How Much Should It Cost to File Your Taxes?
- Tax Team
- Dec 31, 2025
- 3 min read
How Much Should It Cost to File Your Taxes?
The cost to file your taxes should reflect how complex your financial life is, how much risk exists if it’s done incorrectly, and whether you are simply filing a return or actually making strategic decisions.
For most people with a business, investments, or high income, tax preparation is not a $150 service and should not be treated like one.
A Realistic Price Range
A Realistic Price Range
Here is what professional tax preparation typically costs at our firm:
Basic 1040 return: $345
Self-employed or Schedule C returns: starting at $495
S corporation returns: starting at $545
Each additional state: $75
Amended returns: starting at $345
These are starting prices. The final cost depends on time, number of forms, and complexity. More forms mean more review, more judgment, and more responsibility.
Why There Is No Flat “Right Price”
People often ask why tax preparation isn’t a flat fee across the board. The answer is simple: not all tax returns carry the same level of risk.
A W-2 employee with one employer and one state has very little exposure. A business owner with multiple income streams, deductions, assets, payroll, or prior year issues has significantly more.
Pricing is driven by:
Time required to prepare the return correctly
Number of tax forms involved
Complexity of income and deductions
Clean or messy records
Prior year errors that need to be fixed
If someone quotes a very low price without reviewing these factors, that is a red flag.
What You Are Actually Paying For
You are not paying for data entry.
You are paying for:
Interpretation of constantly changing tax law
Correct classification of income and deductions
Reduction of audit and penalty risk
Strategic use of the tax code
Peace of mind knowing your return was prepared correctly
This is especially important for business owners who do not realize how many deductions they miss or how often income is reported incorrectly when using low-cost or DIY options.
Real Client Examples
One of the most common situations we see is incorrect entity structure. On average, switching from an LLC to an S corporation saves our clients approximately $5,000 per year when done correctly and at the right stage of business.
In another case, a client received an IRS notice stating she owed $4,000 for failing to file a required 1099. After reviewing her situation, amending the return, and applying appropriate business deductions, her balance was reduced to $300.
We also frequently see clients who believe they can write off “everything.” While that approach is incorrect and risky, proper planning has allowed us to legitimately apply home office deductions and depreciate assets in ways that reduce tax liability without exposing the client to audit risk.
Tax Preparation vs Tax Planning vs Tax Strategy
Understanding the difference explains pricing better than anything else.
Tax preparation is reporting what already happened based on the information provided.
Tax planning happens before December 31st and involves projections and decisions that reduce future tax liability.
Tax strategy is an ongoing, customized approach that aligns the tax code with your business and financial goals. This is typically done through monthly or quarterly advisory relationships.
Lower cost preparers focus almost exclusively on tax preparation. Higher value firms focus on planning and strategy.
Who Should Expect to Pay More
You should expect professional-level pricing if you:
Own a business or are growing one
Operate as an S corporation
Earn high income with assets or investments
Want to reduce taxes legally over time
Value expert guidance over the largest refund promise
We are not a good fit for individuals earning under $55,000 who are focused on the cheapest option or for straight W-2 employees with no entrepreneurial goals.
TurboTax, a $150 Preparer, or a Professional Firm?
TurboTax can work for a very simple W-2 return or a 1099 filer with no expenses and one state.
A $150 preparer often creates more problems than they solve.
A professional firm is the right choice for people who are building, growing, and protecting income.
So, How Much Should It Cost?
For most business owners and high earners, professional tax preparation should cost several hundred dollars, not several hundred mistakes.
The real cost is not what you pay upfront. The real cost is what you lose when taxes are done incorrectly or without strategy.
If you want to understand what your situation actually requires, the next step is to book a consultation. That conversation alone often saves clients more than the cost of preparation itself.
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