Does HR BLOCK or Jackson hewitt charge a percentage of your return for their fees?

Question

How do they figure how much it costs for them to do your taxes? I did them myself but Im not sure if they are right? So I did the work but they will get my $...not fair. Anyway, if I am getting back 6000.00 how much of that do they keep?

Answer 1

No, they charge a basic fee, plus extra for each extra form. It has nothing to do with how much of a return you are getting.

If you're getting that much back, you should consider adjusting your withholding rather than giving Uncle Sam an interest-free loan for the year.

Answer 2

They probably charged about $40 to $50 for each state return, and since you had 2 state returns that explains about 1/3 of the fee. If you decided to have their fees take out of the refund instead of paying upfront, there was probably a bank fee of about $50, so that leaves about $150 in fees for the actual federal tax return. That sounds reasonable if you had itemized deductions or any other situation that prevented you from using the simple 1040-EZ form. They didn't rip you off in the sense that you would have paid about that much at Liberty, Jackson Hewitt, or any other national chain store-front type tax office. You certainly could have saved money with a discount tax prep office, doing it yourself on turbotax, or hiring some bookkeeper who does tax returns on the side, but you get what you pay for. You got someone to do all the hard work for you who will still be there on April 20th if you get a letter from the IRS. You won't get that by paying $100 to someone working out of their garage or with a $40 software program.

Answer 3

I can only speak for H & R Block. No your fees are not set based on your refund. The tax preparation fees are based on the complexity of your return. The thing is it takes just as long to prepare your taxes as it would to enter the information you prepared so I dont believe you will get any kind of discount for preparing them yourself. The reason you might hear of a % of refund charge is for those that get the fast refunds. The interest on the loan from the bank is based on a % of your refund since it is a loan from a bank. Just like if you went to get money to buy a car. This is just a short term loan till the IRS pays off the debt. I can't quote an exact fee cause I dont have your exact information. Also I dont know how quickly you want to get your money. The longer you are willing to wait the lower the fees from the bank.
Good luck

Answer 4

Aloha - I am an HR Block Tax Pro in Hawaii. We price the return by the number of different forms we need to fill in. If you send me the form numbers you have selected I would be happy to give you an estimate. Alternately, you can go to HRBlock.com and purchase Taxcut Internet option, do your taxes on-line, and have an HR Block Tax Pro review your return for a very reasonable charge. Good Luck.

Answer 5

My mother used to work for H&R Block, so I can answer for them. If you have a job, then they charge a flat rate for doing your local, state, and federal taxes individually. If you have a business, you still get charged a flat rate, but generally you get charged more because they have more exemptions and write-offs to deal with. I would assume it's the same way with Jackson Hewitt.

Answer 6

If you want to check if you prepared your forms properly - go to the turbo tax website and prep your return there. You can prep it for free -- but if you want to print or submit it THEN you will need to pay. You can use it as an error checking tool.

http://turbotax.intuit.com/?cid=ppc_yh_b_stan_ts-ts+btt+wbst&priorityCode=4140100000

Answer 7

They make the most by the loan, before you get real return, upto 300%.

Answer 8

They charge depending on what your return entails, not how much you are getting back.

Answer 9

Call them, they will both tell you the fee structure.