| Experience the TaxExtras result: Extra Quality ! . . . Extra Service ! . . . Extra Savings ! |
| Over 35 years of tax experience! |
that time, it’s still no substitute for a seasoned tax preparer; one that can eliminate an alternative in a few seconds rather than wasting an hour going down a software chosen path completing bogus fields that lead to no tax benefit. Tax software won’t suggest various ways of handling a given situation, or suggest strategies for reducing future tax burdens. Tax software is generally not programmed for these and other factors. One of the most popular packages, TurboTax®, is offered to professional preparers as a product called ProSeries®. This writer has used the ProSeries® product for many years and still encounters situations where the software has produced the wrong answer because some box was not checked or some other field was not entered. If a CPA has to hunt for the proper entry to get the return to compute what they know is the right answer, how often are common taxpayer’s producing tax returns with wrong answers that they don’t know are wrong? Most people have heard of the adage, "Garbage in, garbage out." Are you taking the same deduction in more than one place because you've entered the figure in more than one location? Is a number that shouldn't be taxable showing up as taxable because you've failed to check the box that exempts it from being taxable? Many times, the software won't tell you that you've entered it wrong because the way you entered it is O.K. in certain situations; but not your situation. Just because your return gets processed by the IRS this year or the last few years and doesn’t generate a tax notice, doesn’t mean you are doing the return properly. The odds are with you. Only 1% of average personal returns are audited; thus you could be preparing your return wrong the same way for 99 years before they tell you that it’s prepared wrong. That’s not 1 return prepared wrong; that’s 99 wrong returns (fortunately they’ll usually only get money from you for the last 3 years). As a taxpayer, you are ultimately responsible for your filed tax return, regardless of whom or what prepared it for you.
Jackson or Liberty? Most of the returns produced by these firms are prepared by people who have a few hours of training (60 hours is still a few) and are not accountants at all. The majority of their preparers have other jobs and tax preparation is just another part-time job to occupy winter hours. They do have some "tax professionals" (a point they
returns end up getting prepared. However, the normal taxpayer never has their return prepared by these people. These companies primarily rely upon the software they use to prepare the return, thus we’re back to the limitations of tax software previously discussed. In addition, many people who have had their returns prepared by these firms don’t even know what they were charged, because most of these firms refer to the taxpayer’s refund net of the preparation charges when discussing the results. We’ve seen poor taxpayers charged $300+ in preparation fees, rapid anticipation loan fees, electronic filing fees, peace of mind guarantees, etc., etc. for returns that would be around $100 with us. In general, the faster you want or need your tax refund, the more you’ll be paying these firms to prepare your return. We strongly suggest you wait the normal 2 week period for receiving your refund from the IRS. The “I want it now mentality” generally proves very costly when it comes to tax preparation.
about your local accounting or CPA office? You will definitely get personalized service and usually a properly prepared return, but unfortunately, it almost always comes at a significant cost. Most professional tax preparation (and these people really are the professionals) is charged by the hour, and with charges ranging from $100 to $600 per hour, it doesn’t take much time before your tax preparation fee is greater than any refund you might receive. The old adage, “you get what you pay for” is many times not true, especially if your preparer has not kept up with the forever changing tax laws. Spending tons of money on tax preparation is often worn as a badge of prestige but, depending upon your situation, it could be a sign of imprudence. You are probably getting your money’s worth at the lower end of the range, but after about $250 per hour, you’re usually paying more for ego than for ability. A couple with only itemized deductions and some investment income who is paying $400 for tax preparation is most likely paying for a smile and a handshake that is making a rich man richer. At that price, you should be treated like a VIP, "Very Important Provider." |
TaxExtras combines the best of tax software and seasoned tax
professionals without making you do all the work. Find out why
TaxExtras can prepare your return more accurately and
economically than these other alternatives:
professionals without making you do all the work. Find out why
TaxExtras can prepare your return more accurately and
economically than these other alternatives:
| What will it cost me? |
Our pricing is computer
generated and varies for
each taxpayer by form, item
and time, thus it is difficult
to give exact quotes. We
have, however, prepared the
following chart that shows
what different types of
taxpayers paid for their tax
preparation last year. We
think you'll agree, we are
usually under the national
franchise firms.
generated and varies for
each taxpayer by form, item
and time, thus it is difficult
to give exact quotes. We
have, however, prepared the
following chart that shows
what different types of
taxpayers paid for their tax
preparation last year. We
think you'll agree, we are
usually under the national
franchise firms.
| Cost $75 $100 $125 $150 $175 $200 $225 $250 $275 $300 $325 $350 $375 $400 $425 $450 $475 $500 |
| All prices include state returns, electronic filing and are net of any applicable discount. Also, we prepare quite a few complex returns which biases our average fees to the upside. If your return is not complex, your fee should be less than the average. |
◄Average 1040EZ $55
Average Itemized 1040
◄$142 (All AGI levels)
◄$142 (All AGI levels)
◄Average self-employed
return $360 (All AGI levels)
return $360 (All AGI levels)
◄Average Business only
return(i.e.1065, 1120 etc.)
$496
return(i.e.1065, 1120 etc.)
$496
| Pricing by Adjusted Gross Income (AGI) classification regardless of forms or schedules needed: ($63,503 was the average AGI per prepared return) |
| AGI Under $12,500 $12,501 to 40,000 $40,001 to $67,500 $67,501 to $125,000 Over $125,000 |
◄Average $92
◄Average $261
◄Average with self-
employment $292
employment $292
◄Average (no SE) $162
◄Average (no SE) $246
◄Average $396
◄Average with self-
employment $442
employment $442
Overall average 1040
◄$242 (All income types)
◄$242 (All income types)
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