Yardley CPA Posted January 26, 2018 Report Share Posted January 26, 2018 I recognize this is a topic that continues to resurface, so my apologies for bringing it up again. With that said, I received a call from a new client who indicated their current preparer is raising rates a minimum of $100 this year and inquired about my fee for a "basic" return. I do not quote fees without first having the opportunity to review the previous year return. That will determine whether it truly is basic or not. And I normally will not hitch my wagon to someone who is only looking to enter a relationship based solely on price. So, I set up a meeting with this client for Sunday to see if we're a match or not. But I couldn't help but wonder about their current preparer raising rates a minimum of $100. I guess they feel this is an opportunistic time to do that. With all the tax change talk, maybe he felt the time was right to increase fees that much. I also take that comment with a grain of salt...but maybe there is some truth and they are raising fees that much. My question is this...what are you charging for a return that includes: - 1040 with one State. One or two W2's within the same state. A bit of interest and dividends. Couple dependents. No EIC but childcare. - Schedule A - few itemized deductions (Real Estate Taxes, Mortgage Interest, Charitable Contributions). - Tax planning for the following year (use ATX Planner) What would you charge for the most basic return? 1040 with one state, W2, No itemized. Quote Link to comment Share on other sites More sharing options...
rfassett Posted January 26, 2018 Report Share Posted January 26, 2018 Several years ago we did something similar to what the other preparer is doing. We had a number of clients that were not paying their keep. We sent out a letter mid summer to that group and told them that our minimum fee going forward would be "$X" and that they were welcome to stay if they were willing to pay that. Otherwise we wished them luck. It worked out very well. We were able to get rid of the high maintenance low pay clients and keep some that were willing to come to the party. It worked out very well for us and we did not see any dip in revenue for it. To answer your question directly (almost) we have a minimum fee that we charge for the basic return and it goes up from there. The basic fee works well in my corner of the world, but probably not any where else. So to tell you what my fees are would be meaningless to you in your corner of the world. 3 Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted January 26, 2018 Report Share Posted January 26, 2018 I would wonder what the big box places would charge for this? 2 Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted January 26, 2018 Author Report Share Posted January 26, 2018 I completely understand fees vary by region. Was just hoping for a general idea in any corner of the world. I live about 30 minutes north of Philadelphia. It's definitely a high cost region and I know my rates are no where close to what they should be. I do plan on increasing my fees moderately this year. 1 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted January 26, 2018 Report Share Posted January 26, 2018 I charge by the form and input documents. Last year, I raised my fee for a 1040 to $95. I charge $2 for every W2 and $1 for every 1099. Associated forms have various charges. I can always discount if the entry on that form is minimal. So the first return is about $115, add a sched A and add $30 if id does not require the non-cash charitable form, $15 more if it does. I include basic tax planning (10-15 minutes during the client interview) for free. Gives me a chance to see what the client is really up to. I charge $95 minimum per hour for an appointment for tax planning and consultations. Tom Modesto, CA 2 Quote Link to comment Share on other sites More sharing options...
Randall Posted January 26, 2018 Report Share Posted January 26, 2018 I don't charge by the form. I do keep a time sheet but don't charge strictly by an hourly rate. I have a minimum of $100 for a simple return, $150 for a simple Sch A return. I suppose 'simple' can vary. I quote the minimum and ask a few questions, quote a range and tell them it could be higher depending on their circumstances. 2 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted January 26, 2018 Report Share Posted January 26, 2018 Big box places would probably charge +$250 for a 1040 & Sch A, and I really don’t know if they offer tax planning, but why can’t you compete with big boxes in prices? A couple of years ago a new client brought in their prior return and they only paid $35.00 for 1040, I told them my fees are not even close to that, so you might want to go back and pay the $35 again, they said hell no, I rather pay your fees then to wait for 3-4 hours in line. 3 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 26, 2018 Report Share Posted January 26, 2018 If the prior preparer, like you, is adding tax planning for 2018, then I would add $100 to my fees. But, I'm going to try to make that a separate appointment after tax season. I don't have many, if any, clients with childcare &/or with no Schedule A. In fact, I have lots of Schedule Cs, K-1s, and multiple-state returns. And, I'm trying NOT to take any new clients at less than $500. - 1040 with one State. One or two W2's within the same state. A bit of interest and dividends. Couple dependents. No EIC but childcare. $290, but would probably discount if all info ready at once & no surprises - Schedule A - few itemized deductions (Real Estate Taxes, Mortgage Interest, Charitable Contributions). $380, give or take 10%, but everyone forgets their car tax and charitable contributions are a mess and..., so probably NOT less. - Tax planning for the following year (use ATX Planner) + $100 is what I'm thinking now, could be a lot more for SE, biz entities, lots of detail/computations What would you charge for the most basic return? 1040 with one state, W2, No itemized. $200, give or take 10% 3 Quote Link to comment Share on other sites More sharing options...
Roberts Posted January 26, 2018 Report Share Posted January 26, 2018 My general quote would be a disclosure riddled $175 that is adjusted up and down according to factors some of you might not agree with. Ability to pay, where they live, how they came to me, what they paid the previous person and how nice they are all factor into the fee. The same return can be charged anywhere from $75-$250. I have some ghetto living clients who are awesome and I charge $75. Disabled vet client gets his rather complex return for $125 plus a free house call. On the same switch I have very wealthy 30ish year old clients living in nice homes their grand parents gave them and I charge $450. All they have are a single investment account 1099 and a K-1 from a trust with 3 numbers (div, int and capital gain). 3 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted January 26, 2018 Report Share Posted January 26, 2018 $275 3 Quote Link to comment Share on other sites More sharing options...
Catherine Posted January 26, 2018 Report Share Posted January 26, 2018 The first one would run about $230 including the state return. Schedule A will add $55 to that. Basic tax planning I'll toss in for free (assuming it takes me ~15 min or less), else it's a separate later appointment at $75 an hour. Most basic return $160-ish. Discounted to $50 or $30 (or even free) for the child of a current client. Depends on the client and the circumstances. I'd rather do a dependent return for free rather than have a college kid muck up their parents' return e-filing by claiming themselves. Nor do I feel it's appropriate to charge $50 to get some high school kid's $38 refund back. Any un-cooperation from parent or kid and the price spikes, though. Like Roberts (great puppy picture) there are folks whom I charge FAR less than the return is worth. That is my charity and my decision. I do a free, reasonably complex, return for the widow of my husband's best friend from college; I promised him that before he died. I have an elderly couple who have a return I should charge over $700 for, whom I charge about $200 - I see what they are living on, and it's not their fault their return is a complex mess (and let's not get started on financial advisors who get older folks into complex investments). But another elderly client with a similar return pays me the full $700-ish; I see that she has the income to pay that without suffering or flinching. Facts and circumstances... 4 Quote Link to comment Share on other sites More sharing options...
FDNY Posted January 26, 2018 Report Share Posted January 26, 2018 I'm in a similar area (30mins north of Boston), I would quote $250, but mention it could be a little more or less. For your second return I would quote 100-150 depending on how I read the new client as to potential surprises. Thankfully I don't take on any more clients unless it is someone's kid or grandmother. I've turned down a few recently, were referrals but since I've reached what some would call full retirement age, not taking on the extra work felt pretty good. 4 Quote Link to comment Share on other sites More sharing options...
BLACK BART Posted January 26, 2018 Report Share Posted January 26, 2018 5 hours ago, Yardley CPA said: My question is this...what are you charging for a return that includes: - 1040 with one State. One or two W2's within the same state. A bit of interest and dividends. Couple dependents. No EIC but childcare. $135 - Schedule A - few itemized deductions (Real Estate Taxes, Mortgage Interest, Charitable Contributions). $125 - Tax planning for the following year (use 2017 data plus this minus that) $50-100 added to next year's fee. -What would you charge for the most basic return? 1040 with one state, W2, No itemized. $75 These prices probably won't mean much to anybody here unless below the Mason-Dixon line, non-urban, or away from the southern east coast. 3 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 26, 2018 Report Share Posted January 26, 2018 I use a "base plus" system of pricing. Tax year 2017, my fees would be $170 for the situation you described. If childcare or other additional forms end up being needed, then extra fees are applied. 3 Quote Link to comment Share on other sites More sharing options...
FDNY Posted January 26, 2018 Report Share Posted January 26, 2018 Sorry Yardley, I miss quoted the second one, would also be about $250. The last one would be 100-150. Be kind to yourself, one thing I've learned is better to charge a little more, because you're going to earn it anyway. Good luck. Bill 4 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted January 26, 2018 Report Share Posted January 26, 2018 My fees are almost identical to Black Bart's, which surprised me. Basic 1040, one W2, no CTC or EITC, and one state is $75 unless dependent child and I do parents' return, in which case $40. Extra forms, extra fees. Piss me off and you get your papers back at no charge. Make me nervous about your ethics and you get a referral to to elsewhere. Life is too short to put up with nonsense. 5 Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted January 26, 2018 Report Share Posted January 26, 2018 My answer: "As much as I possibly can!". Really, that has been my go to line. And if they balk at that, then I don't want them as clients. A blank 1040 starts at $200 and goes from there. My average fee past year for all 1040's was about $420. I want to move it to $500. I got golf to pay for. Rich 5 2 Quote Link to comment Share on other sites More sharing options...
Crank Posted January 29, 2018 Report Share Posted January 29, 2018 ~$200-250 which includes the PA local but no planning. I know...Im low Speaking of the PA local, Im annoyed that the W2 detail page doesnt sum local wages and taxes this year 4 Quote Link to comment Share on other sites More sharing options...
Lee B Posted January 29, 2018 Report Share Posted January 29, 2018 According to an article that I read recently, the National Average Fee for these two returns ( w/o Tax Planning ) was $273 and $ 176. 3 Quote Link to comment Share on other sites More sharing options...
GLJEANNE Posted February 1, 2018 Report Share Posted February 1, 2018 On 1/26/2018 at 8:43 AM, Yardley CPA said: My question is this...what are you charging for a return that includes: - 1040 with one State. One or two W2's within the same state. A bit of interest and dividends. Couple dependents. No EIC but childcare. $150 - Schedule A - few itemized deductions (Real Estate Taxes, Mortgage Interest, Charitable Contributions). $225 - Tax planning for the following year (use ATX Planner) no extra charge, usually What would you charge for the most basic return? 1040 with one state, W2, No itemized. $150 1 Quote Link to comment Share on other sites More sharing options...
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