I’m a preparer at a small firm and I’m starting to think our billing is very generous.
My boss handles all the invoicing, for the returns I prepare.
I just finished a return with the following:
- Income: 2 W-2s, 1099-INT, 1099-DIV
- Investments: Stock sales (Sch D) AND Crypto trades
- Side Hustle: Schedule C
- Misc: Gambling winnings/losses
- Deductions: Property taxes, Mortgage etc.
- State: Michigan return + Homestead Property Tax Credit (MI-1040CR)
Total time spent about 90 min
Total bill was $175
I feel like the Crypto and Schedule C alone should be worth more than that.
For those of you in public accounting or running your own shops, what would your firm minimum be for a return like this? Is $150-$200 even sustainable in 2026? I asked and was told that long time client get too upset if he raises the prices too fast. How would you handle these types of clients? (if they are long term clients)
Posted by MrSwede_
19 Comments
How long did it take you?
Several of those things could be a few minutes or many hours
Sounds way too cheap to me, but I live in a high cost area
Woah….that is severely underbilled anywhere in America. I’m one state over. My firm charges a $500 minimum for any returning client and $600 to new clients. We don’t need any new clients and have the ability to choose anyone we take on. The return you just describe would be $700 easy, likely $800.
Whenever somebody tells me they get their taxes done at a CPA firm for less than $300, I tell them to enjoy it for as long as they can because they’ll never see that price from anyone else. I have a friend who has been going to the same lady at H&R Block or Jackson-Hewitt in Wal-Mart. He has one simple W-2 and child tax credit. She charged him $415 this year. TurboTax is charging more for the same forms and the client DOES IT THEMSELVES.
That’s incredibly friendly pricing.
I’m not a CPA and that return would easily be $450-$550.
$250 base rate, +$150 per Sch C/E, additional charges for every extra hour past the 1st hour.
That sounds about right to me. On a completly unrelated not what company so you can do my taxes and save me some money. Definitely not at all related and they paid way too little.
I understand the sentiment to not want to shock an existing client. The engagement letter next year should have updated pricing. $500 might be more typical but I wouldn’t go from $175 to more than $300 max. There should be a long term plan in place. Maybe $250 for 2026 and $300 for 2027 and see how that works out. You need to correct the heading of the ship but not too fast
I always feel like I’m on the low end. I would charge $300-$350 for that
This costs $420 (349+69 state) with TurboTax full service.
I think you can carve out a business at a little below that running a 1040 mill (like I don’t think 399 is a crime to our profession or anything) but coming in at under half is way too low.
I’m also in Michigan (West side) and my practice bought out a few smaller offices where the owner was retiring and they had similar pricing.
The clients usually get sticker shock when they come on board but with our current pricing that would probably be at least $600 and I personally believe our billing is too low and it should be at least $800.
I’m on the low end.
-stock sales/int/dev don’t really factor into my pricing
-crypto could effect the rate I charge, depending on the reporting and if any work involved with wallets
I have no idea how this return took you 90 minutes, but if a non-first year return took me 90 minutes I would charge at least 500
Block would charge at least $500 to do that return, likely more.
The firms that charge less than Block does are usually ones who provide worse service than Block does. If you’re competent enough to be asking this question, you definitely should be charging more.
When I’m raising prices on a client from one year to the next, I try to bring it up when preparing this year’s return, warning them that next year it will cost more like $X. That gives them plenty of time to think about it and plan to either pay the increased price or to handle things another way. I’ll remind them of the price increase when we first speak the following year, usually before I’ve done any actual work. Sometimes they’re fine with it, sometimes they’re upset; sometimes they go elsewhere, sometimes they stay with me. Regardless, *I* feel better knowing that I gave them plenty of warning and plenty of time to find other options if they want to, as opposed to springing a price increase on them last second.
What I *don’t* do, if they complain about price and threaten to go elsewhere, is offer them a discount. You lose all credibility if you do that. Decide what price to charge, let them know early in the process, and then stick to it.
Lol thats like our taxes but we paid 700. We also have kids and student loans as well. And I was previously happy paying that until this information lmfao
Sched C inclusion brings a $400 minimum; most land at $475 due to time involved. Straight 1040 w State base rate $290, add in Sched D. Sale of Home etc. $350. 1041 base $800 – $1500 depending on K1s involved
what’s your salary? Lmao
Nuts—my minimum is $1,000 for any 1040 and for this, I would’ve charged $1,250 – $1,500 easy because of the crypto + property tax credit.
Also between proforma, input, and detailed review, I would’ve spent probably 2 hours total, but I bill the same regardless. Hourly billing is a no go these days for tax prep work if you wanna make some real cash.
I would charge 450, and that’s me working out of my garage in California.
Can I ask what the AGI was? I participate in VITA, and this sounds like several tax returns I have prepared.
I would say $300 minimum.