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Get ready to pay even more to file your tax returns this year. The latest data from the government shows that tax preparation and accounting fees have risen by 8.3% – that’s more than the current inflation rate. But don’t worry, we’ve got a new tool to help you out!
This increase in costs is due to a variety of factors, including the rising costs of using DIY tax software and hiring accountants. Many tax preparation firms are struggling to find staff, so they’re offering higher pay to attract workers. As a result, they’ve had to raise their prices, leaving taxpayers feeling the pinch.
One certified public accountant, Atiya Brown, estimates that prices have gone up by 7% to 12% due to higher labor and software costs. The average cost for filing an individual return has jumped to $248 in 2023 from $213 in 2021, according to a study released by the National Association of Tax Professionals.
It’s not just tax preparers raising their rates – popular DIY filing tools like H&R Block and TurboTax are also getting more expensive. H&R Block’s desktop software prices have gone up by $5 to $10, while TurboTax’s prices are set to increase by $10 later this tax season.
So, what can you do? Both H&R Block and TurboTax offer free online filing services for simple returns. But if your tax situation is a bit more complicated, you might have to shell out for upgraded features.
Unfortunately, the impact on consumers can vary widely. Some accountants charge a fixed hourly rate, while others set a minimum fee with added costs for more complex returns. But one thing’s for sure, taxpayers are feeling the bite of higher filing costs.