What is your fee?

[Roberts]

New tax return was brought to me today (the taxpayer died before submitting their tax return and the previous preparer threw a fit that they couldn't sign the 8879 and their child was so offended by the comments they came to me).

W2, a single investment account 1099 with dividends, interest, capital gains distribution from mutual fund, three 1099's for interest received and SS income.

They have a Schedule A itemization but it's nothing special. House and car taxes, 4 charitable donations. That's it.

That is the scope of the entire return. Took me 34 minutes to complete it and that's because it's a new client setup, review of last years return, 5+ minutes to review a HUD statement and I reviewed the mutual funds they held for a few minutes for my own interest.

 

What would you charge for that? I was rather shocked by the charge slip included with last years return.

[MDEA]

I would charge $175.00 for the return you just described.

[SFA]

I don't know what is the going rate in your area, so I would charge my regular fee, then probably deduct a "sympathy" amount and show it as a separate line item adjustment to the invoice, to show compassion for their situation. Doing tax returns after the 18th is bonus work at my office--no overtime, no stress.

We had several deceased client returns this past tax season, and in every case, the families really appreciated the break that we gave on our tax preparation services. Having lost my son last November, I know how it feels when people show a little compassion, even when they don't know me very well.

 

[Roberts]

Didn't include my own fee. I would normally be $185-225.

Last year a chain charged her $437. I'm not saying which chain. Sort of shocked me. The preparer had no credentials.

[Jack from Ohio]

17 minutes ago, Roberts said:

Didn't include my own fee. I would normally be $185-225.

Last year a chain charged her $437. I'm not saying which chain. Sort of shocked me. The preparer had no credentials.

Several of the chains would have charged that much.  No surprise there.

[FDNY]

I love how those chains charge such odd numbers, which I guess is their way of calculating entry and form fees.

I would charge 150-200 depending on the time it took me.   I would probably need more than 34 minutes on the return as I'm the chief cook, bottle washer and reviewer here. My assistant only checks addresses, spelling, and does billing and packaging, etc.  Total time could be more than an hour for what you described.

[Catherine]

$180 - $230 depending on if a state return was required.  Possibly with a discount.

[SaraEA]

Probably $200, $25 more if there was a refund and I had to do a 1310 or turn it into a paper return.  I never thought about a "sympathy" discount.  I like the idea, but on the other hand final 1040s and later 1041s (and state probate filings) are things that require specialized skills.  Often the banks and brokerages didn't get the message that the taxpayer died and they issue the 1099s for the entire year's income.  Then you have to back out what was income in respect of a decedent that rightfully belongs to the estate.  Prices go up when that happens.

[joanmcq]

Around $200 for me. 

[Christian]

I have recently been surprised at the prices H&R are charging locally on the few I've seen. A man came in near the deadline with four W-2s. They had quoted him a price of $345.00 he said so he left their office. They always stuff their returns with unneded paperwork which I guess hhas worked well for them over the years.

 

[Max W]

Because we have clients from around the country, sometimes we have to adjust fees according to where the client lives.

This link gives the average range of fees by region.  Many many years ago when I worked at HRB, they had different fees within

25 miles of different offices, because of income differences.

http://www.cpapracticeadvisor.com/news/12065684/average-income-tax-preparation-fees-increased-in-2015

[FDNY]

This link was very informative, helps us see how average we are.  The original post stated it was a new client, so in my business which is nearly all mail ins I should have mentioned I would  be spending some time on the phone getting to know the client (I know, I tend to talk too much, but I get too interested in my clients, for my own protection).  The phone contact I have with all clients (mostly routine) is something I don't figure into the price, unless it becomes time intensive. So with a new client, I wouldn't be giving out a bargain price, but I would be setting them up for reasonable pricing to keep them.  I have a high retention rate by being fair early on, they rarely get crazy on me for raising a little bit every year.

[Jack from Ohio]

$160-$190.  I always meet with new clients face to face for the first time.  After that, I push for drop off their information.

If I give a discount, I ALWAYS show the full boat price then show the discount I have decided on.  This prevents: "Your price was much less last year" complaint.

I also still show a separate line charge for ACA.  I want to keep my clients fully aware that I did not choose to be the enforcer of Congress' insurance regulations.

[JRS]

$200 for me, BUT, I had a similar situation years ago where I did the work for half price on the condition Mom would come back the next year.  Up until this year that brought me eight extra returns.  This year, since this was my last, I set them up to go to VITA next year, with me looking over the returns after the fact.  They brought me more than enough income over the years and they have all become good friends.  (The Jack Daniels Single Barrel  helps a lot.)

[Yardley CPA]

Based on the information you provided, I would charge $150 to $175 and then extend a new client discount of - $25. 

[BulldogTom]

$130-140.  Might cut them a discount because the CGD would be the only entry on the D.

Tom
Newark, CA

[Abby Normal]

225. I like to say 250 is my minimum, but I keep violating that rule.

Edit: It would be 250 if a 1310 was involved.

[BulldogTom]

Yeah, I forgot about the 1310.  There would be a little bit more in there for the 1310.

Tom
Newark, CA

[BLACK BART]

About $125 to $135.  But, this is Arkansas ("pore boy" territory), so you have to allow for that.  Things are usually cheaper down here.