Fee for amending state $10,200 unemployment exemption?

[Ross]

For those of you who prepare returns in states that required amended returns for the $10,200 unemployment exemption, what are you charging for the state amended return? Does anyone know what the H & R Block or Jackson Hewitt are charging for amended state returns?

[TaxGuyBill]

I think these kind of "how much do you charge" questions really don't work out well. Prices vary tremendously based on your location and your clientele.

I think it usually boils down to these questions:

1. How much in expenses will it cost you?
2. How much time will it take you?
3. What is your time worth to you?

I suspect that your expenses will be minimal. I don't know about you, but it take me VERY little time to prepare this type of amended return. However, if your State or software does not allow e-filing an amended return, that will add some additional time to print and get that ready to be signed and mailed.

[BOB W]

I start all amended returns at $100 doing a Federal & a State return. If anybody has done an amended NYS return you know what I mean.

[ATSMAN]

There is no need to amend if the only issue is the $10,200 UI exemption. I already had 3 clients filed prior to the announcement receive an additional refund from IRS. My state is doing the same.
If by chance I have to file an amendment, my charges will be minimal.

[Ross]

Thanks for the responses. I amended approx. 30 Michigan returns. I was able to e-file them and it took minimal time. I invoiced approx. 20 clients $25 for the amended returns. The others were co-workers kids at my day job, clients who received less than $100 or people who were struggling. It appears that Michigan is "encouraging individuals to file an amended return". https://www.wnem.com/news/taxpayers-...ntent=headline

The majority of my clients were unaware of the unemployment exemption, it is just more "free money" and at this time it seems that Michigan will not automatically send refunds. Though I don't want to nickel and dime my clients, my fees are on the lower end. I did not get a "COVID vacation" and have approx. eight hours into amending 30 returns and corresponding w/ clients regarding their additional refunds. I was curious if others were amending state returns for free and what/if H & R and JH were charging.

[ATSMAN]

Thanks for the responses. I amended approx. 30 Michigan returns. I was able to e-file them and it took minimal time. I invoiced approx. 20 clients $25 for the amended returns. The others were co-workers kids at my day job, clients who received less than $100 or people who were struggling. It appears that Michigan is "encouraging individuals to file an amended return". https://www.wnem.com/news/taxpayers-...ntent=headline

The majority of my clients were unaware of the unemployment exemption, it is just more "free money" and at this time it seems that Michigan will not automatically send refunds. Though I don't want to nickel and dime my clients, my fees are on the lower end. I did not get a "COVID vacation" and have approx. eight hours into amending 30 returns and corresponding w/ clients regarding their additional refunds. I was curious if others were amending state returns for free and what/if H & R and JH were charging.

If it cost you time because MI will not automatically adjust like other states then you have to bill for that unless you want to eat that loss. I am surprised that your clients were not aware of the UI exemptions. In my neck of the woods TV and Radio stations were going non stop about that. As a matter of fact I was getting more calls from clients about it to verify if it was indeed true.

I am not sure if HRB is charging for 1040X but a new client I picked up paid them an additional $50 to do a 1040X for 2019 tax return because she forgot one 1099-Div for $300 from Prudential. That is on top of the $220 she paid to get the 1040 and one state done. Oftentimes for my good clients I will do a free 1040X if they just forgot 1 such document.

[Anarchrist]

The majority of my clients were unaware of the unemployment exemption, it is just more "free money" and at this time it seems that Michigan will not automatically send refunds. . . . I was curious if others were amending state returns for free and what/if H & R and JH were charging.

If you didn't inform them of the exemption and now they have to amend, then yes, do it for free. I don't have any to amend because I informed all my clients who received unemployment of their options. 100% chose to wait to see if the bill would pass.

Of course HR & JH are charging to amend. Unless they didn't inform their clientele, they'd be foolish not to. I usually charge $125 to $150 to amend a fed & MI. If only a fed return needs amendment, I charge $75 to $100. If it was just MI and not the fed, I'd probably charge the same $75 to $100.

[BOB W]

There are 2 ways to do an amended tax return for a client.... You can just give them the 1040X only or you can give give the FULL amended return which includes the 1040X and a full copy of a corrected 1040. The full copy has every page of their tax return as adjusted for amendment.

Which copy do you give as a rule?

[Anarchrist]

1040X instructions say to attach forms and schedules that have changed. I'm not going to print out a 30 or 40 page return and attach it to a 1040X when all I need to do is print out 6 pages.

[BOB W]

Sorry, I should have been clearer. What copy is given to the client? Full or same as IRS?

For me, I do both depending on how impressive I want to make the presentation to a particular client.

[ATSMAN]

1040X instructions say to attach forms and schedules that have changed. I'm not going to print out a 30 or 40 page return and attach it to a 1040X when all I need to do is print out 6 pages.

For years before we could do e-file of the 1040-X, I had to prepare a IRS submission packet with just the forms that changed with a "Amended" Stamp on the top. I don't let taxpayer/client assemble the package because they either miss the necessary form or include every piece of paper that is on their copy. This requires time and resources so it is expected that they will a charge or fee to prepare and file amendments. Obviously there are exceptions.

[TAX4US]

I think it really will come down to what state. VA for example excluded all unemployment, however next door in WV they informed do not do them yet.

[Bucky]

Ohio want the taxpayer to wait until the IRS refunds the taxpayers money and then require an amended return with copy of tax transcript from the IRS after the change. In other words you want your $200-$300 you are going to have to work for it.

[Twin Turbo Z]

Ohio want the taxpayer to wait until the IRS refunds the taxpayers money and then require an amended return with copy of tax transcript from the IRS after the change. In other words you want your $200-$300 you are going to have to work for it.

In Ohio too. Thats gonna be a pain in the *** for the clients. We are forwarding the Ohio email stating what is needed to any client who reaches out about it. Will process them once they get us the documents And charge for the work on our end of course

[Anarchrist]

No way I would ever consider charging $30 for an amended return. If the inexperienced and uneducated hacks at HRB & JH are charging $100, I should up my rates.