Did H&R Block Rip me off?

Question

I bought a house last year and thought it might be a good idea to have a 'professional' figure my property tax and mortgage tax deductions.

After I complied ALL the information for them, it took a matter of 7 min for them to put my numbers into their system. After it was all calculated, they told me to pay them $285!!!!!??? I about passed out. I told the agent that I NEVER would have used their services had I known it was going to cost that much! She just rolled her eyes and said it was a complex form because I itemized. I was then given two options.

1) pay now
2) have it taken out of my refund for a small $29.95 fee.

I feel I was totally ripped off: Get me in there, do a super quick data entry procedure, charge me an insane amount of money...for that kind of cash I'd at least like to get SOME kind of tax advice or a budget plan or a detailed walk through of what was being done. Nothing, just my taxes filed and sent out the door.

Am I being unreasonable?

Answer 1

You learned a lesson of not to use them again but it cost you $285 bucks. The good news is you can deduct their fee on next years return.

Answer 2

Those are the fees charged by companies like that. For them, a Schedule A, which is for itemized deductions, is a complex form. Most of them probably see 10-20 of those forms in a tax season. For a CPA, that is a very easy return & you probably wouldn't have paid as much as that if you had consulted with a small CPA firm instead of Block. That's water under the bridge at this point, but I would suggest either seeing a CPA/EA next year or just using some of the software packages out there. Believe me, having mortgage interest & real estate taxes to put in one of those packages is a breeze!

Answer 3

I work for H and R Block right now and yes, this company rips people off left and right. I graduated college last May and was interested in working here to get some experience. I took an eight week class, which I had to pay for, and the whole time they deflected questions about what I would get paid when I worked here, which is basically minimum wage. This place, and their business model is a joke. I would not recommend using their service nor working here. I took this as a part time job, and when I tell my co workers what I make at my real job they look at me like I m a complete liar because it s so much more than they make here full time. I m the only one in this office with a college degree. DON T USE H AND R BLOCK!!!!!!!!!!!

Answer 4

I know it's an old question; but others maybe in the same boat....

You are allowed to tell them you don't want their services. You are not obligated to use their service even after they have filled it all out. It's not complete and agreed on until you sign it. If you sign it, then you agreed on that price and must pay it on agreement. Don't sign it, then you haven't fully completed the agreement and you can tell them you don't want it. (they actually tell you what it will cost will be, before printing it. if they don't, that's their fault, not yours. you do not have to agree to it just because they printed it out - it's not filed if it's printed btw -it needs your signature)

We've used them since we've been married (22 years) and when we purchased our home, about 4 years ago, we continued to use them. Not this year though. I have decided to use TurboTax Premier (because we also have investments)

Ever since we've owned this house, we have not received a refund. Every single bit went towards H&R Block; and with owning a home, you receive some perks; but no, not when you have those people fill it out.

So, I went to a professional and private CPA this past tax return (2012) when we got a letter from the IRS claiming that we were due more than our tax prep originally filed. He said that H&R block is nothing more than housewives and those alike that are doing it as a part time job and do not have much experience in tax prep. They go but software like Turbo Tax and do nothing but put numbers in and charge us an unregulated amount of money for that service.

My strong advice to anyone thinking of using H&R Block, Jackson Hewitt or places like that: purchase Turbo Tax (find the one that fits your lifestyle) and do it that way. We have investments and other things like that but still, I'm never going back to H&R Block again. They have ripped us off for years, especially since the exact same software they use, is on the IRS website for free to use and e-file. (extra for state file)

Answer 5

I used to recomend H&R Block to prospective clients, back when they were the $65 return. If a client had simple returns, and I thought they would get a better value going there, I'd let them know. I changed that position about 3 years ago. That was the year I discovered they were charging more for some returns than I was.

H&R Block pricing works on a 'per form' basis. Each piece of paper you add to the return, 1040, Schedule A, Schedule B, Schedule C, 2106, etc., has a fixed fee attached to it.

Since then, and now with the recent GAO study that the IRS keeps on their website, I don't recomend anything but Turbo Tax.

Answer 6

Most of the people who prepare the tax returns at HR Block have very little practical experience. They're just going through the checklist. They don't know when something looks out of the ordinary to say "hey, - what about this". They just input the numbers you give them and spit out a return that the software prepares.

We've hired people at our CPA firm before that previously worked at HR Block and not a single one has ever worked out. Everything is very rote for them.

Having said that, you probably would not have been able to have the return prepared by a reputable CPA firm for less than $285. Most have a minimum fee of around $350. But included in that minimum fee is the knowledge of the person preparing the return to know what questions to ask and to prepare the return as if it were their own.

For something simple like a house purchase, you really could have done the return yourself for free. Taxact.com has a free federal efiling service and even though I'm a CPA with access to sophisticated software, I have a simple return and have used taxact for 3 years now. It asks you the same questions as you click through the screens that any preparer would ask you.

Live and learn and next year do it yourself.

Answer 7

in case you have a issue-unfastened tax issue, W-2, 1099's, a house you'll be waiting to apply rapid tax and a duplicate of e book 17 from the IRS and do a large interest preparing your very own return. in case your issue is extra complicated, self-employed, partnership investments and so on. you would be extra appropriate off using a stable CPA particularly than between the tax prep amenities. you additionally can use a CPA this 365 days and then do your very own return till the two your issue variations appreciably or there is an significant replace in the regulation.

Answer 8

No, I felt ripped off too when I went there. The people they train don't know much about taxes for the most part. They just know how to use the application/program. I have used TurboTax since then and have done myself what they are payed to do. Saved myself a lot of money.

Answer 9

You should do turbotax online.
It is simple.
You don't fill out any forms
Just answer the computers questions and give amounts.
Only 29.95 includes e-file and you'll have your refund in 10 to 15 days.

See ya there next year.........

Answer 10

If you only had a Schedule A on your return, with

No other credits or deductions,

No extra states on your return,

No large refund that you borrowed against

Not self-employed

No distribution from retirement

No capital gains or dividends

No unreimbursed employee expenses (Form 2106)

Then you may have been overcharged.

Ask to have your invoice looked at. They will credit you if you have been overcharged.