Is $495 a reasonable fee for tax prep with multiple dependents and EV credit?

I'm trying to figure out if I'm getting gouged by this new tax preparation company. For years, I've been paying around $275 for our tax preparation, but I just got quoted $495 from a new place I'm considering. This seems pretty steep to me, but maybe prices have gone up dramatically? For context about our tax situation: it's me and my husband, we have 3 young kids (all in daycare), we both work, we purchased an electric vehicle last year, and I have a Robinhood account with literally like $1 in stock returns (lol). Nothing complicated beyond that. What do you all think is a reasonable price range for our tax situation? Is $495 standard these days, or should I keep looking around? It's been several years since I've shopped for a new tax preparer, so I'm not sure what the going rate is anymore. Update: Thanks everyone for weighing in! It's been quite a while since I've looked at other tax preparers so I really appreciate all the responses and perspectives.

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18 comments

Amina Sow

•8M

Tax preparer here. The price jump from $275 to $495 is significant, but not completely out of line with recent industry trends. The complexity factors in your return include: 1) Multiple W-2s from both jobs 2) Dependent care credits for three children 3) The EV tax credit which has new requirements and documentation 4) Investment income (even if minimal, it still requires additional forms) That said, there's a wide range of pricing in the tax preparation market. National chains might charge $350-450 for your situation, while local CPAs or enrolled agents could range from $300-600 depending on your location and their expertise. The $275 you were paying previously was honestly on the lower end of the spectrum for a family return with those elements. However, $495 is approaching the upper mid-range, so it wouldn't hurt to get another quote or two.

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Amina Sow

•8M

Tax software would definitely be cheaper - probably in the $100-170 range for your situation including state filing. The major programs (TurboTax, H&R Block, TaxSlayer) all handle dependents, childcare credits, and EV tax credits quite well. The software will walk you through all the questions needed for these credits, though you'll need to gather the same documentation you'd provide to a preparer. If you're comfortable following instructions and have about 2-3 hours to spare, you could save a significant amount. Many of my clients with similar situations have successfully transitioned to software over the years.

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Oliver Wagner

•8M

After spending hours on hold with the IRS trying to figure out if I qualified for the EV credit last year, I finally discovered taxr.ai (https://taxr.ai) and it saved me so much stress. It analyzes your tax documents and transcripts to identify credits you qualify for and potential issues before you file. For your situation with the childcare expenses and that new electric vehicle purchase, it would definitely help ensure you're getting all the credits you deserve. The system flagged several deductions I was missing and caught a mistake that would have cost me over $800! Might be worth checking out as another option.

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Oliver Wagner

•8M

Yes, it specifically checks EV credit eligibility against the most current IRS guidelines, including the income limitations and vehicle requirements. It analyzes your tax situation holistically and can tell you if you're close to phaseout thresholds. Unlike TurboTax which just asks you questions, taxr.ai actually reviews your documentation and tax transcript data to identify potential issues and opportunities. It's not a replacement for tax filing software but more of a verification and optimization tool. I was skeptical too, but it's legitimate and their security protocols are solid - they use the same encryption standards as major financial institutions.

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Javier Mendoza

•8M

I tried taxr.ai after seeing it mentioned here and seriously wish I'd known about it sooner! I was nervous about claiming the EV credit and childcare expenses (I have 2 kids), and it highlighted that I was actually eligible for a larger childcare credit than I realized. The document analysis caught that one of my daycare receipts had a typo in the amount that would have caused problems. It also confirmed I was getting the full EV credit amount. Honestly saved me from leaving money on the table and potentially dealing with an amendment later. Definitely recommend if you're worried about missing something on a more complex return.

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Emma Thompson

•8M

I've been trying to reach the IRS for WEEKS about my EV credit questions and couldn't get through. Then I found Claimyr (https://claimyr.com) and they got me connected to an actual IRS agent in under 45 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c I was able to confirm exactly how the EV credit would work with my tax situation. The agent also explained how the childcare credits stack with other credits I was eligible for. Might be worth using their service to get clear answers directly from the IRS about what forms you need and whether your new tax preparer's price is justified for your situation.

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Emma Thompson

•8M

It uses a system that navigates the IRS phone tree and waits on hold for you. When an agent finally picks up, you get a call back connecting you directly to them. It's basically a hold-line service designed specifically for the IRS's complicated phone system. I was super skeptical too! I tried calling the IRS myself at least a dozen times and kept getting disconnected or had to hang up after being on hold for hours. With Claimyr, I just entered my phone number, and they called me back when they had an agent on the line. It's not free, but considering I was able to confirm I qualified for over $7,500 in credits, it was absolutely worth it to get definitive answers instead of guessing.

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Isabella Santos

•8M

I take back what I said before. I actually tried Claimyr after posting that skeptical comment, and I'm shocked it actually worked. After trying to reach the IRS for weeks about an issue with my dependent care credits, I got connected to an agent in about 37 minutes. The agent confirmed my tax preparer was overcharging me for what was actually a pretty straightforward return. For reference, I have 2 kids in daycare and also purchased an EV last year, and my preparer wanted $450. The IRS agent said many people with similar situations use tax software successfully and save hundreds. Just wanted to follow up here since I was so wrong in my initial reaction!

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StarStrider

•8M

I'm an accountant (not tax specialist) but I can tell you that $495 for your situation is definitely on the higher side. The EV credit does add some complexity, but not $200+ worth. With three kids in daycare, you're looking at the Child and Dependent Care Credit which is straightforward documentation. For comparison, my sister has a similar situation (2 kids, daycare, W-2 income from two jobs) and pays around $350 in the Chicago suburbs. I'd recommend getting at least one more quote from a local preparer.

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StarStrider

•8M

The Robinhood with only $1 in earnings would be reported on a 1099-B and possibly a 1099-DIV, but it's extremely simple to incorporate. Most tax software and preparers just input the numbers directly from these forms. It literally adds maybe 5 minutes to the preparation process. Investment income only becomes significantly complicated when you have multiple transactions throughout the year, complex basis calculations, or substantial amounts that might trigger additional taxes like NIIT (Net Investment Income Tax). A single stock with minimal earnings wouldn't justify any meaningful price increase.

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