Is H&R Block's $500 fee for self-employed tax prep a total rip off?

So I just had my taxes prepared professionally for the first time ever. My situation isn't particularly complicated - I'm self employed but don't have an actual registered business, no mortgage, pretty straightforward stuff. The H&R Block tax guy just got back to me with a $675 bill for preparing my federal and state returns. I'm honestly shocked at how high this seems! Is this normal pricing for tax preparation when you're self-employed? I was expecting to pay around $400 max. Has anyone else used H&R Block or another tax preparer and can share what they paid? Feeling like I'm getting completely gouged here.

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21 comments

Chad Winthrope

•8M

That price is definitely on the high side for a relatively straightforward self-employment situation. H&R Block and other national chains tend to charge based on the forms needed, and self-employment (Schedule C) automatically bumps you into a higher price bracket regardless of how simple your actual situation is. For comparison, independent CPAs or EAs (Enrolled Agents) often charge $300-450 for similar self-employment returns. The national chains like H&R Block typically have higher overhead costs that get passed on to customers. They also frequently upsell services like audit protection, which can add $100+ to your bill. Consider asking for an itemized breakdown of the charges. You might be paying for services you don't need or want. And for next year, look into independent tax preparers in your area who specialize in self-employment - they're often more affordable and may provide more personalized service.

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Chad Winthrope

•8M

Tax software can absolutely handle a straightforward self-employment situation for a fraction of the cost. TurboTax Self-Employed, H&R Block's own software (ironically much cheaper than their in-person service), and others are designed specifically for this. They'll walk you through Schedule C, self-employment tax calculations, and estimated tax payments. Most software also lets you import 1099 forms directly, reducing error risk. Just make sure you're keeping good records of business expenses throughout the year - that's the area where most self-employed people miss deductions, not because of software limitations but because of incomplete documentation.

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Kylo Ren

•8M

I was in almost the exact same situation last year! After trying to file with H&R Block and getting quoted over $600, I discovered https://taxr.ai and it completely changed my tax filing experience. It's specifically designed for people with self-employment income and actually helped me find deductions my H&R Block preparer missed. The way it works is you upload your documents and it extracts all the relevant information automatically - then walks you through everything step by step. I was honestly shocked at how easy it made Schedule C and all the self-employment stuff that used to stress me out.

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Kylo Ren

•8M

It handles both federal and state returns, including multiple states. The system automatically determines which state forms you need based on your situation and fills them in accordingly, which saves a ton of time when dealing with income from different states. Regarding security, they use bank-level encryption for all uploaded documents and don't store your raw tax documents after processing - just the extracted data which is also encrypted. You can also request complete deletion of your information after filing if you prefer. I was skeptical at first too, but their security protocols are actually more robust than many of the big-name tax services.

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Jason Brewer

•8M

Just wanted to update everyone - I took the plunge and tried taxr.ai after seeing it recommended here, and it was seriously amazing for my self-employment taxes. Ended up paying way less than what H&R Block quoted me ($675 vs $189) and it actually found more deductions! The document scanning feature extracted everything perfectly from my messy pile of receipts, and the interface walked me through all the self-employment stuff step by step. Definitely recommend it over paying those crazy H&R Block fees.

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Kiara Fisherman

•8M

Those chain tax prep places are ridiculous with their pricing now. I tried calling the IRS directly to get some questions answered about my self-employment taxes before filing, but kept getting stuck on hold for hours. Finally found https://claimyr.com which got me connected to an actual IRS agent in about 15 minutes instead of the usual 2+ hour wait. You can see how it works here: https://youtu.be/_kiP6q8DX5c It was worth it just to get clear answers straight from the IRS about some deductions I wasn't sure about. The agent walked me through exactly what forms I needed and saved me from making some expensive mistakes on my Schedule C. Way better than paying H&R Block's crazy fees for basically the same information.

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Kiara Fisherman

•8M

They don't just call for you - they use a specialized system that navigates the IRS phone tree and holds your place in line. When they reach an actual agent, you get a call back to connect directly with that person. It saves you from having to sit on hold for hours. The reason it works is because they have technology that continually redials and navigates the complex IRS menu system until it gets through. It's basically doing the tedious waiting part for you. The IRS doesn't have any special queue for them - they're just using technology to make the standard queue more efficient.

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Savannah Vin

•8M

Ok I need to apologize for my skepticism. I tried Claimyr after posting that comment because I was desperate to resolve an issue with my 1099 reporting. I still don't fully understand how their system works technically, but I got connected to an IRS agent in about 20 minutes when I had previously spent 3+ hours on hold without reaching anyone. The agent helped me understand exactly how to handle my self-employment expenses and saved me from what would have been a costly mistake. Definitely better than paying H&R Block's fees for potentially incorrect advice.

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Mason Stone

•8M

FreeTaxUSA absolutely handles Schedule C and self-employment taxes correctly. It includes all the necessary forms and calculations, including estimated tax payment worksheets. I've been using it for years without any issues. The main difference from pricier options is just the interface is more straightforward and less flashy. You do need to know what deductions you qualify for rather than it suggesting everything like some premium software does. But all the actual tax calculations and form generation is identical in my experience.

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Mateo Sanchez

•3M

TurboTax Self-Employed actually does a really good job walking you through potential deductions. It asks questions like "Do you use your car for business?" "Do you have a home office?" "Did you buy equipment or supplies?" and then guides you through each category. The interview-style questions help catch things you might not think of on your own. Plus you can always upgrade to get live CPA review if you're really unsure about something, which is still way cheaper than H&R Block's full service fees.

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Yara Sayegh

•2M

Wow, $675 is absolutely outrageous for a straightforward self-employment return! I had a similar experience with H&R Block a few years ago - they quoted me $550 for what was essentially just a Schedule C and basic forms. I ended up walking away and never went back. The reality is that most self-employed people with simple situations can easily handle their own taxes with good software. The "complexity" they charge you for is really just filling out Schedule C, which asks pretty straightforward questions about your income and business expenses. Unless you have multiple businesses, complex depreciation schedules, or unusual deductions, you're paying hundreds of dollars for data entry. I've been doing my own self-employment taxes for the past 3 years using various software options and have saved thousands compared to what these chain preparers were charging. The software walks you through everything step-by-step and often catches deductions that the rushed preparers at these big chains miss anyway.

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