How Much Will it Cost to Hire an Accountant to Do My Taxes?

Hire An Accountant

Published: 12/3/20

Tax Accountants work with clients to prepare tax return documentation that obeys tax rules and regulations set by the state. Tax accountants keep their clients updated about their return information, and work with them before tax season to map out a plan that will help them reach their desired financial goals and get desired outcomes. They even have to work extra shifts before and during tax season. They make sure that their clients have complete access to them to make the tax process as comfortable as possible.

Over one-half of citizens hire a professional accountant for tax preparation or tax-related consultation. It is important to choose a capable accountant to do your taxes because Even if your tax return is prepared by an accountant, you are still legally responsible for it.

A tax return preparer is one whom you have to trust with your most personal information. They know about every aspect of your life like your marriage, your income, your children, and your Social Security number (these are all of the sensitive details of your financial life). So if you hire an accountant and pay him to prepare your federal income tax return, the IRS advises you to make a wise choice. In order to do that you must take a while to understand a number of fundamentals.

The majority of accountants provide outstanding tax services. Despite that, every year, some taxpayers have to suffer because they choose the wrong or unprofessional tax accountant. Sometimes taxpayers can be fooled by tax preparers who don’t have much understanding about tax filing or they are tricked by tax accountants in the form of extra charging of tax fees. The state makes sure that such fraud tax accountants get penalties or even jail time for such scams with their clients.

Duties Of A Tax Accountant

Tax accountants determine tax strategies that put off, minimize, or delay payment of tax and deal with or help clients to prepare for audits with tax authorities. These accountants set up tax documents for public and private companies, nonprofit organizations, government agencies, and private persons. Because a tax accountant has such responsibilities, he must possess qualities like excellent communication skills, excellent listening skills, organization of tasks, time management, etc. A tax accountant must also be aware of the latest tax laws and must know how to use the latest technologies to make tax return procedures pain-free.

Cost to Hire An Accountant To Do My Taxes

The cost of hiring a professional accountant to do your taxes differs. It depends upon various conditions, such as:

  • Number Of Times You Need The Tax Accountant
  • Correspondence Or Face-to-face Communication
  • Your Business Annual Revenue Or Personal Amount Of Revenue
  • Complex Tax Situations And Issues
  • Meeting Them Halfway
  • Consistency
  • Type Of Tax Form
  • Where You Live

The average cost for an accountant to do taxes is approximately 30$ an hour in the United States. The yearly average is $60,000 to $65,000.

Cost To Hire An Accountant

A tax advisor will usually follow one of the following methods and interests to set a cost to do your taxes:

  1. A Fixed Cost For Each Tax Form Or Schedule

The average costs for filing basic tax forms, the detail is listed below:

    • $273 For A Form 1040 Or 1040-SR (To Figure out Your Itemized Deductions).
    • $176 For A Form 1040 (Non-itemized) And State Return
    • $184 For A Form 1040 Schedule C (Business)
    • $124 For Schedule D (Gains And Losses)
    • $135 For Schedule E (Rental)
    • $180 For Schedule F (Farm)
  1. Cost-Based As Per Tax Preparation Requirements

A cost-based upon last year’s tax preparation cost plus an additional cost for any changes in a client’s tax issues.

If you hire the same tax accountant each year, you will get the same rate. He will charge you what he has been charging every year even if your tax situation changes and becomes complex.

  1. Minimum Fixed Cost And As Per Tax Preparation Requirements

A minimum tax return fixed cost, plus an additional cost based on the complexity of the client’s tax situation.

Some advisors charge a fixed amount, but if you need extra help and time, they will charge you more to compensate for their given time. Make sure to ask openly before taking services from an accountant who has extra fees besides a flat rate.

  1. Value-Based As Per Tax Preparation Service

A value-based tax preparation fee is based on the subjective value of the tax preparation service.

Some tax accountants use this technique to set up a cost to do your taxes, they will say Your taxes feel like they’ll cost you 400$. In this line, you can clearly see how value-based fees can easily lead to conflicts. The cost of an accountant to do your taxes is also directly proportional to the effort and time they will l need to do your taxes.

  1. Per Hour Charge

An hourly rate for time spent preparing the tax return and associated tax forms and schedules

If a tax accountant is supposed to prepare your tax charges by the hour, make sure you find out how much they charge and how much time they need to spend doing your taxes. Sometimes hourly rates can be inflexible, sometimes $300 an hour. Make sure they do your taxes in the expected time so it doesn’t cost you a fortune in the end.

  1. Your area of residence

The cost of engaging an accountant to prepare your taxes will also be significantly impacted by the state in which you reside. For instance, the average cost ranges from $95 in South Carolina to $450 in New Mexico if you need a normal Form 1040 with a state tax return and don’t intend to claim any deductions.

  1. Accounting Expertise

Your final pricing may also vary depending on the people you choose to deal with. For instance, you can anticipate paying more if you deal with a tax accountant who has earned their Certified Public Accountant (CPA) qualification than if you were to engage with someone who hasn’t.

The same is true for accountants who hold the IRS’s highest certification, Enrolled Agent (EA) status, which is also a qualification. In fact, EA-designated accountants frequently charge much more than CPAs.

Should I Employ a CPA to Complete My Taxes?

When determining whether to employ someone to prepare and file your taxes, there are a number of things to take into account.

On the one hand, a tax expert likely knows more about tax benefits and regulations than you do, which may improve your chances of avoiding mistakes. Additionally, it may enable you to reduce your tax liability or increase your tax refund. Even with the aid of tax software, it becomes increasingly challenging to handle your tax position on your own as it becomes more complex.

However, if your tax situation is straightforward—for instance, if your primary source of income is W-2 income and you don’t have any additional tax problems—or if you enjoy learning and comprehending how things work, it can make sense for you to handle your taxes independently.

Consider the potential expense as you hunt for tax accountants and decide for yourself if it’s worth it for the knowledge and assurance it can offer.

Utilizing Tax Software Might Be More Economical

If your taxes aren’t too complicated, you might be able to save money by using a tax preparation service, even if you want to itemize or claim business and other income.

These businesses use software to walk you through filing your tax returns. To ensure you’re taking full advantage of the various tax deductions and credits available to you—and to minimize errors—you simply have to respond to questions about your financial condition.

Some of these businesses even include audit protection, which can give you representation and relief if the IRS decides to examine your taxes.

Depending on your income and how complicated your taxes are, the price of these services may change. You can qualify for the IRS Free File program if your adjusted gross income is $73,000 or less.”

Where Can You Find a Trustworthy Tax Advisor?

If you pay around $150, you’ll probably get an average accountant to prepare your tax return who may or may not be able to help you get all the tax benefits to deserve. By searching carefully, you can get a trustworthy and economical tax accountant who cares about your tax situation, help you understand changes in tax laws, and ensures you get the maximum refund back each year. 

If you need the best and most cost-effective accountant to do your taxes, My Count Solutions can help you to find the best accountants to do your taxes within your state.