Who’s really doing tax returns in New York for $200?

General
21

Briar said:

Quillan said:
@Briar
Their preparers make close to minimum wage, last I checked.

Makes sense. We’ve amended enough of their returns to know they’re clueless.

Same here. They don’t know what they’re doing.

22

Sounds like the client was on a silly low rate for years and the preparer finally raised it. I’ve doubled fees for similar clients, and they didn’t even flinch.

23

Blayne said:
Sounds like the client was on a silly low rate for years and the preparer finally raised it. I’ve doubled fees for similar clients, and they didn’t even flinch.

If they’re leaving over $50, that’s a red flag. Imagine raising your fee 3% next year—they’ll be gone. I’ve doubled fees for some clients, and while older ones left, newer clients stayed.

24

@North
Older clients don’t know market rates—they only know what you’ve been charging. Newer ones are aware and see the value.

25

Emery said:
@North
Older clients don’t know market rates—they only know what you’ve been charging. Newer ones are aware and see the value.

Exactly this.

26

I’ve seen clients from San Francisco and LA who paid $250. These were small firms with one or two CPAs. It’s shocking in cities that expensive.

27

Tobi said:
I’ve seen clients from San Francisco and LA who paid $250. These were small firms with one or two CPAs. It’s shocking in cities that expensive.

Their clients are in for a shock when their CPAs retire. Younger professionals won’t survive on those rates.

28

@Benn
I’m an older millennial, and I won’t take less than what I know I’m worth. My fees are firm.

29

My base is $200 for a W-2-only return. Add a Schedule C or multiple forms, and I’m starting at $600.

30

Price shoppers this late in the season are always trouble. Is $200 worth inputting last year’s return, proforma, and doing their bookkeeping for two entities? They’ll nitpick everything.

31

Benn said:
Price shoppers this late in the season are always trouble. Is $200 worth inputting last year’s return, proforma, and doing their bookkeeping for two entities? They’ll nitpick everything.

That’s a $600 job if they do their own bookkeeping first. If you’re doing it too, that’s crazy.

32

@Sterling
Totally. I’d avoid this like the plague. If we did take it, it’d be a summer return.

33

Benn said:
@Sterling
Totally. I’d avoid this like the plague. If we did take it, it’d be a summer return.

Yep. This kind of return is going on extension, and they’re doing their own books unless they want to pay an hourly fee.

34

I do about 40–50 returns a year in a rural area and charge $100 for basic W-2 returns. Maybe I should raise my prices, but I feel like I’m competing with TurboTax.

35

Clair said:
I do about 40–50 returns a year in a rural area and charge $100 for basic W-2 returns. Maybe I should raise my prices, but I feel like I’m competing with TurboTax.

Friends and family pricing is fine, but for others, you should charge more.