Accountant cost

[Robert N]

Depends on the state you live in. I’m in TN…no state income taxes to file.

So I’m Fed Only.

I called to find a guy to my taxes…he quoted $900. Told me, and I quote “I have quite a few employees to feed”. I said “and I don’t like being overcharged for something I paid $400 for in California, which requires both State and Fed taxes.”.

Wife and I both W2 for work. Make rather decent wages…have a rental property…stock options, etc.

TurboTax, $120 last year I think…took me 2 hours to do.

The reality of Tax Accountants leveraging fear to drive rates is BS. Heck, I’ve watched them (*tax accountants), at their computers, log into Turbo Tax (because they didn’t know their window was reflecting their screens back to me) and start with my taxes. I asked them what value they bring to the table that doing it myself with TurboTax brought to the table…they rather stumbled…

But I will say this: I’m a W2’d individual…so is my wife…and our rental property is a simple setup. More complex setups may truly deserve more professional attention.

 

[TheGrayRider]

There are more reasonable services available than what you are paying now. Best of luck, TheGrayRider a/k/a Tom.

 

[westbranch]

The $1,500 may have been the we don't need the work price. Was it a small solo office or a bigger local office? And did you just contact them during busy season or last fall/summer ahead of time?

I am at a "big" local CPA firm and for a random call in client we might have billed 500-600 for a similar W2/rental property tax return in 2019; now we would want double that but usually we just say not interested. Its not the type of work we are looking for and we have very little interest in "orphan" 1040s. Its not even worth it to give a high quote on some tax returns.

 

[Dougfirtree]

My wife does her taxes for her business and keeps good records, but our accountant checks them and incorporates into our income tax filings. I think we paid $360.00 this year.

 

[Ought Six]

We paid $430 this year, actually down $20 from last year, and he got us a giant return. I thought $430 was high but I’m surprised at what others are paying even if their taxes are a little more complicated than ours, we probably had 15ish documents/forms involved

 

[seeth07]

holy crap you guys pay a lot. Our taxes aren't super complicated but we do have a LLC small business where we report about 3k in expenses and 5k-15k in profit each year. So some minor extra paper work but not much. Other than that and the K2 form I receive from my work its standard stuff. We pay $205 to have them all done and filed for us.

 

[npaden]

Our minimum to touch a 1040 without some other type of business return or relationship is $500. That is low compared to many firms. Some are $1,000 minimum and I actually know of one that has a $5,000 minimum.

Good CPA firms aren't making their money on compliance type tax returns but being your tax planner and business advisor. It's easy to get caught up in pounding out tax returns and miss the bigger picture on things.

When it comes down to it, time is money and that's how most CPA firms charge. More time with a partner and it is going to cost you money. If you have things lined out and ready to go then it shouldn't take as much time so it shouldn't be as expensive. For us a $1,500 return would typically involve 1 or 2 hours of a partner and 6 or 7 hours from a mid level person. If you think your return should take less than 8 hours then they might be pricing it aggressively. I know we would probably price a return pretty aggressively if asked for a quote a month before the deadline.

 

[OwyheeHuntr]

I work with CPA firms all over the country, the VAST majority are just tax preparation firms that are volume shops. As said earlier in this thread, the good ones are tax planners and business advisors/consultants focused on working with high earning W-2 and business owners. In my experience the good ones are worth whatever they charge and are rarely hurting for business or taking on anything but the ideal client for their firm.

 

[jpcoll01]

900ish for a rental a couple residences and one W2 here. I was audited two years in a row and the first time was a wash no money owed and the 2nd time they had to cut me a check!

 

[Dakotakid]

I am waiting for this years bill, but I think last year was $300, that is with several rentals, and w2s.

I had a professor that lived to be audited. He deducted all of his children’s movies as expenses because he played a clip in class. Held back extra deductions just in case he was audited and then would amend and get extra back.

He would set up job interviews on the east coast that just happened to coincide with holidays and family.

 

[Deleted member 52098]

I should have mentioned this earlier, but as someone said already there is a huge difference between a tax processor and a tax accountant. I could certainly use Turbo Tax for all my needs and probably be just fine if I never had a single question, concern or scenario I wanted to run by someone. I pay a little extra knowing that I can call, text, or email Greg and ask his advice before I purchase another vehicle, or consider buying into another business.

Also, it's often overlooked, but a good accountant relationship can be a huge business driver for those of you who own businesses. I've gotten a few referrals from my accountant and know he's passed on the name of a few of my clients who also work with him.

A good accountant is a long term play, with the value coming over the term of the relationship - I've never looked at it from a "could I get this year's taxes done cheaper" mindset

 

[MarvB]

No longer have a business but sold our last property down in Cali (we live in OR) this past year, our accountant filed our Fed, OR state, and CA state for $650 total. Been using her for the past four years but I'll probably go back to doing it myself for 2024.

 

[Irrelevant]

I've never looked at it from a "could I get this year's taxes done cheaper" mindset

You mean not everyone decides which button to select in turbo tax based on which way the number in the corner spins?

 

[Deleted member 52098]

You mean not everyone decides which button to select in turbo tax based on which way the number in the corner spins?

I can neither confirm nor deny that a younger version of myself may have faced an ethical dilemma in my younger days of using turbo tax... when faced with two options, one of which was truthful and offered me X refund, and the other, a lot less truthful answer offered me a 5X refund

Sometimes being ethical really sucks ha

 

[jejack26]

Depends on the state you live in. I’m in TN…no state income taxes to file.

So I’m Fed Only.

I called to find a guy to my taxes…he quoted $900. Told me, and I quote “I have quite a few employees to feed”. I said “and I don’t like being overcharged for something I paid $400 for in California, which requires both State and Fed taxes.”.

Wife and I both W2 for work. Make rather decent wages…have a rental property…stock options, etc.

TurboTax, $120 last year I think…took me 2 hours to do.

The reality of Tax Accountants leveraging fear to drive rates is BS. Heck, I’ve watched them (*tax accountants), at their computers, log into Turbo Tax (because they didn’t know their window was reflecting their screens back to me) and start with my taxes. I asked them what value they bring to the table that doing it myself with TurboTax brought to the table…they rather stumbled…

But I will say this: I’m a W2’d individual…so is my wife…and our rental property is a simple setup. More complex setups may truly deserve more professional attention.

That's what started me on turbo tax also. Accountant called needing some forms, I walked in and saw he was using turbo tax to do our taxes. To me, unless your doing something complicated, which rentals aren't, it's the only way to go.

 

[TOGIE]

i joked recently that even trumps accountants wouldn't be able to find enough deductions in my life to beat the standard.

i'll stick with turbo tax for now.

 

[MNElkNut]

Whew, I am lucky that I only pay $110. Three W2s, some CRP income/deductions/depreciation, kid deductions and that is about it. My wife has everything all lined up and it takes us an hour. State and Fed. Have known him for many years and am really worried he is going to retire. He is really good about giving us good advice on tax planning.

 

[Derek44]

Learn math. Read the rules and policies and laws. And do your own. Only you know what’s best for you. I have control issues that negate letting ANYONE have say in my finances. Maybe it’s OCD. Idk. But I worked hard to earn it, I control it.

 

[Treeshark]

$1850 business, $350 personal this year.

 

[Steiny77]

Just got ours done; multiple income sources, several farms, lots of real estate, etc.
Paid $1300, no complaints.