The average time to complete a tax return can vary widely depending on several factors, such as the complexity of your financial situation, the type of tax return you’re filing (e.g., individual, business, self-employed), your familiarity with tax laws, and whether you’re doing it manually or using tax software. Here’s a breakdown:
Simple Tax Returns (e.g., W-2 Income Only)
Time Estimate: 2-3 hours
If you have a straightforward tax situation—such as income from a single W-2 job, no dependents, and you’re claiming the standard deduction—it typically takes less time. Using tax software can streamline the process to as little as 1-2 hours.
Moderately Complex Returns (e.g., Itemized Deductions, Multiple Income Sources)
Time Estimate: 3-6 hours
You have multiple income streams (W2, 1099 forms), itemize deductions (e.g., mortgage interest, charitable donations), or claim tax credits (child tax credits), it will take longer. Gathering documentation and ensuring accuracy can add to the time.
Complex Returns (Self-Employed, Business Owners, Investments)
Time Estimate: 6-12+ hours
Self-employed individuals, small business owners, or those with rental properties, investments, or other complicated financial situations may spend significantly more time. This includes tracking business expenses, depreciation, and capital gains/losses.
Conclusion
For most people with simple returns, completing a tax return takes 1-3 hours with software. For more complex situations, it can take 6-12 hours or more. If you’re unsure about your taxes, don’t like doing taxes or want to save time, contact our firm to file your taxes for you. Save your weekends and money letting us handle your taxes.