Jackson-Hewitt Tax Service Charged $300 for a quick refund and then said the next day I did not qualify. Wadsworth, Ohio

I agree with you that the CPA would have a degree, but the person that actually prepares your taxes (unless you are a big paying client) is a bookkeeper or temporary help that is hired during tax season to help out with the rush.  These employees usually have no degree, or if you are lucky, they might have an associate's degree in accounting.  The CPA does not actually prepare client's returns.

I agree with you about staying away from the fly by night, open only during tax season, take your money type places.  However, the franchisees to national chains usually have one to several stores in the area that stay open year round.  They usually close the smaller or less busy offices to save on overhead costs.  If you have a problem, call around and find another that is open or call corporate to find out where you can go to get help with your tax problem or get a copy of your return.

Thanks to federal law, ALL tax preparers (after Dec 2012) will be required to both take an IRS issued exam and pass it to be able to prepare taxes.  They will also be required to obtain a certain amount of CPE courses (courses that CPAs and Enrolled Agents also take to keep their certifications) each year to keep up with tax law changes, etc.  This should help to eliminate the preparers that give all tax services a bad name because they do not know the laws or make blatant mistakes on tax returns.  The IRS has also implemented fines and even imprisonment if the preparer blatantly makes a mistake or misrepresents information that is unlawful or against IRS rules and codes.  I am glad to see that this area is going to be regulated better.  Most large corporate tax companies require that their preparers go through tax seminars all year long, attend IRS forums, or take tests and do scenario problems.  This is to prove that they are up on all the latest changes and are still proficient in their tax preparation skills.

Jackson Hewitt charges a maximum finance charge of $95 to get the Refund Anticipation Loan (RAL).  If you do not qualify for the loan, then you do not pay the $95.  You only pay the charges to have the tax prep fees taken out of your refund.  This is the price that you pay the bank (not Jackson Hewitt) to not have to pay the fees up front.  Remember that all bank products such as the Refund Anticipation Loan (a loan that you receive within 24-48 hours on your anticipated refund amount) and the Assisted Refund (a product which you pay a fee to have the tax prep fees paid out of your refund) are both BANK products, not Jackson Hewitt products.  This money goes to the bank, not to Jackson Hewitt and all fees are clearly marked on the forms that the taxpayer signs (there has to be a Truth in Lending paper signed due to Federal Law - this forms states the amount of fees, finance charge and percentage rate of the loan).

I do not doubt that the total cost may have been $300, but most of this would have been tax prep fees.  If you are a general tax form person with a few extra forms (EIC, Child Tax Credit, etc) AND you go during their busy times, then you will pay around $160-$200 in tax preparation fees (depending on how many W-2's and extra forms that you have).  All major tax services companies charge by the number of forms that you have and they charge more if you come during their busy times because they have to keep the office staffed to the max.  If you can wait until the end of February or beginning of March, you will pay the least amount of tax prep fees.

I hope that this information has helped.  Also, if you can file before Wednesday evening, usually (and again I say USUALLY - most of the time) you will receive your refund the Friday of the next week.  So, if I were to file on Tuesday, then I would only have to wait 10 days for the refund.  Just like with any loan, you will pay a finance charge and usually a bank fee to get that loan.  Tax refund anticipation loans are no different.  If you can, it is best to wait the week or week plus a day or two for your refund.  This will help to defer these extra costs.

Also, always look for coupons in the newspaper or specials that tax companies normally run.

I used CPA last month and got refund in 9 days on e-file. My account service charge just for tax service on one fee. CPA had form and I must comfurm my bank account and e-mail. This form goes to CPA file while the electricon file goes to IRS. It took three days to comfirm and another 5 days for direct depot  to my bank. I had used my CPA over five years and no trouble whatsoever.

Therefor, stay from national tax service. If you need cash, you just have to wait.  Try using CPA or intown tax service (business run all year round) with also do payroll service. (payroll service do keep track on employment business account).

Most nation tax service peoples have no background college math degree.

Almost all CPA and local tax service (with payroll service) have CPA degree from college.

I'll never understand why someone would pay $300 for a Rapid Refund anyways.  It takes EIGHT days to get a refund from the IRS when you E-file.  E-file is FREE.   Why not just wait the 8 days, for heaven's sake.

I read your report and have nothing but sympathy for what transpired.  They charge you (tax services) this money but fail to bother to tell you that you are really paying for a loan.  When the loan doesn't go through they say you don't qualify and you are out the money you pay.

I hope you are able to get this all straightened out through your Better Business Bureau because I am quite sure a company l ike Jackson....wouldn't dare risk their reputation over $300.

I wish your daughter the best and hope she doesn't not give up making them return her all the money she is owed.