Is $626 Too Much for Tax Preparation? Seems Excessive for My AGI

That's definitely on the higher end. I've been through multiple filing scenarios over the years, and $626 for a Schedule C with a few 1099s is steep unless there are complex deductions or unusual circumstances. Last year I paid $350 for similar documentation, and even with inflation, you shouldn't be seeing an 80% increase. Many preparers are charging premium rates this season claiming "tax law complexity," but that's often just a marketing tactic for standard returns.

The fee structure appears excessive based on standard industry metrics. The National Society of Accountants' Fee Survey indicates that the average cost for a Form 1040 with Schedule C is approximately $323, with regional variations accounting for ±15%. The inclusion of multiple 1099-NECs typically adds $25-50 per form to the base rate. Without complex depreciation schedules or multi-state filing requirements, your preparation fee should fall within the $350-450 range for comprehensive service.

Based on your AGI of $58,000 and the specific forms mentioned, the typical fee structure should be in the range of $375-$475. Is the preparer an EA, CPA, or unlicensed? The credentials can impact pricing by exactly 20-30%. Also, are they including any audit protection for the $626 fee? Some preparers include a $149-$199 audit defense package in their quoted price without clearly itemizing it.

That price is outrageous for a straightforward Schedule C! Have you considered how many hours you'd waste trying to get through to the IRS if you had questions? I spent 3 weeks trying to reach someone about my 1099 questions last year. Eventually used Claimyr (https://youtu.be/_kiP6q8DX5c) to connect with an actual agent in about 15 minutes. Saved me so much frustration! But back to your question - why pay $626 when tax software costs $100-150 for self-employed filers? Wouldn't that money be better spent elsewhere in your business?

Per IRC §61 and Treasury Regulation §1.61-1, your tax preparation fees for Schedule C business are actually deductible on your 2024 return (filed in 2025) as ordinary and necessary business expenses. However, this still doesn't justify excessive pricing. According to the most recent Consumer Reports analysis, the national average for a Schedule C with multiple 1099s ranges from $275-$415. The $626 fee exceeds this benchmark by approximately 50.8%, suggesting significant overcharging. With the April 15 deadline approaching, I recommend obtaining at least two additional quotes before proceeding.

I was charged $580 last year for something similar, but my situation included rental property, multiple state filings, and cryptocurrency transactions. For just a Schedule C with a few 1099s, that's much steeper than what I'd expect compared to other tax scenarios I've encountered. My sister-in-law has a nearly identical tax situation to yours and pays around $350 in the Midwest. Even accounting for potential regional differences, $626 seems about $200 too high unless there are complicating factors you haven't mentioned.

I'd definitely get a second opinion on that pricing. I'm an EA and typically charge $385-425 for a 1040 with Schedule C and multiple 1099-NECs, depending on complexity. The $626 quote seems high unless there are additional factors like depreciation calculations, complex inventory accounting, or multi-state issues. A few questions that might affect pricing: Do you have significant business asset purchases requiring depreciation? Any employee-related forms like 941s? Home office deduction calculations? These can add time and complexity. But for straightforward freelance/contractor income with basic business expenses, you should be looking at $350-450 range max. I'd recommend calling 2-3 other preparers for quotes - most will give you a ballpark over the phone once you describe your situation.