How Much Does It Cost to Do Taxes? A Complete Breakdown

Filing your taxes isn’t just a yearly chore. It’s a financial decision that can impact your bottom line.

The cost to file taxes can range from $0 to well over $1,000, depending on how and what you file.

That wide range often catches people off guard. Business owners with multiple income streams, deductible expenses, or employees typically face higher fees than someone with a single W-2.

Understanding how much does it cost to do taxes isn’t just about budgeting, it’s about protecting your business.

While it might be tempting to do it yourself, missing a key deduction or filing late could end up costing you more in the long run.

doola’s Tax Filing service gives you expert support without the surprise costs, so you can focus on running your business, not decoding tax forms.

We handle everything, from federal and state filings to business deductions and compliance. Let’s walk you through what influences the cost and compare DIY vs. professional options.

6 Key Factors That Influence Tax Filing Costs

Tax filing isn’t one-size-fits-all, which is exactly why the cost can range from free to thousands of dollars. Your tax situation influences both the effort required and the price you’ll pay.

Here’s what impacts the final bill:

1. Filing Status: Individual vs. Business

A basic individual return (e.g., W-2 income) is typically the least expensive to file. But once you’re filing on behalf of a business, like an LLC or S corp, the complexity increases, and so does the cost.

2. Type of Income

W-2 income is straightforward. But with 1099 earnings, investment income, crypto transactions, or rental property, expect to file additional forms, which means higher fees.

3. Tax Complexity

The more moving parts your return has, the more time and expertise it takes to file.

Itemized deductions, multiple state filings, and claiming business credits all add complexity (and cost).

For example, a founder with income in California and a sales tax nexus in Texas will face very different filing needs than someone running a side hustle in one state.

4. Type of Filer

Freelancers, digital nomads, ecommerce sellers, and LLC owners often deal with quarterly payments, Schedule C forms, or K-1s.

These exceptional circumstances require expert handling and usually cost more than a simple personal return.

5. Number of Forms and Schedules Involved

The more forms your return requires (Schedules A, C, E, K-1, etc.), the more time-consuming the filing becomes.

Most service providers and tax professionals charge per form or hour, so each added layer increases your total cost.

The more complicated your business or income streams, the more you’ll need to budget for tax filing, or go with doola, which offers transparent pricing, no matter how many forms you have.

How Much Does It Cost to Do Taxes Yourself?

Most DIY filers turn to platforms like TurboTax, H&R Block, or TaxAct that offer interview-style question flows that help you fill out your return without needing to understand tax code.

If you’re looking for a completely free option, the IRS Free File Fillable Forms is available, but it doesn’t offer any guidance or calculations.

And that still doesn’t include peace of mind. If you’d rather skip the software upsells and the guesswork, doola’s stress-fee tax filing is a smarter, stress-free alternative with flat pricing.

Tool	What’s Included	Common Upsells
doola	State & federal tax filings	No extra charges for state returns. Everything is included in one plan.
TurboTax	Federal filing	State return ($59 – $69 per state), audit defense ($40 – $60), live help ($60+)
H&R Block	Federal filing	State return ($49 per state), expat tax services ($119+), self-employed add-ons
TaxAct	Basic forms	State return ($65+), Xpert Assist ($45+)
IRS Free File	Raw tax forms	None (manual entry only)

Apart from doola, most free and mid-range plans charge $40–$60 per state. You may also need to pay extra for audit protection, form upgrades, or expert assistance.

Even with a good tool, DIY tax filing can take 8–15+ hours, especially for self-employed individuals or LLC owners.

You’ll need to collect all tax documents and understand which forms apply while entering and double-checking your data.

Pros of DIY Filing:

Lower upfront cost (if your return is simple)

Full control over your information

Tools are widely accessible

Cons of DIY Filing:

Limited support for complex returns

Easy to overlook deductions or misfile forms

Add-on charges pile up quickly

No expert to back you up if you’re audited

What starts as a $0 option can quickly balloon to $150–$300+ with all the necessary features for self-employed or small business tax filing.

How Much Does It Cost to Hire a Tax Pro or CPA?

Working with a Certified Public Accountant (CPA) can take the stress out of tax season, especially if you have a business to run.

But depending on your situation, the cost can range from a few hundred dollars to several thousand. Here’s how it breaks down.

Return Type	Average Cost (Simple)	Average Cost (Complex)	Example Business Type
Individual (1040 only)	$220 – $350	$400 – $800+	Freelancer with one 1099 form
LLC (Single-Member)	$400 – $650	$700 – $1,200+	Coach or consultant deducting home office
LLC (Multi-Member)	$700 – $1,000	$1,200 – $2,000+	Two founders splitting eCom or service biz
S Corporation (1120S)	$800 – $1,200	$1,500 – $2,500+	U.S. Shopify brand with inventory + payroll
Partnership (1065)	$900 – $1,300	$1,500 – $2,500+	Media agency with 2+ partners + expenses
C Corporation (1120)	$1,000 – $1,500	$2,000 – $3,500+	VC-funded tech startup with investor reports
Multi-State Filings	Add $150 – $400 per state	Add $400 – $700 per state	SaaS startup selling to clients across the U.S.

Filing taxes for an S Corporation (Form 1120S) often includes generating K-1s, payroll-related compliance, and both federal and state returns. This typically costs between $800-$1,500.

For a Partnership (Form 1065), the need to issue K-1s for each partner and manage multi-member financials pushes the average CPA fee up to $1,000 to $2,000+.

A C-Corporation filing (Form 1120) is often even more involved, especially if the business is venture-backed or preparing for an audit, with costs ranging from $1,200 to $2,500 or more.

And if your business operates in multiple states, each additional state filing adds to your total, often bringing the bill to $1,500 to $3,000+ depending on the number of jurisdictions.

The more complicated your tax situation, the more a CPA will charge. Here are a few common cost triggers:

Disorganized records or missing data: CPAs may charge hourly for “cleanup work” before they even get to your return.

Back taxes or late filings: Late or prior-year filings can cost double or more.

Bookkeeping add-ons: If your CPA has to handle your books before filing, expect to pay $75–$150/hour for the extra effort.

Multiple revenue streams (e.g., W-2, 1099, investments, crypto): Each adds more forms and time.

What About Tax Filing Services Like doola?

How much does it cost to do taxes? Unlike many CPAs who charge by the hour or bill separately for every form, doola offers a flat-fee, transparent pricing model that covers everything you need in one place.

If hiring a CPA feels too expensive or navigating DIY tools too time-consuming, tax filing services like doola offer a middle ground that’s built for modern entrepreneurs.

Unlike many CPAs who charge by the hour or bill separately for every form, doola offers a flat-fee, transparent pricing model that covers everything you need in one place.

No surprise charges for extra states, audit protection, or late-season filings. Whether you’re filing as an LLC, S corp, or independent contractor, you’ll get:

Comprehensive federal + state tax filing

Bookkeeping integration so your financials are clean before filing

Ongoing support, not just once-a-year advice

Compliance reminders to help you stay on top of deadlines

The result? Less stress, more savings, and more time to focus on growing your business. So, tax season doesn’t feel like a fire drill. It’s just another item checked off confidently.

Which Tax Filing Option Is Right for You?

If your tax return is straightforward, like a single W-2, maybe a few deductions, a DIY bookkeeping software might work just fine. But as soon as you’re juggling 1099s, managing business write-offs, or selling across state lines, the equation changes. Errors become expensive, and time becomes scarce.That’s where tax filing tools like doola step in, offering all-in-one support for founders who want a smart, reliable solution without managing three different service providers.

Choosing how to file your taxes isn’t just about cost. It’s about how complex your situation is, how much time you have, and how confident you are doing it yourself.

Here’s a quick guide to help you figure out which filing method fits your business needs best:

Situation	Best Tax Filing Option
First-time filer with W-2	DIY (Free File or TurboTax Basic)
Side hustler with 1099	DIY or Entry-level CPA
LLC owner with complex expenses	CPA or doola
Scaling business across multiple states	CPA or all-in-one service like doola
Tech-averse or time-strapped founder	doola’s professional service

If your tax return is straightforward, like a single W-2, maybe a few deductions, a DIY bookkeeping software might work just fine.

But as soon as you’re juggling 1099s, managing business write-offs, or selling across state lines, the equation changes. Errors become expensive, and time becomes scarce.

That’s where tax filing tools like doola step in, offering all-in-one support for founders who want a smart, reliable solution without managing three different service providers.

How to Reduce Tax Filing Costs (Without Cutting Corners)

Filing your taxes doesn’t have to break the bank, especially if you plan ahead. Here are five practical, cost-saving tips to help you stay efficient and reduce tax-time stress:

1. Organize your finances early

Don’t wait until tax season to gather receipts, invoices, and reports. Keep your income and expense records tidy throughout the year to make filing easier and less expensive.

2. Track deductible expenses year-round

Missed deductions equal missed savings. Use an expense-tracking tool or bookkeeping software to capture deductible items in real-time, ensuring nothing gets overlooked.

3. File before the deadline

Late filings can trigger IRS penalties and interest fees. Avoid unnecessary costs by filing on time (or early). Plus, early filers often get quicker refunds and better access to tax support.

4. Choose services with bundled compliance support

Standalone tax prep is just one piece of the puzzle. Look for solutions that also include ongoing compliance, like business license renewals, state filings, or IRS notices.

5. Use software or services that offer both tax + bookkeeping

Bundling your bookkeeping and tax filing with one provider can also save you money. You’ll avoid redundant work, cut down on miscommunication and ensure your books are tax-ready year-round.

Let doola Handle Your Tax Filing

Tax season doesn’t have to mean stress, spreadsheets, or surprise bills.

With doola’s flat-fee tax filing service, you get professional accuracy, transparent pricing, and zero guesswork.

We handle it all so you don’t have to:

✅ Federal + state filings

✅ Sales tax filings and 1099 support

✅ Year-round bookkeeping

✅ Ongoing compliance tracking

✅ Expert support from our CPAs

Ready to file taxes without the headache? Sign up today and let us handle the numbers.

FAQs

How much does it cost to file taxes with a CPA in 2025?

CPA fees vary based on complexity. A basic individual return might cost $300–$500, while business returns (LLC, S corp) can range from $800 to $2,500+.

Is it cheaper to do taxes yourself or hire a professional?

DIY tools like TurboTax can be cheaper upfront ($0–$200+), but if your return is complex, a professional may save you more in deductions and avoid costly errors.

Can I write off tax preparation fees?

Yes, if you’re self-employed or a business owner, tax prep fees are generally deductible as a business expense.

What’s included in doola’s tax filing services?

doola offers flat-fee tax filing with business and personal tax returns, sales tax filing, 1099 support, and compliance, all bundled with ongoing bookkeeping.

How do tax filing costs change if I have a business?

Business tax returns typically cost more due to extra forms, multiple income streams, and compliance requirements. Expect higher fees than for personal returns.

Are online tax services reliable for business taxes?

Some are, but many lack full support for complex business filings. Services like doola are tailored for small businesses and come with real support and tax expertise.

How can I reduce my tax filing costs over time?

Keep clean records, track expenses year-round, use bundled tax + bookkeeping services, and file early to avoid rush fees or penalties.