Free tax services...what's the catch?

[jrthebassguy]

I've seen advertisements by H&R Block, TurboTax, and TaxSlayer all offering their 1040EZ services for free. So....what's the catch?

(Disclaimer: I didn't work the past two years so I could finish college, so I assume I'm missing out on something here. Now I'm all grajeeated and employed....stay in school kiddos!)

[Ziltoid]

I know that over here you can get it done for free by administration/business majors in college, they do that every year some kind of "lab" in one of their class.



That doesn't help you tho, so sorry for derailing.

[hover]

I used to do my taxes over the phone for free. this could be an extension of that.

[lowfreq33]

The government pays for it, I think you have to make under a certain amount to be eligible.

[tplyons]

They'll more than likely try to upsell you on a better service, meaning more money in your pocket and more money in theirs.

[anyonefortennis]

A lot of those will do federal for free and then charge you for your state return.

[warwick.hoy]

Why would you pay someone when filling out a 1040EZ and e-filing is so simple and free. I filed with H&R Block once a long time ago. I paid ~70 bucks and walked out with a "loan" check on the return (which was the only real perk). It only took like 15 minutes.

Wish I got paid $280 an hour.

[Let It Fall]

Originally Posted by anyonefortennis

A lot of those will do federal for free and then charge you for your state return.

this

[jrthebassguy]

Originally Posted by anyonefortennis

A lot of those will do federal for free and then charge you for your state return.

I don't pay state income taxes...win win!

[L-A]

Originally Posted by warwick.hoy

Why would you pay someone when filling out a 1040EZ and e-filing is so simple and free. I filed with H&R Block once a long time ago. I paid ~70 bucks and walked out with a "loan" check on the return (which was the only real perk). It only took like 15 minutes.

Wish I got paid $280 an hour.

You know, I'm pretty sure the guy who did it for you wishes the same thing.

[KsPiNeSh]

Originally Posted by anyonefortennis

A lot of those will do federal for free and then charge you for your state return.

Bingo.

[macaroni tony]

There are tons of free services out there....no matter where you live, there is probably a service that will file for free for you.

Some only do a certain income amount for free, some only do students for free, etc etc etc...and they charge the guys who don't fit into their criteria. No real catch involved.

Also, the IRS can help you file directly with them for free, they just don't like to publicize that.

[rockstarbassist]

The "Loans" you get on your "refund". I worked @ H&R Blockz during college b/c it fit my class schedule and I could work from like 5-close (usually 11 or midnight) and not miss my important Accounting classes during daytime.
Most everyone who gets a refund bites on the instant check (we kept them in the back) and was not told to inform the people it was in fact a "loan" at like 29.99% until the refund went through.

It's a racket, for sure. They can afford to do a few EZ's for how much they make off those services. Plus, hardly anyone qualifies for an EZ.

[warwick.hoy]

Originally Posted by L-A

You know, I'm pretty sure the guy who did it for you wishes the same thing.

No doubt,...but you see where I'm coming from yes? You are basically giving these businesses your money for no reason. What happens if you are broke and you are thinking you have something coming to you in a return just to find out you owe the government. Now you owe them and H&R block money. Add insult to injury.

I'll stand corrected if I have misconceptions on how these companies operate but my taxes are so cut and dry that I can't see any reason to go to one of these companies.

I can see using someone like an accountant to do your taxes if you are a business owner or have a lot things you can deduct, but it just doesn't work for me.

Oh and I don't have to pay state income tax either.

[L-A]

Originally Posted by warwick.hoy

I'll stand corrected if I have misconceptions on how these companies operate but my taxes are so cut and dry that I can't see any reason to go to one of these companies.

I can see using someone like an accountant to do your taxes if you are a business owner or have a lot things you can deduct, but it just doesn't work for me.

Well, you know why you're not a client then. My point was that running H&R is way more expensive than 280$/hr

I do my reports myself too, but I come out with a little refund from year to year. Some people just don't trust their own accounting skills (with or without reason).

[MatticusMania]

Originally Posted by jrthebassguy

I've seen advertisements by H&R Block, TurboTax, and TaxSlayer all offering their 1040EZ services for free. So....what's the catch?

(Disclaimer: I didn't work the past two years so I could finish college, so I assume I'm missing out on something here. Now I'm all grajeeated and employed....stay in school kiddos!)

The catch? The catch is that the 1040EZ file is as simple to complete as having the internet. Its your choice if you want to waste a half hour and a trip tot he H&R Block.

[warnergt]

Originally Posted by jrthebassguy

I've seen advertisements by H&R Block, TurboTax, and TaxSlayer all offering their 1040EZ services for free. So....what's the catch?

Another possibility is that, in the process, you may discover that you are
not eligible to file a 1040EZ (e.g. you need to report deductions, other
income reported on a Form 1099, etc.). In that case, you could be roped
into filing a regular 1040 form for a fee.