To (raise) fee or not to fee?

[Black Bart]

Can't decide whether to go up or not. Held fast last year (no increases) on account of the economy. I'm thinkin' no change again -- conditions have not improved noticably.

You can check as many boxes as you want.

[JohnH]

I'm announcing another 15% increase. (You didn't give me that choice so I fudged on the poll and chose 10%). Inactuality some will get 5-10% and others will get the full 15% - depends on how long they've been a client and a few other factors. (PITA's are on an entirely different scale).

Our services are getting MORE valuable as time goes on and if we don't charge properly they won't pay properly. I feel for those clients who have lost their jobs and their business is in the tank, but it won't do any good for me to join them out of sympathy. Just my humble opinion...

[BOB W]

Although I chose "Same as last year", that does not account for more to do on some returns. That $400 tax credit may involve more "talk" time..???

Same as last year, is only for Same as last year return.

I appearently had a percentage of my client, some long term, go to Geitner's program. Too much talk about it last year. We will see if all went well for them and if they return.

[Kram BergGold]

More forms

This year we have Forms L and M. These will incur extra fees. I am also offering a February discount,
I have too much free time in February since the 1099 date got pushed to Feb 15.
I am tired of fighting the Oct 15 deadline so I am imposing a post Aug 31 surcharge..

[Jiggers]

Fee Increase

While I voted that I am not increasing my fees, I am referring to my basic fees as I bill by the form or schedule.

However, new for this year are Schedules L and M. Each one requiring a fee.

Form 8863, education credits, is more complicated and I will raise that fee.

Form 5405, First-time home buyer credit, is really confusing and I will raise that fee.

Now unemployment compensation may have $2,400 not taxed. That requires a calculation and probably a schedule printed by my software, all requiring a fee.

Form 1040A no longer has Schedules 1 and 2. They are replaced by Schedule B and Form 2441. I always charges a lower fee for Schedules 1 and 2. Now I will charge the same for the B and 2441, the same as the 1040 fee.

Since we are now mandated to be e-filing by 2011, and I have about 50% of my clients who won't e-file, to convince them to e-file, I will start charging for a paper return.

I am also adding e-Collect by Drake, offering only a direct deposit to the taxpayer's bank account and deducting my fee that will be deposited into my account. There will be a fee for that.

So I didn't raise my fees, but I did!

[erchess]

I answered

Middle Ground and ten percent.

Since I charge by the form, the existence of the two new forms will raise (substantially) the fee of affected returns if everything is the same as last year except for that. I'm not going to raise my fees for simple returns at all because I want to be a realistic alternative for qualifying individuals who don't want bank products. I don't do that many of those anyway because if the anticipated fee is less than $120 after a phone interview I ask them to work with me to arrange to do two or more such returns in one stop.

On the other hand I plan to raise my fees for the more expensive returns by 5 to 10 percent depending on the form. Factors for a particular form will be the amount of change in the relevant law AND the general increase in my costs of living and of being in business.

By the way, I don't mean to bash those of you who do bank products. Neither my paperwork skills nor the fact that I work in the homes and offices of clients and have my home office in a remote area fits well with producing client checks. This is my choice and not a slam at anyone else.

[ChEAr$]

Especially

since there is no inflation this year.

However, IF there happen to be added forms to fill out, we will probably take that into
account, won't we?

[Gretel]

I won't increase my fees for same work. I had a good increase last year (20-30%) and it was the first year that nobody complained about my fees. Lost 5 clients over it. Of course, like others, I will charge for extra work.

[Black Bart]

Hmmm...hang on just a minute

About those schedules L & M that the Fordster (Edsel) just asked about -- now I've got to rethink my no-change price strategy.

I hadn't even looked at 'em before -- just figured "How much trouble can it be?"

I just looked -- now I know. At least half my guys get Social Security (making M necessary) and 90% pay real estate tax (for the L). Too, we'll have to ask everybody if they bought a new car and how much sales tax was paid.

While we were grateful for that $250 per old SS head (my thanks to the Maximum Leader), it sure would cut down on the paperwork if the government would just stop givin' away money.

It's just more chargeable work you might say, but price resistance is stiff now and I don't want to go overboard since I'm raising prices in 2011 for mandatory E-filing. What to do -- what to do? This money I need/want/don't have sure is a burden.

Not greedy of filthy lucre. -- 1 Timothy.VI.10
....or....
When I had money everyone called me brother. -- Polish Proverb.

[Lion]

Increases this year

I held prices for the first two years I was out on my own for clients who followed me, partly due to my software company giving me a multi-year deal. Now, it's time to increase. Tax law changes in November and December each year, paper and toner and electronics and courses going up, additional forms and increased complexity, etc. Probably 10%, some less but some even more. Definitely raising entity prices, especially the new Forms 990, more than 10%.

[superman]

e-collect

I use Drake and have not heard about this. What is it? I looked on their web site and could not find info on this new feature.

Thanks,
superman

[Jiggers]

e-Collect

I use Drake and have not heard about this. What is it? I looked on their web site and could not find info on this new feature.

Thanks,
superman

For those of us that do not do RAL's, this gives us a way to direct deposit the refund and have our fee withheld and deposited into our account.

If you do a DD, the fee deducted from their refund is $10.

[ChEAr$]

About those schedules L & M that the Fordster (Edsel) just asked about -- now I've got to rethink my no-change price strategy.

I hadn't even looked at 'em before -- just figured "How much trouble can it be?"

I just looked -- now I know. At least half my guys get Social Security (making M necessary) and 90% pay real estate tax (for the L). Too, we'll have to ask everybody if they bought a new car and how much sales tax was paid.

While we were grateful for that $250 per old SS head (my thanks to the Maximum Leader), it sure would cut down on the paperwork if the government would just stop givin' away money.

It's just more chargeable work you might say, but price resistance is stiff now and I don't want to go overboard since I'm raising prices in 2011 for mandatory E-filing. What to do -- what to do? This money I need/want/don't have sure is a burden.

Not greedy of filthy lucre. -- 1 Timothy.VI.10
....or....
When I had money everyone called me brother. -- Polish Proverb.

Schedule M. I haven't looked yet, but if a couple both get SS and neither worked,
is that schedule M even needed? Is it a must?

[superman]

Found It!

Thanks Jiggers i found it on there website. Man that is something they should really promate but I did not hear about it. This board is awsome for someone that works on their own. The information is so valuable.

Superman

[Jiggers]

e-Collect

Thanks Jiggers i found it on there website. Man that is something they should really promate but I did not hear about it. This board is awsome for someone that works on their own. The information is so valuable.

Superman

Heard about it at their corporate update school. One of the vendors.

I don't want to do RAL's. But I have a problem with collecting fees on some slow payers. Always pay, but takes months.

I know, I should collect when I give them their return, but I came from a CPA firm that did end-of-month billing and many clients came with me. I contined that way of billing.