2007-04-11 12:29:31 · 6 answers · asked by jccameofage 2 in Business & Finance ➔ Taxes ➔ United States
You either have it taken out of your refund or you pay before they file. I do not pay anything!!! I had AARP do my taxes for FREE. Call 1 888 227 7669 and find the location near you that will do your taxes. They will efile also. Now, make sure that you do not get the rapid refund. Wait an extra week or two and avoid the high finance charge.
2007-04-11 13:09:07 · answer #1 · answered by RobertB 5 · 1⤊ 0⤋
I work for a tax preparation company and this is how it works:
1. You can pay your fees at the time of preparation and have the IRS send you the money. This will put the most money back in your pocket.
2. You can choose a product offered by a 3rd party bank, and have the fees withheld. (such as a Refund Anticipation Loan)
If you chose option 2, there are more fees involve. How much more depends on how fast you want your money back. If you are willing to wait until the IRS processes your refund it is cheaper than if you want your money same day or next day (a loan). If you get a bank product, the IRS direct deposits the refund into the banks account. They withhold the preparation fees and related charges and any loan you received and give the balance to you. (If you get a refund anticipation loan they will withhold the prep fees, charges and the amount you already received, which is typically everything.)
Even if you owe, you can sometimes quailfy for a loan to pay your taxes and fees, but it is more difficult to qualify for this and most people choose not to.
2007-04-11 19:34:07 · answer #2 · answered by Amy F 3 · 0⤊ 0⤋
Tax preparers are not authorized to cash your refund, therefore I don't see a legal way how they could be taking out their fee from your return.
No CPA will take their fee from your return. It's considered unethical. You should be the only one receiving the refund and should pay your tax preparer directly. There has been a lot of fraud with tax preparers cashing refunds for their clients, so be careful if this is what your tax preparer suggests.
2007-04-11 16:13:36 · answer #3 · answered by Bettina C 2 · 0⤊ 0⤋
If the tax companies do it they will usually take it out of your return however if you owe taxes they will want their money now.
2007-04-11 12:32:30 · answer #4 · answered by Tmabel 3 · 0⤊ 0⤋
The fees can be paid either way. If it's taken out of your refund, it will usually delay your refund for a day or two while they process it.
2007-04-11 14:36:50 · answer #5 · answered by Judy 7 · 0⤊ 1⤋
they usually want u to pay in advance unless they give you an instant refund then they take it from there.
2007-04-11 12:45:00 · answer #6 · answered by pandamgy 4 · 0⤊ 0⤋