Tax Blog

When is "FREE" at least $50 more than the tax preparation fees at Fiscal Tax?

Sure, an offer to prepare your 1040EZ simple form at no charge is enticing. Fiscal Tax also offers this service. But, as pointed out in an article in The Plain Dealer newspaper in Cleveland, OH yesterday, many, if not most, filers don’t qualify for this FREE service.

As the reporter, Teresa Dixon Murray, points out, “Preparation is free only for those filing a 1040EZ simple form, which cannot be used by anyone with dependents, [is] 65 or older or [has] itemized deductions. Charges to complete other forms are set by H&R Block and Jackson-Hewitt and will vary depending on the return, vendor and location.”

According to the article, David Rothstein, a project director at Policy Matters Ohio in Cleveland, said free income tax preparation might sound good, but he fears it’s a bait-and-switch.

“I think it’s deceptive to tell low- to moderate-income families that you’re going to do their tax return for free, but only 15 percent of H&R Block customers did the 1040EZ last year,” Rothstein said.

“Most clients are not going to get free tax preparation. If they’re really marketing this for family, the vast majority of those people are not going to qualify for the 1040EZ.”

Even if you qualify to file a 1040EZ, beware of additional fees.

Rothstein went on to note that even those who qualify to file a 1040EZ at no charge may incur fees for filing state and local returns or getting refund-anticipation loans or refund-anticipation checks.

So, if you are one of the 85 percent of filers who don’t qualify to file a 1040EZ, you’ll save at least $50 in tax preparation fees at Fiscal Tax. If you’re one of the 15 percent who do qualify to file 1040EZ, Fiscal Tax also offers this service FREE.

Saving at least $50 is good news!

The good news is that if you qualify to file 1040EZ, but have your tax preparer handle your state and local returns, you’ll still save at least $50 at Fiscal Tax.

For more information, comment on this blog or call the tax professionals at Fiscal Tax. They can be reached at 317-895-2282. You can also visit any of the 30 Fiscal Tax locations in Central Indiana.

Click here to read the entire article as seen in The Plain Dealer.