kathyc2 Posted March 29, 2023 Report Share Posted March 29, 2023 It happens very infrequently, but it is does, it really throws me for a loop. MFJ- 1 state 3 w-2's, 2 1099R's, K1 from trust with capital loss so Sch D, small and simple Sch C, child tax credit, tuition credit (had to ask for 1098T even though it's on checklist), standard deduction. Would you charge: a) less than $250 b) between $250-300 c) more than 300 Curious minds want to know..... Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 29, 2023 Report Share Posted March 29, 2023 Way, way more than $300. I start at $500 for new clients. And, I have a 10% price increase this year for existing clients. 1 Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted March 29, 2023 Report Share Posted March 29, 2023 More than $300 but, if well organized, probably less than $500. If lots of messages getting the documents (like the 1098T and answers), maybe more. I bill by time, not form. When it takes a lot of time - begin the return, ask questions, pick it up again, more messages for answers, etc. - it costs the client lots of money. Like the video that's been around, I'm billing time and also expertise. 2 Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 30, 2023 Report Share Posted March 30, 2023 I would probably charge $595. Basically, I bill on value delivered plus a bit more for extra time. 3 Quote Link to comment Share on other sites More sharing options...
Catherine Posted March 30, 2023 Report Share Posted March 30, 2023 Way more than $300 - depending on complexity, up to about $600. 4 Quote Link to comment Share on other sites More sharing options...
Possi Posted March 30, 2023 Report Share Posted March 30, 2023 1- If nobody is complaining about your prices, you’re probably not charging enough. 2- I tell my clients I don’t strive to be the cheapest. I strive to be the best. Charge your price and be proud of your work. 11 Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 30, 2023 Report Share Posted March 30, 2023 A fairly knowledgeable retired neighbor of mine has prepared their return on Turbo Tax for years. This year she was unsure about something so she asked for some online advice. Her Turbo Tax fee for their 2022 tax return was $277. 5 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 30, 2023 Report Share Posted March 30, 2023 I had a former client return to me after leaving for one year. She went to HRB with one W2 and one 1098. She could not itemize for either federal or state. HRB charged $275, and I have already amended the state because HRB preparer didn't ask her DOB and so missed the extra deductions and credits for older filers. Also, I'm not charging enough.... 6 Quote Link to comment Share on other sites More sharing options...
Sara EA Posted March 30, 2023 Report Share Posted March 30, 2023 I'd charge about $500, allotting maybe $100 to the Sch C as a professional fee deduction next year. The owner of our firm said that all new clients start at $325 this year, and so far no one has balked (although we rarely take new clients so there weren't that many to complain). jkl, HRB had to have a birthdate or wouldn't be able to efile. HRB charges a lot for HOH filing status and refundable credits, if she had any of those, or maybe she got a refund advance? 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 30, 2023 Report Share Posted March 30, 2023 1 hour ago, Sara EA said: jkl, HRB had to have a birthdate or wouldn't be able to efile. HRB charges a lot for HOH filing status and refundable credits, if she had any of those, or maybe she got a refund advance? Single, no dependents, no credits, nothing. The return was really just the W-2 wages about $40K, standard deduction, fed and state withholding. Nothing else. Very simple and straightforward. As for the age, I doubt that it was a programming error when that 2021 return was prepared on 4/14/22. The preparer either had a typo or made up a date because the taxpayer did not get the benefit of an age-related deductions. How else would you explain that? 3 Quote Link to comment Share on other sites More sharing options...
BTS Posted March 30, 2023 Report Share Posted March 30, 2023 Location, demographics has a lot to do with fees too. I imagine a return we would charge $250 for, some here would charge $500 to $1,000. I know we should charge more than we do, especially when we have HRB calling us for advice Yes it happens. I helped a couple of their employees many times with tax questions. And the local Jackson Hewitt guy sends customers to us all the time !! Clients get sticker shock with Jackson's pricing and he sends them here !! 4 Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted March 30, 2023 Report Share Posted March 30, 2023 49 minutes ago, BTS said: Location, demographics has a lot to do with fees too. I imagine a return we would charge $250 for, some here would charge $500 to $1,000. I know we should charge more than we do, especially when we have HRB calling us for advice Yes it happens. I helped a couple of their employees many times with tax questions. And the local Jackson Hewitt guy sends customers to us all the time !! Clients get sticker shock with Jackson's pricing and he sends them here !! As a CPA and a one man office, who prepares returns on the side, I know my rates are below what is considered customary. I confirmed that after reading through this post. There is no way my starting rate is $500, I'd have no clients. With that said, my rates are based on the complexity of the return and normally my rates are adjusted from year to year, in some instances they may even go down if the return warrants that. However, I know they are generally lower than they should be. 5 Quote Link to comment Share on other sites More sharing options...
kathyc2 Posted March 30, 2023 Author Report Share Posted March 30, 2023 I've always charged what I feel is fair to both client and myself. My fees are generally well below the national average, definitely less than the H&R's. I don't aim to be the lowest cost, just what I think is fair. The per form fee ended up at $322 which I felt was high so I discounted it by $50. Their kids are aging out, so I spent several minutes with them explaining what credits they will be losing over the next few years. After all that he wanted to know what to do to lower my fee! 4 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 30, 2023 Report Share Posted March 30, 2023 I spent a decade at an HRB Premium office. When I left, I was determined to cost MORE than H&R Block, because I provide more personalized service than the average HRB office. I think I started out that way. But I also think I've been increasing my prices at a much slower rate than HRB over the years. With the costs of my software, IT guy (think WISP and other requirements), equipment replacements, paper/toner even going as paperless as I can, and my occasional helper, I'm increasing 10% this year to try to catch up. My goal continues to be more expensive than the chains but less expensive than the CPA firms that provide one-stop shopping with bookkeeping, payroll, retirement plans, and other financial services. PS: I'm in pricey Fairfield County, CT. 1 Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 30, 2023 Report Share Posted March 30, 2023 In my state the number of Licensed Tax Preparers ( Oregon has mandatory Licensing ) has declined 11% in the last decade so everyone is busy. 2 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 30, 2023 Report Share Posted March 30, 2023 I know that I am on the lower end of the spectrum. I agree mostly with Yardley CPA. I charges according to the circumstances. I know I am probably charging way too little, but you have to consider what the market will bear. In Central semi-rural Wisconsin, I don't have many high-class clients. I try to adjust fees yearly; some up and some down. I continue to tell my clients that this business is not all about money. They are first and foremost the most important presence in my office at any given time. I would never think of charging per form, per page or any other set method of pricing. I generally pull a number out of my head based on time and complexity; but I also consider the situation of the client. This might be wrong, but my clients are happy, I am happy and I sleep very well at night. 7 Quote Link to comment Share on other sites More sharing options...
BTS Posted March 30, 2023 Report Share Posted March 30, 2023 9 minutes ago, mcb39 said: I know that I am on the lower end of the spectrum. I agree mostly with Yardley CPA. I charges according to the circumstances. I know I am probably charging way too little, but you have to consider what the market will bear. In Central semi-rural Wisconsin, I don't have many high-class clients. I try to adjust fees yearly; some up and some down. I continue to tell my clients that this business is not all about money. They are first and foremost the most important presence in my office at any given time. I would never think of charging per form, per page or any other set method of pricing. I generally pull a number out of my head based on time and complexity; but I also consider the situation of the client. This might be wrong, but my clients are happy, I am happy and I sleep very well at night. Thats the main goal. To be happy and sleep at night. Sure Id love more money !!! But peace of mind is priceless. Plus we dont want to end up in the accounting department in hell !!! 4 Quote Link to comment Share on other sites More sharing options...
kathyc2 Posted March 30, 2023 Author Report Share Posted March 30, 2023 20 minutes ago, mcb39 said: I don't have many high-class clients. I have some low income clients with a lot more class than high income clients. Per form has always worked well for me. A lot of circumstances I'll give a discount off the set fee, and a handful get surcharge above the per form charge. 5 Quote Link to comment Share on other sites More sharing options...
GLJEANNE Posted March 30, 2023 Report Share Posted March 30, 2023 For sure at least $300. My fees are all based on forms, and it would depend on what your state return is like. I just looked at my average per return so far this year, and was shocked to see it's lower than last year. I feel like I've been up-charging a lot of folks this year - fees for being past March 15 (this will go up even more for April), fees for being a pain in the ass, etc. But I guess not. I'm sure a lot of it is just changes in folks circumstances meaning simpler returns. On the other hand, I've now done as many returns this year as I did all last season, so overall I'll make more. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 31, 2023 Report Share Posted March 31, 2023 4 hours ago, kathyc2 said: I have some low income clients with a lot more class than high income clients. Per form has always worked well for me. A lot of circumstances I'll give a discount off the set fee, and a handful get surcharge above the per form charge. Many of my low income clients are extremely classy, kind and appreciative individuals. 3 Quote Link to comment Share on other sites More sharing options...
Sara EA Posted March 31, 2023 Report Share Posted March 31, 2023 Quite a few are posting that they know they don't charge enough. Don't give your work away. If you have spent time on education, spend time on a return and with the client, charge for it. If it takes work and multiple calls and emails to get needed forms or info from a client, charge for it. If a client contacts you often throughout the year with this or that question, don't forget that either when you decide on your fee. I work at a firm and am paid regardless of what the client is charged, so I'm not making more or less money based on my billing. I just try to charge what my work is worth. We all have clients in trying circumstances and don't raise their fees sometimes for years. We probably have a client or two whom we don't charge at all some years. Then there are those who consume our time. Like one I had who asked one month about the tax consequences of selling a commercial rental. Lots of work on that question, calculating depreciation etc. Next month he asked about selling a different rental. After that it was about maybe gifting one or the other or both to a relative. Yes, his tax prep fee that year went way up. On the other hand, a client contacts me every month or two all year with this or that issue. I charge him $1500 for his individual return and don't increase his fee because I feel I'm already being compensated for the extra work. I don't usually charge for help with W4s or questions about potential 401k or IRA distributions either. I'd rather folks ask before the damage is done. 7 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted March 31, 2023 Report Share Posted March 31, 2023 I'd charge about $225.. I have gone up 20% this year if same amount of work.. and no one has squawked except the bar owner who I had to do all ther bookkeeping - $880 - taxes and $700 books - They went and bought a $1500 scanner and laptop and think that will fix it! Best, Darlene - i like the one about all new clients!! $325 I am charging $50 more for PIRA's and harassing - where are my taxes.. this year 4 Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted March 31, 2023 Report Share Posted March 31, 2023 If I have to fill out 8867 and attest to anything I charge 90 more. Ed credits and child credits counts as 180 more. Sorry Charlie - I am not into attesting that I know all your dark secrets. 4 Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted March 31, 2023 Report Share Posted March 31, 2023 I, too, charge extra for 8867 but include it under any tax credit for $25 each. I think that just got increased for next year! 1 Quote Link to comment Share on other sites More sharing options...
BTS Posted March 31, 2023 Report Share Posted March 31, 2023 Been saying for years we need to slow down and scale back. Getting older !!! So maybe the strategy of raising rates and getting rid of problem clients is a good path to travel. Less stress !!!! Send our problem clients to Margaret and other Ohio preparers. 1 Quote Link to comment Share on other sites More sharing options...
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