Consulting a tax preparation professional is essential in filing your taxes the right way. The primary reason you need a tax preparer is to file your returns accurately and on time.
Fees vary depending on experience and the complexity of your return. But having a preparer that understands your situation doesn’t need to be expensive.
The ever-changing tax laws and rules make tax filing for the average person stressful, to say the least.
Contact your local preparer ask for a quote and consider how long they are in business. The more experienced tax preparer may not be the cheapest but most likely, they are most experienced in regards to your tax situation.
Organization is key
There are certain ways tax preparers can help you with your tax returns and save in the long run. Call actual tax preparation services off-season and let them know your specific situation:
- I’m currently employed and I have another freelance job: That could increase your taxable income and it’s better to know if your tax bracket changed.
- Major Life-changing events: New baby, getting married, or getting promoted at your job. These are situations that you need to be aware of.
- Deductions and/or Credits: Deductions lower your taxable income and Tax Credit decreases the amount you owe. Seasoned tax preparers can guide you in taking these tax breaks and save you in the long run.
- How can I organize my expenses that’s easy for me to track and for you to file my returns?: This is extremely important, the more organized you are the more tax preparers can give you a reasonable price.
Plus, this process will help you develop the habit of tracking your expenses and have a relationship with your tax professional.
Pricing Average for Tax Preparation
Average returns will cost you around $176. Independent tax professionals are sometimes lower, but it’ll vary by experience and the complexity of your returns. It is also an advantage to file with an experienced professional if you know your returns are complex.
Having multiple streams of income could count as a complex return, for instance, if you are employed and have a side hustle as an online seller.
Plus, most of the time individuals with a side gig miss most of the common tax breaks that can save you taxes in the long run.
Methods for Pricing Tax preparation fees
If you shop around for Tax preparers and ask for an estimate on how much they charge for their services, you probably won’t get an answer.
It goes back to the complexity of your returns, here are some reasons why tax preparation fees vary:
- There are set fees for each tax form and schedule.
- Minimum tax return fee plus any additional fee for any changes to your tax situation.
- The Complexity with multiple incomes and a review of your prior year returns.
- Itemized deductions could be an additional fee depending on how many lined items.
Most of the tax fillers in Los Angeles have a second source of income, thus filing your taxes to maximize your deductions or refunds could be a maze of schedules or small boxes to tick.
The investment is worth it given the time and stress if you have to do it for yourself. Plus, the risk of an audit will be less if you have a professional finish your returns.
One Tip! If you come in with a shoebox full of receipts and a Manila folder an inch thick, expect a higher fee. Come in prepared and review all your documents to organize them. Tax preparers might give you a discount if they don’t need to dwell on your returns that long.
Know your Tax preparer and stick with them
A knowledgeable tax preparer can decrease your stress and address your concerns accurately. So, having one that you can trust could save you time and money in the long run.
You can call us at Local Tax for our tax preparation fees but on average we tackle simple income tax returns for $49.
If you just started a business this year, we can help you plan out your taxes for the coming year so you don’t need to stress with it at the last minute.