Charging for eic and actc

[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

[Lion]

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.

[JenMO]

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

[mastertaxguy]

Not enough

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"?

[Lion]

Remember your risk factor is $510 per credit.

[Twin Turbo Z]

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

[Burke]

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

[Snaggletooth]

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.

[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.

[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!

[DaveO]

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.

[TAXNJ]

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.

[Twin Turbo Z]

Would be contingency fee. Big no no

[FEDUKE404]

Fees based on refund

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

[Snaggletooth]

Geographical Reality Check

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).