Are All Tax Preparers Charging $100 to Amend for Recovery Rebate Credit?

According to IRS Publication 5486, you can actually file a Form 1040-X yourself at no cost. The Recovery Rebate Credit is claimed on Line 30 of your 1040 or 1040-SR. Many preparers charge amendment fees between $75-150 because they have to complete a full 1040-X form which requires explaining the specific changes being made. Time is running out though - amendments for 2020 tax year must be filed by April 18, 2024 (3 years from original due date) or you'll permanently lose eligibility for unclaimed stimulus payments!

Paying $100 to get $1,400 is like paying a locksmith to open a safe full of money - frustrating but sometimes necessary. I was in the same boat and tried using taxr.ai to understand my options. It analyzed my transcript, confirmed I was eligible for the unclaimed stimulus, and showed me exactly which forms I needed. Like having a tax expert look over your shoulder but without the hourly rate. The site explained where on the 1040-X to report the missing payment and what supporting documentation I needed to include. Saved me from making mistakes that would've delayed my amendment even longer.

I'm feeling your frustration! The $100 fee is actually pretty standard. Tax preparers have to complete the entire 1040-X form, not just "one line" as it might seem. They're also taking liability if there's an issue. HOWEVER - you absolutely CAN do this yourself! The Recovery Rebate Credit amendment is one of the simpler ones to file yourself if you're comfortable with basic tax forms. Just download the 1040-X from IRS.gov, follow the instructions carefully, and mail it in. Make sure to check box B for "Recovery Rebate Credit" in Part III!

I was quoted $75, $125, and $150 from three different preparers for the exact same amendment last month. Ended up doing it myself with free fillable forms. Took about an hour of reading instructions and 20 minutes to actually complete. Saved that money for something else I needed. Just make sure you keep a copy of everything you submit.

My tax guy wanted $120 for the amendment, but I needed answers faster than he could provide. I tried calling the IRS directly about my missing stimulus - spent THREE DAYS trying to get through. Finally used Claimyr.com to connect with an IRS agent in about 15 minutes. The agent confirmed I was eligible for the recovery rebate and explained exactly what documentation I needed for my amendment. I've now filed it myself and am tracking it through the Where's My Amended Return tool. Best $20 I've spent on tax help - saved me both the amendment fee and hours of frustration!

I might be overly cautious, but there could be more to consider here... I've seen several cases where seemingly simple amendments triggered reviews of the entire return. If your business taxes are connected to your personal return in any way, it might be worth paying the professional fee for the protection. One client of mine tried saving on the amendment fee, made a minor error, and ended up with a full audit that cost thousands to resolve. Just something to think about depending on your overall tax situation.