Tax preparation is a major headache for small business owners. Disorganized records, confusing forms, and the unpredictable fees can leave you stressed and frustrated. Without proper guidance, you may end up with errors, missed deductions, and higher overall expenses. The solution is simple: Work with an experienced CPA who can fix the complexities of your tax situation while optimizing your savings. This guide explains the average cost of tax preparation by a CPA, the various pricing models they use, and how you can benefit from choosing the right tax professional for your needs.

Average Cost of Tax Preparation by CPA (2025 Update)

Understanding the cost of tax preparation by a CPA is crucial for budgeting effectively. Although fees can vary widely based on your specific situation, here’s an updated breakdown for 2025:

National Average Costs:

• Form 1040 with Schedule C: According to the NSA, the average cost for preparing a Form 1040 with Schedule C is approximately $457.

• Simple Form 1040 Filings: Non-itemized individual returns typically cost around $220.

• Itemized Returns: When itemization is required, the average fee is about $323.

Regional Differences:

• Midwest: Known for affordability, CPA fees for small business filings in the Midwest typically average between $300 and $400.

• South Atlantic: Standard small business filings in this region are usually around $350.

• Pacific: Due to higher costs of living, comprehensive returns in the Pacific region often exceed $500.

Simple vs. Complex Filings:

• Simple Filings: For straightforward tax situations with minimal deductions, fees usually range between $220 and $320.

• Complex Filings: For businesses or individuals with multiple income sources, significant deductions, or intricate asset management, costs can rise to $1,000 or more.

Additional Charges:

• Consulting Services: Tax consultation rates average about $150–$160 per hour.

• Amendments to Returns: Depending on the complexity, fees for amending a return typically range from $50 to $300.

• Disorganized Records: Clients with poorly organized records may face an extra fee averaging around $165–$170.

Getting your taxes prepared by a CPA can cost a lot, depending on several things. CPAs use different pricing, like a flat fee, hourly rate, or per-tax fee. Sometimes, they mix these methods.

Standard Pricing Structures

A flat fee or flat rate is set for simple tax work, like a basic individual return. The hourly rate is based on how long the CPA takes to finish the job. This is often for tax returns with more details. The per-tax fee is for each specific form, with some being easier and others harder.

Examples of Pricing by Filing Type:

• Individual Returns:
  • Simple (e.g., W-2 with the standard deduction): $200–$300
  • Complex (e.g., including investments or rental properties): Up to $500 or more
• Business Returns:
  • Small Businesses: Typically $500–$1,200
  • Larger or More Complex Businesses: May exceed $1,500
• Cost by Specific Forms:
  • Individual Tax Return (1040): $200–$500
  • Corporate Tax Return (1120): $800–$2,000

Small businesses might pay between $500 to $1,200 or more for tax prep. Big or complex businesses could pay over $1,500. The type of business, like a sole proprietorship or C-corporation, affects the cost too. Contact us to learn more

Factors Influencing the Cost of Tax Preparation by CPA

Finding out the average cost of tax preparation by cpa isn’t easy. Many things affect the price. Knowing these can help you plan your budget better.

Complexity of Your Tax Situation

How complex your taxes are is a big factor in the cost. For example, having two jobs and a new home means more forms and schedules. You’ll need to deal with mortgage interest and property taxes and handle income from different sources. This makes the job harder for the CPA, so you might pay more.

Organization of Records

How well you keep your financial records can also change the price. If everything is organized and easy to find, the CPA can work faster. This means you might pay less. But if your books are a mess, the CPA will spend more time on them, which costs more.

CPA’s Experience and Reputation

The CPA’s experience also plays a role in the cost. More experienced CPAs with special knowledge or a good reputation usually charge more. But, don’t think a less experienced CPA is a bad choice. They might be cheaper but still offer the services you need. It’s about finding the right CPA for your needs.

Understanding these factors helps you pick the right CPA and manage your tax prep costs.

Conclusion

Hiring a CPA or JC Castle Accounting can save you time and reduce stress. While you can file taxes on your own, a financial expert might ease your worries during tax season. The cost to have a CPA prepare your taxes depends on your tax situation, record organization, and the CPA’s skills and reputation.

Whether you decide to hire a CPA or handle your taxes on your own depends on your specific accounting needs. However, consider the advantages of having expert assistance. For small business owners, CPA accounting and tax services, or even online CPAs, can be a smart investment.

To learn more, check out what does a CPA charge to do taxes.