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I used Jackson Hewitt last year and had a terrible experience. The preparer didn't understand how to properly deduct my business expenses and I ended up overpaying by about $1,200. I found this out when I had another preparer review my return this year who pointed out all the mistakes. They missed home office deductions, didn't properly calculate my mileage, and completely botched how they handled my inventory. Don't assume all tax preparers are equal - my Jackson Hewitt person was clearly undertrained but acted super confident. I'd definitely recommend asking a lot of questions about their experience with Schedule C before committing.
That's exactly what I'm afraid of! Did you try to get them to fix the mistakes or file an amended return? I'm wondering if they stand behind their work when they mess up.
I did contact them about filing an amended return, but they wanted to charge me an additional fee for it even though the mistake was theirs. Their "accuracy guarantee" only covered penalties and interest if the IRS found an error, not money I overpaid due to their mistakes. That's when I switched preparers entirely. If you do go with Jackson Hewitt, get everything in writing about what their guarantee actually covers. Also ask to see a draft of your return before they file it and review the Schedule C thoroughly. Look especially at whether they've included all possible deductions like home office, business percentage of internet/phone, mileage, etc.
Just a different perspective - I've used Jackson Hewitt for 3 years for my small woodworking business and W-2 job, and they've been great. I think it really depends on the specific office and preparer. My guy is actually an enrolled agent who's been doing returns for 15+ years, and he's found deductions I never would have known about. The $225 price point is actually pretty standard for a return with Schedule C. H&R Block quoted me $275 for similar services. The key is finding a specific preparer you trust, not just walking into any location.
Do they offer any kind of audit protection? TurboTax charges extra for that and I'm trying to figure out if it's worth it.
Here's my ranking of tax software from someone who's tried them all: 1. FreeTaxUSA - best balance of features and cost ($0 federal, ~$15 state) 2. Cash App Taxes - completely free but sometimes glitchy 3. H&R Block Free File - decent for simple returns 4. TaxSlayer - cheaper than TurboTax with similar features 5. TaxAct - okay alternative TurboTax is dead last - overpriced and intentionally misleading. They literally lobby against making taxes simpler so they can keep charging us.
Have you tried the IRS Direct File system? I heard they're testing it in some states this year but not sure if it's any good.
I have tried the IRS Direct File beta in my state (was one of the test states). It's very basic right now and only works for the simplest tax situations - W-2 income, standard deduction, and a few tax credits. No itemizing, no 1099 income, no investment income. The interface is clean but feels unfinished compared to commercial options. The advantage is it's truly free and goes directly to the IRS. If your taxes are super simple, it's worth considering, but most people will need more features than it currently offers. They're supposed to expand it for next tax season though.
Don't forget that if your income is under $73,000, you qualify for IRS Free File. Go directly through the IRS website (irs.gov/freefile) NOT through TurboTax's site claiming to be "free". The difference is huge. TurboTax's "free" edition is not the same as TurboTax's IRS Free File option.
I'd say definitely do them yourself! I've been doing my own taxes for years with similar circumstances (mortgage, W2, kids). The software options have gotten super user-friendly. I personally use FreeTaxUSA because it's cheaper than TurboTax but still very straightforward. They ask simple questions and fill everything out based on your answers. For your mortgage situation, you'll just need your Form 1098 from your lender which shows interest paid. For the kids, just their SSNs and basic info. The 15-year-old is easy, and for your college student, you'll want the 1098-T from their school for education credits.
Do you know if the education credits work if I'm paying for my kid through a 529 plan? I've heard conflicting things about whether you can double-dip on the tax advantages.
That's a great question about 529 plans and education credits. You can't "double-dip" on the same expenses, meaning you can't claim a tax credit for education expenses paid with tax-free 529 withdrawals. However, if your total education expenses exceed what you paid from the 529, you can claim credits on those additional out-of-pocket expenses. For example, if your student had $25,000 in qualified education expenses and you used $20,000 from a 529 plan, you could potentially claim eligible education credits on the remaining $5,000 you paid from other sources.
What tax software are people using these days? I had H&R Block do my taxes last year and paid $275 for basically the same situation (mortgage, W2, one kid). Looking to save some money this year.
I've used Jackson Hewitt for the last 3 years and have mixed feelings. The first year was great - had an experienced preparer who found several deductions related to my small business. The second year I got someone new who missed some obvious things I had to point out. This year was better but they raised their prices by like 15%. I think it really depends on which preparer you get. If you go the Jackson Hewitt route, call ahead and specifically ask for someone experienced with self-employment income and multi-state returns. Don't just take whoever's available.
How much did you end up paying them this year if you don't mind me asking? The website is super vague about pricing.
I paid $329 this year for a Schedule C (self-employment) and W-2 income, plus a few investment forms. Last year was $285 for basically the same return. I asked about the price increase and they said something about "enhanced audit protection" that was automatically included this year. Honestly not sure if it's worth it but I didn't have time to shop around.
I went to Jackson Hewitt once and never again. The "tax professional" was literally reading from a script and typing my answers into the same software I could use at home. When I asked about deducting home office expenses for my freelance work, they seemed confused and had to ask someone else. If u have a simple return, save ur money and DIY. If ur situation is complex like yours sounds, find a real CPA or EA (enrolled agent). National chains are basically just using the same software you can buy, but charging you $300+ for the privilege.
This has been my experience too. My "tax professional" at Jackson Hewitt was super nice but had just completed their tax prep course a few weeks earlier. I actually knew more about some deductions than she did, which wasn't reassuring.
Statiia Aarssizan
has anyone actually tried calling the IRS Taxpayer Advocate Service? i heard they can sometimes help with these kinds of issues and its free, unlike some of these services people are mentioning
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Reginald Blackwell
ā¢I tried the Taxpayer Advocate last year for a different issue. They're helpful but extremely overwhelmed. Took 3 weeks just to get assigned to someone, and then another 2 weeks for them to call me back. They're really meant for hardship situations or cases where you've already tried normal channels multiple times.
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Aria Khan
My tax preparer made a similar mistake last year. I called them and THEY fixed it for me since it was their error. Have you tried going back to your preparer? Most have some kind of guarantee and will handle the amendment process for free if they messed up.
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