Pricing Models

[spanel]

Old Pricing model:

Difference price points
1040ez
1040a
1040
Plus additional for Sch A,C,E,F

What are you guys doing now that there is no 1040ez/1040a?

And I'm not looking at pricing per the hour either.

Thanks!!

Chris

[Jiggers]

My basic fee was based on the Income (usually a modified AGI) for 1040, 1040A, didn't do 1040EZ. Then I added the other items.....

Now my fee will be similar, plus extra for the new Schedules 2, 3, 4, 5, & 6 plus the Schedule A, B, C, D, E, F, and all sorts of stuff. I will bill by the hour the new 199a deduction because of the time it will take to review what the software does.

[Anarchrist]

Fee based on work involved. No reason to change. Didn't bother doing EZs or As, most professionals I know didn't.

AGI seems a terrible basis for tax prep fee. Currently working on a return w/ 1 W2 for $229k, one 1098, and a dozen charitable receipts. He use to be self employed making $100k. I use to have to go through his QBO, make a couple journal entries, print out reports, prepare a return w/ twice as many forms as this years, yet if based on AGI I would double his fee this year since his income doubled.

[kathyc2]

I'll likely start at 1040 being same as last year, with additional fees for the additional schedules. Many will then get a case by case discount to bring total fee to closer to prior year if their situation did not change.

[Jiggers]

I have no clients with large W-2's or 1099's. My theory is based on someone with $300,000 income should pay more than someone with $100,000 or less. No matter where the income is from: W-2's, Interest and dividends, oil & gas royalty, numerous profitable rentals, profitable farms (yes there are some). The base fee is small, compared to what I add for the Schedule B, C, D, E, F, etc. It is just a starting point to set a fee. I did write an article for NATP Journal many years ago detailing the theory for doing this.

[ATSMAN]

My pricing was always based on work effor required to complete and file the return. So now that EZ and A versions are gone it is of no consequence. However returns with QBI will see a slight price increase and so will HOH/CTC/ACTC because of the additional time required to do the due diligence and document it. I am not sure right now how much, but starting next week I will be running some test returns with a stop watch!

[Anarchrist]

I have no clients with large W-2's or 1099's. My theory is based on someone with $300,000 income should pay more than someone with $100,000 or less. No matter where the income is from

Those statements are a bit contradictory. Basically, "I think those with higher income should pay more but I don't have any of those higher income returns to actually force me to use this theory." Charging more for a 20 minute 1 W2 return than for a self-employed, EIC return of someone who needs hand-holding during the year is the worst business model ever.

[Burke]

I quit using 1040A's years ago. Even though they may have worked for a student/child of a client, if the following year they were not eligible for one reason or another, it fouled up any rollover option in the software and I had to start from scratch. And I never did 1040EZ's, but I sure had to straighten quite a few out that clients tried to do themselves!!! I AM SO GLAD THEY ARE GONE. My pricing has always been on complexity of the return, not income. It just usually worked out that the higher the income, the more complex the return was.....