Everything You Need to Know to Hire a Tax Preparer in 2025

Tax laws are evolving at an unprecedented rate, and compliance has become increasingly complicated. As a result, more and more individuals are choosing to hire tax preparers, a strategic decision that goes above and beyond compliance and truly maximizes tax relief and peace of mind.

As per a recent study, over half of Americans will hire a tax preparer this year, so understanding what to look for in a tax preparer, how much does it cost to hire a tax preparer, and what questions to ask your tax professional is more important than ever.

Why Hire a Tax Preparer? Understanding ROI

Hiring a tax preparer presents three strategic advantages, namely:

• Deep expertise in current tax laws and credits, maximizing refunds or minimizing tax liabilities.
• Precision and mitigation of errors which is critical to reduce the risk of being penalized or audited by the IRS.
• Professional tax preparers for hire do the heavy lifting by dealing with the requirements for complex paperwork or documents, freeing their clients to do the work that is of higher value.

How Much Does It Cost to Hire a Tax Preparer in 2025?

For most individuals, the most common question is: How much does it cost to hire a tax preparer? Here’s a detailed breakdown by the time frame of 2025:

• Simple personal tax returns (assuming W-2 income with no itemization): $200–$400
• Itemized/complicated income tax returns: $400–$800
• Business/freelancer tax returns: $800–$2,000+
• Highly complicated returns (i.e., multi-state, investments, or other specialized tax consulting): $1,500–$3,000+

Additionally, location, the credentials of the tax preparer (CPA, EA, tax attorney), and urgency will make the rates go up as well. Larger cities and higher credentialing are equivalent to higher rates. Generally, emergency or last-minute bookings will cost more as well.

Factors That Affect Tax Preparer Cost

• The number of forms/schedules
• Itemized deductions and complexity
• Business income, rental properties, and investments
• Experience/qualifications/certifications of a tax preparer are all factors affecting the price of tax preparation for hire.

Cost vs. Benefit: Why Hiring a Tax Preparer Pays Off

Although hiring a tax preparer increases the cost 3-10 times what you will pay for do-it-yourself tax preparation, every survey has shown that preparers hired are shown to receive larger refunds, lower tax bills, prevent accidents, or help with ongoing financial advice. A tax preparer for hire can also reduce the chance of an audit, saving hours (if not days) of self-preparation.

How to Hire a Tax Preparer: Step-by-Step Process

Below is a detailed process on how to hire a tax preparer for your firm in the USA with The Fino Partners:

Step 1: Assess Your Needs Before You Hire a Tax Preparer

It is important to consider your financial situation.

• Do you need assistance with business taxes, investment reporting, or an international filing?
• Decide if you would like ongoing services engagement during the year, or just an annual filing engagement.

Step 2: Look for the Best Tax Preparer for Hire

Use networks you trust, professional organizations, or referral websites. Look for:

• Relevant Credentials (CPA, Enrolled Agents, Tax Attorney)
• Relevant Experience in Your Field or a Similar Type of Filing
• Positive Client Testimonials/References

Step 3: Interview, Compare, and Get Quotes

It's crucial to clarify the whole process through specific questions, such as what the client's role will be, what tax software is being used, and how long is the usual processing time. It is important to understand the cost arrangements, whether in written form or spoken upfront, there must be no ambiguity, thus hiring a tax preparer does not become a surprise.

Step 4: Consider Red Flags and Confirm Compliance

• Always verify if the tax preparer has a PTIN (Tax Preparer Identification Number) and it is your right to request it before hiring.
• Never work with a tax preparer who claims a percentage of your refund (if any).
• Also, do not hire tax preparers who falsely claim they can provide you with outrageous refunds that you weren't expecting.
• Ensure that you understand how they will protect the sensitive documents you provide them during the tax preparation process.

What Services Should You Expect from a Tax Preparer for Hire?

• Filing of accurate state and federal returns
• Timely identification of credits, deductions, and opportunities for credit benefits
• Audit defense and representation where applicable
• Provide detailed checklists or secure digital portals to upload material.
• Preparation of tax returns in total at or near due date (for clients we represent and support)
• Strategic future tax planning and consultation (for individual or business clients)

Can You Afford Not to Hire a Tax Preparer?

A single missed deduction, or a mistake in filing a tax return, can cost more than a year's worth of tax prep fees.

• 90% of accounting firms that were surveyed plan to raise their rates in 2025. However, we find that fee increases are often compensated with more complicated work, audit defense, and "year-round" services.
• Tax returns completed by a tax professional have a 30% better chance of being less complicated than returns completed & filed by a taxpayer.

The Future: Evolving Role of a Tax Preparer

Tax laws are complicated, and technology is evolving. A tax preparer for hire is more of a compliance partner and advisor. The most forward-thinking preparers are using technology, with some doing AI-based analysis and secure portals or cloud tools. A lot of preparers are also providing some form of bundled or packaged deal with services like a mid-year review, small business accounting or retirement planning.

In 2025, the choice is clear: hire a tax preparer that possesses good credentials and transparency and operates with technology-enabled efficiency. Having a tax preparer on your side is an investment in your financial health to raise your chances of refund, prevent getting penalised, or simply save you time. Before hiring a tax preparer, find out their rates, existing client references, and year-round value, the future of your finances relies on it.

Get in touch with The Fino Partners today to hire the best tax preparers for your firm or business in the USA.

Read Also: Why Hire a Tax Preparer? Learn the Benefits and Process