AUSTIN, Texas, Jan. 6, 2021 /PRNewswire/ — When filing income taxes for 2020, High Five Taxes is available for individuals and businesses to help prevent them from overpaying for tax return prep services. The cost of these services varies by state, so it’s essential for taxpayers to research the rates of fees of hiring a tax preparation company in their area.
About 81% of all tax preparation companies charge a flat fee for their services, regardless of how simple or complex the filing process is. The other 19% of tax preparation companies charge hourly rates, so the amount taxpayers invest in tax preparation will depend on how many forms and documents they need to file.
Not only does tax preparation cost vary by company, but it also varies by state. Individuals filing non-itemized 1040 and state returns can pay anywhere from approximately $125 to $373, while individuals filing itemized and state returns can pay anywhere from approximately $158 to $483 for tax preparation. Sole proprietors filing 1040 with a Schedule C can expect to pay anywhere from approximately $212 to $733 for tax preparation. Again, this price will depend on the state the taxpayer is filing in.
The cost of tax preparation varies even more for businesses, depending on the state the business owner is filing in, as well as the type of form they’re filing. For example, a Form 1120 can cost anywhere from approximately $400 to $1,388, a Form 1120-S can cost anywhere from approximately $400 to $1,230, and a Form 1065 can cost anywhere from approximately $375 to $1,083 to have prepared. Across the board, businesses registered in Delaware will pay the lowest amount for tax preparation services, while the most expensive states to pay for business tax preparation are Louisiana, Washington, and Hawaii depending on the form you’re filing.
While it may be tempting to forgo tax preparation with the help of a professional, this route often leads to confusion — especially if an individual or business owner has several forms to file. In order to avoid mistakes from the DIY route as well as the hefty fees associated with tax preparation companies, High Five Taxes offers a third solution to help you get your forms in order without breaking the bank.
Instead of paying a flat fee or hourly price based on your state and the tax preparation company you work with, High Five Taxes offers a unique pricing solution. Their customized algorithm calculates the price of an individual’s or business owner’s tax preparation fee based solely on their tax situation. This eliminates unnecessarily large flat fees for simple returns, while still providing the personal touch and professionalism needed for complex tax preparation.
With High Five Taxes, taxpayers can take advantage of the benefits of online tax preparation as well as the benefits of working with a tax professional. From affordability and user-friendliness to personal assistance and year-round advice, High Five Taxes takes the stress and fiscal strain out of tax preparation. As taxpayers begin to receive their tax forms in January, the Tax Pros at High Five Taxes recommend scheduling a consultation to find out how much they could save in tax preparation fees this year.
About the Business:
High Five Taxes is an Austin-based company that helps individuals and businesses across the nation file their tax returns with ease. By hiring only the top 5% of Tax Professionals, they offer customized support, affordable tax preparation prices, and an easy-to-use platform that simplifies everything about filing taxes.
SOURCE High Five Taxes