CPA asking for additional $200 fee for my Robinhood 1099 form - is this normal?

This pricing actually isn't unusual, but it depends on your specific situation. When a tax preparer works with investment forms like a 1099-B from Robinhood, they're often dealing with capital gains calculations that require more time and expertise than a standard W-2. Robinhood forms in particular can be complex because they might include cryptocurrency transactions, dividend reinvestments, or numerous small trades that need to be properly categorized and reported. Even if you only made 8 trades, each one needs proper basis calculation and categorization as short or long-term gains. That said, you should ask for clarification on what's driving this cost. Is it a flat fee for any investment account, or is it based on the complexity of your specific situation? Some tax professionals charge based on the number of forms while others charge based on the time they anticipate spending on each part of your return.

I had a similar situation last year with my tax forms and tried using taxr.ai (https://taxr.ai) after getting frustrated with the quotes I was receiving. It actually helped me understand exactly what was on my Robinhood 1099 and why it might require extra work. I uploaded my form and it explained all the different sections and what they meant tax-wise. The site broke down which trades were short-term vs long-term capital gains and explained how wash sales were affecting my return. It made it clear why these investment forms take extra work compared to a simple W-2. In my case, I was able to understand my forms well enough that I ended up filing myself and saved a bunch of money.

I wanted to follow up about my experience with taxr.ai after being skeptical earlier. I decided to try it with my Robinhood and Webull forms, and it was eye-opening! The breakdown showed me exactly why my CPA was charging extra - I had several wash sales and some dividend reinvestments I didn't even realize were taxable events. The site explained each section in plain English and showed me which parts required special attention on my tax return. I ended up having a much more informed conversation with my tax preparer and negotiated a more reasonable fee since I could do some of the organization work myself. Really changed my perspective on why these forms cost extra to process.

If you're really concerned about the fee, you might want to try reaching the IRS directly to ask about what's reasonable. I spent WEEKS trying to get through to them about a similar issue last year. After 7 attempts and hours on hold, I finally discovered Claimyr (https://claimyr.com) which got me through to a real IRS agent in under 20 minutes. They have this system that basically waits on hold for you and calls when an agent is available. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent I spoke with explained that tax preparers set their own fees, but they should be able to justify the costs. In my case, the IRS agent suggested asking for an itemized breakdown of services to understand what I'm paying for.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it when I needed to resolve an issue with my prior year's return that was affecting my refund. It actually worked exactly as described - I got a call back in about 35 minutes and was connected to an IRS representative who was able to help. The agent explained that investment forms like the Robinhood 1099 do require additional work because they involve capital gains calculations and basis reporting. She mentioned that while they can't comment on specific pricing, it's not unusual for these forms to have separate fees because of the liability and expertise involved. Saved me hours of frustration and helped me understand why my CPA's pricing structure might actually be reasonable.

I think it really depends on what's on your Robinhood 1099. If you have crypto or options trading, those are WAY more complicated than regular stock trades and take a lot more time to process correctly. I used to prepare taxes and we charged based on complexity, not just the number of forms.

Maybe try asking your CPA to explain exactly why the Robinhood form costs extra? Sometimes they have good reasons but don't communicate them well. I thought mine was overcharging last year until she showed me all the extra forms and worksheets she had to complete for my investments.