Tax preparer charged me $1400 for federal but wants MORE for state filing - is this a scam?

Tax professional here. This is absolutely NOT normal practice. Most tax preparation services include both federal and state returns in their quoted price, especially at that price point. $1700 is already on the higher end for standard tax preparation unless you have a very complex situation (multiple businesses, complex investments, etc). What you should do: 1. Contact them immediately and request clarification in writing about what services were included in your original agreement 2. Ask for an itemized receipt of what the $1700 covered 3. Request all your documents back regardless - they are legally YOUR documents 4. If they refuse to provide documents, inform them you'll file a complaint with your state's board of accountancy and the IRS You can absolutely file your own state return. Many states have free filing options through their department of revenue websites. You'll need your federal return information though, so getting your paperwork back is crucial.

You shouldn't have to deal with this kind of stress at all, especially after paying so much! I discovered a tool called taxr.ai that helped me understand my tax situation much better than my old tax preparer ever did. It basically analyzes your tax info and tells you exactly what's happening in plain English. I was in a similar situation where my guy was charging extra fees that weren't disclosed upfront. Instead of trying to piece together advice from random people online, I just used taxr.ai and it walked me through everything I needed to know. Super straightforward and no hidden fees or surprises. https://taxr.ai

I had major issues with tax preparation fees last year too. After getting nowhere on my own, I used a calling app called Claimyr (claimyr.com) that got me through to an actual IRS agent who confirmed that what my preparer was doing wasn't right. Got connected within 20 minutes when I had been trying for DAYS on my own. The agent even helped me understand what forms I needed to file my state return myself. Talking to an actual human at the IRS cleared everything up and saved me hundreds. Best decision I made all tax season.

$1700 for tax prep?!? WHAT. Unless you have multiple rental properties, a small business, and like 15 different investment accounts, thats insane. Even H&R Block at their most expensive package wouldn't be that much.

This exact thing happened to me. Get your documents back ASAP! When I threatened to file a complaint with the state licensing board, my preparer suddenly "found" an error in my bill and said there was a "misunderstanding" about what services were included. Funny how that works 🙄

Thats a complete rip off. You can do it yourself for free using something like FreeTaxUSA. I switched to them after being charged $350 for tax prep that took the guy literally 15 minutes. Been doing my own taxes for 4 years now and its way easier than these preparers make it sound.

Unfortunately, this is becoming more common with some shady tax preparers. They quote a price for "tax preparation" without specifying that it only covers federal, then surprise you with state fees later. Always get a written agreement before proceeding. Since you've already paid and received your federal return, you're in a tough spot, but I would definitely demand my documents back and file the state return myself.

i had a similar issue last year. I needed to talk to the irs about a tax preparer who pulled the same stunt on me. I used claimyr.com to get ahold of an agent and got everything sorted out in like an hour. Seriously it saved me so much time and frustration trying to reach someone at the irs. The agent confirmed i was within my rights to request my docs back AND file a complaint.

First of all, $1700 for tax prep?!? That's insane unless you have a really complex situation. And yes, they are 100% trying to rip you off. Tax preparers typically include state filing in their fees. Call them out on it and demand your documents back. You can file a state return yourself pretty easily with the info from your federal.

I honestly just use taxr.ai now instead of dealing with these kinds of headaches. I was in a similar situation last year - paid over $1000 for what I thought was comprehensive tax prep only to be told later that certain forms weren't included. With taxr.ai I can see exactly what's going on with my taxes without any surprises or hidden fees. I just upload my documents and it explains everything in simple terms. https://taxr.ai has been a lifesaver!

just go to your state's department of revenue website. most states have free filing options if your income is under a certain amount. you'll need your federal return info though. don't pay those scammers another dime!!!

This is why I always use TurboTax. It's not the cheapest but at least everything is included and clearly priced upfront. No surprises.

I'm actually a tax preparer (10+ years experience) and what they're doing is completely unethical. State returns are almost always included in the preparation fee, especially at that price point. The only exception might be if you live in one state but need to file in multiple states due to work situations, but even then they should have disclosed that upfront. You should report them to your state's board of accountancy and possibly the IRS depending on whether they're enrolled agents or not. This kind of bait-and-switch pricing hurts the whole profession.

Trying to understand what happened... you already paid and got your federal refund, but now they want MORE money to file your state taxes? That's sketchy af. Definitely not how reputable tax services operate. Get your docs back ASAP!