MsTabbyKats Posted March 21, 2014 Report Share Posted March 21, 2014 Just curious...because I may have to include "normal prices" in an e-mail to a client She makes about $300,000. She has 7 states, including the home state of NY. One dividend entry, foreign interest and a foreign tax credit, and one contribution to charity. Actually...simple, except for the 7 states. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 21, 2014 Report Share Posted March 21, 2014 This going to be a tough one, 6 out of 7 are going to be non-resident returns which require extra work. I would only charge for 6 states, first state is included with the federal, but charging somewhere between $25 to $40 would be good. Per state. MAS Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted March 21, 2014 Report Share Posted March 21, 2014 What exposure does she have in the 6 states besides NY? All W2 income? I assume she would be itemizing her deductions? If there is nothing more than W2, Schedule A and B...with 7 States. I would probably charge between $500 and $700. Since I am not overly familiar with states outside my general region, I would qualify my statement by saying it may be more depending on how much work may be involved with individual state returns. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted March 21, 2014 Author Report Share Posted March 21, 2014 It's all from one W-2. Some of the states have very minimal income....but I still have to do the worksheets for each one...and I have to do a tax credit for NYS for 6 states. The only kink is that she has about $4000 in interest from Mexico ...and paid Mexico about $1500. Her tax credit is less than $1000. Her dividend income of $5000 is one entry. I just want a ballpark range of prices because she isn't happy....and I expecting her to blah blah blah...at which point I will tell her that if she doesn't have confidence in my service she should try someone else. She's been with me for about 10 years. Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted March 21, 2014 Report Share Posted March 21, 2014 I'm very confident in the personal service and product I provide to my clients. I know there are CPA Firms and H&R's in my area that charge much higher fees than I do. In the event they are not happy with my price then they owe it to themselves (and to me) to look elsewhere. What were you thinking of charging for this return? Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 21, 2014 Report Share Posted March 21, 2014 It depends if this person is a first time client or not and also on how busy I am. If this is a first time client and I have time, I would charge $300. This is a very good chance to learn about other states forms. Of course I ask for their paper and a copy of last year return. I would ask them to leave the documents and to give about two weeks to have something ready. If this is an existing client, I would charge about $50 more than last year's because I already have the info in my computer. Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted March 21, 2014 Report Share Posted March 21, 2014 I have that return... He works in states all over and gets one W-2 from the company, but all the states... Plus, travel deductions for over nights Plus the schedule A and her w-2 and small Biz. Plus the kids Education credits... Oh, yeah, maybe not... But its $500 to $550 for me. I would tell your client the Mexican portion and the TFAR regulations changes costs $200 more than last year as a minimum..... Rich Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted March 21, 2014 Author Report Share Posted March 21, 2014 I'm very confident in the personal service and product I provide to my clients. I know there are CPA Firms and H&R's in my area that charge much higher fees than I do. In the event they are not happy with my price then they owe it to themselves (and to me) to look elsewhere. What were you thinking of charging for this return? What I charge isn't an issue ....it's way below "market price"...and more in line with her past fees. And, keep in mind I'm in the heart of NYC , where everything is twice the price anyway. I just want a ballpark figure so I can tell her what to expect elsewhere....when she tells me I'm incompetent (because she owes $2000) and she wants a second opinion. Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted March 21, 2014 Report Share Posted March 21, 2014 I wouldn't provide her with anything more than the results of the returns based on the information she provided me. If she feels I'm incompetent and chooses to go elsewhere to have it reviewed, then so be it. I wouldn't be concerned with offering her any estimate on what that may cost her to do. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 21, 2014 Report Share Posted March 21, 2014 I am a gambler as long as it is legal so this is how I gamble with these people. I work hard on their return and then if they want to go somewhere else, I return their papers. I know my prices and services are excellent and if they decide to go somewhere else, I let them go. I suggest H and R block because they will charge them triple of what I charge. So I gamble with the fact that I might work without pay but I make it up with the ones that stay with me. So if I have 20 new clients this year and I give back the paper to five of these clients, I feel I am winning because I kept 15 clients. I run my business as a UNIT without subunits. If I make each return a business unit, them of course I will feel bad when I do the math and have these 5 business units with a big loss. 2 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 21, 2014 Report Share Posted March 21, 2014 Each additional state would be $75-$100 depending on the state. Plus the home state would be more for the credit for taxes paid to other states. I'd quote her $700-$1000 and if it comes in less than that, she'll be pleased. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 21, 2014 Report Share Posted March 21, 2014 I'm about like JM. I reside in CT and prepare a number of NY commuters, some with other states. I tell them another state adds about $100, even though I end up charging less for some easier states. A foreign country credit/FTCA maybe as much as $250 without the FBAR. I would be invoicing her with detail about the $700-1,000 and then if a continuing client including a line for Loyal Client Discount for whatever I felt fit her situation. My suggestion: invoice what it's really worth based on the forms, your time and effort and training and knowledge, etc., showing the detail. For instance, a lot for 1116 (is that the #) if required over just taking the foreign tax as a credit. Then add a discount, maybe 10%. Let her do her own research re what others charge. In NY, it's going to be a lot. She'll appreciate you more if she herself discovers what others would charge her. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 21, 2014 Report Share Posted March 21, 2014 There is no way to know what she might be charged. Let her do her own research on that. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 21, 2014 Report Share Posted March 21, 2014 I too would be in the 700-1000 range, maybe a bit less than 700 if it wound up not as complicated as it seems, afterall if the states are florida or texas then they don't count. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted March 21, 2014 Author Report Share Posted March 21, 2014 I too would be in the 700-1000 range, maybe a bit less than 700 if it wound up not as complicated as it seems, afterall if the states are florida or texas then they don't count. If 2 of the 7 were Fl and TX....there would only be 5 states! We have...NY, NJ, CA, CO, PA, IN and IL. I am expecting her to give me Turbo Tax results...and instead of owing $2000....she'll probably come up with a refund...and want detailed explanations. It's just not worth my time if she does this...may be time to cut her loose...or let her try someone else...who will get the exact same results because this return is so cut & dry. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 21, 2014 Report Share Posted March 21, 2014 $1,000. Plus extra time explaining after paying -- add to next year's bill. I charge a fee to compare TT or anything else to the return I generate. Often the real liability is greater than with TT, because people put their mortgage on A and C or take 100% for meals or deduct political contributions as charity or deduct private grade school or SAT prep or vitamins as medical or depreciate their rental house over 15 years or.... 1 Quote Link to comment Share on other sites More sharing options...
MAMalody Posted March 21, 2014 Report Share Posted March 21, 2014 I would increase my normal bill by $300-$400 because of the 6 additional states and the foreign issue. I would tell her up front to help do away with the sticker shock. If it turns out to be less work than you thought it would be you can always give her a discount. Quote Link to comment Share on other sites More sharing options...
Roberts Posted March 21, 2014 Report Share Posted March 21, 2014 Give her an hourly rate and give her an estimate of the hours. You can make this look however you want. As an example: $50 per hour and I think this will take 15 hours. $150 per hour and I think this will take 5 hours. I don't charge by the form because honestly, a form for 1 client can take 45 minutes and it's 5 minutes for the next client. That's not fair. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted March 21, 2014 Author Report Share Posted March 21, 2014 Thanks for the input...but what I'm charging her isn't an issue....although it should be a lot more. I kinda just want her to know that her results would be the same anywhere....but I'm giving her a bargain...and I feel insulted if she questions, to the degree she questions, my results. The only item on the A is $200 to charity. Everything else is state/local withholding. It's actually a very easy return....but she's perplexed about paying tax on her investment income...or doesn't want to understand it. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 21, 2014 Report Share Posted March 21, 2014 Let her research. She'll appreciate you more. Then you increase her fees. Quote Link to comment Share on other sites More sharing options...
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