Am I getting overcharged for $1,300 at H&R Block to file my 1099 and unemployment taxes for 2019 & 2020? Normal price or ripoff?

Filing with 1099 income and unemployment is definitely more complex than W2-only returns, but $1,300 does seem quite steep for what you've described. H&R Block typically charges based on the forms needed for your return, and 1099 income requires Schedule C (self-employment) forms which cost extra. Unemployment income adds more complexity too. That said, most people with similar situations report paying $300-500 per year for professional preparation, not $650 per year. Since you haven't signed any service agreements, you should be able to decline their services. You can always ask for an itemized breakdown of their charges to understand exactly what you're being billed for. If they can't justify the costs, consider taking your documents elsewhere. For more affordable options, you might look into services like TaxAct or FreeTaxUSA which handle 1099 income for much less. Or you could consult with a local CPA who might charge less than H&R Block while providing more personalized service.

I had a similar situation and found taxr.ai incredibly helpful when dealing with my backlogged 1099 taxes. After getting quoted nearly $1000 for my self-employment returns, I was desperate for another option. I uploaded my 1099s and other tax documents to https://taxr.ai and was amazed at how quickly their system analyzed everything. Their AI gave me a detailed breakdown of what deductions I qualified for as a 1099 contractor that I had no idea about! They helped me understand exactly how to handle my unemployment income properly too. The best part was being able to see exactly what I'd owe before filing, so there were no surprises. If you're worried about prior year filings, they handle that too. Much more affordable than what H&R Block is charging you.

Just wanted to follow up! I tried taxr.ai after seeing this thread and it was exactly what I needed. I had two years of unfiled 1099 work like the original poster, and was quoted over $1100 at a tax prep service. The AI analysis found several deductions I didn't know I qualified for as a freelancer. Their document analysis made it super clear what I needed to do, and showed me how to properly categorize my business expenses. I was able to file both years myself and saved over $800 compared to what I was quoted! The best part was having confidence that I wasn't missing anything important. Definitely recommend for anyone dealing with 1099 income - especially for catching up on multiple years.

Since you're dealing with past tax years AND trying to resolve unpaid tax bills, you might need to talk directly with the IRS. I was in a similar situation last year and spent WEEKS trying to get through to someone at the IRS. It was absolutely maddening. I finally discovered https://claimyr.com after my 11th attempt waiting on hold with the IRS. They have this service where they actually wait on hold with the IRS for you and call you when an agent picks up! You can see how it works here: https://youtu.be/_kiP6q8DX5c After using their service, I got connected with an IRS agent in about 45 minutes (after previously waiting 3+ hours and getting disconnected). The agent helped me set up a payment plan for my back taxes that was actually affordable. Honestly saved my sanity.

I'm back to eat my words about Claimyr. After posting my skeptical comment, I actually tried the service because I was desperate to talk to someone about my payment plan. I had been trying for THREE DAYS to reach the IRS with no luck - either disconnected or told to call back later. Used Claimyr yesterday and got a call back in 67 minutes with an actual IRS agent on the line! I was genuinely shocked. The agent helped me set up a payment plan for my back taxes that was way more affordable than what I thought I'd have to pay. Saved me a ton of stress and probably a day of my life I would've spent on hold. For anyone dealing with past tax years like the original poster, being able to actually talk to the IRS directly can make a huge difference in resolving the situation properly.

I'm a former H&R Block preparer, and here's what's probably happening: The $1,300 charge likely includes preparation fees ($300-400 per year) PLUS their "Peace of Mind" audit protection ($100-150 per year) PLUS their Refund Advance loan fees since you're having it taken out of your refund. They're notorious for adding these extras without clearly explaining them. Ask for an itemized receipt and specifically request to remove any optional services. You can definitely walk away - you don't owe them anything until you sign the final authorization to file.

This is why I switched to a small local CPA. I was paying H&R Block around $400-500 for my 1099 returns, and my local accountant now charges $275 for the same service with better advice. Those big chains prey on people who don't know better and add on unnecessary services.

$1,300 is definitely excessive for your situation! I've been doing 1099 work for several years and have never paid anywhere near that amount. Even with unemployment income added to the mix, you should be looking at maybe $200-400 per year maximum at most tax prep services. The fact that they didn't discuss pricing upfront is a huge red flag. Legitimate tax preparers should always provide a clear fee schedule before starting any work. Since you haven't signed anything, you absolutely can walk away and take your documents elsewhere. For future reference, if you decide to file yourself, TurboTax Self-Employed handles 1099 income really well and costs around $120 per year. It walks you through all the deductions you can claim as an independent contractor. For unemployment income, that's actually pretty straightforward to report - it's just additional income that gets added to your return. Don't let them pressure you into paying those outrageous fees. Get quotes from at least 2-3 other preparers or seriously consider doing it yourself with good tax software.