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Eugene

(62,687 posts)
Thu Apr 14, 2016, 09:28 AM Apr 2016

Low-income Americans spend as much as $400 to get tax refund, report finds

Source: The Guardian

Low-income Americans spend as much as $400 to get tax refund, report finds

Jana Kasperkevic in New York
Thursday 14 April 2016 05.00 BST

Low-income Americans are falling prey to paid tax preparers, according to a new report published by the Progressive Policy Institute.

The authors found that large tax preparer chains were taking 13% to 22% of low-wage workers’ tax refunds and that tax preparation chains were targeting low-income areas that have a high number of people eligible for the earned income tax credit (EITC), a benefit for working people with low to moderate income.

On average, workers eligible for EITC spent about $400 to get their taxes done. A 2002 study found that low-wage workers spent about $1.75bn of the earned income tax credit refund on tax preparations.

“The stiff fees charged by large chain preparers can quickly erode an EITC refund, weakening a safety net provided by US taxpayers for our most vulnerable workers,” Paul Weinstein, director of Johns Hopkins University’s graduate program in public management, and Bethany Patten, a policy and research manager at Excellent Schools Detroit, wrote in the report. “Congress did not intend that tax credits be used to pad the bottom line of private tax service vendors.”

Often, the EITC paperwork means additional fees. In Baltimore, H&R block charged about $309 and Liberty tax services charged as much as $509 for a complete return, according to the report. In Washington DC, those filing for EITC would pay $315 at H&R Block and about $491 at Jackson Hewitt.

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Read more: http://www.theguardian.com/us-news/2016/apr/14/low-income-americans-tax-refund-report
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Low-income Americans spend as much as $400 to get tax refund, report finds (Original Post) Eugene Apr 2016 OP
good article (sad..but good) w0nderer Apr 2016 #1
Tax returns was one of the hated things I had to learn to do. malokvale77 Apr 2016 #2

w0nderer

(1,937 posts)
1. good article (sad..but good)
Thu Apr 14, 2016, 06:40 PM
Apr 2016

for federal return at least ... hrblock.com is free

i've heard good things about turbotax but never used them

https://turbotax.intuit.com/personal-taxes/online/free-edition.jsp

about 6 years ago i did a hrblock online, then saved it before 'posting it' (it gives a refund estimate)
and asked hrblock (went to the office)
the difference in refund was maybe 5-10 dollars for me at that time
did the same the year after...about the same result

and i had to pay for the office visit (of course)
so for me i save more doing it online

but that's probably on a case to case basis

a little late now, i should have thought of throwing up a tax season resource thread
sorry people
if you all will post your good resources we might help each other there as well

malokvale77

(4,879 posts)
2. Tax returns was one of the hated things I had to learn to do.
Sat Apr 23, 2016, 08:35 PM
Apr 2016

The last 3 returns I filed I used TaxAct online. It was free and easy, but with lots of pressure to pay a fee for stuff I didn't need. I received my return in 8 days.

Elizabeth Warren has put forth a bill that would make the IRS offer the same service for free without the pressure to buy a commercial service. I hope it passes.

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