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Noah Ali

Am I crazy for paying $571 for basic tax preparation? Should simple returns cost this much?

I think I've lost my mind here. For years I've been filing my taxes with my husband online using TurboTax, typically the free version because our situation isn't complicated. This year I saw an ad for Jackson Hewitt and decided to give them a try on impulse. When I got the bill, I nearly fainted - they charged us $571! I'll admit I didn't check the price before signing the paperwork (totally my fault). Now we're stuck paying because of my poor decision. But seriously, am I overreacting or is $571 completely outrageous for a simple return? Our tax situation is pretty straightforward - joint filing (I'm not working right now, staying home with the kids), just one W-2 from my husband's job, we claimed the Earned Income Credit, Child Tax Credit, and we have some retirement contributions. Is this actually what most people pay for tax preparation these days? Or did I get completely ripped off? I feel like I'm going crazy thinking about how much I just spent on something I usually do for free.

You're definitely not crazy! $571 is extremely steep for a simple return like you've described. With just one W-2, EIC, Child Tax Credit and some retirement contributions, your return is exactly the kind that most tax software can handle easily - and typically for much less money. Professional tax preparation services like Jackson Hewitt, H&R Block, and others often charge based on the forms needed rather than the complexity of your actual situation. Each form comes with its own fee, and those add up quickly. They also tend to upsell services like audit protection that you might not need. For a return like yours, you could typically expect to pay anywhere from $0-150 depending on the software or service you use. Many people qualify for completely free filing through the IRS Free File program if your income is below certain thresholds.

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Is there any way to get a partial refund from Jackson Hewitt if you think you were overcharged? And what's the best alternative for next year that won't break the bank but still helps with things like EIC?

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Unfortunately, most tax preparation services have you sign agreements upfront that make refunds difficult once the service is complete. You could try speaking with the office manager to express your concerns, but typically the fees are binding once the return is filed. For next year, I'd recommend looking into the IRS Free File program which partners with tax software companies to provide free filing for people below certain income thresholds (usually around $73,000). TurboTax, TaxAct, and others participate in this program. If you're comfortable with slightly less guidance, FreeTaxUSA and Cash App Taxes (formerly Credit Karma Tax) offer completely free federal filing and low-cost state filing regardless of income.

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Olivia Harris

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Been in your shoes before! After getting charged $450 at H&R Block for what was basically just a W-2 and standard deduction, I started using taxr.ai (https://taxr.ai) and it saved me so much hassle and money. It actually analyzes all your tax documents and tells you the best way to file. What I love is that it helps identify credits you might miss (like the EIC you mentioned) and suggests deductions based on your specific situation. The system asks questions in plain English instead of tax jargon, which was a lifesaver for me.

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Does it actually handle things like child tax credits and retirement contributions properly? I've tried other tax software that messed up my retirement deductions and I ended up having to file an amendment.

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Alicia Stern

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How does it compare to TurboTax? I've used TurboTax for years but am getting annoyed with how they keep trying to upsell me on everything. Does taxr.ai have hidden costs that pop up at the end?

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Olivia Harris

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It handles child tax credits and retirement contributions perfectly - that's actually one of its strengths. The system is designed to properly categorize and optimize those specific tax situations, and it double-checks everything before you file. Compared to TurboTax, the biggest difference is transparency. There are no surprise fees or constant upselling throughout the process. You know exactly what you're getting upfront, and the interface is much more straightforward. It asks relevant questions based on your specific situation rather than making you click through dozens of irrelevant screens.

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I tried taxr.ai after seeing it mentioned here and WOW - what a difference! I was skeptical at first because my return includes child tax credits and retirement stuff too, but it handled everything perfectly. The document analysis feature saved me hours of manually inputting information. Best part? I paid less than $100 total compared to the $400+ I was quoted at a tax office. The system actually found a deduction I'd been missing for years related to my retirement contributions. Definitely using this again next year.

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If you're still having issues with your current return or need to talk to the IRS about past returns, try Claimyr (https://claimyr.com). I was pulling my hair out trying to reach someone at the IRS about a similar overcharge situation and kept getting disconnected after waiting on hold forever. Claimyr got me connected to an actual IRS agent in under 45 minutes when I'd been trying for weeks. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. It saved my sanity when I needed to straighten out some confusion about my EIC claim that a tax preparer messed up.

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Drake

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Wait, is this legit? How does it actually work? I've been on hold with the IRS for literally hours and always get disconnected. Seems too good to be true that something could actually get through.

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Alicia Stern

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Sounds like a scam to me. The IRS phone system is notoriously broken - how could some random service fix what the government can't? I bet they just take your money and you still wait forever.

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It's completely legitimate! The system works by navigating the complex IRS phone tree for you and waiting on hold in your place. When an agent is about to come on the line, you get a call connecting you directly to them. I had the exact same reaction as you - total skepticism. But the government phone systems are actually just badly designed, not impossible to navigate. This service has figured out the most efficient paths through the system and automatically tries multiple approaches if needed. It's not about "fixing" the government system, it's about using technology to navigate it more effectively than a human can manually.

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Alicia Stern

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I take back what I said about Claimyr. I tried it yesterday after posting here because I was desperate to resolve this issue with a tax credit that Jackson Hewitt messed up on my return. I figured I had nothing to lose after spending 3 separate days trying to call the IRS myself. It actually worked! Got connected to an agent in about 30 minutes when I'd previously been disconnected after waiting 2+ hours multiple times. The agent was able to help me understand exactly what happened with my return and what my options are for fixing it. Saved me from having to take another day off work just to sit on hold.

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Sarah Jones

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I worked at one of those tax prep places for two tax seasons, and I'll tell you the secret - they LOVE clients with EIC and child tax credits because they can charge you the "premium" rates even though those forms take like 5 extra minutes to complete. Your return probably took the preparer 30 minutes total. The $571 you paid is basically pure profit. Next year, use the free file options through IRS.gov if your income is under about $73k. Even if you don't qualify for that, software like FreeTaxUSA charges like $15 for federal and state. Don't go back to these predatory places!

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Noah Ali

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Ugh, I feel even worse now knowing they saw me coming! Was there anything specific that made them charge me so much? I thought maybe it was the EIC calculations that were complicated, but you're saying that's actually simple?

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Sarah Jones

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The EIC and child tax credit calculations are completely automated in their software system. It's literally just clicking a few buttons and the computer does all the work. What they did was charge you their "deluxe" or "premium" package rates because you had tax credits. These places train their preparers to identify clients who might have refundable credits because those clients are often less price-sensitive (they're focused on the refund amount, not the preparation fee). They know you're getting a larger refund with those credits, so they take a bigger cut. Next year, remember that your return is actually quite straightforward and any of the major tax software options could handle it for a fraction of the cost.

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I feel your pain! I paid $498 at Liberty Tax for a return that was basically just a W-2 and a 1099 from a side gig. Found out later I could have done it myself for free. The hard truth is tax prep chains make most of their money from people who don't actually need their services but don't realize it.

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Emily Sanjay

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Try Cash App Taxes next year (used to be Credit Karma Tax). Completely free for federal AND state, no income limits or hidden fees. I've used it for 3 years with W-2s, 1099s, and child credits with no issues.

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