NY Analyst wrote:I spoke with a Canadian accountant today who I trust and who says his firm prepares "hundreds" of US returns. He gave me an estimate of $1,600 (CAD) to prepare my US federal, NY state, and Canadian returns (total of four US returns because of the dual status year). Does this sound reasonable?
This sounds like way too much. A quick search on the Internet revealed average prices to prepare a US federal/state return to be around $200:
http://taxes.about.com/od/findataxpreparer/a/prices.htmOne might reasonably triple this in your case (to account for the dual status and Canadian returns) but that would make $600--still way less than you are being quoted.
And tripling it seems to me a worst case scenario--there is going to be some general information gathering that applies to all three returns. And--unless you had substantial US income during the part of the year you were a nonresident--that part of the process should be a no-brainer.
A Canadian accountant is certainly going to be more familiar with cross border tax issues. On the other hand a NYC accountant is going to be more familiar with any tricky nuances involving the NYC city income tax.
Their claim to process 'hundreds' of US returns a year is not necessarily good news from my perspective--if they handle that many cross border cases a year they should have developed an 'economy of scale' by now which would allow them to process such cases more reasonably.