How Much Does a CPA Charge for Amended Tax Return?

Mistakes happen. Maybe you forgot to include freelance income. Maybe a 1099 showed up after you hit “submit.” Or maybe you were eligible for a credit you didn’t realize you could claim. Whatever the reason, filing an amended tax return is sometimes necessary—and it’s not always free.

So, how much does a CPA charge for amended tax return filing? The answer depends on a few key factors: the complexity of your return, how many years you’re amending, and whether you’re filing state or federal amendments (or both). In this post, we’ll break down everything you need to know about amended tax return fees, what influences the cost of amending tax return filings, and when it’s worth hiring a CPA for help.

💡 Short on time? Contact us today and we’ll review your amended tax situation for free.

What Is an Amended Tax Return?

Before diving into pricing, let’s clarify what we mean by an amended return.

An amended tax return is a corrected version of a previously filed tax return. It’s used to fix errors such as:

Incorrect income or deductions
Filing status mistakes
Missing credits or dependents
Late-arriving tax documents

The IRS uses Form 1040-X to process federal tax amendments. In California, businesses may also need to amend sales and use tax filings using state-specific forms. You can learn more about how this process works in California’s official amendment guide. We can help both businesses and individuals from any state, so if you’re unsure if you need an amendment, just let us handle it!

How Much Does an Amended Tax Return Cost?

Let’s answer the big question: how much does a CPA charge for amended tax return filings?

The average cost of amending a tax return with a CPA falls between $200 and $500, but it varies widely depending on the complexity of the correction. If your amendment involves multiple forms, retroactive credits, or requires recalculating state returns, the cost can go higher.

Here are some sample ranges for reference:

Type of Amendment	Estimated CPA Fee
Simple W-2 correction	$150 – $250
Missed credit or deduction	$200 – $350
ERC-related amendment	$300 – $600
State and federal changes	$400 – $750

In general, the amend tax return cost increases with:

Number of changes needed
Whether the original return was filed by someone else
Years of returns being amended
Inclusion of business income or deductions

Want a precise quote? Schedule a free consultation with our remote tax professionals.

When Is It Worth Paying the Amended Tax Return Fee?

Not every error requires a correction—but some definitely do.

✅ When you should amend:

You received new income documents (like a forgotten 1099-s or W-2)
You missed major deductions or credits (like the ERC)
Your filing status was incorrect
Your return was rejected by the IRS due to inconsistencies

❌ When you don’t need to amend:

You made a simple math error (the IRS usually corrects these)
Your return is already being processed with pending updates
The correction won’t significantly change your refund or liability

A good rule of thumb? If it changes your refund or the amount you owe by more than $100, it’s worth speaking to a CPA. Even minor errors can lead to penalties, delayed refunds, or IRS notices—and that’s worth avoiding.

Need help reviewing your situation? Learn how we assist in tax preparation outsourcing and amendments for individuals and businesses.

Factors That Influence the Amended Tax Return Fee

Wondering what determines how much does a tax amendment cost? Here are the biggest price drivers:

1. The Original Return’s Accuracy

If your initial return was messy or filed incorrectly, your CPA will need to do more digging to correct it.

2. Business or Self-Employment Income

Amending a return with business income (Schedule C or Form 1120) takes longer than a basic W-2 correction. For help with business books, check out our outsourced bookkeeping services.

3. ERC Credits

The IRS is heavily scrutinizing ERC claims. If you need to amend for this reason, expect a higher erc amended tax return fee due to the complexity and risk. Read our full guide on amending for the Employee Retention Credit (ERC).

4. State vs. Federal Returns

Filing both state and federal amendments takes more time and increases the amend tax return cost. Be sure to check whether your state requires separate documentation.

5. Year of the Return

Older tax years take longer to retrieve and analyze, especially if you didn’t file electronically.

Common Amendment Scenarios (And What They Might Cost)

Here are a few typical scenarios we help clients with:

📝 Missed Income on a 1099
Fixing a missed 1099 can cost around $200–$300 if no other forms are affected.

💼 Business Owner Forgot to Claim Deductions
For Schedule C filers, this can run $350–$600 depending on the number of expenses and forms involved. Startup businesses may benefit from bookkeeping cleanup at the same time.

📄 ERC Credit Filed Late
This typically costs $400–$700 due to the number of forms involved and the complexity of the IRS rules.

Need help identifying your best option? Explore our fractional CFO services for higher-level strategy.

What Happens If You Don’t Amend a Tax Return?

Failing to file an amended return can have serious consequences:

IRS penalties and interest for underreported income
Missed refunds if you don’t claim them in time (within 3 years)
Audit triggers from inconsistent filings or mismatched documents
Delays in loan applications due to outdated or incorrect tax info

Fortunately, you don’t have to go it alone. At Simplicity Financial, our remote team can evaluate your amendment needs and guide you through the process.

Why So Many Trust Simplicity Financial for Bookkeeping & Tax Help

Tax mistakes happen—even to experienced business owners. But what matters is how quickly and confidently you can fix them. That’s where we come in. Simplicity Financial offers hands-on support for individuals, startups, and growing businesses looking to get back on track (or stay ahead of the curve) with expert tax and bookkeeping guidance.

If you’ve already explored the pros and cons of working with a part-time remote accountant, you know flexibility and accuracy matter. We go beyond flexibility—we provide clarity and peace of mind.

Whether you’re a founder in need of startup-friendly accounting, or a growing business considering the long-term impact of CFO-level strategy, we tailor our services to your real-world needs.

✨ Here’s what makes our approach different:

Clear, honest pricing — no hidden fees, just fair rates based on your situation. Get a better understanding of pricing in our breakdown of the average cost of CPA tax prep or ask us for a quote.
Tailored services for entrepreneurs, freelancers, and established businesses alike. We build a plan that fits your operations—not the other way around.
Real-time, remote service — You’ll never have to wait for an in-person meeting or deal with old-school delays. We’re efficient because your time matters.
Kind, responsive humans — We genuinely care about your experience. You’ll always be treated with respect, whether you’re correcting a small mistake or building a long-term plan.

📲 Ready to take control of your finances? Contact us today for a consultation you’ll actually look forward to.

Learn More About Filing Amendments in California

If you’re in California and need to amend a sales or use tax return, visit the California Department of Tax and Fee Administration (CDTFA). Their website outlines step-by-step instructions for both business and individual amendments.

This is especially useful for businesses that need to file corrections beyond just federal taxes. If you operate a small business or a media project in California, our remote services can handle both state and federal corrections—just ask us how.

Amend Your Tax Return with Simplicity Financial

Filing an amended return might sound intimidating, but with the right help, it’s a smart move that protects your finances and your peace of mind. Whether you’re a self-employed freelancer, a small business owner, or someone who just got hit with a new 1099—our team is ready to help.

✅ Don’t wait for IRS notices or missed refunds. Contact Simplicity Financial today for expert help on your amended tax return and peace of mind going forward.

FAQs About Amended Tax Return Fees

How much does a CPA charge for an amended tax return in 2025?

On average, how much does an amended tax return cost in 2025 ranges from $200 to $500 depending on the complexity of the change, type of income, and whether state filings are needed.

What affects the amended tax return fee?

Several factors affect the fee, including the complexity of the return, how many years are being amended, business vs. personal filing, and ERC involvement.

Is the cost of amending tax return higher for businesses?

Yes. Business returns (such as Schedule C, 1120, or 1065) take more time and generally cost $350–$750 or more, especially if supporting documents or bookkeeping help are required.

How much does a tax amendment cost if you only missed a W-2?

If you only forgot a W-2, the amend tax return cost is typically lower—around $150–$250 for a basic federal amendment.

Do I need a CPA to amend my return?

You don’t need a CPA, but it’s highly recommended if your return involves business income, ERC, or multiple years. Working with a qualified professional reduces risk and ensures compliance. If you’re looking for reliable help, Simplicity Financial is here to assist you remotely.

Disclaimer

This blog is for informational purposes only and does not constitute legal or tax advice. Always consult a licensed tax professional for advice tailored to your specific situation.

Recent Posts