JH fees

[superman]

I just recieved a tax return and last year they got it done by JH. The bill for a 1040a with two dependants, EIC, and CA renters credit was $294.00 plus RAL fees of $124.00 to total $417.00!!! That is crazy someone would spend that kind of money. I know I probly do not charge enough my wife keeps telling me that but I would feel guilty stealing from someone like that.

Do the kind of people that use the big companies relize that if they go to the small indepent guy they would get a better deal and the same guy every year that would know their sitution. Every one of my clients that walks in I can remember where they came from and all the details about their sitution.

Does anyone else think that these fees are just ridicilious?

[taxmandan]

No, not on the left coast

I'm guessing that that's a CA return, with the renters credit. I am aware of several small independent preparers who have minimum fees of $400 for a 1040A & CA state return, efiled. My fees are slightly lower. I don't consider it stealing, it pays the rent, utilities, software, CPE, etc. Give some serious thought to your wife's opinion.

[S T]

Yes I have seen

I have seen the same type of fees charged in the past on HRB returns. RAL's which I am not fond of, seem to give certain places a "license" to charge up.

However, if the client wants their $$refund fast, what are we going to do?

I don't agree with the fees, but I don't process RAL's either or advertise for that group of clients.

Base fees on your example for a 1040A, etc, seem extreme!

Sandy

[Bonnie]

Does anyone else think that these fees are just ridicilious?

Yes, I think they are ridiculous and that is part of the reason I left JH after the 2006 season. They raised the fees a horrible amount that year and as the manager of their office, I was embarrassed to charge the amount they wanted. I knew after that season they would have a lot of customers who did not return the following year. Last season I talked with a preparer who was still working in that office and she told me they raised the fees even more last year. I get some of their customers who tell me what they have paid and it is outrageous. One of my customers this year said her friend went to JH and paid $250 for a 1040 and EIC and probably Add Child Tax Credit. They really put the fees to the EIC customers as they are the ones who normally get RAL's and never care about how much it costs. Their only concern is how soon can they get the money. What they are doing is trying to make it look like they are not charging such high interest on the RAL products so they reduce those fees but tack it on to the Tax Prep fee. So for those not doing RAL's they get hit hard with the extra added on fees. I used to try to talk customers out of RAL's (that was years ago) but finally learned that is their life style and they will do it no matter what. I do very few now that I am working at home. I did decide to offer the product for those who might really need it but am seriously considering not even doing bank products next year. The one I have done so far this year has turned into a headache so I'd rather not deal with it.

Bonnie

[Snaggletooth]

Good for You

Good for you, Bonnie, for standing up! I'm not familiar with CA renter credit, but based on what I know, my fee would be less than $100. I just can't see charging a ton of money for a short form. Without a state form, I can do 1040As for $50 easily. But I don't have that kind of clientele - I don't do five short forms a year, except for children.

Wish I did. I can do 12-15 in an eight-hour day. @$50, that would do me very well.

Several factors are involved here. I work out of my home, and if I had office overhead, my fee would have to practically double. Also, I work in the rural South, further depressing prices.

Again, recognize the challenge from $39.99 Turbo Tax. Doesn't seem to bother the JH people.

[ED SMITH]

Aren't the JH stores franchises or are there some company stores? HRB operates both ways and the franchisees can set their own prices. Of course the company gives them guidelines.

[ecb34691]

The majority of the JH's are independently owned, (TSA stores are corporate) and the owner sets his own prices. I just did a return that last year was done by a Tampa office and this year these was one additional form (2441) any my office's fee this year was $145 less than last years. RAL fees of up to $120 (on top of tax prep fees) are paid to the bank and the owner gets none of that.

[Jiggers]

JH Fee too high?

I just finished a 1040A, e-filed, 1 W-2, 1 1099R, Taxable SS, interest under $1,500, EIC and Child tax credit, MFJ, 1 dependent. My fee was $187.00.

[JoshinNC]

$122.85

1040A, 1 dependent, 1 W-2, EIC, Add. CTC

[Bees Knees]

Rather than knock HRB and JH for their fees, maybe us independents should take the hint that our fees are too low.

You can't even shake an attorney's hand without getting into four digits. Why in the world are we still stuck thinking we are only worth the price we charged back in the 80's?

We are the cheapest profession on the planet.

[solomon]

Rather than knock HRB and JH for their fees, maybe us independents should take the hint that our fees are too low.

You can't even shake an attorney's hand without getting into four digits. Why in the world are we still stuck thinking we are only worth the price we charged back in the 80's?

We are the cheapest profession on the planet.

Agree with Bees - is not this country still at least semi-capitalist?

[mblatour]

Bees, I totally agree with you. Problem is....

that people can't buy a lawyers services in a box. Not to minimize the personal service that we provide, but it's awful hard to compete with the common "Joe's" way of thinking. That being that our services might not be worth what we are charging.

My husband always says I don't charge enough. I wish I knew the right number to charge. All we can do is charge what we feel comfortable with and hope the customer doesn't get too bent up over it; and that they come back next year (smile).

[Zee]

I've never understood this. It baffles me every year that people pay such high fees for the level of service offered by the big storefront franchises. There's no question this is "predatory pricing". In addition, there is absolutely no privacy during the interviews. The two JH kiosk's in Walmart near my office are about 4' x 4' next to the cash registers and an aisle where people walk by during the conversations. With us, there's no waiting, privacy, a higher level of service, better educated preparers, and no waiting. I'm a sole practioner CPA. I think that most individuals think all CPA's are much more expensive. We don't offer RAL's because they rip-off the recipients. It's that simple. But, that doesn't matter. Some people want their money now. EIC has created much of this problem since it's just a government give-away, or welfare program disquised as a tax program..

[BP.]

Rather than knock HRB and JH for their fees, maybe us independents should take the hint that our fees are too low.

You can't even shake an attorney's hand without getting into four digits. Why in the world are we still stuck thinking we are only worth the price we charged back in the 80's?

We are the cheapest profession on the planet.

Agree with you, Bees. Especially considering the level of personal service, plus security of sensitive data, that an independent can provide. I'm somewhere in your "ballpark" Jiggers. For you guys that are quoting your fee here for specific forms/schedules, are you also including the state return, and do you have local income tax returns that need to be prepared also?

[joanmcq]

I'm with Zee. I know I don't charge enough, but I have a home office so the overhead is low. Of course, if I didn't have the home office, I could have more roommates or a smaller house...

I kinda have an 'early bird special'; a few EZ clients that I charge $50 to and they are my only January clients. I did only charge a former tenant $40 for EIC and EZ + stateEZ, but felt bad since she is on disability, he SO's hours have dropped significantly and she had one month's pay on her W-2. Of course I also do her two boys (EZ) and SO's two boys (EZ)...and they take about 15 minutes each, including chat. I wouldn't feel right charging more for the renter's credit than they actually get!