Did I just get ripped off?

Question

I just got my taxes done yesterday at a Jackson Hewitt office and they charged me $323. I thought it was too expensive but they told me it was high because I had W2 forms from out of state. My husband and I were living in another state for a few months. In total we had 9 W2 forms, some from Cali, most from out of state. Does this sound right to you?

It was about 6 W2 forms from Colorado and about 3 from Cali. Nothing else, no other forms. We dont own a house, have a business or anything complicated like that.

Answer 1

That sounds really high for W2's and and out of state return. Did you have self employment income or capital gains? Did you have to file and Injured Spouse or any other form? These type of things would drive up the price of the return. Otherwise, I would say you paid way too much.

Answer 2

Their fees are all set depending on the forms and even the lines within the forms. If you used Schedule A that pumped up the fees a bit. You had at least two state returns done, that could add close to $100.

If you took a bank product such as having the bank take the preparation fees out of your refund and pay you the balance, that was at least another $30.

This leaves $200 or so for a federal return with 9 W-2s. Not really high considering the work done.

Answer 3

Sounds like you might have been ripped off - a W-2 from out of state isn't any harder to use on your federal return than one from the same city as you are in now. But if they had to file multiple state returns, that would have added to the cost. $323 still sounds like a lot, though, unless you had a very complicated return. If it was mostly the W-2's, sounds high.

Answer 4

Based on Jackson Hewitt's way of charging, it is high anyway, but 9 w-2's, multiple States, etc. can add up to a lot of work. Was this the only kind of income?, no moving expenses, tuition, stocks, distributions, unemployment, 401k transactions? Call them and ask to speak to the district manager or owner of the local franchise. Ask them to explain in detail their charges, they have been known to offer a discounted return for the next year....If you are still not satisfied, 1-800-234-1040 and ask for Corporate and file a complaint.

Answer 5

Yes. What you dont realize that it takes time for someone to input all of that information into a tax program. Wages, Social Security, Federal Withholding, etc., and then that person has to do a Part Year Resident Tax Return for two states: the state you moved out of and one you now reside in.

$ 323 is quite reasonable for a fee.

I would charge a minimum of of $ 750.

Answer 6

it is actually about right believe it or not. Not that $323 is not a high amount to pay for a return though! (I think many of those chains are rip offs, but thats another posting). But it probably stems from them having to file for all the different states as they do charge for each form they have to file like capital gains, rental income, royalties etc.

I am assuming from your statement that you had to file for a couple different states that you lived in. If that is what you mean, then that is probably right. If what you mean is that you had several w-2s that originated from other states, then they got you. It should not matter where the HQ of a company is, just where YOU are filing.

Ok, I cant wait for a post (maybe I will put one up later), but these chain tax joints are very costly. Especially when you consider that they many times dont let you know that you can file cheaper with direct deposit than rapid refund. They tend to just give you rapid refund & charge an extra couple hundred. Ok, glad to get that off my chest.

Answer 7

a bit high. I charge $100 for federal, 1 state and 1 local. plus about $25 extra per form, like additional state, self employment income, rental income, etc. but I don't have the overhead that the storefront preparers have as I am a one man show. perhaps you could ask around to friends and coworkers for a guy like me......have a full time accounting job but do taxes on the side.

Answer 8

Hmmm it sounds VERY high. I don't think they made a mistake though, I think they just charge abnormally large amounts of money. I've had a back experience with H&R Block before. I find that it is better to avoid the corporate chain-run "McTaxes" type places like JH or H&R, and to go to a private accountant. A private tax accountant is generally better educated and more experienced than the people at JH or H&R, and he works to save you money and find you nifty little deductions. Last year, I went to a private accountant and it costed $100, which sounds like a lot(he was a specialist accountant; I had a unique situation), but it was $5 less than what I'd paid to H&R Block back in '02 when I only had an (embarrassingly low) gross income of $5200. Oh one last thing...how educated/knowledgable can the people at H&R Block really be, if they're only getting paid $7.50/hr?(I know this because I applied for a job there a few years ago.) $7.50/hr doesn't exactly attract the best and brightest, you know.

Answer 9

Jackson Hewitt has a bad history for allegedly overcharging

A consumer lawsuit in New York charges that the owners of more than 60 Jackson Hewitt tax-preparation outlets have ripped off low-income clients with hidden fees, reaping millions of dollars illegally.

Have you seen their commercial with the Hell Rider dude on fire?
I guess he's not the only one who got burned...

Answer 10

Yes the price seems a little high, however, Jackson Hewitt charges by the form, and the franchisees set the prices. Did you get a RAL? If so, the bank charges you roughly $100.00. However, keep in mind that if you get audited by the IRS, they give you free audit assistance. (Others may charge you $20/hour).