? Are you sure you were not paying $39,500 and between $50,000 - $100,000 considering all of your shore entities and international mega corporations?
Tony
John C. Bogle: “Simplicity is the master key to financial success."
Re: How much do you pay your tax professional?
At my age Tony, I occasionally do miss a few zero's, thanks for catching that.
Dave
"Reality always wins, your only job is to get in touch with it." Wilfred Bion
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Re: How much do you pay your tax professional?
Around $700-$1000 for personal taxes in a HCOL with a somewhat complicated tax situation due to businesses.
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Re: How much do you pay your tax professional?
Its the HR Block person a CPA or a just a certified tax preparer? You often have to be careful with those "tax in a box" places because a lot of them are just tax preparers who do nothing more than data entry. I'm in the same boat as you with business income and it's worth it to me to pay for a CPA who can give good advice on tax planning in addition to doing the taxes.Go Blue 99 wrote: ↑Wed Mar 03, 2021 9:35 pm About $600 to H&R Block. I haven’t been happy with them (guy tried to tell me last year that Backdoor IRA is now banned). I’m trying a local firm this year so we’ll see how that goes. I’d normally do them myself but we have K-1 income/losses that I want professional help with.
- abuss368
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Re: How much do you pay your tax professional?
You are awesome sir!Dave55 wrote: ↑Sat Mar 06, 2021 7:56 amAt my age Tony, I occasionally do miss a few zero's, thanks for catching that.
Dave
Tony
John C. Bogle: “Simplicity is the master key to financial success."
Re: How much do you pay your tax professional?
I think you two should get together and determine your prices. One of your seems underpaid and the other overpaid.alfaspider wrote: ↑Tue Mar 02, 2021 1:21 pm I pay him all of my money. Because I am a tax professional (though I do corporate tax law, not individual returns).
Bob
- quantAndHold
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Re: How much do you pay your tax professional?
We paid $240 this year for:
Fed 1040, two states, can't recall the schedules
We don't have a totally complicated situation, but it's mainly for peace of mind since I am unable to do them myself.
I do try and compare at a high level to see if I get the same figures. I usually do, and when I don't it's because I made a mistake entering info...which reinforces why I don't risk doing it myself
But it's nice to check, and then I can run scenarios through the year to look at scenarios for unexpected income.
Fed 1040, two states, can't recall the schedules
We don't have a totally complicated situation, but it's mainly for peace of mind since I am unable to do them myself.
I do try and compare at a high level to see if I get the same figures. I usually do, and when I don't it's because I made a mistake entering info...which reinforces why I don't risk doing it myself
But it's nice to check, and then I can run scenarios through the year to look at scenarios for unexpected income.
Re: How much do you pay your tax professional?
I don’t mind doing it for free. My client is a turbo idiot, and I pity him.......CABob wrote: ↑Sat Mar 06, 2021 1:46 pmI think you two should get together and determine your prices. One of your seems underpaid and the other overpaid.alfaspider wrote: ↑Tue Mar 02, 2021 1:21 pm I pay him all of my money. Because I am a tax professional (though I do corporate tax law, not individual returns).
Re: How much do you pay your tax professional?
They did. Granted they were charging me $120 at the time.
Re: How much do you pay your tax professional?
We don't have enough info to determine profitability, how expensive was the restaurant, were you allowed to order drinks/appetizers, and how much did the gas cost
"Don't trust everything you read on the Internet"- Abraham Lincoln
Re: How much do you pay your tax professional?
The rate sounds reasonable. But none of the schedules you are using are difficult to understand, so I would do it myself in the future and save $600 if I was you. It should only take you 3-4 hours. One year when I used TurboTax I paid for their audit defense, I think it was $50. I got a letter from the IRS saying I owed $3,000 in taxes, CP2000 letter. I thought the letter from TurboTax's CPA about why the IRS was wrong was weak, so I wrote the letter myself. The IRS agreed I owed no additional money. I made TurboTax give me the $50 back. The IRS agent on the phone agreed I was right before I sent out the letter.OnBoard wrote: ↑Tue Mar 02, 2021 12:58 pm I realize this is a loaded question with a great deal of caveats depending on how complex your tax situation is.
For context, DW and I live in CA and are W2 employees. We've been seeing an EA for the last several years. I used to use tax software to do it myself, but shifted over to a professional to see if they could do better.
This year we were charged $475 for State and Federal (1040, Schedulers A, B, D, E, Foreign Tax Credit, Child Care Expense, Passive Activity Loss, and Noncash Contributions). Additionally, another $120 for 1099 Div and Stock Sales, for a total of $595.
Is this in line with market rates? What are you paying?
"Don't trust everything you read on the Internet"- Abraham Lincoln
- anon_investor
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Re: How much do you pay your tax professional?
This year $30 for TT Deluxe off Amazon (thanks to a timely BH thread about the 1 day discount).
But I have simple taxes W-2, 1099-INT/DIV/B/R, and mortgage. TT can handle my backdoor Roth fine. That is the most complicated thing I have.
But I have simple taxes W-2, 1099-INT/DIV/B/R, and mortgage. TT can handle my backdoor Roth fine. That is the most complicated thing I have.
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Re: How much do you pay your tax professional?
Well, the difference is I do tax for a living. I have to pay myself. Amateurs can do it for freeCABob wrote: ↑Sat Mar 06, 2021 1:46 pmI think you two should get together and determine your prices. One of your seems underpaid and the other overpaid.alfaspider wrote: ↑Tue Mar 02, 2021 1:21 pm I pay him all of my money. Because I am a tax professional (though I do corporate tax law, not individual returns).
Re: How much do you pay your tax professional?
Last week I got a letter from the office of my CPA (his office consists of him and 2 very nice staff people) saying that he (the accountant) is unexpectedly, very recently, and very sadly dead!! He was 62 years old. No indication of what happened and no information (not that it's any of my business) about what he died of. I guess coronavirus unless stated otherwise????? The office is scrambling to find another CPA to do the tax returns that are awaiting completion.
Anyway I was contemplating doing the taxes myself so I better understand the effects on the tax bottom line of financial decisions we make. That decision is now made! So I save the $350 I would have paid to the accountant, may he rest in peace!
Anyway I was contemplating doing the taxes myself so I better understand the effects on the tax bottom line of financial decisions we make. That decision is now made! So I save the $350 I would have paid to the accountant, may he rest in peace!
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Re: How much do you pay your tax professional?
If you are W2 employees the professional will do the same thing you do, just put it all in their tax software. Might as well pay yourself those 595.OnBoard wrote: ↑Tue Mar 02, 2021 12:58 pm I realize this is a loaded question with a great deal of caveats depending on how complex your tax situation is.
For context, DW and I live in CA and are W2 employees. We've been seeing an EA for the last several years. I used to use tax software to do it myself, but shifted over to a professional to see if they could do better.
This year we were charged $475 for State and Federal (1040, Schedulers A, B, D, E, Foreign Tax Credit, Child Care Expense, Passive Activity Loss, and Noncash Contributions). Additionally, another $120 for 1099 Div and Stock Sales, for a total of $595.
Is this in line with market rates? What are you paying?
I hired a professional once when my wife started a business, to learn what deductions she can take, and i paid 240, this was about 4 years ago. Then I just took what i learned and did it myself the following years.
Re: How much do you pay your tax professional?
Retired CPA----all good CPAs have plenty of individual income tax work. $ 300 to $ 500 is generally a fair price.
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Re: How much do you pay your tax professional?
Plenty of CPAs don't do individual taxation at all, or even tax work. My CPA father in law hires a tax CPA to do his taxes for him- he never studied tax beyond what was required for the CPA exam many decades ago.
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Re: How much do you pay your tax professional?
We paid ~1000 for a joint return to my DW's tax guy once and he screwed up. We had to refile and correct it, and the IRS has been sending us letters about that years return and we are having to do a lot of paperwork - it was at least 4 years ago it is still unresolved!
I have always done them myself before that and ever since, and it was obvious that we should have stayed the course!
I have always done them myself before that and ever since, and it was obvious that we should have stayed the course!
Re: How much do you pay your tax professional?
Mine has decided to stop taking individual clients and focus in the more lucrative business clientele. My rates are now quadrupled from what was previously a darned good deal for me.
Individual taxes in my area are about what someone else quoted. $1500 from a regional firm.