What Is the Average Cost of Tax Preparation by a CPA?

Millions of Americans prepare their own tax returns, but there are times when getting professional tax help makes sense. Perhaps you invested in stocks, started your own contracting business, or made a bundle with cryptocurrency. When you have multiple income sources or complex holdings, a CPA can help you make sure your taxes are accurate and paid on time. The question is: how much does it cost to hire one?

The cost depends on several factors like income sources, deductions, business ownership, and your financial situation. A straightforward W-2 return will cost significantly less than a tax filing that includes freelance income, stock sales, rental properties, or small business earnings.

While DIY tax software is an option, it doesn’t always catch every deduction or credit you qualify for. Many taxpayers assume that using software will save money, but mistakes, overlooked write-offs, or IRS audits can end up costing far more than professional tax preparation. CPAs provide expert advice, uncover tax savings, and ensure compliance with ever-changing tax laws. In this guide, we’ll explain the average cost of tax preparation by a CPA so you know what to expect.

Looking to save more on taxes this year? The tax experts at USA Tax Gurus can help. We’re a team of enrolled agents and licensed CPAs dedicated to helping you keep more of your hard-earned dollars in your pocket. We offer free consultations, so you can speak with a tax professional about your situation at no cost. 

How Much Does It Cost to File Taxes With a CPA?  

The cost of hiring a CPA varies, but national averages range from $220 to $800 for individual returns and higher for business filings.  

• A basic individual tax return with W-2 income and a standard deduction typically costs between $220 and $400. Those who itemize deductions, claim tax credits or have investment income usually pay between $400 and $600.  
• Freelancers, contractors, and self-employed individuals often face a higher tax preparation cost, ranging from $500 to $1,200. This is because calculating deductions for expenses, home offices, and self-employment taxes requires more time and expertise.  
• Rental property owners also pay more, especially if they manage multiple properties. Tax returns that include rental income and depreciation calculations can cost anywhere from $500 to $1,500.  
• Business owners filing LLC, S-Corp, or C-Corp tax returns can expect to pay between $750 and $2,500 or more. Business tax preparation involves payroll considerations, expense tracking, and compliance with state and federal tax laws.  

What Affects CPA Tax Preparation Fees?  

Several factors determine the final price of professional tax preparation.  

• The Type Of Tax Return Being Filed: A simple W-2 employee tax return requires much less time and effort compared to a business return with multiple income sources.  
• Filing Status: Filing status also impacts cost. Single filers with no dependents generally pay less than married couples or heads of households claiming multiple deductions and credits.  
• Income Sources: A taxpayer with one W-2 will pay less than someone juggling full-time employment, freelance work, rental income, stock dividends, and cryptocurrency transactions.  
• Deductions and Credits: Claiming mortgage interest, medical expenses, childcare costs, tuition credits, and retirement contributions adds to the time needed for an accurate filing.  
• Business Ownership: For business owners, tax preparation fees are often higher due to the need for financial statement analysis, depreciation calculations, payroll considerations, and quarterly tax filings.  

CPAs also offer tax planning services throughout the year to help minimize liabilities and ensure proper financial record-keeping. These services come at an additional cost but can lead to significant tax savings.  

CPA vs. Tax Software: Which Is Better?  

Many taxpayers consider using tax software instead of hiring a CPA, mainly because of the lower upfront cost and the convenience of filing from home. Popular options like TurboTax and H&R Block offer user-friendly platforms that guide filers through basic returns, making them a reasonable choice for W-2 employees with no major deductions or additional income sources. 

If your tax situation is straightforward (meaning you have only one job, take the standard deduction, and don’t have investments, freelance income, or dependents), software may be enough to get your taxes filed accurately.  However, as financial situations become more complex, tax software often falls short. 

Taxpayers with multiple income streams, rental properties, stock investments, or business ownership frequently run into issues that software isn’t equipped to handle properly. 

• Self-employed individuals, for example, need to track deductions for home offices, business expenses, and self-employment taxes. 
• Rental property owners must calculate depreciation, maintenance costs, and mortgage interest. 
• Investors dealing with stocks, dividends, and cryptocurrency need to ensure that capital gains are reported correctly. 

While tax software may attempt to walk users through these situations, it often oversimplifies deductions, leaving money on the table or increasing audit risk.  

A CPA brings expertise that software simply cannot replicate. They analyze your financial situation to ensure you’re claiming every deduction and credit available to you. For business owners, this can mean structuring expenses strategically to reduce taxable income. For investors, it might involve tax-loss harvesting or capital gains planning. These savings often offset the cost of hiring a CPA, making it a worthwhile investment for many taxpayers.  

Mistakes on tax returns can be expensive, and software doesn’t always catch them. A missed deduction, incorrectly reported income, or a miscalculated tax credit can lead to an unexpected tax bill or worse, an IRS audit. If an issue arises, tax software provides little to no support beyond automated FAQs or chatbots. In contrast, a CPA not only ensures accuracy but can also help resolve problems if the IRS flags your return. 

While tax software may seem like an easy and cost-effective solution, it has clear limitations. If your tax situation is anything beyond the basics, hiring a CPA can provide a level of expertise and service that software simply can’t match. In the long run, working with a tax professional often results in greater savings, fewer errors, and peace of mind knowing that your return has been handled correctly.  

USA Tax Gurus: Transparent Pricing for Tax Preparation  

USA Tax Gurus offers clear and competitive pricing for tax preparation. Below is an overview of our fee structure: 

• Individual tax preparation starts at $299 and includes W-2 and 1099 income, stock and crypto calculations, childcare and tuition expenses, homebuyer credits, rental income, and IRA contributions.  
• Business tax preparation starts at $499 and covers LLCs, partnerships, S-Corps, C-Corps, contractor income, and rental business filings.  
• International tax preparation starts at $499 and includes foreign tax credits, foreign-owned US entities, foreign partnerships, and corporations.  

With experienced CPAs and straightforward pricing, USA Tax Gurus provides accurate and compliant tax filing services without hidden fees.  

Tax Return Type	Average CPA Cost	USA Tax Gurus Pricing
Basic Individual Return (W-2 income, standard deduction)	$220 – $400	From $299
Itemized Individual Return (Mortgage interest, student loans, medical expenses)	$400 – $600	From $299
Freelancer / Contractor (1099 income, deductions for expenses)	$500 – $1,200	From $399
Stock & Crypto Investors (Capital gains, dividends, complex reporting)	$500 – $1,500	From $399
Rental Property Owners (Schedule E, depreciation, multiple properties)	$500 – $1,500	From $499
Sole Proprietor / Small Business (Schedule C)	$750 – $1,500	From $499
LLC / Partnership (Form 1065)	$1,000 – $2,500	From $499
S-Corp (Form 1120S)	$1,200 – $2,500+	From $750
C-Corp (Form 1120)	$1,500 – $3,000+	From $750
Foreign-Owned US Entities (Forms 1120, 5472)	$1,500 – $3,000+	From $599
Foreign Corporations / Partnerships (Forms 1120-F, 5471, 8865)	$2,000 – $5,000+	From $999

How to Choose the Right CPA for Tax Preparation  

Not all CPAs offer the same level of service, and choosing the right professional can make a difference in both the cost and accuracy of your tax return. A well-qualified CPA can help maximize deductions, ensure compliance with tax laws, and provide guidance that goes beyond simple filing. On the other hand, working with an inexperienced or inattentive tax professional can lead to costly errors, missed savings, and potential IRS issues.  

Experience

Tax laws change frequently, and a seasoned accountant stays updated on new deductions, credits, and compliance requirements. Whether you’re filing as an individual, business owner, or international taxpayer, choosing someone who specializes in your tax situation supports better results. A CPA who regularly works with self-employed individuals, for example, will typically have more knowledge of available deductions than one who primarily handles straightforward W-2 filings. 

The USA Tax Gurus team brings over 20 years of combined experience to the table. We’ve prepared tax returns for over 3,000 clients spanning across over 30 states. We’re uniquely positioned to help you maximize your returns. 

Transparency in Pricing

Transparency in pricing is another key consideration. Some CPAs charge hourly, which can quickly add up if your tax situation requires additional time. Others offer flat-fee pricing, but the rates can vary widely. Before hiring a CPA, it’s important to ask what’s included in the quoted price. Additional forms, state tax returns, and tax planning services may cost extra, so understanding the full scope of services helps avoid unexpected expenses.  

Availability

Availability also matters, especially for business owners or individuals with complicated financial situations. Some CPAs only provide tax services during filing season, making it difficult to get assistance when needed throughout the year. Others offer year-round support, which can be beneficial for tax planning, estimated tax payments, and financial strategy. If you own a business, invest in real estate, or have multiple income sources, working with a CPA who provides ongoing guidance can help reduce tax liability and avoid last-minute surprises. 

Our CPAs are available to assist you at any time of the year.  A member of our team is always just a call or message away. In fact, you can chat with us via WhatsApp directly on our website.

Credentials

A licensed CPA should be in good standing with their state board and, ideally, a member of professional organizations such as the American Institute of CPAs (AICPA) or the National Association of Tax Professionals (NATP). These memberships indicate a commitment to professional development and ethical standards. In addition, CPAs with designations such as certified tax coach (CTC) or enrolled agent (EA) may offer specialized expertise in tax strategy and representation before the IRS. 

Our team is staffed not only with licensed CPAs but also enrolled agents. In addition to these specialties, we also have chartered accountants (CA) on our team.

Client Reviews

Finally, checking client reviews and testimonials can provide insight into the quality of service a CPA offers. Online reviews, referrals from friends or colleagues, and testimonials on a CPA’s website can help gauge their responsiveness, accuracy, and customer service. A CPA with a strong track record of client satisfaction is more likely to provide reliable, personalized tax preparation and planning. USA Tax Gurus has earned over 140 five-star reviews from our tax clients. 

Get Expert Tax Help Today  

Hiring a CPA for tax preparation can save time, reduce tax liability, and prevent errors that lead to audits. At USA Tax Gurus, we offer professional CPA services starting at $299 for individual returns and $499 for businesses. If you need help with personal, business, or international taxes, our team can also work with you to file your return accurately and on time.  Avoid tax season stress and maximize your deductions. Get started with USA Tax Gurus today. Book a meeting with us today or call (213) 212-2210 and see how we can help.