How Much Does Tax Preparation Cost?

As tax season approaches, many people start to wonder how much it will cost to get their taxes done. The cost of tax preparation services can vary widely depending on a number of factors, including your location, the complexity of your tax situation, and the type of tax preparer you choose. In this article, we'll break down the average cost of tax preparation, discuss the factors that can affect the price, and provide some tips for finding affordable tax preparation help.

Factors that Affect the Cost of Tax Preparation

There are several factors that can impact the cost of tax preparation services. These include:

• Location: The cost of tax preparation can vary depending on where you live. For example, tax preparation services tend to be more expensive in urban areas than in rural areas.
• Tax Situation: The complexity of your tax situation can also impact the cost of tax preparation. For example, if you're self-employed or have multiple sources of income, you may need to pay more for tax preparation services than someone with a simple tax situation.
• Type of Preparer: The type of tax preparer you choose can also impact the cost. Certified public accountants (CPAs) and tax attorneys tend to charge more than other types of tax preparers, such as enrolled agents or tax preparer franchises.

Average Cost of Tax Preparation

According to a survey by the National Society of Accountants, the average cost of tax preparation for a simple tax return was $188 in 2020. For more complex returns, such as those for self-employed individuals or those with rental income, the average cost was $566.

If you're a small business owner, the cost of tax preparation can vary widely depending on the size and complexity of your business. According to the same survey, the average price of tax preparation for a small business was $1,134 in 2020.

Tips for Finding Affordable Tax Preparation Help

If you're looking for affordable tax preparation help, there are several options to consider:

• Do it Yourself: If you have a simple tax situation, you can prepare your taxes yourself using tax software. Many tax software programs are free or low-cost and can help you file your taxes quickly and easily.
• Volunteer Income Tax Assistance (VITA): The VITA program offers free tax help to people who make $57,000 or less, people with disabilities, and non-English speakers. You can find a VITA site near you by visiting the IRS website.
• AARP Foundation Tax-Aide: The AARP Foundation Tax-Aide program offers free tax preparation help to people aged 50 and older. You can find a Tax-Aide site near you by visiting the AARP website.
• Low-Cost Tax Preparation Services: There are many low-cost tax preparation services available, including independent tax preparers and tax preparer franchises. Some of the popular tax preparation companies include NEUBOOKKEEPING, H&R Block and Jackson Hewitt.

Conclusion

The cost of tax preparation can vary widely depending on a number of factors, including your location, tax situation, and type of preparer. If you're looking for affordable tax preparation help, there are several options to consider, including doing it yourself, using a VITA or Tax-Aide program, or finding a low-cost preparer. By doing your research and exploring your options, you can find the tax preparation help you need at a price you can afford.

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