Tax Preparation Pricing Guide: What to Charge for 1040, Schedule C, and EITC Returns
One of the most common mistakes new tax preparers make is underpricing their services in an attempt to build a client base. Underpricing attracts price-sensitive clients who switch preparers freely, resist fee increases, and rarely refer. The National Society of Accountants conducts an annual survey of tax preparation fees that provides market benchmarks — and the data consistently shows that independent preparers charge 20–40% less than the market will bear. This guide gives you real fee benchmarks for every major return type so you can set prices that are competitive, sustainable, and reflective of your expertise.
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Benchmark Fees: What the Market Actually Charges
According to the National Society of Accountants 2025 survey, the national average fee for a Form 1040 with state return and no itemized deductions is $250. With itemized deductions (Schedule A), the average is $310. With Schedule C (sole proprietor business income), the average is $484. These are national averages across all preparer types including CPAs and large firms — independent EA preparers in major metros routinely charge 20–30% above these averages. In lower-cost markets (rural areas, smaller cities), fees 15–20% below national averages are typical. Use these benchmarks as a floor, not a ceiling — your EA credential and any specialty expertise justify premium positioning above the average.
Individual Return Pricing by Form Complexity
Structure your pricing around return complexity rather than a single flat fee. Recommended ranges for an independent EA: Form 1040 with W-2 income only and standard deduction: $150–$250. Form 1040 with itemized deductions: $200–$350. Form 1040 with Schedule A and Schedule B (investment income): $250–$400. Form 1040 with Schedule C (self-employment income): $300–$600 (higher for complex businesses with significant books of account). Form 1040 with Schedule D (capital gains): $75–$150 per transaction batch. Form 1040 with Schedule E (rental income): $200–$400 per property. Form 1040 with Schedule F (farming): $300–$500. State returns beyond the first: $50–$100 each. These ranges allow you to quote straightforwardly based on the forms a client needs.
EITC Return Pricing: Balancing Volume and Compliance Risk
EITC returns are the volume backbone of many independent practices. The average EITC return fee in the market is $200–$350 for a standard W-2 earner with qualifying children. The compliance burden on EITC returns (Form 8867 due diligence requirements) adds time and liability that justifies a premium over a comparably complex non-EITC return. Build your Form 8867 documentation into your standard workflow — ask and document the specific questions required for each credit, retain the records, and charge accordingly. Do not discount EITC returns below $175 even for simple cases. A client paying $175 who generates a due diligence penalty of $600 to you (if a qualifying child claim is later disallowed) is a net negative transaction.
ITIN Application, Prior-Year, and Amendment Fees
ITIN applications through a CAA: charge $100–$200 per ITIN in addition to the return preparation fee. A family of four needing ITINs generates $400–$800 in ITIN fees alone — make sure your pricing reflects the time required for document authentication and Form W-7 completion. Prior-year returns: charge a base fee equal to your current-year fee plus $100–$200 additional per prior year to account for research time and prior-year software costs. Amended returns (Form 1040-X): $150–$300 depending on complexity. IRS notice response: $150–$350 per notice for straightforward responses; $500+ for notices requiring documentation gathering and correspondence. Set these fees in your engagement letter and quote them explicitly — clients who discover unexpected charges after the fact are the most likely source of complaints and negative reviews.
Business Return Pricing
Business returns command significantly higher fees than individual returns and are a core revenue driver for EAs who serve small business clients. Partnership return (Form 1065): $500–$1,200 depending on partner count and complexity. S-corporation return (Form 1120-S): $600–$1,500. C-corporation return (Form 1120): $800–$2,000. Estate or trust return (Form 1041): $500–$1,500. The most profitable engagement structure for small business clients is a package that includes both the entity return and the owner's individual return — bundled pricing of $800–$2,500 for the package creates client stickiness, simplifies billing, and increases per-client revenue substantially. Business clients who trust their return preparer also generate bookkeeping, payroll, and IRS representation referrals.
Bank Products and Your Effective Fee
If you offer Refund Transfers through TPG Tax or EPS Financial, remember that the client's RT fee ($39.95–$44.95) is charged by the processor, not you. Your preparation fee is separate and is not reduced by the bank product structure. One misconception among new preparers: they believe offering bank products means they should charge lower preparation fees because "the client gets their refund faster." This is incorrect — the bank product is a separate financial service with its own fee. Your preparation fee should be set based on complexity and market rates regardless of whether the client uses a bank product. If anything, bank product clients who cannot pay upfront are typically less price-sensitive about preparation fees because they are not writing a check today.
RECOMMENDED TOOLS
National Society of Accountants
Annual tax preparation fee survey — the industry benchmark for setting competitive preparation fees
Drake Tax
Professional tax software with built-in billing and invoice generation — calculate exact fees per return by form type
TaxDome
Practice management platform with integrated invoicing, payment processing, and fee tracking for your client base
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FREQUENTLY ASKED QUESTIONS
Should I post my prices publicly on my website?
Transparent starting prices on your website ("Simple returns starting at $175") filter out price shoppers before they call you, improve conversion rates among clients who do call, and position you as a confident professional rather than someone who needs to negotiate. You do not need to post every complexity tier publicly — a starting price with a note that fees vary by complexity is sufficient. Avoid publishing a comprehensive fee schedule publicly that competitors can undercut systematically.
How do I raise prices on returning clients without losing them?
Announce fee increases with your annual client organizer in January, before you begin preparation. Frame increases in terms of value — updated EA credentials, expanded services, inflation — rather than apologizing for them. A 5–10% annual increase is broadly accepted by loyal clients who trust their preparer. Sudden large increases (25%+) create defection risk. If you significantly underpriced in year one, implement phased increases over two seasons rather than correcting all at once.
Do I have to charge the same price to all clients, or can I charge different fees for the same return type?
You can charge different fees to different clients as long as you are not discriminating based on protected characteristics (race, religion, national origin, etc.). Offering a discount for early-season appointments, a lower rate for referral clients, or a premium for rush preparation are all legitimate pricing strategies. Document your fee structure and apply it consistently to similarly situated clients to avoid fair lending or anti-discrimination concerns.