Fees vary widely. Complexity, schedules, preparer credentials, record quality, deadlines and state or cross-border work all move the price.
This guide covers published U.S. fee benchmarks, pricing tiers, extra charges, USD versus AUD quotes, and how to request a transparent quote.
Key Takeaways
- Survey benchmarks run from about US$279 (basic) to US$300-$600 (itemised); complex returns cost more.
- Schedules for business, investments or rental income add to the fee.
- Confirm that a quote covers foreign-income reporting, state returns and FBAR.
- The cheapest quote is rarely the best value.
How Much Does Form 1040 Preparation Cost? (Pricing Overview)
There is no universal price. Preparers charge by flat fee, by form or schedule, by the hour, or through a bundle.
Public data is also thin: no authoritative source publishes an Australia-specific average. Everything below is a U.S. benchmark in USD.
Typical Form 1040 price ranges
The National Society of Accountants (NSA) surveys practising preparers. Its figures are historical survey results, not current fees.
| Benchmark | Fee (USD) | Notes |
|---|---|---|
| NSA 2023, not itemised | $279 average | Includes a state return |
| NSA 2023, itemised | $392 average | Includes a state return |
| NSA 2024, itemised | $300-$600 | 183 participants, mostly independent practitioners and smaller firms |
| NSA 2023, Schedule C | $221 average | Per schedule |
| NSA 2023, Schedule D/Form 8949 | $126 average | Per schedule |
| NSA 2023, Schedule E | $192 average | Per schedule |
Do not add the schedule averages to the Form 1040 averages mechanically. They are not a verified all-in total.
Basic tier: limited income sources, few schedules. The 2023 survey average of $279 is the closest benchmark, and it bundles a state return.
Mid-range tier: itemised deductions, investment reporting or several income documents. Think $300-$600, per the 2024 survey.
Complex tier: business or rental income, multiple states, foreign income, prior-year corrections or heavy review. Prices here differ sharply from one return to the next, so get a quote rather than assuming a figure.
Expat-focused providers publish prices too. Greenback lists $565 for a federal return, including Forms 1116 and 2555 and Schedules A-E, with a state return at $185.
H&R Block's advisor-prepared expat service starts at $259 federal, with $125 per state. These are undated vendor quotes, not survey averages.
What the quoted fee may include
- Intake review of your documents
- Preparation of Form 1040 and standard schedules
- Tax calculation
- E-filing
- A limited review conversation
Verify each item. The public survey data does not say whether e-filing is included.
What the quoted fee may exclude
- State returns
- Extra schedules and bookkeeping cleanup
- Tax planning
- Extensions and amended returns
- IRS notice help and audit representation
- FBAR or Form 8938 reporting
- Refund-transfer products
Comparing USD benchmarks with AUD quotes
U.S. studies report in USD, while you may be quoted in AUD. Currency movement is not a change in the preparer's fee.
On 10 November 2026, the RBA exchange rate was US$0.6924 per A$1. At that rate, a US$400 fee is roughly A$578. Always note the date of any conversion.
Key Factors That Affect the Cost of Form 1040 Preparation
Fees track the number of forms, the professional judgement involved, the quality of your records, and the time and risk of getting the return right.
Return complexity and required schedules
Each of these adds forms and review time:
- Itemised deductions (Schedule A)
- Self-employment income (Schedule C)
- Capital gains (Schedule D)
- Rental property (Schedule E)
- Multiple income sources or dependants
NSA schedule averages are survey figures. A preparer's own price menu may differ.
Cross-border considerations for Australian-based taxpayers
U.S. citizens and resident aliens abroad are generally taxed on worldwide income. Foreign-earned income still counts when deciding whether you must file, even if you exclude it.
Possible extra work includes:
- Form 2555 (foreign earned income exclusion)
- Form 1116 (foreign tax credit)
- FBAR, if foreign accounts exceed $10,000 in aggregate at any time in the year
- Form 8938, with higher thresholds for people living abroad
- Currency conversion documentation
The U.S.-Australia tax treaty (1982, with a 2001 protocol) and the IRS yearly average rates (2025: US$1 = A$1.551) can also come into play. These questions need more expertise and are often priced separately. Whether any of them applies to you is a matter for a qualified adviser.
Quality and organisation of records
Missing forms and uncategorised transactions turn a predictable fee into hourly work. In the 2024 NSA survey, 67% of firms charged for disorganised files, at an average of $100-$200. Another 39% charged for expedited returns and 38% for extensions.
Credentials, timing and service model
- Attorneys, U.S. CPAs and enrolled agents have unlimited IRS representation rights.
- Annual Filing Season Program participants have limited rights.
- PTIN-only preparers have no representation rights on returns filed after 2015.
Every paid preparer must have a PTIN, sign the return and include that number. Peak-season and rush surcharges vary by firm, so ask your preparer directly. Do not assume remote or Australia-based clients pay more or less.
Full cost breakdown beyond Form 1040
| Charge type | Examples |
|---|---|
| One-time | Federal return, schedules, state return, e-filing |
| Conditional | Foreign reporting, records cleanup, rush work, extensions, amendments |
| Recurring or optional | Tax planning, post-filing support |
Low-Cost vs High-Cost Form 1040 Preparation: What's the Difference?
Price gaps usually reflect scope, expertise, security and how a provider handles complexity, not the page count.
Scope and service level
A lower-cost option can suit a simple return with standard documents. Confirm which forms, review time and follow-up are included.
A higher-cost option may add:
- Deeper review
- Cross-border expertise
- State or foreign reporting
- Post-filing help
Not every premium provider includes all of that, so check.
Accuracy, communication and data security
Do not assume price buys accuracy. The GAO's 2026 report cites older IRS data (tax years 2006-2009) showing estimated errors on 60% of paid-preparer returns versus 50% of self-prepared ones. It draws no link between fees and quality.
Better questions to ask:
- Is document exchange secure? IRS Publication 4557 expects preparers to keep a security plan, with measures such as multi-factor authentication and encryption.
- Does a qualified reviewer sign off?
- Does the preparer sign the return and include a PTIN? Refusal is an IRS red flag ("ghost preparer").
- Will they explain assumptions and flag missing information?
When spending more makes sense
Higher fees are easier to justify when your situation includes:
- Foreign income
- Business activity or rental property
- Investments or multiple states
- IRS correspondence or prior-year corrections
- Doubt about whether you must file at all
How to Estimate the Right Budget for Form 1040 and Avoid Overpaying
The right budget reflects your return's scope and the provider's value, not the lowest advertised starting price.
Build a scope checklist before requesting quotes
Write down:
- Filing status and dependants
- Income sources and number of payers
- Investments, rental or business activity
- Deductions
- U.S. states involved
- Foreign income and accounts
- Prior filings and your deadline
Request a written, itemised quote
Confirm the quote covers:
- Form 1040 and every expected schedule
- State returns, e-filing and consultations
- Amendments, extensions and IRS notices
- Currency conversion support and secure document handling
Also ask how out-of-scope work is priced: hourly rates, approval before extra work, minimum charges and quote revisions.
Prepare documents to control costs
Gather these in an organised folder:
- Prior-year returns and wage or income statements
- Investment summaries and rental or business records
- Foreign-income details and exchange-rate documentation
- Tax-payment evidence and ID
Understand refund-related payment arrangements
Paying a preparer directly differs from using a refund-transfer product. A Refund Anticipation Check typically costs US$30–$50, according to the CFPB's 2024 handout, and both it and preparation charges can be deducted from your refund.
Refund advances are loans with their own fees. IRS guidance warns against preparers whose fees are a percentage of your refund.
Choose a provider with cross-border capability
Look for experience with U.S. forms, foreign-income documentation, secure remote workflows and communication across time zones.
VJM Global prepares Form 1040 returns and federal and state filings through a team of U.S.-trained CPAs and Indian Chartered Accountants. Pricing is quoted by service scope with upfront figures, and the firm holds ISO 27001 certification.
Australian taxpayers with a U.S. filing obligation can request a scope-based quote. VJM Global serves Australian clients remotely.
Conclusion
Form 1040 fees depend on complexity, schedules, documentation, credentials, deadlines and any state or cross-border requirements. Published benchmarks give you a starting point, not a guarantee.
A written, itemised quote and a clear view of inclusions let you compare providers, avoid surprise charges and balance cost, accuracy, security and support.
Frequently Asked Questions
What is the average cost to have a Form 1040 prepared?
The NSA's 2023 report puts the average at $279 for a non-itemised return and $392 for an itemised one, both including a state return. Its 2024 survey reported $300-$600 for itemised returns. Schedules, business income and cross-border reporting cost more.
What makes Form 1040 preparation more expensive?
Extra schedules, multiple income sources, foreign income, rental or business activity, incomplete records, multiple states, rush work and post-filing support all raise the fee.
Does a Form 1040 preparation fee include state tax filing and e-filing?
It varies. Confirm federal filing, state returns, e-filing, consultations, amendments and IRS notice support before accepting a quote.
Is tax software cheaper than hiring a professional tax preparer?
For a simple return, usually yes. H&R Block's expat software starts at $124, plus $99 per state. Professional help suits foreign income, business activity, multiple states, investments, rental property or uncertain filing obligations.
Who is a tax return preparer?
Under U.S. Treasury regulations, a tax return preparer is anyone who prepares all or a substantial part of a return for compensation. Paid preparers need a PTIN and must sign the return. Only attorneys, CPAs and enrolled agents have unlimited representation rights.
Can a tax preparer take their fee from your refund?
Some do through a refund-transfer arrangement. Separate the preparation fee from bank or product charges, and read all disclosures first. Avoid preparers who charge a percentage of your refund.
