Tax prep firms... WHY?

[poundwise]

sweeps: I think you need a smiley making the swoosh-like over-the-head motion.

Everyone who is missing the point: The original post was not about whether anyone should ever use a tax pro. It was addressing the ridiculousness of a person, with a very simple tax return, being charged/paying $200 for tax prep.

Besides the fact that the person might have, instead, looked into completing their own return, especially with the help of free online filing software, community tax help, etc., even a CPA/tax pro would not typically charge half that for such a simple return.

[simpleyme]

poundwise-okay I guess i did miss the point if i were to file a very simple tax return I would not pay 200 plus that is for sure

Disneysteve I was getting ready to say I would never pay 200 for an oil change ,uhh then I got to thinking ,whoops I do already LOL we take our Harley's to the dealership for all services and those are not cheap ;-)

[Aleta]

There are people at some community libraries that will help you with your tax return as well. When my brother moved to a new city, he had no idea about who to contact. At the time he was an independent contractor and the service was offered free. There are people who will help you. He happened to run into some knowledgeable people that did more for him than the previous people that he had paid. By the way, this was a free service.

[MonkeyMama]

sweeps: I think you need a smiley making the swoosh-like over-the-head motion.

Everyone who is missing the point: The original post was not about whether anyone should ever use a tax pro. It was addressing the ridiculousness of a person, with a very simple tax return, being charged/paying $200 for tax prep.

Besides the fact that the person might have, instead, looked into completing their own return, especially with the help of free online filing software, community tax help, etc., even a CPA/tax pro would not typically charge half that for such a simple return.

It depends where you live I guess. I don't know anyone who would do a tax return for less than $200. Not even H&R Block or the like. From my perspective, she got a good deal. But it could be an area thing. I think you said not even a state tax whereas California is one of the more complicated states. So it is very different here.

I am totally with you on the last paragraph though. Well except the CPA/pro charging less thing. I'd say they would charge way more to have to waste their time on a 1040EZ. That is what it comes down to for us. But yeah she had a lot of other alternatives. IT was not a frugal move, most certainly.

[sweeps]

It wasn't just a very unfrugal move on my cousin's part, IMHO, it was outright gouging on the part of the tax prep company.

She doesn't run a business, she doesn't have rental property, she doesn't own a home, she doesn't have any investments, none of that. She had W-2 wages. That's it.

[DebbieL]

Yes, it's pretty silly (IMO) to waste that kind of money on a tax return that is SIMPLE. I don't think anyone would argue against using a professional when one is needed, but in this particular case it sounds like it was unnecessary.

PS - Even the people I know who do like to "waste" their money getting H&R, or similar to do their very straight forward returns don't get charged anywhere near that much. $200 seems extremely high to me. I've done returns for several people over the years who don't like doing their own (who all had straight forward returns) and I don't think it's ever taken me more than about 30 minutes from start to finish.

[Gruntina]

Okay I admit it! I am lazy! I go to HR Block to do my taxes. They do a great job and even my tax person knows sign language. I stop by during a lunch break and we go over it and I leave the building with all my papers nicely organized in a thin envelope which makes it easy to store in my home files with all my other years. I love the convenience and a 'break' from paperwork since that is what I do all day long in the HR field.

But I started with HR Block because I did Pampered Chef as a side business while working at my full time job and totally felt overwhelmed with paperwork’s and tons of receipts and mileages, product purchase tracking, advertising/travel/meal cost to perform my shows. It is considered an owned business rather working under an employer. I actually quit working for Pampered Chef after the taxes things even though I made really good money. I loved cooking and performing but hate all the work of keeping track of every little bit that went into the business.

My Husband wanted to do the tax at home for me last year along with his so I would save my money. Several months later we got a letter saying we still owe fed some money due to a math error. He felt so bad that he does not want to do it again.

When I first started working (age 14 under Montana law), my dad made me do the taxes every year so I would know how to do it on my own. I do have the experience and know what it is like.

I even use TurboTax one year but could not send my file electronically because I did not have an American Express card which was only accepted that year. It took me all day to do because I didn't understand everything and over did my reading since so many things on there did not apply to my situation.

I still prefer paying 90 dollars to have my taxes done by HR and when they do it, it is guarantee or they will have to pay the differences if there were any errors. I like having the sense of peace that everything is taken care of after getting it done at HR and block.

[Kim32958]

I have a friend who had her own business and went to H*Bl**k and they charged her $424 for all the forms and to get the RAL. She really needed that money fast but to take a third of her refund was nuts.

[InDebtInDC]

If I paid $200+ for an oil change, would you see something wrong with that?

It depends on other factors specific to the situation.