Tax preparers prepare and file federal and state income tax returns for individuals, self-employed people, and small businesses. They may be solo practitioners, enrolled agents, CPAs, or seasonal preparers working under their own firm. Invoices typically cover return preparation by form or schedule, bookkeeping cleanup, amended returns, IRS notice responses, and year-round planning.
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Most preparers charge a flat fee per return, built from a base price for the main form (Form 1040 or a business return) plus add-ons for each extra schedule or form, such as Schedule C, Schedule E, Schedule D, or state returns. Business returns (1120-S, 1065, 1120) are usually priced as flat fees based on complexity and bookkeeping quality. Work outside return preparation, such as IRS representation, amended returns, back-year filings, and tax planning, is typically billed hourly or as a fixed project fee. Some firms offer monthly or annual packages that bundle bookkeeping, estimated tax calculations, and preparation. Many charge a rush or disorganized-records surcharge. Avoid pricing based on a percentage of the refund, which is widely considered improper and is prohibited for preparers in many contexts.
| Service | Priced | Typical range |
|---|---|---|
| Individual return (Form 1040, standard deduction, W-2 income) | flat fee | $150-350 |
| Individual return with itemized deductions | flat fee | $250-500 |
| Schedule C (sole proprietor) add-on | per schedule | $150-450 |
| Rental property (Schedule E) add-on | per property | $75-200 |
| S-corp or partnership return (1120-S, 1065) | flat fee | $800-2,500 |
| Additional state return | per state | $50-150 |
| Amended return (Form 1040-X) | flat fee | $150-400 |
| IRS or state notice response, tax planning, consulting | per hour | $100-250 |
Typical US ranges. Rates vary by region, experience, and job size.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Federal Form 1040 preparation, tax year 2024 (standard base) | 1 return | $225.00 | $225.00 |
| Schedule C – freelance design business, with expense categorization | 1 schedule | $275.00 | $275.00 |
| Schedule E – one rental property | 1 property | $125.00 | $125.00 |
| State income tax return (additional state: nonresident) | 1 return | $85.00 | $85.00 |
| Bookkeeping cleanup – organizing and categorizing bank exports | 2 hours | $100.00 | $200.00 |
| 2025 estimated tax calculation and payment vouchers | 1 flat fee | $100.00 | $100.00 |
| Total | $1,010.00 | ||
Notes: Payment due within 14 days of invoice date. Returns are e-filed after payment or signed Form 8879 and payment of balance. Fee is not contingent on refund amount. Thank you for your business.
Clients often have multiple years or entities with you, and the invoice needs to match the right return (for example, 2024 Form 1040 versus 2024 Form 1120-S).
Listing each schedule and state return explains the total and prevents pushback when the price is above the base fee.
Bookkeeping cleanup, notice responses, and planning calls are billed by time, so show the hours and what was done.
Paid preparers must have a PTIN, and including your firm name, address, and credential (CPA, EA, or other) keeps records clear for the client.
Tying the invoice to the agreed scope shows what was authorized and supports you if a fee is questioned.
Makes it clear the fee is flat or hourly and not a percentage of the refund, which is restricted in many situations.
If you hold the filing until payment is received, say so on the invoice so there are no surprises near the deadline.
Many preparers collect a deposit or retainer for business returns, bookkeeping cleanup, and new clients, often 25-50 percent upfront. For individual returns, common practice is to invoice when the return is finished and require payment before e-filing or releasing the copy, though check your state rules and the IRS rules on withholding client records, since preparers generally must return client records on request even when a fee is outstanding. Net 7 to Net 14 is typical during busy season. Late fees of 1.5 percent per month are common if written into the engagement letter. Accepted methods usually include card, ACH, check, and sometimes deducting the fee from a refund through a bank product, which has its own disclosure rules.
Define the tax years, forms, what records the client must provide, and how extra work is billed. Without it, requests for amendments or extra state returns turn into arguments.
Use a clear add-on or hourly rate when clients drop off a shoebox of receipts or unlabeled bank exports. State the policy before starting so it does not feel like a surprise.
Filing Form 4868 or 7004 takes time. Many preparers charge a small fee or include it in the final return price, but either way show it so clients know what they paid for.
Responding to an IRS notice or audit is a different service from preparing the return. Bill it hourly or as its own project, and note whether you are authorized through Form 2848.
Send the invoice when you deliver the completed return, not weeks later. Collecting before April and October extension deadlines keeps your cash flow steady.
Generally no. Basing a fee on a percentage of the refund or the amount of tax savings is restricted or prohibited for return preparation under IRS rules, and many states also limit it. Use a flat fee, per-form pricing, or hourly rates.
In most cases yes, you can hold filing until payment is made if that is stated in your engagement letter. However, you generally cannot hold the client's original records, and you should check your state rules on releasing completed returns.
Most preparers invoice when the return is complete and ready for client review, and collect before filing. For complex business returns or new clients, collect a deposit when work begins.
Treat it as a separate engagement. Bill hourly or at a fixed fee, get a signed Form 2848 if you will represent the client, and invoice monthly or on completion with dates and hours listed.
It depends on your state. Most states do not tax tax preparation services, but a few tax some professional or accounting services. Check with your state department of revenue.
Send a Tax Preparer estimate for approval, then turn it into an invoice when the work is done.
Tax Preparer estimate template