I’d like a quick reality check to see if we should be shopping around for a new CPA for our needs or not. We are in a major metropolitan area.
I’m a W-4 employee, and additionally with three investment streams that generate tax documents. Nothing too overly complicated for right now. Been working with them for peace of mind more than anything because I’m very busy and would rather pay the money for someone else to do it (within reason), and because it’s the same firm my parents use and they know my family’s situation. As a single person my CPA would charge me approx $800 in previous years.
This year I filed jointly with my husband for the first time. He was a full time student this year with no income or separate investments. He has foreign assets so he filed an FBAR on his own.
Bill from CPA this year was $2,100. Seems hefty to me, but having a hard time telling if this is reasonable for our situation. Want to figure this out because next year our situation will be more complicated because my husband has opened up his own LLC and will have income through that and will also have his own investments that will produce tax docs too.
We’d like to continue to work with a CPA because though our situation hasn’t been terribly complicated thus far, we think it’ll continue to get more complicated in the years to come because of my husbands business and because of family situations.
We’d like to stick with this same firm but will shop around if this is way too high for what we had this year given that it’s only going to get worse in the coming years.
A gut check would be appreciated!
TLDR: $2,100 too high? Married filing jointly. W-4 with additional investments this year, husband full time student.
Posted by lucyktlou
4 Comments
Might be reasonable, might be hefty. Accountants will come in here and tell you it’s reasonable and you should be happy. They may be correct.
I don’t know exactly what’s on your return but I’d probably be cheaper. That doesn’t mean much though, other than yes you can get cheaper. Accounting fees are kind of all over the place and inconsistent.
You can shop around but remember just because it’s cheaper doesn’t mean it’s equivalent. There is quality concerns in this industry. And since there’s foreign filings you’re dealing with, the consequences of messing up can be VERY bad.
$2,100 is likely their new minimum. My firm has too many “snack” returns like this and they clog up the machine without bringing in enough revenue
That’s the “You don’t need a CPA” fee.
It depends. You haven’t really described your tax return. Three investment streams might be 3 savings accounts. Or it could be one brokerage account with interest, dividends, multiple reportable Sched D transactions, a STR property, and a partnership that always comes in at the last minute with 5 or 6 different kinds of income items, including foreign tax credit. You don’t say whether your husband’s foreign assets require Form 8938, or include foreign income taxes. $800 might be fair. $2,100 might be a steal.