OK folks! Change topic: From 10W-40 to 1040 Federal Income Tax. How do you file yours?

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Guys/Gals and fellow BITOGERS
I have been doing my Federal Income Taxes with the help of a software, either Turbo Tax or HR Block. Over the years I have been using HR Block because I can buy the software for $20.00 + at eBay.
The process I have been doing is printing the 1040 form and mail it to the US Treasury. The reason, I don't do online filing is the fear of someone might intercept my tax file such as, bank account info, SS# and tax payment.

My Questions Are:
1) What software do you use? Is it free? Or do you hire a Tax Pro Accountant to file it for you?
2) If you do yours, do you file it via mail-in or online filing?
3) Any thoughts to add?

Thank you ----
 
H&R block or turbo tax.
Cost depends on your forms.
Free if simple and under a certain $ amount
 
My wife is doing ours this year. I've done ours, and we've used a independent tax service, but the tax service made us fill out a lengthy drop off form which made us question why would we use you if we need to fill out a form for you to do our taxes? The scary part is a tax service might figure it out better than we can and we could overpay.

My wife earns more than double than me and has business travel expenses.
And we bought an investment property last year which my elder brother is working on to flip. We do make quarterly estimated payments.
 
Filed with Turbo Tax this year. Not cheap though. Cost me about $80 after the $10 AMEX discount.
 
Wife handles it, she enjoys it. Actually this year she has stopped doing balancing the books at one non-profit and is now starting to do so at our church (not sure all of the details), so it’s not a mystery to her. She’ll fill out the forms both ways, see if one is cheaper than the other, then files that.
 
It is downright foolish to send a paper return to the IRS. First of all, there is getting it there. Then the way the IRS handles them. Then the amount of the time they lose them. Then the delays. E-filing is very safe, in the years I have been e-filing for clients I have never seen a problem with data security.

It is also foolish to attempt to prepare a tax return by hand. Too many complex tax laws and regulations make it too easy to miss something important. If you are not going to use a tax professional (BTW, Jackson Hewitt and Liberty do NOT count as tax professionals), use tax software.
 
Our tax system isnt quite the same as USA.

We have all the same choices through efile, Turbtax, H&R Block, etc.

I have been filing with the paper forms for many years.

It isn't hard to do when you don't have much that can be claimed, & filing as single income household.
I use the previous years form for guidance.

Using 2021 income:

I end up paying about 21% of my gross income to income tax deductions in the end after including my return.

On my T4 they have deducted 23.4% from my gross income.
I pay about 6.4% of my gross salary directly into a RPP (Retirement Pension Plan) and max out on Canada Pension Plan which was $3166.45, and $889.54 deducted to Employment Insurance.
These deductions are not included in the 23% income tax that is deducted from my weekly earnings.

I also purchased $622 into my own RRSP plan to max out what I am able to contribute.

Last year I was able to claim some home renovations (new Garage construction) and received an additional $1155 back on my return.
 
It is downright foolish to send a paper return to the IRS. First of all, there is getting it there. Then the way the IRS handles them. Then the amount of the time they lose them. Then the delays. E-filing is very safe, in the years I have been e-filing for clients I have never seen a problem with data security.

It is also foolish to attempt to prepare a tax return by hand. Too many complex tax laws and regulations make it too easy to miss something important. If you are not going to use a tax professional (BTW, Jackson Hewitt and Liberty do NOT count as tax professionals), use tax software.
I used to do them by hand, it did help me familiarize myself with the deductions available, and some of the laws.

But now, i agree. No good reason to do that.

1. It could get lost in the mail.

2. It could get intercepted in the mail by someone you don't want it in the hands of.

3. I will take longer to process.

4. You will be relying on someone else to key in what you did. Even if you did it correct, a data field entry error by someone else could be a big problem for you to sort out.

5. Its faster to do software.
 
1) What software do you use? Is it free? Or do you hire a Tax Pro Accountant to file it for you?
  • 10 out of the last 12 years: Turbo Tax. This year it was $44 from COSTCO
  • Twice tried free versions provided by the Army and TT; Did not like them
2) If you do yours, do you file it via mail-in or online filing?
  • TT usually included one e-file; I use that then print & mail my state and the kids (I made them file from the time they were teenagers and made only a few bucks baby-sitting etc.)
3) Any thoughts to add?
  • This year, I'm kinda upset; $44 for TT from COSTCO; uploaded and Turbo-Tax 2022 will not open/run because my MAC is 10 years old and too old to run the latest IOS (I'm able to run Catalina 10.15.7 (Less than a year old). Have to use on-line version this year: $35 (Plus filing fees If I elect). (Not going to drop ~$1,300+ on a new MAC until I absolutely have to
  • There probably is something better than TT, but I am resistant to change and like to have consistency. Biggest gripe was confusion with student loan, parent+, College expense and multi-state stuff. Also a few things I could have deducted, I don't think were proper. Have to save a separate .pdf version when done otherwise you only have their proprietary version
  • Did not feel the need to use software until things got more complicated like homeownership, military stuff and multiple states
  • One year I got a bunch of sequential rejections (By the IRS) related to college expenditures/credits/loans for the kids. TT was not helpful; I had to dig into the IRS's on-line forms/guides myself and probably left some money on the table
  • Beware part-time jobs and the spouse that does not fill out withholdings correctly; add that lower income to yours and the % is way off and you end up writing a check :cry: (Honestly, I blame the IRS and employer)
  • I have thoughts about taxes, probably not appropriate here, but taxes should be easier, simpler and much more transparent
 
Free Tax Usa for the federal. Free.
I-file for the state o' Maine. Also Free. Uses info from the fed 1040.
It's not too awful bad. What bugs me most is that I get my W2s by late January but my 1099s, bank and investment stuff later.
 
Guys/Gals and fellow BITOGERS
I have been doing my Federal Income Taxes with the help of a software, either Turbo Tax or HR Block. Over the years I have been using HR Block because I can buy the software for $20.00 + at eBay.
The process I have been doing is printing the 1040 form and mail it to the US Treasury. The reason, I don't do online filing is the fear of someone might intercept my tax file such as, bank account info, SS# and tax payment.

My Questions Are:
1) What software do you use? Is it free? Or do you hire a Tax Pro Accountant to file it for you?
2) If you do yours, do you file it via mail-in or online filing?
3) Any thoughts to add?

Thank you ----
Yes, my thought is the probability of the mailed tax return being intercepted is far far greater than an encrypted electronic tax filing which really is impossible to intercept and decode.
 
Guys/Gals and fellow BITOGERS
I have been doing my Federal Income Taxes with the help of a software, either Turbo Tax or HR Block. Over the years I have been using HR Block because I can buy the software for $20.00 + at eBay.
The process I have been doing is printing the 1040 form and mail it to the US Treasury. The reason, I don't do online filing is the fear of someone might intercept my tax file such as, bank account info, SS# and tax payment.

My Questions Are:
1) What software do you use? Is it free? Or do you hire a Tax Pro Accountant to file it for you?
2) If you do yours, do you file it via mail-in or online filing?
3) Any thoughts to add?

Thank you ----
I use TurboTax because I don't like to file the state income tax anymore. Used to do it all myself, but I,m getting old and starting to make mental mistakes, like thinking January was the month to file the first quarter tax payment
. Now I have five payments to the IRS for 2022 instead of four. We will get the $$ back when I file in February, but I have lent the Feds $$ for two months.
 
I've been E-filing with Turbo tax, Tax Act, Tax Cut, etc..etc. for over 20yrs. Yep. it sucks either which way.
Credit Karma for several years now.
Have you tried it this year? Mine is linking me to Turbo Tax and I'm sure it's not "free" like the software through CK has been in the past.
 
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