Financial Advisors Offering Tax Preparation

What to know

• 25% of people in our tax quiz are unhappy with who they work with now.^[1]
• 36% of people in our tax quiz don't have a tax professional yet.^[2]
• 50% of people who took our matching quiz were hiring a professional for the first time.^[3]

Sources

1. Sam's List quiz data
2. Sam's List quiz data
3. Sam's List quiz data

Credentials on this page

• 3 of 4 list CPA
• 1 of 4 list EA
• 2 of 4 list CFP®

As listed by the firms on this page. Verify before you hire:

• CPAverify (or your state board of accountancy) for CPAs
• FINRA BrokerCheck for advisors and brokers
• SEC Investment Adviser Public Disclosure (IAPD)
• CFP Board verification for CFP® professionals

Frequently asked questions

What does a financial advisor who offers tax preparation actually do?

These advisors prepare and file your federal and state income tax returns each year, just like a CPA or enrolled agent would, but they also manage your investment accounts with tax efficiency as a primary goal. Throughout the year, they run tax projections to model how different investment decisions—selling appreciated stock, executing Roth conversions, realizing losses—will affect your current-year liability. They coordinate quarterly estimated payments, handle IRS correspondence if you're audited or receive notices, and adjust your portfolio strategy based on changes in tax law or your income. The result is a single advisor who sees both your investments and your tax return, eliminating the gap that often exists when your wealth manager and tax preparer work in silos.

How do I find a financial advisor who specializes in tax preparation?

Start by confirming the advisor holds an active PTIN and has representation rights—either as an Enrolled Agent, CPA, or tax attorney—so they can sign your returns and defend them before the IRS if needed. Ask which tax software they use and how many returns they personally prepare each year; someone who only prepares a handful is likely less current on filing nuances than someone who does dozens. During a discovery call, request examples of how they've coordinated tax-loss harvesting with rebalancing, or how they time capital gains to stay within specific brackets. Check whether they carry professional liability insurance that covers both investment advice and tax preparation errors, since both involve regulatory risk.

How much does it cost to hire a financial advisor who does tax preparation?

Many advisors bundle tax preparation into their assets-under-management (AUM) fee, typically 0.75% to 1.5% annually, with no separate charge for filing returns if your accounts are managed by the firm. Others charge AUM for investment management and a flat fee per return—often structured by complexity, with simple W-2 filers paying less than those with rental properties, partnerships, or stock option exercises. Some use hourly billing for both advisory and tax work, especially for clients in accumulation phase with smaller portfolios but complex tax situations. Pricing rises with the number of state returns, schedule complexity (C, E, K-1s), and frequency of mid-year planning meetings. Always clarify whether amended returns, IRS notice response, and audit support are included or billed separately.

What's the difference between a generalist financial advisor and one who specializes in tax preparation?

A generalist typically reviews your prior-year return prepared by someone else and offers high-level tax commentary, but doesn't have the software, credentials, or workflow to actually prepare and e-file the return themselves. A specialist who offers tax preparation as a core service holds the licenses to sign returns, runs multi-year projections in professional tax software, and can model the exact federal and state impact of moving $50,000 from a traditional IRA to a Roth before year-end. They catch opportunities a generalist would miss—like timing the sale of a rental property to offset it with carryforward losses, or structuring estimated payments to avoid underpayment penalties when a bonus hits. Most importantly, they can execute portfolio changes and file the corresponding tax forms without waiting for year-end reconciliation or coordinating with a third party.

Does it matter if my financial advisor who does tax prep is local or remote?

For tax preparation combined with investment management, location usually matters less than it did a decade ago because document sharing, e-signature, and secure portals make remote filing straightforward, and IRS e-file systems work the same nationwide. However, if you have state-specific issues—like multi-state income, local business taxes, or residency questions during a move—an advisor familiar with those jurisdictions can save time and avoid errors. Some clients prefer in-person meetings during tax season to review complex returns face-to-face, especially when discussing equity comp, estate gifts, or entity elections. Remote arrangements work well if the advisor is licensed in your state (for investment advice) and has experience filing returns in your resident and non-resident states.

When should I start working with a financial advisor who does tax prep—mid-year or after year-end?

Mid-year onboarding is usually more valuable than waiting until January because the advisor can still influence your current-year tax outcome through estimated payments, Roth conversions, tax-loss harvesting, and income deferral strategies. If you start in January, those opportunities are gone, and the advisor is limited to filing last year's return and planning for the year ahead. Ideally, engage by summer so the advisor can run a projection based on year-to-date income, adjust your withholding or estimates for the second half, and execute any portfolio moves that need time to settle before December 31. Bring your prior two years of returns, recent pay stubs, and a list of any major financial events expected before year-end—bonuses, stock sales, real estate transactions—so the advisor can model scenarios accurately.