Tax prep sticker shock / didn't know these prices were that high

[1971CamaroGuy]

Geez, I have done my own taxes with H&R Block online since 2013 since we have a super simple return, mainly standard deduction, no dependents, not itemizing ect. Cost me $39.95 for federal and $29.95 for state filing electronically.

This is the first active year of anything over $600 you have to file a 1099-K so I figure a professional might be able to find me deductions I might have missed and save me on some taxes.


I decided this year I would use the local H&R Block office since I always used online. I took the time to gather reciepts, and built a spreadsheet showing my original purchase price, ebay sold, and ebays fees deducted by month based on my summaries. Eveything was detailed and I kept records of everything.


In the end I actually lost money once you figure in purchase prices, sold for minus fees and the shipping costs I incurred the whole time.


I uploaded this spreadsheet, my w2's and the 1099k to myblock for the "Tax Pro" to start working on it yesterday. I showed up this morning for my appointment and he hadn't started on it yet.


I asked him to open the spreadsheet I uploaded so we could talk about it and he couldn't because his computer didn't have excel.

Wife even asked him if he used google docs because that could open it, he couldn't do it or acted dumb about it...that was the whole point of all this, I wanted to talk about the 1099k and my eBay losses and profits to a professional since it was new to me.

I had to pull the information off my phone, and all he just wanted the total profit minus the shipping costs and he put it in the computer.

Took all of 20 minutes for him to type in our information, felt rushed, and when the charges popped up on the screen for thier preparing fees it was $375, my jaw dropped.


I haven't been to a local tax office in a long time and I know it varies by location but $375 seemed kind of high for basic filing with standard deduction, no dependents, no real estate, ect. Not like I brought a shoebox of receipts in for them to sort through.

I also ticked the box on myblock "To have my Tax Pro discuss pricing upfront" but the spreadsheet thing frazzled me, and sidtracked me so I didn't ask...and he blasted through it so quick ...so that's on me. And Honestly I was expecting a $150-180 bill not $375 so again I take blame for not asking, but it doesn't discount the feeling taken advantage of.

Lets be honest the website said $115+ for state and federal...so I wasn't thinking it was going to be triple


Sick to my stomach, because I could have done what he did, myself online and prob would have done a more thorough job and would have cost me $70. I'm beating myself up over this.


Needless to say I won't be selling on eBay or anywhere online anymore, I don't need another 1099k and will be filing electronically with another company from here on.

 

[Gary S]

In our house, tax filing is a DIY project. We download the forms directly from the IRS, fill them out, and send it in ourselves. There is no cost that way. H&R doesn't get a cut of our money. It stays in our pocket.

Your tax pro isn't much of a pro if he can't open Excel files. You don't need Excel to do that. Anybody can download a free copy of Libreoffice and work with Excel files that way. I wouldn't trust my taxes to someone who can't do that simple task.

 

[1971CamaroGuy]

In our house, tax filing is a DIY project. We download the forms directly from the IRS, fill them out, and send it in ourselves. There is no cost that way. H&R doesn't get a cut of our money. It stays in our pocket.

Your tax pro isn't much of a pro if he can't open Excel files. You don't need Excel to do that. Anybody can download a free copy of Libreoffice and work with Excel files that way. I wouldn't trust my taxes to someone who can't do that simple task.

yeah that's what had me leaving feeling weird about all of this, I have always done my taxes and pretty detailed...the way he blasted through it and had us sign everything was off putting...then hit with the $375 for little to no effort, it's a big racket I am finding out. Keep in mind I have done my own taxes for the last 10 years. I filed a complaint with corporate for not being up front with the charges, but I figure little to nothing will happen with that. Again I should have asked beforehand...but he never addressed pricing and I thought that was something he was going to talk about at some point before hitting me with a charge.

According to the company's website:

Surprises are great, just not for tax preparation pricing. As the only major national brand that provides upfront, transparent pricing, our tax professionals will walk you through the cost of tax preparation and any fees before you even start the filing process."

 

[tom3]

From what I understand the $600 Ebay thing has been postponed for the 2022 tax season? Probably going to keep it a moving target to get maximum "contributions" to the legislators from the third party sellers. I do my taxes and put it in an envelop with a stamp. I don't care how long it takes for them to process it since I always have to pay.

 

[1971CamaroGuy]

From what I understand the $600 Ebay thing has been postponed for the 2022 tax season? Probably going to keep it a moving target to get maximum "contributions" to the legislators from the third party sellers. I do my taxes and put it in an envelop with a stamp. I don't care how long it takes for them to process it since I always have to pay.

I thought this tax season was the actual start of it, the prior year was a transition period. I didn't get a 1099k in Jan 2022, but I got one this time. When the law is in full effect you have the form available in ebay...I can only go back to the 2022 year. (this tax season).

I'm just going to watch that $600 threshold this year and make sure I don't go over and trigger it..once I hit $599 I'm done for the year. I don't sell a lot, but it's a big headache to deal with the extra form

 

[tom3]

And to make it hurt a bit more, under $600 you don't file it, don't pay a tax on it. Go a couple more dollars over and you're taxed on the first 600 plus the rest.

 

[SPG]

Ever since I bought my house I have sent my taxes off to someone I trust and pay them $150 to do everything. Big corporations will never give you a decent return, especially since they're part of the reason filing sucks so much.

 

[John Wright]

Took all of 20 minutes for him to type in our information, felt rushed, and when the charges popped up on the screen for thier preparing fees it was $375, my jaw dropped.

I know how you feel. I felt the same way when I had a pro tax guy look my stuff over one year where I was wondering if I was missing something that would come back to bite me or if I was missing some deductions that I wasn't utilizing.....I felt taken, and have done my own since then. The rushing and nonchalant attitude is very off putting, especially when like you, I took them everything tallied up in a spreadsheet and all they did was type in a few boxes and take my money.

 

[1971CamaroGuy]

I know how you feel. I felt the same way when I had a pro tax guy look my stuff over one year where I was wondering if I was missing something that would come back to bite me or if I was missing some deductions that I wasn't utilizing.....I felt taken, and have done my own since then. The rushing and nonchalant attitude is very off putting, especially when like you, I took them everything tallied up in a spreadsheet and all they did was type in a few boxes and take my money.

YES that's my biggest complaint, I felt more professional than this guy that did ours. It feels like a big racket to take advantage of people...I can see if your computer illiterate or don't understand these things, most people would over look the additional costs if they were getting a big refund anyways so the $375 would be steal to them. But in the end this guy did exactly what I would have done sitting at my computer at home.....and charged the fee.

It's no different than tire place charging $600 labor to change pads and rotors on my truck + cost of parts...which would have ended up being close to $1,000. I ordered ac delco rotors and pads off amazon for $180 and did it in my drivway in an hour myself. I totally understand overhead costs, but there has to be a point where it becomes that your overcharging for the work being done.

 

[Knuckle Dragger]

A Nastyz28 board member who is a CPA does mine for less than half of what you posted. I used H&R Block back in the day until they hit me for a fee for owing the government money. Not a fee to the Feds but a fee to them because I owed. I refused to pay, took my documents and went somewhere lese. I think if they don't file you can refuse the service and go else where. It was like that in my case but that was at least 20 years ago. I'll never even walk in there again. All the reason you state and the BS fee they wanted to charge.