Charging for eic and actc

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  • JenMO
    Senior Member
    • Apr 2007
    • 974

    #1

    Charging for eic and actc

    Can some of you tell me what you are charging for these forms? small town and middle size?
    i do some one W-2's and two W-2's, but also some with farm returns. Please help me out with some, thanks
  • Lion
    Senior Member
    • Jun 2005
    • 4699

    #2
    What have you charged for the EIC due diligence in the past? Then, use that as a guide for AOC &/or CTC due diligence this year.

    Comment

    • JenMO
      Senior Member
      • Apr 2007
      • 974

      #3
      I feel I am too cheap, but don't have much to compare to

      Comment

      • mastertaxguy
        Senior Member
        • Mar 2013
        • 408

        #4
        Not enough

        Originally posted by JenMO
        Can some of you tell me what you are charging for these forms? small town and middle size?
        i do some one W-2's and two W-2's, but also some with farm returns. Please help me out with some, thanks
        Not enough.

        A better question may be what do YOU charge when the taxpayers come back in April with the W-2 form they "forgot about" and need to amend and pay back some of the EIC? Or do you do that for free and even pay them something for "their trouble"?
        Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.

        Comment

        • Lion
          Senior Member
          • Jun 2005
          • 4699

          #5
          Remember your risk factor is $510 per credit.

          Comment

          • Twin Turbo Z
            Senior Member
            • Feb 2014
            • 372

            #6
            I hope Trumps tax code, gets rid of eic and ctc

            Comment

            • Burke
              Senior Member
              • Jan 2008
              • 7068

              #7
              Don't we all, but don't hold your breath. Congress always wants to expand it.....Write Paul Ryan.

              Comment

              • Snaggletooth
                Senior Member
                • Jun 2005
                • 3314

                #8
                Twenty-Five Dollars

                Normally mine is based on time, but effective last year I added $25 to my fee if there is EIC involved. All the additional questions and risk justifies a separate charge, and the extra fee is more benignly received by the customer because it usually results in thousands of dollars in refunds.

                Comment

                • ttbtaxes
                  Senior Member
                  • Jan 2011
                  • 580

                  #9
                  For years, I refused to do any return that had an EIC. I did one return last year for a client's daughter. In my opinion, they're not worth it unless you know the person well. A neighbor's child, a client's child, someone who you can have faith in.

                  I won't take in any new client where those credits are involved. No how, no way.

                  Comment

                  • Jiggers
                    Senior Member
                    • Sep 2005
                    • 1973

                    #10
                    I was thinking of charging a % of the credit. Maybe 5% for CTC, 3% for AOTC, and 6% for EIC. With a minimum of $50 for each.

                    To cover due diligence!
                    Jiggers, EA

                    Comment

                    • DaveO
                      Senior Member
                      • Dec 2005
                      • 1453

                      #11
                      I only do EIC returns if I know the client or they are children of a client. I tack on at least $50 for the extra paperwork.
                      In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
                      Alexis de Tocqueville

                      Comment

                      • TAXNJ
                        Senior Member
                        • Jan 2007
                        • 2106

                        #12
                        Originally posted by Jiggers
                        I was thinking of charging a % of the credit. Maybe 5% for CTC, 3% for AOTC, and 6% for EIC. With a minimum of $50 for each.

                        To cover due diligence!
                        Would that be allowed per Cir. 230? Think you might be kidding.
                        Always cite your source for support to defend your opinion

                        Comment

                        • Twin Turbo Z
                          Senior Member
                          • Feb 2014
                          • 372

                          #13
                          Would be contingency fee. Big no no

                          Comment

                          • FEDUKE404
                            Senior Member
                            • May 2007
                            • 3646

                            #14
                            Fees based on refund

                            Originally posted by Jiggers
                            I was thinking of charging a % of the credit. Maybe 5% for CTC, 3% for AOTC, and 6% for EIC. With a minimum of $50 for each.

                            To cover due diligence!
                            $50 minimum is OK.

                            Any preparer fees in any way, shape, or form related to amount of refund (credit) is a seriously large "NO!!"

                            FE

                            Comment

                            • Snaggletooth
                              Senior Member
                              • Jun 2005
                              • 3314

                              #15
                              Geographical Reality Check

                              Originally posted by ttbtaxes
                              For years, I refused to do any return that had an EIC. I did one return last year for a client's daughter. In my opinion, they're not worth it unless you know the person well. A neighbor's child, a client's child, someone who you can have faith in. I won't take in any new client where those credits are involved. No how, no way.
                              I don't know where ttbtaxes practices, but it is certainly not in the rural south. With the expansion of EIC into the $50,000 income level, some 85% of the population in my town and surrounding countryside is within this income level. Good, solid livable homes can be bought here for less than $80K, and "middle income" is a job between $12 and $15 per hour. I prepare businesses who claim EIC almost every year, and legitimately (as far as I can discern).

                              Comment

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