Have you filed your taxes yet?
If not, time is running out, so don’t delay!
Whether you don’t have the time or just don’t want to deal with the stress of filling out forms, having your taxes prepared professionally is a great way to get the most out of your deduction and ensure everything is filed correctly.
But how much should you expect to pay and how should you prepare for the cost of tax preparation?
Here’s a rundown on how you can prepare for the cost of tax preparation so you don’t have any unexpected surprises.
What You Should Expect to Pay
Your primary concern is likely the initial cost of professional tax preparation. So how much are your professional’s time and effort going to cost?
Largely, how much you’ll pay is determined by what exactly you require. Different types of employees require different tax forms.
A survey put out by the IRS found that the average cost of tax preparation was about $273 for a 1040 Tax Form with itemized deductions.
In contrast, a 1040 without deductions can be substantially cheaper, yet yield a smaller return.
A Schedule C, used for self-employed individuals, should run you about $218.
Of course, there’s also a 1040EZ and 1040NR.
Confused yet? Don’t worry, your tax pro should be able to determine which type of tax form best fits your needs.
What You’re Paying For
For most of us, spending more than $200 isn’t something that can be done lightly. You may wonder why exactly you’re paying so much.
Here’s what you’re ultimately paying for when you enlist the services of a tax pro.
First and foremost, you’re paying for their time and effort. Filing taxes is hard work that requires plenty of time and research.
You’re also paying for expertise. Your specialist can help you get the most out of your tax return. There may be deductions for things you’d never think about otherwise.
Did you pay off student loans? Have a dependent? Do you have a home office? What about paying for insurance? All of these can earn you massive deductions.
A tax specialist knows how to get the most out of every deduction.
How to Prepare for the Cost of Tax Preparation
Now that you understand how much you’ll likely pay, as well as why you’re paying that amount, you’re probably wondering how you can prepare for the cost.
We recommend that you save a small bit of money throughout the year, particularly if you’re self-employed.
Setting aside just a few dollars from every paycheck can ensure that the cost of tax preparation is more than covered.
You can also ask your specialist if they’re offering any discounts.
File Your Taxes Today
To wrap things up, paying for tax preparation doesn’t have to break the bank. In fact, it’s quite manageable when you realize what you’re actually paying for.
But remember, time is running out. You only have a few more days to file, so get in touch with Duncan & Company today.
About the Author:
Chris Duncan, CPA
As a South Carolina native, Chris has spent the better part of his life in the Charleston area. Chris graduated from The Citadel with a degree in Business Administration (Accounting Concentration) in 1999. In 2006, Chris launched his own CPA firm. For the past twelve years, Chris has worked as a local CPA and provided services to both individuals and commercial clients in a variety of industries to include accounting, bookkeeping, tax, and payroll service