Most people have no idea what professional tax preparation actually costs. They either assume it's way more than it is — and keep filing themselves when they shouldn't — or they get surprised by a bill they didn't expect.
Here's an honest breakdown of what professional tax prep costs, why prices vary so much, and how to know whether what you're paying is reasonable.
Why There's No Single Answer
Tax preparation isn't a commodity. The complexity of your return determines the cost more than anything else. A single W-2 employee with no investments and no side income has a fundamentally different return than an S-Corp owner with rental properties, payroll, and employees.
Any firm that quotes you a flat price without asking about your situation first is either guessing or offering a service that won't cover your actual needs.
What PBX Charges
Our prices are published on our pricing pages and confirmed before any work begins.
Individual return (Form 1040):
starting at $350, with the first state return included. New clients get $100 off their first return.
Schedule C business:
$250 for each business on your individual return.
Rental property (Schedule E):
$200 for each property.
Additional state return:
$125 each.
S-Corp return (Form 1120-S):
starting at $1,350, including up to 2 shareholder K-1s and your home state return. Partnership returns (Form 1065) also start at $1,350.
See individual pricing and business pricing for the full list.
Want to know what your own return would cost? Tell us what's involved and you'll get the scope and fee before we start.
What Drives the Price Up
Within each category, several factors push costs higher.
Multiple income sources — W-2 plus freelance plus rental plus investments — means more forms and more reconciliation. Each layer adds time.
Messy or incomplete records. If your bookkeeping isn't organized when you hand it over, someone has to organize it. That time gets billed. Clean books going into tax season are one of the most cost-effective things you can do.
Mid-year changes. Starting a business, selling property, getting divorced, or inheriting money all create complexity that a standard return doesn't have.
Multiple states. Each additional state return adds cost — $125 per state on an individual return at PBX.
What You're Actually Paying For
This is worth understanding because it changes how you think about the fee.
A good tax professional isn't just entering numbers. They're reviewing your situation for opportunities you haven't thought of. They're checking whether your business structure still makes sense. They're flagging issues before they become problems. They're taking legal responsibility for the accuracy of what gets filed.
When something goes wrong — an IRS notice, an audit, a question about a prior return — your tax professional is who you call. That relationship has value beyond the annual filing.
The Cheapest Option Isn't Always the Cheapest
A cheap return that misses legitimate deductions costs more than it saves.
A preparer who doesn't catch that your S-Corp salary is set wrong could cost you back payroll taxes, penalties, and interest that dwarf years of preparation fees.
Price matters. But accuracy and expertise matter more. The right question isn't "who charges the least" — it's "who gives me the most confidence that this is done right and I'm not leaving anything on the table."
Questions to Ask Before You Hire
Before agreeing to work with anyone, ask these directly:
What's included in your fee and what costs extra? Some firms charge separately for state returns, amended returns, or IRS correspondence. Know what you're getting.
Do you have experience with clients in my specific situation? A firm that primarily handles W-2 employees may not be the right fit for an S-Corp owner with trucking income and a rental property.
What do you need from me to get started? A professional who gives you a clear list of what they need is organized and has done this before. Vague answers are a yellow flag.
How do you handle questions during the year? Tax questions don't only come up in April. You want someone accessible when something comes up in August.
No surprises: you get a clear scope and fee before we start. Most of our clients are small business owners, S-Corp operators, truckers, and others whose returns have more moving parts than a standard W-2 situation.