Pricing

Spud is single. He has W2s from two jobs plus a 1099-G from unemployment compensation, and he is not itemizing his deductions (i.e. he is claiming the standard deduction). His projected bill is $240.

Additionally, Spud completed the online questionnaire we sent him through our secure portal, and through that we learned he was a full-time undergraduate student during the relevant tax year. We inform him that he’s eligible for the American Opportunity Tax Credit or the Lifetime Learning Credit. Since the AOTC is partially refundable, he opts for that and receives an extra $2,500 tax credit.

At Munywoki CPA we inform you of your options and help you find the one most favorable to your situation. Open communication!

Spud and his wife are filing jointly and have three dependents. They both have two W2s and incurred qualified childcare expenses, and they will not itemize deductions. They are eligible for the Child and Dependent Care Credit and the Child Tax Credit, which we will ensure they are aware of. Like Spud in Example 1, their projected bill is also $240.

It makes no difference that they are married, have dependents, and will claim credits. Credits are a given – who doesn’t want them? We strive to get clients every credit we can find, at no additional cost. We feel weird charging extra for credits, like a panhandler waiting beside the ATM.

Francis is single, has one W2, and wants to itemize deductions. He incurred hefty medical bills from a pub fight, made generous charitable contributions from gambling earnings, and paid interest on his mortgage. His projected bill is $300.

The itemized deductions will require documentation and additional paperwork, which is why it costs more than claiming the standard deduction.

Diane is single, has three W2s, and one 1099-DIV from an $200 ordinary dividend. She is not itemizing deductions. Her projected bill is $240.

Her dividend is below the threshold that requires a Schedule B, so there is no added cost.

Diane is single, has one W2, but had capital gains and losses from stock sales, and is itemizing deductions. Her projected bill is $360.

The capital gains/losses and stock sales will require Schedule D and Form 8949 plus additional recordkeeping ($60). That plus the itemized deductions tax return ($300) equals $360.

Technically this is two separate returns and should cost $480 (2 x $240). It is usually better for a married couple to file as Married Filing Jointly (especially in a community property state like Texas), but there could be unusual circumstances motivating a married couple to file separately.

To make this easier, we will charge a base rate of $360 for a married couple filing separately. This provides a $120 savings on two returns.

Granted, itemized deductions will cost more (since both returns will have to be itemized). Unique circumstances may require additional research and be billed accordingly. A custom quote might be necessary.

Tommy and Lizzy are married filing jointly. Each has a W2, and they are not itemizing deductions. They own two rental properties but neither actively works in real estate. Their total projected bill is $440.

The base price without the rentals is $240. However, each rental property will require its own record of revenues and expenses that will go on page 1 of a Schedule E. Therefore, each rental property incurs an additional $100, yielding a total of $440.

Tommy has a job as an employee and receives a W2, but he also runs his own landscaping business. The revenues and expenses from his landscaping business will require a Schedule C and documentation (e.g. a trial balance or some other records). This additional paperwork will add $120 to his base $240 individual tax return. His total projected bill is $360.

If Tommy has depreciable assets, these will add an extra $50 to $200 depending on the volume, recordkeeping, and complexity.

If Tommy owned two separate sole proprietorship businesses that he actively participated in, they would each require separate documentation and their own Schedule C, which would both accompany his individual tax return ($240). His total projected bill would be $480.

We are flexible and accomodating toward those doing gig work on multiple smaller scales. For example, if someone basically works one job across two part-time gigs doing DoorDash and Uber, and the recordkeeping reflects this smaller scale, we are inclined to bill it as one Schedule C at $120 – even though two Schedule Cs would be required. We can discuss!

Spud actively owns and manages a travel agency which is registered with the Texas Secretary of State as an LLC. The LLC has not elected to be taxed as an S Corp or C Corp. Being a single-member LLC, the IRS will classify it as a disregarded entity and tax it as a sole proprietorship (similar to Examples 8 and 9). The revenue and expenses will end up on a Schedule C ($120 extra), which in turn will end up on Spud’s individual tax return ($240). His total projected bill will be $360.

Now things get interesting (haha, right?).

Spud, Francis, and Diane are all partners in an LLC called Lust For Life LLC. It has not elected to be taxed as an S Corp or C Corp. Since Lust For Life is an LLC with more than one owner, the IRS will tax it as a partnership. This will require a Form 1065 to be filed for the company. A partnership is a pass-through entity, meaning its earnings are not taxed to the company directly, but to the owners instead. So assuming an even three-way split of earnings and total company earnings of $900, each owner will ultimately be taxed on earnings of $300. This amount will be shown on a Schedule K-1 given to each owner, and each owner will include their respective $300 on their individual tax return.

The partnership entity itself (Lust For Life LLC) will pay $475. Items that would cost extra for an individual return will also cost extra for the entity return (such as Capital Gains/Losses. The Schedule K-1s for each owner are included in the $475 price.

If Spud decides to have Munywoki CPA do his personal tax return, it will cost the standard $240. But since he hired us to do Lust For Life’s entity Form 1065 tax return, we will waive the $60 Schedule K-1 fee on Spud’s personal tax return.

NOTE: The other add-on costs for an individual return still apply.

Let’s continue this in Example 12.

In Example 11, Diane received a Schedule K-1 for her portion of the earnings from Lust For Life LLC. Spud was raving to her about Munywoki CPA, so she hired us to do her individual taxes. She will pay $240 for the base individual tax return, plus $60 for the inclusion of her Schedule K-1 from Lust For Life. Total projected bill – $300

Tommy owns and actively manages a soccer team called FC Edinburg (as in Edinburg, TX). It has elected to be taxed as an S Corp, and he is the only owner. Like the partnership in Example 11, an S Corp is a pass-through entity. In contrast to a partnership though, an S Corp must file Form 1120-S. In this example, FC Edinburg will file a Form 1120-S, and Tommy’s earnings from the company will be reflected on a Schedule K-1 that will be included in his individual tax return.

FC Edinburg will pay $450 for its entity tax return (Form 1120-S), and Tommy will pay $240 for his individual return. The projected total bill will be $690.

Like the partnership example, we will waive the $60 Schedule K-1 fee on Tommy’s individual tax return.

We couldn’t end on 13, right? Diane lives and works in Thackerville, OK. She saw Francis at the casino and he told her wonderful things about Munywoki CPA, so she decided to take advantage of our virtual services. Being an Oklahoma resident, she has to file and pay state income taxes. Her base individual return costs $240, and her state income tax return costs an additional $70. Her total projected bill will be $310.