Filing tax returns is usually never fun, even if you are due a refund. Which is why so many put off filing our tax return until as late as the tax regulations allow. While this strategy does ensure you don’t have to rush into any tax preparation hassles, there are many tax return firms in Houston and beyond who know this and adjust their rates accordingly.
A Tale of Two Seasons
Earlier in the year around January and February, taxpayers who tend to have simple situations and know they are due a refund may want that money as soon as possible. This puts them in a good mood and makes them more likely to see their tax return pro early. Then in March and April when tax day is looming around the corner, another group of American tax payers gets around to calling their tax pro for help in filing their taxes. These are the businesses and people who tend to owe a sum to the IRS, tend to carry more complex finances, and need to fill out many other forms before they will even start on their 1040s. They are more complex, can be moodier because they owe, and the longer they wait, the more likely they are to pay their tax return pro.
The Facts on Pricing Tax Returns
Of the big three tax preparation options: TurboTax, H&R Block, and TaxAct – they have been practicing their own form of price surges, aka gouging, for years. In the beginning they offer cheap and occasionally free services to early filers and other incentives (such as the $1,000 per day promotion from H&R Block). Then around late March, the tax return firms may hit customers with hikes on price of up to 30% or more. They may even continue to crank up prices right up to the 15th of April because they know their customers don’t have time to shop around. All types of tax payers are subject to the price hike, from those with simple 1040 EZ forms all the way up to large businesses.
Graphs Don’t Lie
As you can see by this graph by Oppenheimer & Co, the numbers tend to go up as the year progresses:
• Simple tax returns were free from Turbo Tax at the beginning of the year
• Simple tax returns were $10 from H&R Block at the beginning of the year
• Simple tax returns were $15 from Tax Act at the beginning of the year
• At the end of the season, simple tax returns were $30 from Turbo Tax
• At the end of the season, simple tax returns were $20 from Tax Act, a 25% increase
• At the end of the season, simple tax returns were $30 from H&R Block, or a 300% increase
Similar policies are also enacted for those with complex individual tax returns, small business returns, mid to large sized tax returns, as well as state returns, so be sure and check with your tax return pro and/or shop around before you buy while there’s still time.
Tax Return in Houston
If you live in Houston and need help with your tax returns, student loans, bookkeeping in general, give us a call at 281-894-6494 or send us an email.