Tax Preparation Fees

• The National Society of Accountants which conducts it biennial survey of 8,000 tax preparers revealed the average tax preparation fee for an itemized Form 1040 with Schedule A and accompanying state tax return is $229. Fees for non-itemized federal and state tax returns were $100 lower. Tax preparation fees varied based on the size of the accounting firms that participated in the survey. The average fee charged by a one-person firm was $217 and increased to $245 for firms with three or more staff. Fees also varied by region. Firms based in the Pacific region charged $292 compared to a low of $137 for firms located in East South Central.
  
  

Tax Software

• You can prepare your taxes using tax software. There are also a number of firms that allow you to prepare your return online in lieu of downloading or purchasing software. Tax software filing fees vary based on the complexity of your tax return. No matter which online program you choose, you can e-file your federal tax return for free. There may be a small fee for processing your state return. Shop online to determine which online tax program fits your budgetary needs. For instance, Turbo Tax federal tax filing fees range from free (for federal) to $129.95 for business tax returns. Tax Act offers free federal tax filing as well and its "Ultimate Bundle" is valued at $17.95. Finally, H&R Block, the largest tax preparation franchise has its own online tax filing products. It offers a basic tax product, suggested for those with "simple tax situations", a deluxe tax product suggested for returning users a and premium tax product recommended for the self-employed.
  
  

Additional Fees

• Your tax preparation cost can be higher depending on your circumstances. Most likely you will pay more if you have multiple schedules aside from a standard Schedule A or operate a small business. A tax preparer may charge you higher fees if you have to file amended returns. In addition, you can incur additional fees depending on how a tax professional files your tax return. For example, if you want to receive your refund in 1-2 days, you can ask for a refund anticipation loan. This is a loan issued by a bank against your anticipated income tax refund. A refund loan carries electronic filing fees, application fees, and a fee to cash the check. According to the Better Business Bureau, the interest rate on a refund loan can range from 50 to 500 percent.
  
  

Considerations

• Research tax preparation costs before you file your taxes. If your filing status is the same and there are no material changes in your circumstances, you may want to prepare your taxes yourself. Large tax preparation franchises such as H&R Block, Jackson Hewitt and Liberty Tax offer consistent pricing across the board compared to stand-alone firms. It is also helpful that you can speak to a tax preparer one-on-one. If you choose to use tax software, verify that it has an audit function or guarantees the accuracy of its results.