Big Jumps seen in Tax Prep Fees

Theresa FerroneBlog

The average fee nationwide to prepare a non-itemized 1040 and a state return jumped almost 26 percent in the last two years, according to a recent survey. That represents a rise of $45. Responses showed that the average cost to prepare an itemized 1040 and a state return rose almost 11 percent from 2018. The average nationwide price for doing a 1040 with the Schedule C reportedly about 11 percent, from 2019 to 2020.

The percentage jumps in this survey seem significant given that in recent years preparers prep fees tend to increase about 5 percent a year, with higher increases coming in the wake of tax law changes or the retooling of forms, both of which happened in the last two years.

Flat-fee or Bill-by-form has also become much more popular (81 percent of respondents) than hourly billing.

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