NEW YORK (FOX5NY.COM) - HENRY stands for High Earning Not Rich Yet. And that's the exact clientele Michael Chen is going after with his new tax-prep website henry.tax.
HENRYs upload their documents and a real certified public accountant prepares their returns. On the front end, Chen says, it should take no more than 10 minutes for a Henry client to enter all of their information.
Meanwhile, on the back end, Henry has CPAs with at least 10 years of experience preparing the returns. Most returns are turned around in two days and are covered by a base return fee of $250.
Henry aims to fill the gap between tax software like Turbo Tax, mass retail shops like H & R Block, and high-end accounting firms.
Chen came up with the idea two years ago and says Trump's new tax plan was a great coincidence for them. He actually thinks the tax changes could benefit New Yorkers, even with the reduced SALT (state and local tax) deductions.
Henry has run analyses on people making $50,000 all the way up to those making $300,000. What they're seeing, on average, even with the deductions going away, is that people will save between $1,000 and $3,000 because the overall tax rates have dropped 2 to 3 percentage points.
Chen is a New York-based CPA with two decades of experience, mostly with high-net-worth clients. He staffed Henry with experienced tax accountants who work from home. Chen says that if you're in the accounting business, you know that during tax season there are always stay-at-home parents who are the most reliable workforce with tremendous experience.
In the unlikely event that any return prepared by a Henry accountant is audited, one of those CPAs will represent you at absolutely no charge. That audit insurance is included in their base fee of $250, which covers most returns.
Chen says if you have 1099s, if you have a home, if you're married or have dependents, you're still covered by the base fee. Those factors do not increase your tax-prep cost.
If you live and work in different states, own your own business, or have complex stock trades, you might pay more, but Henry will let you know upfront as you're entering your information and uploading your documents.