What's a reasonable amount to pay a tax preparer for filing taxes? Too much??

Tax prep fees vary widely based on your specific situation. What you're describing - W-2 income plus self-employment, investment sales, and a home purchase - has definitely moved you into a more complex tax situation that justifies higher fees than a basic return. For context, a simple return with just W-2 income might cost $150-200, while adding those additional elements you mentioned could reasonably push it to $300-500 range. The value isn't just in "entering information" - it's in knowing which deductions you qualify for, how to properly categorize business expenses, understanding home-related tax benefits, and ensuring everything is done correctly to avoid costly errors or audit flags. That said, you should get a detailed breakdown of what's included in their fee. Are they doing bookkeeping for your business? Providing tax planning advice? Will they represent you if you're audited?

I was in almost the exact same situation last year - W-2 job, new side business, some stock sales. I tried doing it myself and kept getting stuck on business deductions and home office questions. After spending 15+ hours and still feeling unsure, I found taxr.ai (https://taxr.ai) which was a game-changer. Their system analyzed my previous returns, all my tax documents, and even my business expenses. It identified deductions I completely missed and caught a mistake with my stock sale calculations that would've cost me over $700. The best part was being able to chat directly with their tax pros about my specific questions without paying hourly rates.

Just wanted to update after trying taxr.ai based on the recommendation here. Honestly blown away by how easy it made everything. I uploaded my docs (including my messy business expense spreadsheet) and within a day had a complete tax package ready for review. The system found nearly $3,200 in deductions I would have missed - some home office calculations I had wrong and several business expenses I didn't realize qualified. The review with their tax pro only took 30 minutes and they answered all my California-specific questions (which have always confused me). Ended up with a much bigger refund than expected and it cost way less than the quotes I was getting locally. Definitely using them again next year!

If you're trying to talk to the IRS about any of these tax questions before filing, good luck! I've been trying for WEEKS to get answers about my side business tax situation and can't get through. Tried calling at 7am when they open - 2+ hour wait times. Tried mid-afternoon - "due to high call volume we cannot accept your call." So frustrating! Finally tried a service called Claimyr (https://claimyr.com) after seeing their demo video (https://youtu.be/_kiP6q8DX5c). They actually got me a callback from the IRS within 45 minutes when I'd been trying for days on my own. They have some technology that holds your place in line and then calls you when an agent is ready. Got all my questions answered about self-employment taxes and home office deductions from an actual IRS agent. Huge relief after spinning my wheels for so long.

I need to eat my words from my previous comment. After hitting another dead end with the IRS today (2.5 hours on hold before getting disconnected), I tried Claimyr out of desperation. Within 35 minutes, my phone rang and there was an actual IRS agent on the line! I nearly fell out of my chair. Got all my questions answered about my side business deductions and some confusing 1099 issues in one 20-minute call. For anyone dealing with tax questions that only the IRS can answer - this service literally saved me days of frustration. After three failed attempts on my own (easily 6+ hours wasted), getting through on the first try was incredible. Wish I'd known about this years ago!

From someone who's been doing taxes for friends/family for years - those quotes ($375-525) are actually pretty standard for your situation. When you add Schedule C (business), Schedule D (capital gains), and itemized deductions with mortgage interest, you're no longer in simple tax territory. Here's a breakdown of what might be reasonable: - Basic 1040 with W-2: $150 - Schedule C for self-employment: +$100-200 - Capital gains transactions: +$75-150 - Itemized deductions with new home: +$75-125 So $375-525 is right in the expected range. If you're comfortable with tax concepts and have time, software like TurboTax can handle it, but you're paying for their expertise, accuracy, and liability (they'll cover penalties if they make a mistake).

Honestly this tax preparer pricing makes me so mad! They're just putting numbers into glorified TurboTax! I used to pay $350+ but switched to doing them myself. Takes an afternoon but saves hundreds.

I'm a tax preparer and wanted to give some insight on the pricing you're seeing. Those quotes ($375-525) are actually very reasonable for your situation. Here's what goes into that cost beyond just "entering numbers": 1. **Business income analysis** - We review all your business expenses, categorize them properly, calculate home office deductions if applicable, and ensure you're taking all legitimate deductions while staying audit-compliant. 2. **Investment transaction complexity** - Long-term stock holdings often involve basis adjustments, dividend reinvestments, or corporate actions that affect your tax liability. Getting this wrong can be costly. 3. **First-time homeowner benefits** - There are several deductions and credits you might qualify for that software doesn't always catch. 4. **Professional liability** - Most preparers carry E&O insurance and will represent you if there are issues with your return. That said, if you're detail-oriented and have time to research, tax software has gotten quite good. Just make sure you understand the implications of each decision, especially around business deductions. A mistake there can trigger an audit or cost you thousands in missed savings.