How long should it take you to prepare your tax return? Like with most things tax, it depends. The IRS says that the average nonbusiness taxpayer spends 13 hours preparing a tax return. But it takes far longer for taxpayers who file business returns.
The following chart that the IRS prepared shows how long it takes taxpayers to prepare tax returns.
|
Primary form filed or type of taxpayer |
Return % |
Total time |
Recordkeeping |
Tax planning |
Form completion and submission |
Other |
Average Cost |
|
All taxpayers |
100% |
13 hours |
6 hours |
2 hours |
4 hours |
1 hour |
$240 |
|
Nonbusiness Taxpayers |
72% |
9 hours |
3 hours |
1 hour |
3 hours |
1 hour |
$160 |
|
Business Taxpayers |
28% |
23 hours |
12 hours |
4 hours |
5 hours |
2 hours |
$470 |
(Source: IRS, 2021 Form1040 Instructions, "Estimates of Taxpayer Burden.")
As you'd expect, taxpayers who don't file any business returns spend the least time on their taxes. The IRS says they spend 13 hours preparing their returns, with six hours of the total used for recordkeeping and two hours for tax planning.
Taxpayers with their own businesses spend far more time on tax preparation than nonbusiness taxpayers. The IRS says the average total time they spend on their taxes is 23 hours, with 12 hours devoted to recordkeeping and four hours to tax planning. They also spend the most on tax preparation, an average of $470.
Of course, these are just averages. Some people spend much more time on tax preparation; others spend less. Because recordkeeping is the most time-consuming part of tax preparation, the best way to reduce the time you spend on your taxes is to complete accurate and complete tax records throughout the year—whether you prepare your return yourself or hire a tax professional. Accurate records are also your best defense against an IRS audit.