| Option | Typical Cost |
|---|---|
| Simple W-2 | $24–$39 |
| Itemized deductions | $160–$260 |
| Self-employed / freelance | $320–$520 |
| Small business | $640–$1,040 |
| Complex | $1,200–$1,950 |
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| Method | Cost | Best For |
|---|---|---|
| Free File (IRS) | $0 | Income under $84K, simple returns |
| TurboTax / H&R Block online | $0–$120 | W-2 income, standard deductions |
| Tax preparer (H&R Block, Jackson Hewitt) | $150–$500 | Moderate complexity |
| CPA (personal return) | $300–$800 | Investments, rental income, business |
| CPA (business + personal) | $500–$3,000 | Self-employed, multiple entities |
The average cost to prepare a tax return is $220 for a simple return and $500+ for itemized/complex returns. For straightforward W-2 income with standard deduction, free options (IRS Free File, Cash App Taxes) work perfectly. A CPA ($300–$800) pays for itself when you have rental properties, self-employment income, stock options, or complex deductions — they typically find $1,000–$5,000+ in additional deductions that software misses.
Tax Preparation costs are driven primarily by complexity and whether the matter is contested. Simple, uncontested matters with clear documentation can often be handled at flat-fee rates. Once disputes arise, costs shift to hourly billing and become much harder to predict.
Geography matters more than most people realize. Attorney rates in New York or San Francisco can be 2–3 times higher than in smaller markets for the same type of work. If your matter does not require a local attorney, hiring outside a major metro can save substantially without sacrificing quality.