The average cost of individual tax preparation is $100 to $500 per return, with most people spending about $220 for professional tax prep service. Prices vary by location, but the complexity of your tax return and the type of professional you hire are the two biggest factors that affect the cost.

Getting your taxes done by a non-credentialed seasonal tax professional or an enrolled agent is typically cheaper than hiring a certified public accountant (CPA) or a tax attorney. Enrolled agents are former IRS employees or have passed a three-part comprehensive IRS test.

Hiring a CPA or tax preparer to do your taxes may be worth it if you have a complex return or new items or calculations on your taxes this year that you are not familiar with. If you bought a house, manage several properties, own a business, or do anything requiring more than a simple, one-form tax return, paying for professional tax preparation can save you time, ensure the accuracy of your return, and protect you if you are ever audited.

A tax preparer is someone how prepares and files tax returns for individuals or businesses. While all tax preparers have a preparer tax identification number (PTIN), they do not all have the same education and credentials. Professionals who can prepare your taxes and represent you in front of the IRS if needed for audits, appeals, or anything related to your return include:

• Enrolled Agent (EA) – Certified by the IRS and can prepare taxes anywhere in the United States
• Certified Public Accountant (CPA) – Has education and licensing through the state in which they practice
• Attorney – Has a law degree and has passed a state bar exam; may specialize in tax preparation or offer several services

Seasonal tax service employees and voluntary participants of the IRS's Annual Filing Season Program have a PTIN but may not have the credentials required to be able to represent you in front of the IRS.

When searching for individual tax preparation near you, be sure to:

• Compare the estimated fees from at least 3 licensed, bonded, and insured companies.
• Hire a tax preparer who has been in business for more than 5 years.
• Check the tax preparer's licensing status and look for any related disciplinary actions.
• Ask them for their preparer tax identification number (PTIN).
• Confirm they can represent you in front of the IRS if needed for any audits, payments, or collection issues related to the tax return.
• Look for excellent reviews on Thervo and Google.
• Avoid hiring a tax professional who bases their fee on the size of your tax refund.
• Make sure the tax preparer signs your return.
• Never sign a blank tax return.

Asking the right questions can help you choose the best individual tax preparation service near you:

• Are you licensed, bonded, and insured?
• What tax preparation training and credentials do you have?
• How long have you been preparing taxes in this state?
• Do you offer a guarantee?
• If needed, can you represent me in front of the IRS?
• What kinds of tax returns can you prepare?
• Do you file the tax return electronically?
• How soon will I get my tax refund?
• What documents do I need to bring with me to the appointment?