Self Prepared Returns..........

[BOB W]

............... are up by 20%. Just released.........

[Snaggletooth]

TurboTax?

Is this a testimony to the success of TurboTax?

"I got people" should be an effective argument, but may not be working...

[erchess]

People are cutting back

on all their spending. They're holding on to what money they have. The very wealthy of course are not cutting things that they know save them more than they cost such as the services of a good tax professional.

[BOB W]

Looks like I'm going to loose about 75 clients this year. How about you? I may not break 400 this year....

[BP.]

Didn't check actual stats yet; feels like I may have lost some of the easier ones (the ones that can reasonably be self prepared); they have simply made room on my schedule for many, many new referrals of more complex (and more costly) returns this year. I also find when people leave for a year and try self-prep to save $$, I see them and their CP-2000's eventually!

[SueBaby]

Looks like I'm going to loose about 75 clients this year. How about you?

I was going to ask this same question. Clients that I had for years are calling up and asking my price; which is the same as years and not gone up on them. Two have made an appointment and no show---think because of price too. I am not high and haven't raised their fee in years either. But, I guess everyone is looking for a bargain or saving where they can.

[Possi]

Easy ones are leaving

I have had a couple of easy returns leave, asking for their AGI and filing status. I'll see them back when they get a love letter from Uncle Sam. If not, I'm ok with that, too.

My son is a police officer and I do many, many police returns at a discount, as my outreach. Next year, I will need to go up on theirs, but I'll only go up by the form, and charge them half of what I usually charge. That will help my avg fee.

The new clients I am getting are pretty complex, as you can tell by my questions. Thank goodness "I'VE got people!"

Thanks~

[Bees Knees]

I mailed a letter to every client in early January telling them their fee was going to increase 20% this year. To date, I have not lost one client that I am aware of. We will see by the end of the season if I lose any, but so far I am on schedule for doing the same number of returns I did at this time last year, with an increase in rates.

[Possi]

More clients, less per return...

I mailed a letter to every client in early January telling them their fee was going to increase 20% this year. To date, I have not lost one client that I am aware of. We will see by the end of the season if I lose any, but so far I am on schedule for doing the same number of returns I did at this time last year, with an increase in rates.

Last year I did about 320 total. This year, I already have about 50 new clients. Most are police officers, and that means my avg fee is down for the year.

I love doing the police return, though. Most of them work with, or know my son. That does a mother good.....
=)

And they appreciate an HONEST tax preparer, even when they owe money in the end.

[Gretel]

After agonizing over a fee increase I send letters to my clients that my fees will go up 20-30%. So far, I know of 2 clients I lost. This letter gives me the freedom to charge clients 30% more I either haven't charged enough previously or I don't care if they leave.

As opposed to last year, nobody has even raised a brow let alone complained about my charges. That feels really good although I was to say I am still a bit nervous about this increase.

[BOB W]

After agonizing over a fee increase I send letters to my clients that my fees will go up 20-30%. So far, I know of 2 clients I lost. This letter gives me the freedom to charge clients 30% more I either haven't charged enough previously or I don't care if they leave.

As opposed to last year, nobody has even raised a brow let alone complained about my charges. That feels really good although I was to say I am still a bit nervous about this increase.

Fee increases are all relative to where you were in the past. Most clients know what other friends pay for tax prep and if your's was way below that, an increase would not be detrimental.

[RitaB]

Sorta off topic

I just had a guy, boyfriend of a client, sit here in my office for 20 minutes, people coming and going, working on his own return. "What's this recovery rebate credit? It wasn't on here last year."

I went through the brief, not real friendly explanation, "No, it was not on there last year. Last year after filing, IRS determined whether or not you qualified for the stimulus rebate, and mailed you a check if you qualified... This year blah, blah, blah..."

"Well, I don't think I got it last year."

I glanced at his W-2. Guy made $92,000 and is too cheap to hire a preparer. The really, really cold shoulder came out in full force.

Asked me what I'd charge to do his return. I told him $15 more than my regular fee. He left it here. Wish I had said $100 more.

People amaze me.

[Nashville]

Not Off Topic

Cooper, not really off-topic at all. The DIY crowd is obviously what Bob W refers to in his 20% increase.

Just two days ago, mother was concerned about whether she could claim 23-year-old college student as a dependent. Said daughter wasted all the money she made, and did not support herself in any way.

You know where the conversation headed. "Do you have your daughter's W-2?"
"What does that have to do with anything?"
"IRS deems that if she makes tremendous amount of money, it is more difficult for you to claim 51% of her expenses."

Momma then produced daughter's W-2, some $7500. I responded this was really high, but Momma did pay for college expenses, some $12K not including room & board or any personal expenses. So I allowed the exemption, and took a substantial Lifetime credit.

But I said: "Now you understand, of course, your daughter can't claim herself."
"Oh, how do we factor that into filing her tax return? Does she still have to file?"
"Yes, she still has to file. Besides that, she had $900 tax withheld from her $7500, and has to file in order to get any of that back."
"I just hate to pay someone else to do such a simple return."
[[[Urge to kill]]]

I can't really throw any rocks at TurboTax. Their program works, and they have an imaginative marketing plan which convinces these laymen that buying TT is equivalent to passing the CPA exam. But how many "laymen" are equipped to answer their questions or enter data intelligently?

Many of them can use TT just fine, if all they must do is enter W-2s and withholding. But I tell these folks if you just simply work for a W-2 you are guaranteed to pay the "maximum" tax. And I firmly believe that. The W-2 gives you the most fully burdened tax rate for your bracket, and rarely associates any deductible expenses, 2106 style.

[Gretel]

Fee increases are all relative to where you were in the past. Most clients know what other friends pay for tax prep and if your's was way below that, an increase would not be detrimental.

I agree, however I already was on the high end of the spectrum and therefor was really scared what the fee increase would do.

[JohnH]

Every time I raise my fees I cringe and wait for the fallout.
It never comes, which tells me I'm STILL not charging enough.