Should I use H&R Block or an independant tax professional?

Question

I'm a full time graduate student and an independant contractor so I'll be getting a 1099 at the end of the year. I want to pay my estimated quarterly tax at the September deadline. Would it be better to hire a tax professional with their own practice or just H&R block?

In the past I have used Turbo Tax and it has been great. Now since I work from home part time I've been advised by my employer and other people that I can claim other things (expenses, etc.). That is why I want to hire someone, because I have questions about what's ok to claim and what's not. I would also like to get financial planning advice. My income will still be under $30,000 but with student deductions and other income I think it's too complicated for me to do myself.

Answer 1

Everyone told me not to go there. I went anyways. This year when I got audited, I was HAPPY that I went to them. They took care of everything! It rocked how great they were!

Answer 2

I would not bash any preparer. In any organization, large or small, there may be good preparers and bad preparers. If you check out the IRS website, you will see that independent preparers are more often charged with wrongdoing than commercial chains.

Preparing a return with a 1099 is usually not a complicated affair. You can do it yourself manually or with software.

The cost of a commercial preparer to do a 1099 return is going to be $175 or more.

If you are going to owe over $1,000 in taxes, you need to pay estimated tax. You don't need to pay a preparer for this, just mail in a payment (pay 20% of your net, that will cover your self-employment tax and a little income tax). Here is the form and instructions

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

Answer 3

Most tax preparers (and I'm not trying to sell you on accountants either) who work for these agencies you should know are trained for a limited amount of time.

I will relate a story to you. You will find it interesting I'm sure. Two of them actually.

1. I had a client come to me and he was filing 1040EZ total time to take me to do it, 15 or so minutes. I asked him how much were you charged. No bells, no e-filing, no whistles, no otherwise. $110.00. I was shocked. The truth about H&R I know a lot of people like them but you should read those stories on the net about RAL's Refund Anticipation Loans. Go ahead put that word in your browsers and dont' be surpised by the groups that are downright fighting for people, poor people. It is a sad day in this area with RALS and liberty, Jackson Hewitt and H&R particularly are gung ho for it. Of course they are. Why do you think they inundate you with ads.

Tax courses starting now. In 4 months or the equivalent of about a few short weeks you're a certified tax professional. Jut that easy. You've seen the ads.

Stories abound and many think independent firms like ours charge more but in more cases than not, this is not true as in many cases our rates are even half of what others are. I personally do not fathom gouging the poor as most of our clients are corporations and we dont' necessarily depend on just tax revenue like many firms do. But not to say all firms are like mine. You need research in this area.

2. Turbo Tax. I received a return prepared on turbo tax once. I reviewed it and found the same deduction taken on both the Business Schedule C and the Un-reimbursed Employee Business Expenses form. I am not bad mouthing intuit but just a word of caution such errors may result in much difficulty later.

All programs have flaws in one way or another. Even the ones we use, it does help to know the tax law and the way taxes are treated or you could pay heavily later.

Should you use an independent firm? This choice has to be yours but you should review if true free enterprise the way some of these regional firms are doing this is really free enterprise to the folks that use them.

Take care and good luck.

Answer 4

I have worked at H & R Block and at CPA Firms. H & R Block is okay if you do not have a complicated return (which from what is sounds like you dont). CPA Firms or independant tax preparers are often more expensive than H & R Block. So if you don't want to spend that much money I would definantly suggest H & R Block.

Answer 5

Did every person at HR Block permit you be responsive to you're able to do a twine circulate with the Emerald Card? Did you examine into it till now attempting it? How is this problem the duty of the tax education place? You subject concerns are with the banks receiving the money and the transmitter.

Answer 6

As everyone else stated, the correct answer in tax and accounting is always "it depends." Find a friend or family member who has had positive experiences with a tax professional, check the professional's credentials BEFORE going in for your appointment. I disagree with the one poster, I would not try to do it myself. Good Luck!

Answer 7

Block's legal issues stem from other "products" that they offer (IRAs, RALs) not from their Tax Preparation.

As with anything, it depends on the person you get. I know Block preparers that could run circles around any CPA or EA out there but I also know some that I wouldn't let anywhere near my return.

Answer 8

H&R Block are a shady outfit. They might be the best known tax house out there, but they have been in some scandals lately. I would not trust them. Find an independent preparer who has been in the business for a decade or so, and let him work his magic.

Answer 9

Block is ok if there are no questionable deductions. They play it safe, in the Gov's. favor.

Answer 10

I would use a tax professional...h&r can do it but for better quality of work a tax professional is better.