The cost of hiring a professional accountant to do your taxes depends on what services you need, and what tax forms you need to file. However, if your situation is simple then it may cost less than you might think. If you work for yourself you should expect to pay a bit more, but if you work for a company and only need to file your W2s then it is a lot cheaper. Using Denver Tax Preparation Services is always a good idea to ensure you save time and avoid making serious mistakes in your taxes.
The average cost of hiring a certified public accountant (CPA) to prepare a Form 1040, is around $220. If you also need to file a state tax return, prepare to spend $323. For someone who is self-employed and needs to hire a CPA to prepare an itemized Form 1040 with a Schedule C and a state tax return form, the average fee increases to $457. It can increase to higher than this as well because these are only the average fees you might pay. Your tax filings make take a lot longer for an accountant to complete, which might lead to higher fees and overtime work. It really just depends on your situation.
By purchasing tax accounting software you can spend less, but it is not a good idea if you have complicated deductions. If you have a simple tax return (working for one employer and receiving a W2) then it can be a cheap, or free option. If you have a more complex filing then you may end up spending around $120. Good options are TurboTax or H&R Block.
However, although this will save you money, it is not always the right choice. Accountants can help to prepare your tax returns with much more sophisticated software, helping you find more deductions, and avoid errors.
When you pay a professional to do your taxes there are a number of advantages.
- Tax consultation
You might also want to hire a tax professional who has a specific specialization. You may want to hire a small business tax professional, or one who specializes in those who live abroad.
They can also help you to monitor prices and expenses, and even assess the profitability of your business, as well as provide accurate audit reports, financial statements, and other accounting documentation that is often required by government institutions.
Hiring a good CPA is worth it especially if your taxes are complex. You may not have the time or the skill to do your own taxes. Hiring a CPA is worth it if you can afford it because they can help to save you money on your taxes.