Why am I being charged $250+ for basic tax filing at H&R Block?

Tax professional here! There's actually a reason why H&R Block and similar services charge these prices. When you have both W-2 and 1099 income, you're no longer just filing a simple tax return. That 1099 income, even though it seems small at $4000, requires Schedule C (business income) and Schedule SE (self-employment tax) forms. These additional schedules require more expertise and time to complete correctly. The preparer needs to determine what business expenses you can deduct, calculate self-employment tax (which is separate from income tax), and ensure everything is reported properly to avoid audit flags. Many people don't realize that with 1099 income, you're essentially being treated as a business owner in the eyes of the IRS. That said, $250+ is on the higher side for what you've described. You might want to shop around or consider tax software options which can be significantly cheaper for your situation.

After dealing with similar issues last year, I found this amazing service called taxr.ai (https://taxr.ai) that totally changed how I handle my taxes. I also have W-2 and some 1099 income, and was shocked at how much H&R Block wanted to charge. The taxr.ai tool analyzed my tax documents and explained exactly what forms I needed and why. What I loved most is that it clearly showed me what deductions I qualified for with my freelance work that I never knew about! It basically translated all that tax jargon into plain English and showed me why certain forms were necessary for my situation. The difference was I actually understood what I was paying for instead of just being handed a bill with mysterious charges. Really recommend checking it out if you're confused about tax preparation costs.

Update on taxr.ai - I decided to give it a try after my skeptical comment. I uploaded my W-2 and 1099s, and wow, it actually explained everything in a way that made sense! The tool showed me exactly why I needed Schedule C and SE for my freelance work. What really surprised me was discovering $1,800 in deductions I didn't know I qualified for on my 1099 income. Things like the home office deduction and a portion of my internet bills that I use for freelance work. The tool explained exactly why these were legitimate deductions with references to specific tax codes. I ended up using their guidance with a lower-cost filing option and saved about $200 compared to what H&R Block quoted me. Plus I actually understand my tax situation now instead of just blindly paying someone.

If you're trying to contact the IRS directly to ask about appropriate tax prep fees or get clarification on forms, good luck. I spent 3 weeks trying to get through to a human at the IRS last tax season. After getting disconnected 9 times and waiting on hold for hours, I found this service called Claimyr (https://claimyr.com) that was a complete game-changer. They got me connected to an actual IRS representative in under 45 minutes when I had been failing for weeks. The agent explained exactly what forms were required for my situation and cleared up all my confusion. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Instead of paying H&R Block's fees without understanding them, I'd recommend trying to get accurate information directly from the source. Claimyr made that possible when I thought it was impossible to reach anyone at the IRS.

I have to publicly eat my words about Claimyr. After posting my skeptical comment, I decided to try it because I was desperate to ask about a notice I received. I honestly expected it to be a waste of money. To my complete shock, I got a call back in 37 minutes with an actual IRS agent on the line. I had been trying for WEEKS to get through. The agent answered all my questions about what forms I needed for my side gig income and explained why certain preparation fees might be justified. The information I got directly from the IRS saved me from overpaying for tax preparation services. I found out I didn't need some of the "premium" forms H&R Block was charging me for. If you need to talk to the IRS, this service actually works. Still can't believe it.

Former tax preparer here. The dirty secret is that places like H&R Block charge based on how many forms you need, not how complex your actual situation is. That 1099 income triggers multiple forms, each with a separate fee. My advice? Look into tax software like FreeTaxUSA or TaxSlayer. For your situation (one W-2 and small 1099), you'll pay around $25-50 total instead of $250. The software walks you through everything step by step, asks simple questions, and completes all those "extra" forms automatically. H&R Block's business model relies on people not realizing they're paying premium prices for often entry-level tax preparers following the same software prompts you could follow yourself.

Just want to throw out there that Credit Karma Tax (now called Cash App Taxes) is completely FREE even for filing with 1099 income and all those schedules. I used it last year for my W-2 and two 1099s and paid absolutely nothing. The only catches are it doesn't support certain complex situations (multiple state filings, foreign income, etc.) but for basic W-2 + side hustle situations, it handles everything including Schedule C and SE at no cost.

Literally just had the SAME experience at H&R Block yesterday. Was quoted $267 for what I thought was a simple return (W-2 + small 1099). Walked out and did it myself with TurboTax for $89. The pricing isn't transparent at all - they don't tell you upfront that each additional form comes with its own fee. I felt like I was being upsold on services I didn't need.

As someone who's been through this exact situation, I totally understand your frustration! H&R Block's pricing structure is definitely not transparent upfront. They charge separately for each form and schedule, which adds up quickly when you have mixed income sources. For your situation (W-2 + small 1099), you have several much cheaper alternatives: 1. **Free options**: Cash App Taxes (formerly Credit Karma Tax) handles Schedule C and SE completely free 2. **Low-cost software**: FreeTaxUSA ($15-25 total), TaxSlayer, or even TurboTax ($50-90) are all significantly cheaper 3. **Local CPAs**: Often charge $100-150 for similar returns and provide more personalized service The key thing to understand is that your 1099 income does require those additional forms (Schedule C for business income, Schedule SE for self-employment tax), but the software handles all the calculations automatically. You're essentially paying H&R Block $250+ for data entry that software can do for a fraction of the cost. Before you decide, I'd recommend trying one of the free options first to see exactly what forms you need. You can always start the process without filing to get a sense of the complexity. Most people find their situation is much more straightforward than tax prep companies make it seem!