When Someone Asks What You Charge for a Tax Return
“I only have a W-2, how much is that going to be?” “I have a pretty basic return, how much is it going to cost?” These calls, texts, and emails can be maddening. People want a price right away but the firm can’t quote without knowing the full picture of what’s actually going on in the client’s tax life.
The client thinks they have a “simple” return when in reality they are earning income in multiple states, have business income that needs to go on a Schedule C, and have six different stock trade accounts. Add to that, the firm rightly doesn’t want to waste time on tire-kickers.
Test the Client First, Then Quote
Most firms jump straight into a price conversation, or worse, offer a free consultation without first understanding who this client is and what motivated the call. That is treatment without diagnosis. Testing the client first reveals three things:
The client’s current pain level.
Whether they will let the firm diagnose the pain to discover the best treatment options.
Whether this is a human being the firm even wants to work with.
- Stop wasting time on clients that just want the lowest possible tax return.
- Know before quoting which clients will pay premium-level fees and produce higher margins.
- Stop feeling the need to “sell” every client and start hand-picking the ones that fit.
The 3-Part Client Fit Checklist
Pain level
Diagnose what the prospect is really trying to solve.
Discovery process
Describe what working together looks like.
Discovery meeting
Set it up with a pre-meeting document.
Diagnose the Client's Pain Level
Gauge the prospect’s current pain level by asking two simple questions:
Are you looking for a tax return, or are you looking to lower your overall tax bill?
Do you want to make progress on any other needs throughout the year besides tax preparation?
The more discomfort someone is in, the more motivation they have to cure the issue causing it. Simple tax prep is a low-pain problem with many solutions. That equals a lower fee. Lowering an overall tax bill is a much higher level of pain. That equals higher motivation and more meaningful engagements at a higher fee.
These two questions immediately put the firm in the driver’s seat as the advisor, separate it from other firms the prospect might be speaking to, and create a quick way to decide if this person fits. If they pass, the conversation continues. If they fail, the call ends and saves everyone the frustration.
Explain the Discovery Process
If this is someone worth working with, the next steps need to be clear:
If we can identify the specific progress you want to achieve in your tax and financial picture in the next 12 months, we'll put together pricing options and you can pick the one that matches your goals. As soon as you choose your option and make your payment, we get to work helping you make progress and take care of any tax, accounting, payroll, or other compliance needs you may have.
When the prospect asks how to know what their specific price would be, the response is simple:
The next step is a free Discovery Session to make sure you would be a good fit for us and verify if our process would be a good fit for you. By the end of that meeting we'll have a price range that matches your needs. Can I email a PDF to review before our meeting so we can schedule your call?
Set Up the Discovery Meeting
A critical step many firms miss: send the client a document to review before the Discovery Meeting.
The document should answer six things:
- What basic levels of service can the client choose from?
- How can they tell which option is best for their unique situation?
- The best times of year to choose an option.
- Why should they work with this firm over other firms?
- The starting price ranges for the firm’s primary levels of service.
- The logistical next steps for how to get started.
This document is the firm’s Client Guide. Sending it before the Discovery Meeting tests whether the prospect is willing to invest in making the meeting successful, lets them see a fee range before the call, and signals professionalism. By the time the call happens, the conversation isn’t “selling,” it’s listening to which level of service the client wants and verifying fit.
Common Questions About Client Fit
Isn't asking pre-quote questions going to scare prospects off?
It scares off the wrong prospects. The right prospects, the ones who want strategic help and are willing to pay for it, respond well to a firm that asks intentional questions before quoting. They read it as professionalism, not friction.
What if the prospect refuses to answer the diagnostic questions?
That’s the test working. A prospect who won’t engage with two simple questions about their goals is unlikely to engage with the firm productively over a multi-month engagement either. Ending the call early protects everyone.
What's the minimum the Client Guide needs to cover?
The six elements above: service options, how to pick, when to engage, why work with this firm, fee ranges, and next steps. Format (PDF, web page, short video) matters less than answering those six questions clearly.
Do these calls have to be free?
The initial diagnostic and Discovery Session can be free because they’re how the firm decides who to work with. Anything beyond fit-checking, such as actual planning advice or document review, should be inside a paid engagement.
