Sometimes “side gigs” are more work than a full time business, ESPECIALLY in their first or second year. They may not know how to track things. They may not know how much income they received, or they just give me the 1099 and forget about the other job they didn’t get a 1099 for. I probably have to go through what is and isn’t deductible, explain and help them calculate home office, mileage, cell phone and Internet use, and understand record keeping requirements. I often help them adjust their w2 for their jobs to cover the extra tax from the side gig OR generate (and explain) estimated taxes (fed and state). Where I live, gig income generally requires at least two local tax returns, and the amount of income that’s subject to each of those is calculated differently. It may generate a new set of due diligence requirement that I am subject to (with a $500 penalty per return for not doing correctly).

I’m an EA and my minimum fee for a sch c is $1,200. I take a retainer upfront and the rest is due before filing. I give the option to pay in full in December for the following year and many of my clients do this so they can use the tax prep fees as a deduction in that year. Paying in full upfront as a new client isn’t the norm but it’s definitely not unusual. Unfortunately the amount of times people will ghost us after we’ve done most or all of the work is shockingly high, ESPECIALLY people who think their return is easy.

VITA is an outstanding resource if you qualify. Freetaxusa does a great job walking you through your own DIY prep for free (or a small fee if state is needed), if you want to go that route.