Pricing Change Notice

Why Tax Preparation Fees Have Changed — And What That Means for You

Here's the very personal answer I wrote recently to a tax client who asked. Below that is my complete, detailed explanation.

Unfortunately, costs for business, rental, and farm returns (schedule Cs, schedule Es, schedule Fs, partnerships, S-Corps, Corporations, Non-profits) are a lot more than I had been charging in the past. I hate to increase prices, I really do. However, what I have been charging is truly not near a rate a CPA with 25 years+ charges, not nearly so. (Honestly it has been about half of a place like H&R Block charges, where they train people for 6 weeks who have no degree or licensing to prepare returns., but I digress.) 

I hope clients see that over the years they have benefitted immensely from my experience and service and have been thankful at how inexpensive those rates have been. The time it takes me to prepare a return does not reflect a cost for preparation. It is so much more. For instance, think about this: My house smelled like gas over the weekend. The person who came determined the issue and fixed it in 5 minutes. The emergency repair visit cost started at $300. It's not the time it takes. It's the knowledge of what to do, the tools available to fix the issue, how to use those tools, the time savings for the customer in not having to do it themselves (even with YouTube videos and AI guidance), and most of all, the peace of mind knowing it has been done professionally and competently. 

I hope this makes sense. Unfortunately in the past couple of years, the cost of everything has risen significantly for everyone. I am not exempt from that in my personal life nor in the costs it takes to run my business. Yet, I have kept my prices as low as possible for quite some time. I honestly am still undervaluing my services with my price increases. Take a look here: https://skfinancial.com/blog/average-cost-of-tax-preparation-by-cpa and https://www.bench.co/blog/tax-tips/average-cost-tax-prep-cpa (the $192 is JUST for the schedule C, not for the rest of the return and doesn't include state), or https://wcginc.com/fee-structure/. I'm not a big CPA firm with employees that I can pay a small salary to do a lot of work. It's just me. I turn away more clients than accept each year as I don't want my service to my current clients to suffer. 

I value the time in talking and catching up with my clients and explaining to them how their tax return is calculated, why they may owe or why their refund may be different that previous years, along with making sure there is not something additional that they could be doing to lower their tax liability. I value my customers, and I don't think most places can say that with as much sincerity as is true with me. 

Here's the more detailed explanation for you to consider, if interested in reading more.

This year prices for tax preparation — particularly business returns — have increased. I understand that any price change raises questions, and I want to share why this is happening and why my fees still represent real value for the service you receive.

1. The Tax Code Is More Complex Than Ever

Tax laws continue to evolve, with new rules, deductions, business provisions, and reporting requirements being added regularly. Preparing a business return today involves far more detailed work than it did years ago — not just filling in forms, but interpreting complex regulations that affect depreciation, credits, multi-state issues, pass-through deductions and more. This adds real preparation time and professional judgment that you don’t get with DIY software or basic preparers. 

2. Real Preparation Includes a Lot More Than “Time at the Keyboard”

Some clients see their completed return and think it was prepared quickly — but that’s just the final step. My experience with the tax code and seemingly quick preparation is a bit of an illusion. The time involved that you do NOT see is much more other than the "keying and entering" time into the tax program. Behind the scenes I spend time:

• Reviewing updated tax laws and compliance requirements;

• Updating your information from prior years;

• Communicating with you by phone, email, and in person;

• Completing continuing professional education so I stay current;

• Maintaining professional liability coverage.

This “invisible” time is essential to delivering accurate, optimal results, and it’s part of what sets a licensed CPA apart from less credentialed preparers.

3. Software Costs and Tools Like Lacerte Are More Expensive

Professional tax programs — including industry standards like Lacerte (which I use) — are powerful, but the annual cost to license them has steadily risen. These tools are essential to preparing returns accurately, especially business returns, even if just a small sole proprietorship Schedule C return. The cost is ultimately part of what clients pay for reliable, compliant filings.

4. Demand for Experienced CPAs Has Grown

There are fewer experienced tax professionals nationally, and demand is high — particularly from businesses seeking expertise rather than just form-filling. Demand for experienced CPAs has grown immensely. While many new clients are entering the market prepared to pay substantially higher fees for qualified tax professionals, long-time clients have historically benefited from pricing that remained well below current market rates.

5. My Fees Still Represent Value Compared With Market Alternatives

It’s helpful to compare typical fees across the industry:

1. DIY Tax Software (TurboTax, H&R Block): up to $400 for individualreturns, ~higher for assisted business returns

2. Professional Chain Preparers (H&R Block, etc.) – about $1,500 for basic business returns depending on level and support)

3. CPA Business Tax Preparation: typically range from ~$1,000–$2,500+ for any type of business return depending on entity type and complexity.

(*Note: online DIY software often does not support business returns without significantly more expensive add-ons or full-service options — and still does not provide professional judgment on complex tax planning.)

My pricing reflects both the depth of experience I bring (more than 25 years of helping clients) and my commitment to thorough, personalized service. I don’t rush through returns just to check a box — I make sure your filings are accurate, maximize legitimate benefits, and reduce risk of IRS notices or audits. I am also available year round where many national tax prep chains are not and most, if not all, CPAs will charge per hour for any additional time on top of the tax return prep. My service fees include the assurance and comfort that I am here throughout the year to answer your questions and even run "what-if" projections as needed.

6. I'm Still a Reasonable Choice

Even with increases, CPA-prepared business returns remain competitively priced when you factor in:

• The expertise and credentials behind each return;

• Personalized planning and advice;

• Reduced stress and time burden for you;

• Potential tax savings uncovered through professional review.

I appreciate the trust you place in me year after year. My goal is to be both clear about my pricing and transparent about the value you receive. 

Thank you for being part of my tax family. I value you as a customer and look forward to being your lifetime tax preparer.

You may be asking: is this it? Can I expect to have this same rate for a long time now, for many years?

Unfortunately, I cannot promise there won't be increases. I can say that my minimum for a simple individual tax return will go up every year as my costs in preparation go up every year. If you are still reading this and considering going elsewhere, I understand! You have no obligation or long-term contract to stay with me. Feel free to test the waters at a chain tax preparation, at a large CPA firm, at another small business, with an EA (enrolled agent). I will do whatever is necessary to ensure you have a smooth transition in providing any information I can to wherever you go. I hope you don't, but I understand.