I am not a tax professional. As a CFP® practitioner I am well versed in taxes, but that does not make me a tax expert. That is why when it comes to doing my own taxes, I see the same CPA every year. Several times a year I am asked to provide a referral for tax work and I am happy to provide my CPA's name and number.
Today one of my clients called who is planning on seeing the CPA for the first time this year. She wanted to know what it costs to have a CPA do her taxes. Since I have never done a competitive analysis, I decided to do a little research. This person is a single wage earner with no dependents. She has one employer and itemizes her deductions. As far as taxes go, this is pretty straightforward. She will need to file a 1040 with a Schedule A.
I asked what the CPA quoted. He charges by the hour and she said he estimated $150 - $200.
Then I called H&R Block. The said they charge by the form but for a 1040 with a schedule C, only one W-2 and no dependent children it was "hard to say but I would think around $200."
So that has me wondering; why would someone go to a tax preparer when they can have the services of a CPA for the same (if not lower) price?
Comments