Finishing up my MBA in Accounting and thinking of starting a bookkeeping and tax business. I’ve done VITA and worked for a small family owned tax office. I’m going to study for the EA this summer. Exited for starting a business! Thanks for posting
Hi MP! Congratulations on starting a business! 😀If you need supplemental materials and support, check out the Certifyible EA course: www.certifyible.com/home/becoming_an_enrolled_agent Let me know if you have questions! 😀
Usually when a customer says “ you didn’t really have to do too much” your answer should be that they can go do it themselves where they don’t have to pay. And it usually works but they still end up coming back because they realized it was not easy.
I disagree - of course it depends on the complexity but filling out a 1040, 1040 Schedule 3, 1040 Schedule B, W2, 9000 and 1116 + 1116 Schedule B took me less than 20 minutes. Sure you end up reading the instructions often the first time you'll do it but it's anything but hard. Charging more than 150$ seems just unreasonable in my opinion. Software solutions like HR-Block, Turbotax, OLT or FreeFillableForms charge less. Most software solutions in germany charge 30€.
Thank you for your leadership I have been looking for someone to simplify what I am trying to accomplish in become an enrolled agent. I have been preparing taxes for eight years. I want more thanks in advance…
Question: first, let me say that I love the idea of charging by complexity and pricing that complexity by charging for each form. But here's my question, how do you account for the varying complexity of the form itself? Example, a 1099-B for one client can be much simpler than that same 1099-B for another client. In the simple 1099-B maybe there's just some long term covered transactions with no disallowed wash sale loss adjustments. In the more complex case maybe there's a whole bunch of both long and short term noncovered transactions with wash sale disallowed loss adjustments. Both are 1099-B's, but they vary wildly in complexity and time to complete. K-1's can vary wildly in complexity (think simple K-1 with maybe one state K-1 attached vs some complex publicly traded partnership K-1 with multiple states' K-1's attached and figuring the state apportionment allocations and also a new schedule K-3 for foreign activity to figure out in replacing the old box 16 foreign inputs). Even w-2's, which are admittedly basic and simple most of the time, can be complicated (for example, I'm thinking of clients who work in multiple states and calculating the proper state income apportionment allocations, then analyzing which taxes are mutually taxed in multiple states, and finally giving proper state tax credits for taxes paid in other states). In other words, I've seen simpler and more complex versions of almost every form. How to price for that variation?
Please keep in mind that when we are talking about pricing "per form" this is a base price. You are correct in that some forms can have varying complexity. Therefore, start with the base price and adjust from there. So if the base price for the 8949/Sch D is $75, that is for simpler data entry. The more complex the data entry, the higher the price. :)
Thank you Crysta! I am a tax preparer and I never know how much to charge. People always complain about tax preparation prices snd always want to compare you to others that work only on tax season, that are not on the IRS preparers list, do not have a business office, and so much more. I rent an office and everything is expensive. I charge 250 for a regular income tax while other professional offices charge more than 100 more than me. They want to pay me 40 😩50 😩or 100 the most. I hate that, these preparers don’t have a degree, I do. So I cannot charge that, impossible. I wouldn’t be able to rent the office, so how can I work with them?
Last year I did my own for free on a IRS listed site. It took me 4-5 hours to check errors, etc. Had I done it for somebody else I would have charged around $400-500 easily. (I had no stocks forms). My refund was over $7k with state return. I had several pages (over 5) of stock trades a few years back. Had I done that, type of taxes? Easily $600-700. Sorry is such headache. I deserve that money.
"The competition is so steep right now" 5:30. Is it really though? I thought tax preppers were in high demand and most cpa's/ea's had more work then they can handle?
Found your post interesting to watch. I can't wait to see your new videos soon. Good Luck with the upcoming update. This TH-cam channel is really very informative and effective.
Great information Crysta, I'm just doing some research to start my business on and your help was exactly what I was looking for. Thanks a lot!!! You are great!!
I charge a flat fee of 150 but I'm seriously underpriced ...After May once I take the 1st part of the exam I will be charging differently because everyone tax situation is not the same.
Got a BA in Marketing been doing taxes for over 12yrs but been doing it without a Ptin# or EA credentials I'm working on that this year I need your help ...I'm at the stage where I'll be going on Prometrics to pay for my Ptin fee ..idk what the test will consist of so this is where I need help at How do I reach out to you
Came here to inform myself and this is great info. My tax preparer is trying to charge me 3k I filed single, no kids, with a w2. She said if I don’t pay she will amend my taxes and for next year whatever money I get I will owe next year.
Oh no! I’m so sorry to hear that. That sounds exorbitant for an individual tax return and the filing requirements you specified. The tax professional can not amend your return without your consent. If he/she does kindly speak with the Office of Professional Responsibility with the Internal Revenue Service. 🙏🏽
Great information, I just bought a tax service franchise in 2020, sales were up in 2021, but this tax season I opted out of the refund advance promotion, I've already had several people not wanting to come in. My focus is a higher net, quality vs quantity, has anyone else tried this strategy? (going from having advances to not having) btw I get charged a fee for every advance.
@get it. I understand what you mean, I have been on the industry 8 years and seriously I’m tired of the lower income clients. They complain about pricing, some of the refunds get taken due to owing unemployment from covid and they don’t want to pay out of pocket for tax prep so I have taken a loss this year. And the banks charge $79 for each client who gets the refund advance. I’m thinking the same as you, planning to market toward higher end, small business owners. I will be firing alot of my lower income clients. They aren’t work my sanity at this point.
The tax preparation prices on the drake software are way too high and nobody pays that price. Like for the whole tax return which includes 1040 and other schedules, we charge $250 and the prices shown on the drake software is way too high and i m pretty sure no one will pay. Only HR block type of business are able to charge these kind of prices($700 for tax return) since they are a franchise. I dont know how can we charge these suggessted prices because they are just outrageous.
Hey! Can you give an idea of how complex the tax return was? List out the forms? The pricing is based on the complexity of the tax return. The more complex (ie more forms) the more the fee. We encourage to use discounts where applicable. For example if the tax prep fee was $700 you could always provide a $200 discount and let the client know. That sets better expectations in the long run because if and when your pricing increases in the future they were already aware. You can use the discount line item within drake or any other software to adjust the final pricing. 🙏
Hi. New here! Great video and I do have a quick question. Do you publish the prices for each form on social media or your website, or wait until a client contacts you and asks what your fee is?
What if they're asking how much it will cost before you even start their taxes? How can I sell myself to the customer of my worth if I haven't really even seen their filings?
The top tax preparation software used by members of my Tax & Accounting 6-Figure Accelerator Program are (1) My Tax Prep Office, (2) Tax Slayer, (3) Drake, and (4) Crosslinks. Each has its own pros and cons. There's going to be a learning curve as you familiarize yourself with the software you choose, but each one offers practice returns, training, and support to assist. I’d suggest that you request a demo or attend a webinar to explore these options and see what’s best. However, if you do go with My Tax Prep Office, you can use the code “CRYSTA” at checkout to receive a substantial discount.
Hi Crysta, I have been a cpa for 6 years in my country since Jun 2021 I start live Pittsburgh PA, I want to become EA because I have a 175 llc potential our estabilished telegram group but do I have to wait 1 year for the PTIN number because I don't have a background in America yet. Is there any solving this issue I’m wondering your idea about that, thak you for all information
Hi Ali! You can check if IRS Form 8946 would apply to your situation. Typically, only preparers that have a foreign (non-U.S.) address may file this form. Read more here: www.irs.gov/forms-pubs/about-form-8946 Unfortunately, if you have been admitted by the United States for permanent residence or U.S. employment then this form won't provide a remedy. You can still prepare for your SEE exam in the meantime. Best Wishes!
my tax preparer charge me $500.oo to make my taxes he said YOU MAKE STOCKS , NOW I NEED TO TRANSCRIBE 10 LINES LINE BY LINE AND THAT IS A LOT OF WORK.... Is that possible?
Hello very informative. I’m planning on starting one and I don’t even own a laptop . What could you suggest for a starting laptop that’s not expensive but can get the job done as needed? TIA
There are a few threads with some good info in the fb group. You can search "w2 filing or 1099 filing" I've posted my suggestions. It would depend on the number of filings needed. Under 5 we charge $25-$50 per but the price breaks as there are more.
The top tax preparation software used by my members in the Tax & Accounting 6-Figure Accelerator Program are (1) My Tax Prep Office, (2) Tax Slayer, (3) Drake, and (4) Crosslinks. Each has its own pros and cons. There's going to be a learning curve as you familiarize yourself with the software you choose, but each one offers practice returns, training, and support to assist. I’d suggest that you request a demo or attend a webinar to explore these options and see what’s best. However, if you do go with My Tax Prep Office, you can use the code “CRYSTA” at checkout to receive a substantial discount.
Hello, The top tax preparation software used by members of our Tax & Accounting 6-Figure Accelerator Program are (1) My Tax Prep Office, (2) Tax Slayer, (3) Drake, and (4) Crosslinks. Each has its own pros and cons. There's going to be a learning curve as you familiarize yourself with the software you choose, but each one offers practice returns, training, and support to assist. We suggest that you request a demo or attend a webinar to explore these options and see what’s best. However, if you do go with My Tax Prep Office, you can use the code “CRYSTA” at checkout to receive a substantial discount. - Alexandria Johnson, Crysta's Customer Success Manager
Technically it is if you are specifically stating that you are doing this. You can differentiate your fees based on complexity which really helps your customer equate the fees with tangible value.
But this disregards the fact you could have a client with a single W2 with $200k of wages, and a client with multiple K-1s, rental properties, etc that add up to a paper loss, or a low AGI, and it would have taken you much more effort to do this return.
Finishing up my MBA in Accounting and thinking of starting a bookkeeping and tax business. I’ve done VITA and worked for a small family owned tax office. I’m going to study for the EA this summer. Exited for starting a business! Thanks for posting
Hi MP! Congratulations on starting a business! 😀If you need supplemental materials and support, check out the Certifyible EA course: www.certifyible.com/home/becoming_an_enrolled_agent Let me know if you have questions! 😀
Usually when a customer says “ you didn’t really have to do too much” your answer should be that they can go do it themselves where they don’t have to pay. And it usually works but they still end up coming back because they realized it was not easy.
I like Crysta’s suggestion: “you’re not paying for 30 minutes of my time, you’re paying for my years of experience”.
@@danielball5955 only banks
I disagree - of course it depends on the complexity but filling out a 1040, 1040 Schedule 3, 1040 Schedule B, W2, 9000 and 1116 + 1116 Schedule B took me less than 20 minutes.
Sure you end up reading the instructions often the first time you'll do it but it's anything but hard.
Charging more than 150$ seems just unreasonable in my opinion. Software solutions like HR-Block, Turbotax, OLT or FreeFillableForms charge less. Most software solutions in germany charge 30€.
You officially my mentor....am soon going to enroll to your coaching program . I looking forward to having you interview me .
Thank you for your leadership I have been looking for someone to simplify what I am trying to accomplish in become an enrolled agent. I have been preparing taxes for eight years. I want more thanks in advance…
I have a base starting rate of $125.00 and the price per form by the hours spent on the client's return.
I like the price per form by the hours part.. that's a good idea.
Question: first, let me say that I love the idea of charging by complexity and pricing that complexity by charging for each form. But here's my question, how do you account for the varying complexity of the form itself?
Example, a 1099-B for one client can be much simpler than that same 1099-B for another client. In the simple 1099-B maybe there's just some long term covered transactions with no disallowed wash sale loss adjustments. In the more complex case maybe there's a whole bunch of both long and short term noncovered transactions with wash sale disallowed loss adjustments. Both are 1099-B's, but they vary wildly in complexity and time to complete.
K-1's can vary wildly in complexity (think simple K-1 with maybe one state K-1 attached vs some complex publicly traded partnership K-1 with multiple states' K-1's attached and figuring the state apportionment allocations and also a new schedule K-3 for foreign activity to figure out in replacing the old box 16 foreign inputs).
Even w-2's, which are admittedly basic and simple most of the time, can be complicated (for example, I'm thinking of clients who work in multiple states and calculating the proper state income apportionment allocations, then analyzing which taxes are mutually taxed in multiple states, and finally giving proper state tax credits for taxes paid in other states).
In other words, I've seen simpler and more complex versions of almost every form. How to price for that variation?
Please keep in mind that when we are talking about pricing "per form" this is a base price. You are correct in that some forms can have varying complexity. Therefore, start with the base price and adjust from there. So if the base price for the 8949/Sch D is $75, that is for simpler data entry. The more complex the data entry, the higher the price. :)
@@crystatyusea Okay, yes, agree. I see your how you're thinking now and I very much agree with this approach.
Thank you Crysta! I am a tax preparer and I never know how much to charge. People always complain about tax preparation prices snd always want to compare you to others that work only on tax season, that are not on the IRS preparers list, do not have a business office, and so much more. I rent an office and everything is expensive. I charge 250 for a regular income tax while other professional offices charge more than 100 more than me. They want to pay me 40 😩50 😩or 100 the most. I hate that, these preparers don’t have a degree, I do. So I cannot charge that, impossible. I wouldn’t be able to rent the office, so how can I work with them?
Hi 🙋♀, nice video. I instantly recognized that gold glass building in the background 😌.
Yes I used to work for a tax preparation office and the guy used to charge 10% of whatever they received and I felt that was crooked as hell!
Great video! Some key points were highlighted that I hadn't heard anyone else discuss. Thank you!
Last year I did my own for free on a IRS listed site. It took me 4-5 hours to check errors, etc. Had I done it for somebody else I would have charged around $400-500 easily. (I had no stocks forms). My refund was over $7k with state return. I had several pages (over 5) of stock trades a few years back. Had I done that, type of taxes? Easily $600-700. Sorry is such headache. I deserve that money.
I look for deductions for the client. I offer discounts. I also, a client referral incentives or I would pick a client that I could do free one year.
"The competition is so steep right now" 5:30.
Is it really though? I thought tax preppers were in high demand and most cpa's/ea's had more work then they can handle?
Found your post interesting to watch. I can't wait to see your new videos soon. Good Luck with the upcoming update. This TH-cam channel is really very informative and effective.
Great video! What’s the best way to go about receiving payment for services? Require a deposit? Pay in full at the time of service? Or?
Hey hey Crysta! Can you do an updated video for this in 2024?
Great information Crysta, I'm just doing some research to start my business on and your help was exactly what I was looking for. Thanks a lot!!! You are great!!
You're welcome Leandro! 🙏🏽
Yes I’ve been charged 10% my very first time filing taxes
I charge a flat fee of 150 but I'm seriously underpriced ...After May once I take the 1st part of the exam I will be charging differently because everyone tax situation is not the same.
Got a BA in Marketing been doing taxes for over 12yrs but been doing it without a Ptin# or EA credentials I'm working on that this year I need your help ...I'm at the stage where I'll be going on Prometrics to pay for my Ptin fee ..idk what the test will consist of so this is where I need help at How do I reach out to you
Came here to inform myself and this is great info. My tax preparer is trying to charge me 3k I filed single, no kids, with a w2. She said if I don’t pay she will amend my taxes and for next year whatever money I get I will owe next year.
Oh no! I’m so sorry to hear that. That sounds exorbitant for an individual tax return and the filing requirements you specified. The tax professional can not amend your return without your consent. If he/she does kindly speak with the Office of Professional Responsibility with the Internal Revenue Service. 🙏🏽
he is a thief thas a very simple tax the most you can charge is 100 call the police
Can you please recommend a tax preparation software.
$150 for 1040
$300 for sch c
Great information, I just bought a tax service franchise in 2020, sales were up in 2021, but this tax season I opted out of the refund advance promotion, I've already had several people not wanting to come in. My focus is a higher net, quality vs quantity, has anyone else tried this strategy? (going from having advances to not having) btw I get charged a fee for every advance.
i didnt offer cash advance either, my clients were fine with it
@get it. I understand what you mean, I have been on the industry 8 years and seriously I’m tired of the lower income clients. They complain about pricing, some of the refunds get taken due to owing unemployment from covid and they don’t want to pay out of pocket for tax prep so I have taken a loss this year. And the banks charge $79 for each client who gets the refund advance. I’m thinking the same as you, planning to market toward higher end, small business owners. I will be firing alot of my lower income clients. They aren’t work my sanity at this point.
Yep, I knew someone who charged based on a refund.
So much useful info! Thank you! Im loving this. Just looking into the field. Might have to hit u up at some point.
Thank you, Jezzy! :) I hope to see you at the Tax & Accounting Summit this Dec in Orlando! Please check it out taxaccountingsummit.com
Yes I have
The tax preparation prices on the drake software are way too high and nobody pays that price. Like for the whole tax return which includes 1040 and other schedules, we charge $250 and the prices shown on the drake software is way too high and i m pretty sure no one will pay. Only HR block type of business are able to charge these kind of prices($700 for tax return) since they are a franchise. I dont know how can we charge these suggessted prices because they are just outrageous.
Hey! Can you give an idea of how complex the tax return was? List out the forms? The pricing is based on the complexity of the tax return. The more complex (ie more forms) the more the fee. We encourage to use discounts where applicable. For example if the tax prep fee was $700 you could always provide a $200 discount and let the client know. That sets better expectations in the long run because if and when your pricing increases in the future they were already aware. You can use the discount line item within drake or any other software to adjust the final pricing. 🙏
Hi Cry’s. What the best software you suggest me to buy for my business
@@max.dfelix4119 Some software to consider is Crosslinks, Taxslayer and My tax prep office. Demo and see which you like best.
I will more than happy to have you as my trainer
@@max.dfelix4119 Hi Max! You may email us at hello@certifyible.com
Hi. New here! Great video and I do have a quick question. Do you publish the prices for each form on social media or your website, or wait until a client contacts you and asks what your fee is?
What if they're asking how much it will cost before you even start their taxes? How can I sell myself to the customer of my worth if I haven't really even seen their filings?
Hi Jasmine! I have a free course that I encourage you to take a look at: certifyible.com/home/course/tax-prep-pricing-masterclass/145
Avg fee is 285-300
This is great info!
Very informative. Thks!
250 per form
This is for Federal taxes only? What about state taxes?
What about your clients that owr money?
I charge a standard rate of $1 million
How do you charge if you have CPA license?
What about clients that fish
Hi Would you Please me on what TAX software to buy? & where to buy?
The top tax preparation software used by members of my Tax & Accounting 6-Figure Accelerator Program are (1) My Tax Prep Office, (2) Tax Slayer, (3) Drake, and (4) Crosslinks.
Each has its own pros and cons. There's going to be a learning curve as you familiarize yourself with the software you choose, but each one offers practice returns, training, and support to assist. I’d suggest that you request a demo or attend a webinar to explore these options and see what’s best.
However, if you do go with My Tax Prep Office, you can use the code “CRYSTA” at checkout to receive a substantial discount.
I thought the software being used gives the price?
Do I need to be a cpa or EA to prepare and tax returns for clients?
$168.00
Maryland Safety housing credit for home owners.
There's some new codes I would like to elaborate on.
I never know how much to charge
Hi Crysta, can somebody help me with foreign EFIN? I am a licensed CPA practicing from India. Thank you in anticipation.
Thanks!
please send me the link to your mentor program and thank you for the knowledge
Hi Lidia! Here it is: certifyible.com/home/course/tax-amp-accounting-6-figure-accelerator-membership/146 🙏🏽
Hi Crysta, I have been a cpa for 6 years in my country since Jun 2021 I start live Pittsburgh PA, I want to become EA because I have a 175 llc potential our estabilished telegram group but do I have to wait 1 year for the PTIN number because I don't have a background in America yet. Is there any solving this issue I’m wondering your idea about that, thak you for all information
Hi Ali! You can check if IRS Form 8946 would apply to your situation. Typically, only preparers that have a foreign (non-U.S.) address may file this form. Read more here: www.irs.gov/forms-pubs/about-form-8946 Unfortunately, if you have been admitted by the United States for permanent residence
or U.S. employment then this form won't provide a remedy. You can still prepare for your SEE exam in the meantime. Best Wishes!
Thank you so much for your respond
Thank you
Good information to apply to the tax business
my tax preparer charge me $500.oo to make my taxes he said YOU MAKE STOCKS , NOW I NEED TO TRANSCRIBE 10 LINES LINE BY LINE AND THAT IS A LOT OF WORK.... Is that possible?
Yes, that is possible. Many tax preparers charge tax preparation fees based on the volume of work involved with each individual tax return.
Can send me info on your class
Thank you 🙏🏿
such a beautiful view.
I did
Ty!!
You're very much welcome, Natasha! 😀
Hello very informative. I’m planning on starting one and I don’t even own a laptop . What could you suggest for a starting laptop that’s not expensive but can get the job done as needed? TIA
Hi Amay! Here's a great resource/recommendation that I encourage you to take a look at: laptop251.com/best-laptops-for-working-from-home/
1
how much you charge for each w2? social security?
There are a few threads with some good info in the fb group. You can search "w2 filing or 1099 filing" I've posted my suggestions. It would depend on the number of filings needed. Under 5 we charge $25-$50 per but the price breaks as there are more.
Really just for Schedule C 300-500$? That’s a lot 😳
Have you heard of “Minority Tax Pros”? Are they legit?
I got charged 798.00
What software do you use ? How much it is?
The top tax preparation software used by my members in the Tax & Accounting 6-Figure Accelerator Program are (1) My Tax Prep Office, (2) Tax Slayer, (3) Drake, and (4) Crosslinks.
Each has its own pros and cons. There's going to be a learning curve as you familiarize yourself with the software you choose, but each one offers practice returns, training, and support to assist. I’d suggest that you request a demo or attend a webinar to explore these options and see what’s best.
However, if you do go with My Tax Prep Office, you can use the code “CRYSTA” at checkout to receive a substantial discount.
@@crystatyusea thank you so much 😊
Hi Crystal, what tax software your recommend ? thanks
Hello,
The top tax preparation software used by members of our Tax & Accounting 6-Figure Accelerator Program are (1) My Tax Prep Office, (2) Tax Slayer, (3) Drake, and (4) Crosslinks.
Each has its own pros and cons. There's going to be a learning curve as you familiarize yourself with the software you choose, but each one offers practice returns, training, and support to assist.
We suggest that you request a demo or attend a webinar to explore these options and see what’s best.
However, if you do go with My Tax Prep Office, you can use the code “CRYSTA” at checkout to receive a substantial discount.
- Alexandria Johnson, Crysta's Customer Success Manager
#profitable
Hi mam I want to pursue EA pls guide me how to pursue
With regard to contingency fees. Is a tax prep fee based on the client's AGI or EI disallowed?
Technically it is if you are specifically stating that you are doing this. You can differentiate your fees based on complexity which really helps your customer equate the fees with tangible value.
But this disregards the fact you could have a client with a single W2 with $200k of wages, and a client with multiple K-1s, rental properties, etc that add up to a paper loss, or a low AGI, and it would have taken you much more effort to do this return.
You not using Hindi?
Did you understand Hindi?
Hi Crysta you are EA
1