Filing taxes every year is something we all HAVE to do, regardless of income. So, why does it cost some people so much to have them filed? The prices are getting outrageous..
2007-02-09 06:50:51 · 13 answers · asked by jeromy1998 2 in Business & Finance ➔ Taxes ➔ United States
If you file them yourself, there isn't a cost. If your income is below around $40,000 a year and you don't have something complex like a business with lots of deductions, you can have your taxes prepared for free at a VITA or TCE site - see irs.gov for more info on those programs.
If you go to a commercial business to have them do your taxes, like a CPA or H&R Block, they are in business to make money, so can charge whatever people are willing to pay.
2007-02-09 06:55:34 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
It doesn't HAVE to cost you a thing. You are paying for someone else's knowledge. The Internal Revenue Code is getting more complex every year. My suggestion is get a case of insomnia and read yourself to sleep by reading the IRC every night.
If your AGI is below $52,000.00 go try out free file on the IRS website otherwise go bargain hunting. You can find reasonably priced tax preparers out there.
2007-02-09 06:56:52 · answer #2 · answered by R Worth 4 · 2⤊ 0⤋
It takes time to complete the forms. There are physical costs involved. We have to pay for each return to "unlock" it. That doesn't count the paper, ink, and postage. People have to make a living, just like you.
Some returns we do are over $750. These are complicated and take many hours of work. For what we do and the time it takes, this is cheep!
HOWEVER, H&R Block is really expensive in the way they do the returns. Never go there - besides (from my experience) they are incompetent!
2007-02-09 07:52:14 · answer #3 · answered by Dizney 5 · 0⤊ 0⤋
It doesn't cost anything to have them filed. This is 100% free.
The fees you're paying are to have someone else process them...whether it's a cpa, or just an online agency.
If you don't want to pay for it, just fill out the forms and mail them in, the old fashioned way.
2007-02-09 06:59:23 · answer #4 · answered by abfabmom1 7 · 2⤊ 0⤋
My taxes are pretty simple, but it costs me $70. I also go to a small private firm, not an H&R Block kind of place. It depends on the number of forms you need filled out. It is pretty simple to do yourself though if your tax life isn't too complicated.
2007-02-09 06:54:29 · answer #5 · answered by animal_mother 4 · 2⤊ 0⤋
It all depends on the number and type of forms being filed and if you don't have many forms and they're not complicated ones (for example; becoming a landlord GREATLY complicates one's taxes) there's no reason you can't file your taxes by yourself, avoiding all fees
2007-02-09 06:52:52 · answer #6 · answered by mama3x 3 · 5⤊ 0⤋
Go to IRS.gov. There are several free services if your AGI is under 52K. I only paid $10.00 to file my taxes electronically, which beat the $52.00 I paid someonelse to do it four years ago!
2007-02-09 08:26:00 · answer #7 · answered by philly_romantic 6 · 0⤊ 0⤋
Supply and demand: most people don't want to do theirs or are afraid to do them.
I did my own (long form 1040A both federal and state) and I'm a moron at maths. It cost me nothing to file except the two .34 stamps to mail them in.
2007-02-09 06:53:42 · answer #8 · answered by kerridwen09 4 · 3⤊ 0⤋
I did my state one for free on the states tax site and I did my fed through taxcut.com for 19.95 and that included all the info for my deductions and to efile it.
2007-02-09 07:35:22 · answer #9 · answered by Jason 4 · 0⤊ 0⤋
I know! All the tax guys do is ask you questions that are on their screen. why can't they just set up computers for me to walk up to and answer myself? It's as simple as filling out an application.
2007-02-09 07:00:21 · answer #10 · answered by Anonymous · 1⤊ 2⤋