I had a client of mine come in today, and after we talked about her case, I asked her about her taxes. She told me that she goes to Liberty Tax Service, but that she was thinking of changing because they are very expensive. I asked her how much they charged her last year, and she told me over $300. I reviewed her situation. She claims her daughter, who does not work, and her daughter’s child. She claims the tax credits associated with the child, including the Earned Income Credit. Other than that, there is not much of interest in her situation. I told her that I am running a “special” in which I will charge half of what Liberty charges or my fee. I gave her a choice. half of $300 is $150. I normally charge $90.00 for such a return.
I think that the reason that my fees are so much less than most tax service fees is because I do not “charge by the worksheet” or charge by the schedule. $90 is what I charge for a family, unless there is a business, real estate or itemized deductions involved. I do not charge extra for interest and dividends. I do not charge extra for the Earned Income Credit, Child Tax Credit, Daycare Credit or the American Opportunity Tax Credit for college students. Most places do. As such, they can claim a price similar to, or even lower than mine, but in the end their price is much higher. In my tax practice, as in my law practice, I believe in up front pricing. Games, gimmicks and bait and switch tactics annoy me. I will not engage in them.