Who is the best person to do my taxes?
Find a tax professional
CPAs can represent clients before the IRS on any federal tax matter and are often the best choice for preparing complex tax returns.
Popular tax preparation chains like H&R Block and Liberty Tax can handle business taxes. However, you won't get the financial analysis a CPA can give you, and these services may not have the industry experience to understand your business's optimal deductions and best filing options.
An accountant who specializes in taxation is a better person to advise on tax strategies - as a general rule. Some certified financial planners have tremendous background and experience in taxation and may be able to offer more.
The IRS provides free online resources to help you with tax questions and preparing your return: Help and Resource Center - Find online tools and resources for popular tax time topics.
| Filing Option | Costs |
|---|---|
| H&R Block Basic | – Federal: Free – State: Free |
| H&R Block Deluxe | – Federal: $35 – State: $37 |
| H&R Block Premium | – Federal: $65 – State: $37 |
| H&R Block Self-Employed | – Federal: $85 – State: $37 |
Certified public accountants: Use the CPA Verify tool or check with your state's board of accountancy. Tax attorney: Contact your state's bar association.
Tax preparers typically cost less to work with than a CPA, since they largely only offer tax preparation services. Some work on hourly rates, though many will charge a flat fee.
Whether you choose to file with a tax pro at H&R Block or file with H&R Block Online, you can rest assured that we'll get you the biggest refund possible.
They're typically more expensive: The average cost of filing tax forms is several hundred dollars. There could be even more costs along the way; for example, tax advisors will often charge more for filing with itemized deductions compared to the standard deduction.
How much do most tax preparers charge?
| Tax Form | Cost per Form | Average Hourly Fees |
|---|---|---|
| Form 1040 (not itemized) | $220 | $153.74 |
| Form 1040 (itemized) | $323 | $161.34 |
| Form 709 (Gift Tax) | $421 | $178.29 |
| Form 1041 (Fiduciary) | $576 | $172.66 |
Check the preparer's qualifications.
New regulations require all paid tax return preparers to have a Preparer Tax Identification Number. In addition to making sure they have a PTIN, ask if the preparer is affiliated with a professional organization and attends continuing education classes.
Check the IRS' Directory of Federal Tax Return Preparers. The American Institute of Certified Public Accountants helps consumers find a licensed CPA; it also can help consumers find local CPAs. Look for an EA through the National Association of Enrolled Agents.
- Best for affordability: TaxSlayer.
- Best for ease of use: TurboTax.
- Best for live support: H&R Block.
- Best for free filing: Cash App Taxes.
- Best for accuracy guarantee: TaxAct.
CPAs typically charge between $150 to $400 per hour for their services. Contracts and retainers. Hourly charges can pile up fast, especially if you have more substantial accounting needs, making a contract or retainer a more attractive option. Like hourly fees, contracts and retainers have a wide pricing spectrum.
The IRS ultimately determines whether you qualify for debt forgiveness. However, the agency generally considers taxpayers who meet these criteria: a total tax debt balance of $50,000 or less, and a total income below $100,000 for individuals (or $200,000 for married couples). Need to talk to a tax relief specialist?
Jackson Hewitt Online Transparent Pricing Guarantee
Regardless of the complexity of your tax return or the number of states in which you must file, you are guaranteed to pay no more than $25 total tax prep fees ($25 federal, $0 states) when you file your own taxes with Jackson Hewitt Online or your tax prep fees back.
H&R Block also has a free tier for simple returns that's a good option if you're a W-2 employee or student, reporting income from unemployment insurance or claiming the child tax credit.
Here are the breakdowns: Single filing status: ◾ $13,850 if younger than 65. ◾ $15,700 if 65 or older.
Hiring a good CPA is worth it if your taxes are complex, if you don't have the patience and skill to do your own taxes, or if you are uncertain about how specific tax laws or changes apply to your situation.
Who is the best person to help with taxes?
There are various types of tax return preparers, including certified public accountants, enrolled agents, attorneys, and many others who don't have a professional credential. You expect your preparer to be skilled in tax preparation and to accurately file your income tax return.
The IRS's Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax return preparation to qualified individuals.
| Location | Average tax preparation cost |
|---|---|
| California | $250 |
| Texas | $195 |
| New York | $235 |
| Wisconsin | $170 |
While professional tax preparation can offer convenience and expertise, it can also come with potential drawbacks such as high fees and the possibility of errors or omissions made by the tax preparer. It's important to weigh these factors before deciding whether to go the professional tax preparation route.
CPA hourly rates vary based on factors such as experience, location, and specific services provided. On average, CPA hourly rates range from $150 to $400 or more.
