Clients Childrens Returns

[Yardley CPA]

Wondering if any of you extend a discount (or pro gratis) for the simple returns of a clients children (dependent children up to 23 yeas old)?  Where there is just a W2 or one 1099 Misc.  Do you extend a courtesy to them or are you charging your "minimum" fee?

I tend to charge a lower fee.  I'd rather ensure the return is completed correctly and that the dependency election is properly determined.

[Jack from Ohio]

I do children's return pro bono if they are full time students.  Otherwise, just like any other new client.  Parents appreciate my small incentive to stay in school.

[jasdlm]

I follow the policy Jack suggested.

[Catherine]

I usually do the kids' returns for a tiny amount (~$20-$30) if they are students.  If they have a history of using a "free" filing service and screwing up the parents' return(s), then I do it for free. In those cases I tell the parents "I will do this for free to avoid a repeat of the problem they caused last year" and the parents are usually very eager to avoid a repeat!

[Lion EA]

So many of the students of clients have multiple states and the trusts set up by grandparents, that my minimum fee is not all that small, but at least a substantial discount from what the parent pays.  Just finished one with H/W 1065, joint 1040, and simple return for high school kid -- no charge for kid's return (and discounts to parents for the multiple returns).  But those college kids, often $100 minimum.  I have college kids that have more state returns than their parents do and K-1s and Schedule D and maybe Schedule C, so I price on a case-by-case basis, maybe a % of their parents' price as a guideline.  I show full price on the invoice and the Family Return Discount.

[Catherine]

21 minutes ago, Lion EA said:

 I show full price on the invoice and the Family Return Discount.

Definitely show full price and discount!  Clients should always know what "full freight" value of your work is.

[Jack from Ohio]

2 hours ago, Catherine said:

Definitely show full price and discount!  Clients should always know what "full freight" value of your work is.

ALWAYS!!  All invoices start with the full boat price.  Discount(s) are then listed below.  Solves many problems in the future...

[ILLMAS]

Same boat as Jack, free to the 1st student, second student return has a fraction of what I usually charge.

[mcb39]

5 hours ago, Jack from Ohio said:

I do children's return pro bono if they are full time students.  Otherwise, just like any other new client.  Parents appreciate my small incentive to stay in school.

Same here.  Students and Active Military are pro bono.  That is if students are dependents of a regular client.

[Terry D EA]

Same here, dependent student returns I do pro-bobo unless the student has all of those documents mentioned earlier. Then there is a small charge. I do show the full load on the invoice as well using the family discount line. It is neat to see how many here are on the same page. Great minds think alike right??? I'm just saying.

[michaelmars]

first year free then a charge. If just a summer w-2 and some interest I charge $50. But with my clientele, some of their kids make more than I do, they pay full boat. Recently had a child borne and by the time she was 2  2mil was in her name. With another 10mil in trust. 

[BulldogTom]

$25 for any child listed as dependent on the parents return.  I started this when I was using Pay Per Return, and it was just to get my cost for the return and the paper and ink back, not to make a profit.  It just never went away and all my clients know what the price is and they don't balk.

Tom
Newark, CA