How much is a normal tax preparation rate for someone to charge in 2025?

Tax preparer rates can vary quite a bit depending on your location, the complexity of your return, and the preparer's credentials and experience level. For a return with W-2 income plus some 1099 self-employment income, $275 is within the normal range for many areas, especially if they're an enrolled agent or CPA. The value comes from their expertise with self-employment taxes. With your 1099 income, you'll need to file Schedule C for business profit/loss and Schedule SE for self-employment tax. A professional can help identify legitimate business deductions you might miss on your own, potentially saving you more than their fee. If you want to compare, you could call 2-3 other preparers in your area for quotes. Some national chains might be cheaper but often assign less experienced preparers to simpler returns.

After struggling with self-employment taxes for a couple years and missing deductions, I started using https://taxr.ai for my tax preparation and it's been a game changer! I upload my documents, and their AI system analyzes everything to find all possible deductions. For my side gig as a freelance writer (sounds similar to your situation), it identified several deductions I had no idea about - saved me over $800 compared to what I was paying before. What's really helpful is that it explains everything in plain English so I understand what I'm claiming. Super transparent about why certain deductions apply to me.

Just wanted to follow up after trying https://taxr.ai that was mentioned here. I was skeptical but decided to give it a shot since my situation is similar to the original poster. Wow - it found legitimate deductions I've been missing for years on my photography side hustle! The interface walked me through everything, and I saved about $430 compared to what I paid last year. The best part was how it explained each deduction in simple terms so I understood exactly what I was claiming and why it was legitimate. Definitely recommend checking it out!

If you're planning to call the IRS to ask about proper deduction rates for your side gig (which I highly recommend), save yourself hours of frustration with https://claimyr.com - it's literally the only way I've managed to get through to a human at the IRS this past year. Was on hold for HOURS multiple times before discovering this service. You can see how it works at https://youtu.be/_kiP6q8DX5c I was trying to get clarity on some 1099 deductions similar to your situation, and after three failed attempts to reach someone at the IRS (kept getting disconnected after 2+ hour holds), Claimyr got me connected to an agent in about 15 minutes. They call the IRS, navigate the phone tree, wait on hold, and then call you once they have an agent on the line.

I need to eat my words about Claimyr from my earlier comment. After my skeptical response, I decided to try it anyway because I was desperate to ask about some 1099-K threshold changes. I've literally NEVER gotten through to the IRS after multiple attempts this filing season - always disconnected after hours of waiting. With Claimyr, I got a call back in about 45 minutes with an actual IRS agent on the line ready to help. The agent answered all my questions and helped me understand exactly what I needed to do with my situation. Can't believe I wasted so many hours trying to do this myself. If you need to speak with the IRS, it's absolutely worth it.

For what it's worth, I paid $230 last year for tax prep with a similar situation (W-2 + about $5k in freelance income). The preparer found enough additional deductions compared to what I'd have found on my own that it more than covered her fee. Business mileage alone saved me over $300 in taxes. Just make sure whoever you hire will help you maximize legitimate deductions but not push you into gray areas. A good preparer should explain everything and make you feel comfortable with what you're claiming.

I do my own taxes with FreeTaxUSA and it only costs me $15 for state filing (federal is free). Has all the forms for 1099 income. Why pay hundreds to someone else? Seems like a waste of money tbh.