One of the most common questions taxpayers have when tax season is approaching is about their tax preparation fees. In 2025, the cost of preparing your taxes can vary depending on several factors, including the complexity of your financial situation and the type of professional you hire.
Whether you’re filing simple tax forms or need a tax advisor for more complicated financial scenarios, understanding tax preparation costs is crucial for planning your budget.
Join the tax planning and preparation CPAs at Steward Ingram & Cooper, PLLC, as we explore the key factors that affect tax preparation fees.
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Average Cost for Tax Preparation Services
CPAs bill either hourly, per the form, or according to the service being provided. According to a National Society of Accountants (NSA) study in 2021, the average fee for preparing Form 1040 with Schedule A to itemize personal deductions, combined with a state income tax return, was a flat fee of $323. The average hourly rate of CPAs for filing federal or state tax returns was $180, and $174 for other tax services.
What’s the Cost of Tax Prep in 2025?
As of 2025, tax preparation fees have experienced a notable increase compared to previous years, reflecting inflation and the growing complexity of tax laws. Hourly rates for tax professionals in 2025 typically range from $150 to $400, depending on the preparer’s qualifications and the complexity of the services provided. For instance, CPAs and Enrolled Agents (EAs) often charge between $150 and $350 per hour for tax preparation services in 2025. Tax attorneys may charge higher rates, ranging from $200 to $550 per hour, reflecting their specialized legal experience.
Understanding these costs, as well as our tax fees at our Raleigh accounting firm, is crucial for effective financial planning.
Tax Preparation Fees by Form: Breaking Down the Costs
Based on recent data, here are the personal tax preparation fees by form:
| Form | Average Fee |
|---|---|
| Form 1040 with Schedule A and state return | $323 |
| Form 1040 (non-itemized) and state return | $220 |
| Schedule C (business income) | $192 |
| Schedule D (capital gains) | $118 |
| Schedule E (rental income) | $145 |
| Schedule F (farm income) | $200 |
These figures are based on national averages and can vary depending on the complexity of your tax situation and the region in which you file.
Additional Costs to Consider
Beyond the standard preparation fees, there are other charges to be aware of when working with a tax accountant and learning how to file business taxes:
State Returns
When you file tax returns on a state level, it can incur additional fees, typically ranging from $45 to $125 per state.
Amended Returns
If you need to amend a previously filed return, fees can range from $150 to $500, depending on the complexity.
Audit Assistance
In the event of an IRS audit, professional tax preparation services can cost between $1,500 and $5,000, depending on the complexity of the case.
How Much Can a Tax Preparer Charge Legally?
When hiring a tax accountant, it’s important to understand that there are no legal caps on how much a tax professional can charge for their services. However, tax professionals are required to charge fees that are reasonable and transparent. While there is no set maximum fee, it’s essential that the charges reflect the complexity of the services being provided and that you are informed of the fees upfront.
Hourly Fees
Many tax planning and prep professionals charge based on the amount of time spent working on your return. Hourly rates can vary widely, typically ranging from $150 to $400 per hour, depending on the preparer’s qualifications and the complexity of the return.
Per Form
Some preparers charge a set fee for each form they file. This is common for clients filing a basic tax return with only simple forms, like Form 1040, and additional forms for multiple income streams, like Schedule A for itemized deductions.
Flat Fee
For certain services, especially basic tax filing, tax pros may offer a flat rate. Flat fees are commonly charged for basic individual returns without complex deductions or business income.
Factors That Affect the Cost of Tax Preparation
The cost of tax preparation can vary significantly depending on a number of factors. Understanding what influences the fees can help you anticipate what to expect and ensure that you are charged fairly for the services you need.
Complexity of the Return
The more complex your tax situation, the higher the cost. Simple returns, such as those with only W-2 income, may cost less, while returns involving business ownership, multiple income sources, investments, or rental properties will be more expensive due to the additional time required to complete extra forms.
Example: A simple tax return may involve a basic Form 1040 with just a W-2, which is relatively quick for a preparer to process. In contrast, a complex return may require multiple schedules (Schedule C for business income, Schedule D for capital gains, etc.), and may involve deductions for multiple sources of income or itemized deductions.
Forms and Schedules
The types of forms and schedules required to file your taxes can significantly affect the cost. Tax professionals charge more for returns that require additional forms or specialized schedules.
Example: If you are self-employed and need to file Schedule C for business income, or you own rental properties and need to file Schedule E, these forms take extra time to prepare and will increase the cost compared to a straightforward Form 1040.
Document Organization
Many people ask their accountants whether or not receipts are enough to prove tax deductions. The truth is, that the more organized your tax documents, including receipts for expenses, the less time the preparer needs to spend sorting through your paperwork. This level of organization and preparation can reduce the overall cost of services. However, if your documents are disorganized, the preparer may have to spend extra time gathering and categorizing your information, increasing the total fee.
Example: A well-organized taxpayer who brings neatly categorized receipts, W-2s, and other necessary documents will have a quicker and less expensive process compared to someone who submits a disorganized pile of paperwork.
Preparer’s Experience
The experience and qualifications of the tax planning professional will influence the price. CPAs, EAs, or tax attorneys generally charge higher fees due to their experience and certification. If you have a more complex tax situation, hiring a professional with advanced qualifications may be necessary to ensure accuracy and minimize the risk of errors.
Example: While a tax preparer with a basic certification may be sufficient for a simple return, you may need a CPA if you have complex tax issues, such as owning a business, managing investments, or dealing with IRS audits.
Simple vs. Complex Returns
The cost of tax preparation will generally be lower for simple returns and higher for complex returns due to the time, forms, and skill required:
Simple Return
Filing only a Form 1040 with W-2 income and no itemized deductions (standard deduction).
Complex Return
Filing multiple schedules such as Schedule C for self-employment income, Schedule D for investment income, and itemized deductions.
Can You Deduct Tax Preparation Fees?
Under the Tax Cuts and Jobs Act (TCJA), the ability to deduct tax preparation fees has changed. Since 2018, these fees are no longer deductible for most taxpayers. However, self-employed individuals can still deduct these fees as a business expense.
Eligibility for Deductions
If you file a Schedule C (for business income), Schedule E (for rental income), or Schedule F (for farm income), you may be eligible to deduct the cost of tax preparation fees related to your business or rental income. For personal tax filings, tax preparation fees are not deductible. However, if the fees are incurred as part of managing a business or investment, they can be deducted on your business tax return.
Tips to Minimize Your Tax Preparation Fees
Reducing the cost of tax preparation is possible with a bit of planning and organization. Here are a few strategies to help minimize your fees.
Get an Estimate
Always ask for an estimate before any work begins. Be sure the estimate covers the entire cost, including any potential additional fees for state returns, amendments, or other services.
Be Transparent About Your Situation
The more organized and transparent you are with your tax preparer about your financial situation, the more accurately they can estimate the cost and avoid surprises later.
Avoid “Cut-rate” Deals
While low prices can be tempting, beware of services offering unusually low fees. Extremely cheap services may signal a lack of experience or could mean that they are not following proper tax laws or ethical practices.
Look for Value, Not Just Price
While you want to find reasonable pricing, you should also consider the experience and qualifications of the preparer. The cheapest option may not always be the best for your specific tax situation.
Organize Your Documents
A well-organized set of documents can save your tax preparer time and reduce your overall fees. Gather all relevant paperwork—W-2s, 1099s, receipts, financial statements, and any other necessary documents—before meeting with your preparer.
Simplify Your Taxes
If possible, consider simplifying your tax situation. For example, consider taking the standard deduction instead of itemizing if your itemized deductions don’t significantly exceed the standard amount. This can reduce the forms and schedules needed, lowering your overall tax preparation cost.
Ask About Bundled Services
Many tax advisors offer bundled services or discounts if you file multiple years of returns or combine services like financial planning. Be sure to ask your tax preparer if they offer any cost-saving options.
Steward Ingram & Cooper, PLLC: Our Tax Preparation Fees and Services
Since 2000, Steward Ingram & Cooper, PLLC has been providing tax prep and consulting services for both complex individual tax situations and corporate tax returns. Our team is composed of professional certified public accountants who have passed the rigorous CPA exam and meet the licensing requirements set by the state of North Carolina.
Raleigh CPAs You Can Trust
To become a CPA in North Carolina, individuals must hold a bachelor’s degree with at least 120 credit hours (including 30 hours of accounting-related coursework) and complete a law and ethics course. Additionally, CPAs are required to renew their license annually to maintain their ability to practice legally.
Our CPAs maintain the highest professional standards and possess extensive experience in handling intricate tax scenarios. Because our services are tailored to meet the specific needs of our clients, our fees reflect the time and skills required to ensure accurate and timely tax return preparation.
Our Tax Fee Structure
Individual Tax Returns
A minimum fee of $900
Business Tax Returns
A minimum fee of $1,500
Advice and Consulting
$300 per hour
Note: Additional fees may apply based on the complexity of your tax situation and the amount of time required to prepare and file your return.
Common Questions About Tax Preparation Fees
Contact Steward Ingram & Cooper, PLLC for Tax Preparation in Raleigh
For tax preparation in Raleigh, Durham, and Morrisville, trust Steward Ingram & Cooper, PLLC. We offer personalized services to ensure your taxes are filed accurately and efficiently, helping you navigate even the most complex tax situations. By hiring a CPA, you benefit from professional insights, strategic tax planning, and peace of mind knowing that your tax forms are in good hands.
Contact our tax advisors today to schedule a consultation or get a quote. Simply call us at (919) 872-0866 or fill out our online contact form below.