PRICING

Pricing Mission: To discount the average cost of preparing a Federal tax return by 30% while

  • (1) having a home-based, online, office instead of a commercial store front,
  • (2) providing the taxpayer with a computerized client interview/checklist/organizer, and
  • requiring the taxpayer to designate Katy Income Tax Svc. to receive IRS Form 4506-T Request for Transcript of Tax Return pertaining to the prior year tax return; https://www.irs.gov/pub/irs-pdf/f4506t.pdf. Check box 6c. Use the automated transcript request.

Reference: http://www.cpapracticeadvisor.com/news/12065684/average-income-tax-preparation-fees-increased-in-2015

Typical Texas homeowner tax return          
  Level of difficulty Units Market Price, est discount KITS Price
Form 1040 1 - Major 1 $140 $40 $100
Schedule A 2 - Intermediate 1 $65 $20 $45
Minor form 3 - Minor 0      
Referenced survey price     $205    
Katy Income Tax Svc. price       $60 $145

Note 1. Most competitors do not disclose prices for individual forms. This is only an estimate based on the author’s experience. All tax preparers pay software costs which are usually rolled into the Form 1040 unit cost.

Salaried homeowner with working spouse and school-age children          
  Level of difficulty Units Market Price, est discount KITS Price
Form 1040 1 - Major 1 $140 $40 $100
Schedule A 2 - Intermediate 1 $65 $20 $45
Child care 3 - minor 1 $35 $10 $25
Child tax credit 3 - Minor 1 $35 $10 $25
Earned Income credit 3 - Minor 1 $35 $10 $25
Referenced survey price     $310    
Katy Income Tax Svc. price       $90 $220

Note 2. I have seen the $25 minor form price advertised in Katy. Here I am meeting low-priced competition and backing into the $35 price.

Sole Proprietor, homeowner with working spouse, and school-age children          
  Level of difficulty Units Market Price, est discount KITS Price
Form 1040 1 - Major 1 $140 $40 $100
Schedule A 2 - Intermediate 1 $65 $20 $45
Child care 3 - minor 1 $35 $10 $25
Child tax credit 3 - Minor 1 $35 $10 $25
Earned Income credit 3 - Minor 1 $35 $10 $25
Schedule C 1 - Major 1 $140 $40 $100
Depreciation, F 4562 2 - Intermediate 1 $65 $20 $45
Self employment tax 3 - minor 1 $35 $10 $25
Referenced survey price     $550    
Katy Income Tax Svc.       $160 $390