Over the past year I have amended (11) Tax Returns for clients who either "Did there own Taxes", "Had a friend or family member", "Lady from Church" etc., prepare their prior year taxes.
Why? Because it was cheaper than having a professional prepare them. So how much did the return REALLY COST? Total for 2019, in these scenario's totaled additional refunds of over $28,000.00. With the average additional refund of $3,500.00.
These were credits that the client's were entitled to, however, they were not claimed.
In 3 cases, the clients believed they OWED thousands of dollars to the IRS and State entities. Total Savings by these 3 having me amend and/or prepare their returns $31,800.00.
My total charges to these 14 clients $4,750
So who prepares your taxes?
The IRS reports that the average Tax Payer will spend 16 Hours to prepare and file their 1040 Return. Question: What is 16 hours of your time worth? Average MFJ Household Hourly Income is $35.00 x 16 = $560.00 and a lot of headaches, stress, and usually disagreements.
My Fee: $350.00 is base cost.
Savings to you $210.00 plus any additional credits, I may discover.
The IRS reports that the average Tax Payer that is Self-Employed will spend 24 Hours to prepare and file their 1040 Return with a Schedule C. Question: What is 24 hours of your time worth? Average MFJ Household Hourly Income when one person is Self Employed is $52.00 x 24 = $1,248.00 and a lot of headaches, stress, and usually disagreements.
My Fee: $450.00 is base cost.
Savings to you $798.00 plus any additional credits, I may discover.
Moral Time = Money, how do you want to spend yours?