Estimates of Taxpayer Burden

The following table shows burden estimates based on current statutory requirements as of October 1, 2025, for taxpayers filing a 2025 Form 1040 or 1040-SR tax return. Time spent and out-of-pocket costs are presented separately. Time burden is broken out by taxpayer activity, with recordkeeping representing the largest component. Out-of-pocket costs include any expenses incurred by taxpayers to prepare and submit their tax returns. Examples include tax return preparation and submission fees, postage and photocopying costs, and tax return preparation software costs. While these estimates don’t include burden associated with post-filing activities, IRS operational data indicate that electronically prepared and filed returns have fewer arithmetic errors, implying lower post-filing burden.

Reported time and cost burdens are national averages and don’t necessarily reflect a “typical” case. Most taxpayers experience lower than average burden, with taxpayer burden varying considerably by taxpayer type. For instance, the estimated average time burden for all taxpayers filing a Form 1040 or 1040-SR is 12 hours, with an average cost of $290 per return. This average includes all associated forms and schedules, across all tax return preparation methods and taxpayer activities.

Within this estimate, there is significant variation in taxpayer activity. For example, nonbusiness taxpayers are expected to have an average burden of about 8 hours and $160, while business taxpayers are expected to have an average burden of about 21 hours and $610. Similarly, tax return preparation fees and other out-of-pocket costs vary extensively depending on the tax situation of the taxpayer, the type of software or professional preparer used, and the geographic location.

For more information on taxpayer burden, see Pub. 5743. If you have comments concerning the time and cost estimates below, you can contact us at either one of the addresses shown under We Welcome Comments on Forms .

Estimated Average Taxpayer Burden for Individuals by Activity

Average Burden Average Time (Hours) Average Cost (Dollars)** Type of Taxpayer Percentage of Returns Total Time* Record- keeping Tax Planning Form Completion and Submission All Other All taxpayers 100% 12 5 2 4 1 $290 Type of taxpayer Nonbusiness*** 71% 8 3 1 3 1 160 Business*** 29% 21 10 4 5 2 610

*Detail may not add to total time due to rounding. **Dollars rounded to the nearest $10. ***You are considered a “business” filer if you file one or more of the following with Form 1040 or 1040-SR: Schedule C, E, or F or Form 2106. You are considered a “nonbusiness” filer if you don’t file any of those schedules or forms with Form 1040 or 1040-SR.