New preparers consistently set their fees too low. If that’s you, here’s a better framework.
Don’t Charge by the Hour
Hourly billing punishes efficiency. As you get faster, you earn less per return. Charge flat fees based on complexity instead.
A Starting Framework
Basic individual return (W-2, standard deduction): $150 to $250. Individual with itemized deductions, investments, or rental income: $250 to $400. Schedule C (self-employed): $300 to $500. S-Corp return (Form 1120-S): $800 to $1,500.
These are ranges. Your local market matters. But don’t automatically price at the bottom just because you’re new. If you’ve been properly trained and you’re producing accurate work, your services have value.
How to Research Your Market
Look at what other independent preparers in your area charge. Don’t compare yourself to H&R Block. Their pricing model is different from yours. Compare yourself to local independents and small firms. Call a few, ask about pricing, and position yourself accordingly.
First-Year Strategy
Price at the low-to-middle of your market range in year one. You’re trading a small amount of revenue for the client acquisition advantage of being a new, accessible option. Raise your prices in year two. Clients who received good service at the lower price will accept a modest increase. By year three, your prices should be at or near full market rate.
Communicate Value, Not Price
When a client asks about your fee, don’t just say a number. Explain what’s included: thorough review, electronic filing, a personal walkthrough of the results, and access to you throughout the year if questions come up. You’re positioning yourself as a professional, not a commodity.
Charge for Complexity
If a return turns out to be more complex than what the client described during intake, communicate the adjusted fee before you finish the work. Don’t surprise them with a higher bill, but don’t absorb the extra work either.
For pricing strategies, marketing templates, and a fee schedule framework, the MuseSpring program covers all of it. Visit musespring.com.