How Much Does It Cost To File Your Taxes?

Who it’s for:

• Small business owners

• Self-employed taxpayers

• Anyone deciding between online filing and hiring a tax professional

• Business owners who want clarity on tax preparation fees

Key Takeaways:

• Tax preparation costs depend on complexity, business income, deductions, and record organization.

• Business tax returns cost more due to additional forms, compliance requirements, and greater financial detail.

• Clean books reduce tax prep fees, while messy records increase costs.

• Flat fees, hourly billing, and form-based pricing all affect your bill.

• A tax professional helps avoid penalties, maximize deductions, and streamline tax season.

• Strong financial systems make tax filing predictable, accurate, and stress-free.

Tax season always feels like it gets here faster than expected. Between gathering tax documents, organizing financial records, and trying to understand which tax preparation services you actually need, the big question always surfaces: How much does it cost to file your taxes?

The answer depends on your tax situation and your business structure. It may also be impacted by how organized your books are when tax filing season hits. At Steady Co., we help business owners file their taxes with confidence and without any hidden fees. This guide explains what drives tax preparation costs and what you should expect to pay.

What Drives the Cost of Filing Taxes?

There’s no single price for tax preparation because every return is different. A basic tax filing with a standard deduction will cost much less than a return with multiple income sources or rental properties.

Here are the biggest factors that influence tax preparation fees:

1. Your Tax Complexity

Your tax situation is the core driver of cost. Returns with any of the following require more time and expertise:

• Business income (Schedule C, S corporation, partnership, or LLC)

• Multiple income streams or gig work

• Rental properties

• Itemized deductions

• Gift tax filings

• Earned income credit or other income credit claims

• Complex tax situations involving investments or equity

• Federal unemployment reporting

• Exempt organization filings

More moving parts mean more compliance requirements and a higher fee.

2. Personal vs. Business Tax Returns

Personal tax returns cost less than business tax returns, which often require:

• Depreciation schedules

• Financial statements

• Tax documents tied to operations

• Entity-specific tax forms

• State taxes for multiple jurisdictions

If you own a business, expect higher average tax preparation fees because your return requires more work.

3. Organization of Your Records & Tax Documents

Well-organized books cost less. Disorganized or incomplete files cost more because your tax preparer must spend extra time fixing issues. This often means they need to reconcile numbers and prepare missing documents.

Clean books save money. Messy books raise your tax prep fees.

4. Billing Methods

Tax preparers charge in different ways:

• Flat fee

• Hourly billing

• Set fee for each form

• Additional fees for complex filings

Make sure you understand what your tax preparer charges before you commit. Hidden fees are surprisingly common across the industry.

5. Who Prepares Your Return

Your choice affects both price and accuracy:

• Tax software is the cheapest, but it's limited.

• Tax pros or tax advisors offer accuracy and guidance.

• A certified public accountant (CPA) or experienced tax professional costs more but delivers deeper insight and fewer errors.

If you want audit support and better tax planning, a professional offers peace of mind.

What Are the Average Tax Preparation Costs?

While actual costs vary, here’s a general idea of what people pay:

• Simple personal return with standard deduction: lower end of the range

• Business tax returns: higher due to complexity

• Returns with itemized deductions: mid to high range

• Multi-state or multi-income returns: higher due to additional forms and compliance steps

Your average cost depends on how much compliance and preparation your year’s tax return requires.

Should You File Taxes Online or Work with a Tax Professional?

Online tax software is ideal for simple filings. You can file taxes online with a basic form and keep your costs low.

But if you have:

• business ownership

• multiple income streams

• complex deductions

• rental properties

• an S corporation

• major changes in income

• a federal return plus multiple state taxes

Your best move is working with a professional. Errors in filing taxes can lead to IRS penalties and delayed refunds. You're even at risk of IRS audits. A pro ensures compliance and maximizes eligible deductions.

How a Tax Professional Helps You Save Money

A good tax preparer does more than fill out forms. They help you:

• Understand eligible deductions

• Plan for the next tax season

• Avoid IRS penalties

• Improve tax planning

• Maximize your refund or reduce your tax liability

• Prepare clean, audit-ready documents

At Steady Co, we keep your books clean year-round, so your tax preparation is predictable and free of hidden fees.

How To Lower Your Tax Preparation Costs

Here’s where small business owners can save money:

• Keep clean, accurate bookkeeping

• Store and organize all tax documents early

• Avoid last-minute filings near the IRS deadline

• Use a consistent accounting system

• Work with a tax professional who offers transparent pricing

Preparation is always cheaper than cleanup. Hiring a tax preparation specialist is the best way to ensure your preparation is on point.

Final Thoughts: What You Should Expect To Pay Tax Pros

So, how much does it cost to file your taxes? It depends on how organized or complex your return is. Clean records and strong financial systems reduce costs and stress. Complex returns or chaotic books raise them.

Good tax preparation gives you accuracy, not to mention peace of mind. If you want tax filing that’s efficient and audit-ready, Steady Co. is here to help.