1040X Price

[MGC94]

If you amended a state tax return that the client self-prepared for 2021 and 2022 and you got them back $50 each year what in the world would you being to charge them for that. They are a new client for TY 23.

I think it's odd saying you owe me more than what they are even getting back. 

Why even due the amended return if it costs more (it's just a credit for rent paid). 

Anyone any thoughts? 

While on the subject what is a fair price for an amended return? One that you already have in the system VS. one you have to put in from scratch. 

I know some of you get on me for these kinds of questions.... Let's say East Coast, middle class, basic return price. 

[sjrcpa]

I would not amend a return to get a $50 refund.

[ljr]

neither would I. If I could determine the approx. amount of the expected refund without doing the entire amended return, I would tell the client your refund looks like $50 but my fee is $XX which is going to be more than the $50 so it is up to you. Only if the amended would help or change future years - carryovers or something like that then I would say it should be done. If I can't quickly determine I say my starting price for amended returns is $XX no matter what the end result is. I still did the work. 

On a side note, you should have at least the min price figured out before starting the work and tell the client up front. Don't do the work, end up with $50 refund and they decide not to file and pay you for your time.

You actually did more work for this amended since you did not do the original returns. Tell them you have to do return wrong first then fix it. How much time did you spend and what are YOU worth. 

[MGC94]

@sjrcpa Thank you for your input. What would you do if you did not know what the results would be? and it ending up being $50

[MGC94]

@ljr

Thank you for your input. I appreciate it. 

Do you mind sharing what your base fee is for an amended return. One that you already prepared vs. one you have to do from scratch. 

[ljr]

Tell client sure I can amend the return but my fee is $XX. If they say go ahead then I can decide based on how much work or time I spent. If I spent 10 minutes in total and I want to bring them on board as a future client I might "discount" the fee. Say something like this is normally $150 but since you are new and I would like to work with you going forward I will only charge $100. 

[judys3]

Being a return you did not prepare you are preparing the return again only to get a refund of $50.  Could they not amend the return themselves? 

If it is a return I have prepared and not much work involved honestly I do not charge.  Depending on the scope of the work would determine the cost but usually not more than $100.  If it is a return they prepared and I am amending I charge the same as I would for the original return.

We are a small bookkeeping and tax office.  I do all the bookkeeping for one customer and someone else prepares his return.  I found an error not on my part but something the customer did not tell me.  I informed the CPA, he amends the return and charged them $350 for a simple change.  Kinda crazy for me.