State residents pay higher fees for tax preparation

Constantly changing tax laws have led many to get their taxes prepared professionally, but a survey by the National Society of Accountants found Michigan residents pay more for the service than other states.

The survey found Michigan taxpayers can expect to pay $229 for a professional preparation, which is slightly higher than the national average of $205.

Barbara Lancaster, H & R Block Jonesville office manager said prices might be higher in Michigan because of the economy, but fees will vary drastically from client to client.

“We’re seeing a lot more self–employed business forms. There are also additional forms for unemployment and low income,” she said. “It really all depends on the number of forms you have to file.”

Gold Star Tax Preparers owner Saul Giminez said it is hard to say for sure why Michigan residents might pay more than in other states.

“Some states don’t have income tax so that would mean less forms,” he said. “Each state has different laws and credits.”

Lancaster and Giminez said economy and tax laws might account for the increase but most local residents will not be paying as much as the NSA said.

Lancaster said a majority of people pay somewhere in the range of $145 to $200, with very few paying over.

The average preparation cost last year at Gold Star was $130, Giminez said. This includes discounts for clients who have had their returns done year after year over a long time.

Both said it is important to remember cost will vary for each person depending on how much work needs to be done. Giminez said it will also depend if the preparation is done by a firm that is paid per hour or per form.

Both agree the cost is a wise investment.

“We take classes all the time to stay up to date with new and changing tax laws,” Lancaster said. “That’s what we’re paid for. We can catch things that might get you a better return or catch something you missed that could hurt you and cost you more.”

Giminez said in the event of an Internal Revenue Service audit professional preparation means you will have someone in your corner to back you up.

The complexity of tax law is probably biggest reason to have taxes done professionally, Giminez said.

“The laws are changing constantly. Some recent changes like business tax bonus depreciation, canceled debt forgiveness and limits to education savings can really confuse things,” he said. “You probably don’t know what those mean and those are just a few.”

Lancaster said she constantly gets phone calls from people who do not want to file with her company but just have questions.

“I have no problem answering questions,” she said. “Sometimes they decide it is more complex then they realized and bring their forms in, but that is not always the case.”

With numerous accountants and firms throughout the area local residents can find any level of help they need almost anywhere in county.

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State residents pay higher fees for tax preparation