How much does tax prep cost?
The cost of tax preparation depends on factors like the complexity of your return, the type of income you earn, and whether you’re filing as an individual or a business. Keep in mind that this cost can be offset by deductions for business-related filings and the potential tax savings your accountant might find. And don’t forget the precious time you’ll save by letting an expert tax professional handle your return!
1) How much does tax prep cost?
Tax preparation costs vary widely, depending on the intricacy of your finances and the services you require. A simple personal tax return will cost less than one that involves multiple income sources, deductions, or business filings.
SnapBooks offers competitive tax prep pricing based on the type of return you’re filing and the complexity of your finances. Here’s a handy breakdown:
Personal Returns (Form 1040): Starting at $350, this covers standard individual tax filings for those with straightforward income sources, such as W-2 wages.
Personal Returns with Schedule C or Schedule E: Starting at $550, this fee applies to self-employed individuals or those earning rental income.
Partnership Returns (Form 1065): Starting at $700, this is for businesses structured as partnerships, which must report income, deductions, and distributions to their partners.
S Corporation Returns (Form 1120S): Starting at $800, this is for businesses operating as S corporations, which require specialized tax filings to pass income and losses through to shareholders.
2) Are tax preparation fees deductible?
On federal tax returns, tax preparation fees are deductible for businesses, not individuals. Some states, however, may still allow individuals to claim deductions for tax preparation costs. It’s worth checking your state’s specific laws!
If you're a business owner, your tax prep fees are fully deductible. Fees for bookkeeping, tax planning, and consulting with accountants are eligible for tax write-offs, too, as long as they directly relate to your business operations. Offsetting these costs can help lower your business’s taxable income, thereby reducing your overall tax burden.
3) Is it worth paying for tax preparation?
This is a big yes! Paying for tax preparation is often cost-effective, especially if your financial situation is complex or you own a business. A tax-savvy accountant can ensure your return is accurate, help maximize deductions, and save you hours of work.
Maybe you’re a busy self-employed freelancer who struggles to keep track of expenses like office costs, mileage, and business supplies. Perhaps you’re a small business owner with multiple employees who needs help managing payroll taxes and avoiding costly IRS penalties. These are just two examples of who can benefit from hiring an expert tax professional.
Even if you’re an individual with straightforward taxes, hiring someone to handle your return can provide peace of mind. New homeowners, beginner investors, and people who’ve just experienced a major life change should also consider getting professional help with filing their personal tax returns.
No matter your situation, a tax professional can make sure you take advantage of all eligible deductions and credits. Just imagine saving hundreds or even thousands of dollars—along with that priceless asset called time.
Welcome to SnapBooks! We’re a virtual accountant firm specializing in outsourced bookkeeping services, payroll for small businesses, and small business tax prep. Whether you’re a small business owner or running a growing company, we’ll help you stay on top of your finances with expert support and accurate, real-time numbers.
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