When tax season arrives, one of the most common questions is: How much should I pay my tax preparer?
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 tax professional you hire. Whether you need basic tax filing services or need an advisor experienced in filing taxes for complicated financial scenarios, understanding upfront 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 small business tax preparation.
Table of Contents
How Much Can a Tax Preparer Charge Legally?
There’s no official legal benchmark for how much a professional CPA can charge for the tax preparation process. However, the IRS requires that tax advisor fees be:
- Reasonable, based on the service
- Fully disclosed before services are rendered
- Not based on a percentage of your refund (this is prohibited)
This means you have the right to know the cost of tax preparation before you agree to services—whether it’s a fixed fee, hourly rate, or form-based pricing.
What Is the Average Cost of CPA Tax Preparation?
The average cost for tax prep depends on several factors, including the complexity of your return, the forms involved, and your preparer’s qualifications. Understanding these costs, as well as our tax fees at our Raleigh accounting firm, is crucial for effective financial planning.
Here are the general guidelines of what taxpayers can expect when determining the cost of hiring a professional to file federal taxes:
Basic individual tax return (Form 1040)
$250–$400
Form 1040 with Schedule A (itemized deductions) and a state return
~$323
Hourly rates for CPA tax preparation
$150–$400
Business tax returns
Start at $1,500
Tax advice or consulting services
$300+ per hour
Tip: Always ask your tax accountant for a quote up front to avoid unexpected charges, especially for complex returns or if your taxes involve multiple income streams.
Average Cost of Tax Preparation For Individual Forms
Certified public accountants often follow a fee structure that is based on tax form cost. The average tax preparer charges by form as of 2025 are:
| Tax Form | Average Fee |
|---|---|
| Form 1040 with Schedule A + State Return | $323 |
| Form 1040 (non-itemized) + State Return | $220 |
| Schedule C (Business Income) | $192 |
| Schedule D (Capital Gains) | $118 |
| Schedule E (Rental Income) | $145 |
| Schedule F (Farm Income) | $200 |
If your tax return involves the completion of multiple IRS forms due to rental income, capital gains, or business income, expect the cost for tax preparation to be higher due to the increased time and effort.
Average Cost for Tax Prep by Billing Method
Understanding your preparer’s billing method can help you estimate your final cost more accurately.
Hourly Fees
CPAs may charge $150 to $400 per hour, which is the average hourly fee price depending on the services and their credentials. This method is common for strategic tax planning or advice and consulting.
Per-Form Pricing
For straightforward tax situations, many preparers charge per form, especially for clients with simple returns or predictable filing needs.
Flat Fees
Some accounting firms offer a fixed fee for basic returns. Flat fees are ideal for returns with limited forms and no business or investment income.
4 Factors That Affect CPA Tax Preparation Costs
Business tax preparation fees 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.
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 Tax 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 deductions for CPA preparation are not allowed. However, if you are a small business owner or investor, the fees may be incurred as part of your business tax return.
Financial Strategies to Minimize Tax Preparation Fees
Reducing the cost of tax preparation service fees is possible with a bit of planning and organization. Here are a few strategies to help minimize your fees of working with a tax advisor.
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. When a tax professional has to take extra time to make sense of disorganized or incomplete files, it will come at a higher cost. To avoid any extra charges, 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
At Steward Ingram & Cooper, PLLC, our certified public accountants bring decades of experience to every client we serve. Whether you’re filing a basic return or navigating business income, our team is committed to accuracy, tax savings, and long-term financial health.
We provide 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.