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Susan Tompor: Jackson Hewitt Online launches $25 flat fee; others pitch free

Susan Tompor, Detroit Free Press on

Published in Home and Consumer News

Do-it-yourself types who are looking for a deal for online tax preparation are seeing plenty of promotions.

It's a marketing battle of the free online tax deals among some big names. But you're going to need to review the restrictions and rules to figure out just what deal actually saves you money and what doesn't.

Gig workers or self-employed workers, for example, often don't qualify for free services and can be directed to higher cost online options at places like TurboTax, H&R Block and TaxAct.

Meanwhile, Jackson Hewitt is throwing up its hands, dropping all the "free" offerings and charging one flat rate to everyone in the name of simplicity.

A $25 flat rate

Jackson Hewitt Tax Services is rolling out a $25 flat rate if you do your taxes — federal and state — online. The fee covers both state and federal, and as many state returns as needed. If you need to file multiple state returns, you'd still pay one flat fee.

 

The price is cut nearly in half for many tax filers who file a federal and a state return.

A year ago, Jackson Hewitt charged $25 for federal returns plus another $24 for state returns. The $49 price tag covered as many state returns as necessary.

Given that inflation has many consumers fearing higher prices ahead, Jackson Hewitt Online is promoting a three-year, $25 price lock for all customers who file their 2021 filing with the company.

File this year for $25 and you'd be able to pay $25 at Jackson Hewitt Online and file the 2022 return next year. And you could do the same for $25 when you file the the 2023 return in 2024.

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