I visited Mo’ Money Taxes twice over the weekend. My conclusion is that Mo’ Money is exactly what it claims to be. Mo’ Money costs more money.
Indeed, when I went into the Mo’ Money in a strip mall on one of Raleigh’s outer suburbs, the staff was more than able to give me an estimate. Their estimate was simple and straightforward. Although it was based upon several moving parts (the amount of my refund, the projected cost for the tax prep, and my RAL fees), the preparer seemed both certain and giddy that I’d be better off in short order.
I am not sure why he was so certain. Indeed, all I had done was bring in a pay-stub from August. That was all they told me that I would need when I called on the phone. Maybe he was certain because we were in a real office, and he was using a real computer. He was definitely giddy. He seemed so thrilled to be a part of my sudden fortune.
I could feel the rush. Money was coming my way fast. He made a few mouse clicks, sent a page to his printer, and gave me the good news: Mo’ Money would have a check for me (once I brought in my W-2s) of $2992.85 in no more than 48 hours. It was a bit odd, because this rush of fortune was such a contrast to the placelessness of this office. There were two desks, each with a flat top screen, a few folding chairs, and not much else. There was only one item adorning the wall: an 8 by 11 sheet of paper with a list of tax prep fees. The office had a back room. I could see that there was a half gallon of milk sitting out on a shelf, next to a box of envelopes and some Glade.
He pulled the sheet out of the printer and handed it to me. My one page estimate, which was actually IRS Form 8879 (for IRS E-File Signature Authorization) said that I would get a refund of $3415. The difference, according to my tax preparer, was ‘fees’?”
“Could you break that down for me,” I asked. “Am I getting a loan? Is that part of those ‘fees’?”
“Yes, he said. “It’s all in there.”
Since “it” was not really an answer that satisfied my need for clarity, I had to push back. That was as close as he could come to explaining my cost structure. I wanted more of answer. He called his co-worker over. She knew a bit more about how to operate the computers, and it seemed as if she had some experience. She began to work through some screens. In the silence, my tax prep helper ventured to offer his insight on how I might maximize my situation.
“Let me offer you some advice,” he said. “Don’t file jointly. File on your own. Jointly is costing you a lot.”
He relaxed in his chair, smiled, and leaned toward me, held his hands together wish his thumb and pinkie extended but his other fingers rolled up against his palms. It was sort of a horizontal “hook-em horns” kind of expression.
“That is my advice.”
Indeed, he pointed out that if I filed on my own, claiming my children and leaving my spouse to cover her income without the benefit of any dependents, then I could walk out with $5021.06! Oh yeah! I could hardly wait! I was going to get Mo’ Money!
Then I realized that this would be incredibly wrong.
It was at that moment when his co-worker summoned us back to the computer screen. She had the answers for me, and although neither one knew how to make the printer print this page, she could show me the specific elements of the costs that would be taken out against my refund. It turned out that my fees for tax prep came to $315. The RAL fee would be $103. The RAL came with four parts:
- technology fee ($15)
- e-file fee ($29)
- Bank fee ($32)
- Federal Bank Product Application Fee ($27).
The other costs would be made up by the interest on my RAL.
My intent, I said, was to see where I could get the best deal. Getting price clarity had not been easy. I find it hard to believe that anyone would go to the trouble to find out how much they paid, especially if they were in a room with twenty other people waiting in line for a chance to work with their tax “advisor.” It took me an hour.
“Tell me about your training,” I asked.
“We finished our training on Dec. 27th,” he said. “I had to get it in before school started.”
Turns out my preparer is a first semester student at a local for-profit technology training institute. He has a high school degree, four months at a for-profit school, and some over-the-break training session at Mo’ Money. Gee…if I went to a VITA, couldn’t I get better advice, and for free?
The rest of the cost came from the short-term interest on my loan product. That loan, incidentally, came from Chase.
