Practice - are you passing on inflation to clients? Feb 13, 2026

[strongsilence]

Which of these would you specifically pass to clients?

Which you would itemize on a bill to a client?

I decided to add a line item to my bill: "2025 Inflation and Paper Tax Return Option"  $15.

Typical full individual tax return:

Paper (100–200 pages total)	$2 – $6
Toner / printer wear	$5 – $10
Mailing (pickup no charge)	$3 – $10
Staff handling time	$15 – $40

[TaxGuyBill]

Except maybe for mailing, I wouldn't itemize any of those, other than maybe what you are saying a fee for a paper return versus digital

All of those other costs are part of my main fee, and I don't feel a need to explain all of the details about how I calculated my fee to my clients

And yes, if the tax return is exactly the same and there are no law changes, my fees go up at least the average inflation amount each year.  Usually a little more than the inflation rate, plus higher fees for more complex returns and/or needing to know more tax changes.

[strongsilence]

That is helpful.  

higher fees for more complex returns and/or needing to know more tax changes

And our expertise is the most valued part of our service and expertise, for most, increases every year.

[strongsilence]

Restaurants itemize increase egg prices and "to ensure highest quality we source from only the best local blah blah" This inspired my idea to specifically list inflation. This, I hope, tells clients that some prices are out of my control.

Also, I'd like clients to stop requesting paper tax returns.  

[TaxGuyBill]

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@strongsilence wrote:

Restaurants itemize increase egg prices and "to ensure highest quality we source from only the best local blah blah" This inspired my idea to specifically list inflation. This, I hope, tells clients that some prices are out of my control.

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You are welcome to do that, but that is definitely not my style.

Inflation affects everybody, so everybody should expect prices to go up.  I'm not going to itemize that my utilities went up, software went up, cost of pencils went up, by cost of breakfast eggs went up, etc., etc., etc.  I just cover it all under an annual increase in my fee, which people should expect.  But that is just me.

I do understand having a separate fee for paper returns and/or mailing.  I don't do it, but I definitely understand it.

[IRonMaN]

My fee is one lump sum.  Maybe its a Minnesota thing, but I'm like Bill and I would never break out stuff like that.  To be honest, some clients are going to look at that and mumble to themselves that you are nickel and diming them for every little thing.  When I bill a client, it's based on the amount of time spent on the return plus I throw in a couple of bucks per return for the software costs.  I've been running my own ship for 30+ years and I have yet to have a client ever ask how I came up with the fee that I've charged them.  On second thought, that could be because I work so cheap they want to run out of the office as fast as they can after paying before I change my mind and add a little extra to the bill 😀

[BobKamman]

@strongsilence  "Also, I'd like clients to stop requesting paper tax returns."

I have three clients trying to do returns for relatives who died last year and kept only digital copies of their returns, which are on password-protected devices that now cannot be accessed without a court order.  Clients may not want to look at their returns, but others might.  Even when I give clients a paper copy, I get requests for them a couple years later in connection with mortgage applications, personal injury lawsuits, divorce proceedings. etc. 

I moved to a smaller office this year and my rent went down.  Should I notify my clients that fees will decrease?  

[strongsilence]

Will you decrease your fees? If so, why?

[BobKamman]

The electrical engineers at Henry Ford’s Dearborn (Michigan) plant couldn’t solve some problems they were having with a generator. They arranged for famed electrical engineer and professor Charles Steinmetz to investigate the problem. Upon arriving, Steinmetz rejected all assistance and asked only for a notebook, pencil, and cot. Steinmetz listened to the generator and scribbled computations on the notepad for two straight days and nights.

On the second night, he asked for a ladder, climbed up the generator and made a chalk mark on its side. Then he told Ford’s engineers to remove a cover plate at the mark and replace sixteen windings from the field coil. They did, and the generator performed perfectly.

Henry Ford was thrilled until he got an invoice from Steinmetz’s employer, General Electric, for $10,000. Ford acknowledged Steinmetz’s success but balked at the figure. He asked for an itemized bill.

Steinmetz responded personally to Ford’s request with the following:

Making chalk mark on generator......................$1

Knowing where to make mark...................$9,999

Ford paid.

* * *

You probably already know that story. It popped up again this morning on my YouTube feed. But I am working on a new invoice.

Paper and ink to print out return..............................$10

Knowing what to put on and leave off return.........$490

TOTAL....................................................................$500

[IRonMaN]

Bob's 2025 tax return sample bill:

Preparation of 2025 individual income tax returns            500.00

Discount due to decrease in rent costs                              -50.00

Moving costs                                                                        55.00

     Total cost                                                                       505.00                                                                               

[sjrcpa]

I will sometimes add a FedEx charge as a line item if I think the normal fee doesn't cover it. Especially if it's the next day rush super expensive one.

Otherwise I agree with the others, that stuff is built in to my fee.

As far as paper returns, I get very few requests now. A number of years ago we told clients they will get electronic copies. Very few had a problem with it. Less than we expected.