What Will It Cost You To Get Help With Tax Return?

Tax season is here and for many of us that means calling on the help of a professional. We sent Dianne Derby to find out what you can expect to pay.

By: Dianne Derby | News Channel 7
Published: February 09, 2010

We're all hoping to get a big check this tax season and we want to save money on making that happen.

"Especially in today's economy you have to save money in any way you can," said consumer Nancy Waddell.

Waddell helped her daughter, Janaka, prepare and file her tax return using an online tax prep service for under $10.

"On that particular website the federal is done for free but your state is only $9.99 and they pretty much ask you the same questions as a tax preparer would," said Waddell.

How much can you expect to pay if you hire someone to do it for you? It depends on how complicated your return is. The National Association of Tax Professionals says their most recent national fee study in 2008 found a 1040 costs on average $134 to have it done by a tax preparer. To have a Certified Public Accountant do it about $55 more. What's the difference? NATP told us a CPA completes a 4-year college degree and has to pass the CPA exam. They added that a tax preparer has no educational requirements. However, 7 On your Side learned some companies require their employees to go through extensive tax training.

Consumer Michele Bishop says she uses a CPA because she has rental properties. Her average bill: $1000. Bishop said she doesn't feel she is getting ripped off.

"I think they do a very good job," said Bishop. "I think they are very capable of providing a terrific service that I am not willing to take the time to learn."

The National Association of Tax Professionals told us learning the tax law is very tough.

"Tax laws change every year, sometimes they change multiple times a year, and for an average person to keep up on top of that and to be able to figure out what would be helpful on their own return and what applies to them is a very daunting task," said NATP Research Coordinator, Cindy Hockenberry.

Hockenberry said to protect yourself from being over-charged ask the company to provide a quote upfront and shop around. It's something that will give you peace of mind and may help you save even more money.

If you need free help preparing your return and made less than $49,000 in 2009 or are 65 years or older click here.