Taxes: DIY or CPA

[volk06]

I've always had a tax professional complete my taxes due to being part of the family business with income from it. Upon graduation of college I have no longer been involved with the business. So now to decide since my taxes will be very simple for the most part except tax credits. how many of you have had good results using tax software like turbotax? It only costs 125 for my cpa to do all the work and file. Has anyone done turbotax or another program but did not file and a cpa and compared results?

 

[Rand]

for 125$ have the cpa do it if they are good they will find at last that much you would miss.

 

[volk06]

That's what I was thinking as well. For 125 I should come out better than a free software just due to all the tax codes/ credits. But wanted to see if anyone had compared.

 

[Carbon]

I prefer to do it myself with tax software. I can enter forms as they come in. If you have somebody prepare your taxes, you still have to compile the information. Entering it into the tax software can be done when you like.

If you use tax software, there are some factors. Do you want to use online tax software, or do you want software that runs only on your own computer. I like the kind that runs only on my computer. Backing up is my responsiblity; so with online that would be somebody elses's job.

Consider http://www.taxact.com/ . They offer a nice totally free (for everybody) version for both online and offline version. They make their money when/if you buy the state software. There software is less "interview" oriented than HR Block and TurboTax software. I use TurboTax because it handles some less common things.

There are tax software other offerers who have free offerings for the federal tax if your gross income is below a certain level. There are links on irs.gov.

 

[Stu_Rock]

DIY. Unless you have some exotic income or deductions, it's really not that hard. Before there were some decent FreeFile services, I did it completely by hand.

 

[65cuda]

I've been using Tax Act for a few years now and don't feel like I've been losing money because of it. From what I saw it looked like the tax guy was just also following down the list on the computer like I do with Tax Act. I also knew that if there was a problem that more than likely he wasn't going to admit fault and I would still be on the hook. Unless you have something odd I'd at least try one of the services. I've thought about going to a place to have it figured out and then compare it but never have. Would be interesting if someone would.

 

[tom slick]

If you just graduated from college your taxes probably aren't more complicated than a 1040ez form. It'll take you 15 mins to prepare it.

 

[rjacket]

Although most people will sneer at this, if you choose your HR Block agent carefully, you can get great results with Best of Both. You enter most of the information that you have to collect if you were going to give it to a professional anyway, send them you documents, and then they check and file it for you.

I was paying several hundred dollars to do my return in an office and found it was easier and more accurate to do it using Best of Both.

I actually have an accountancy background. Entering all the information online accurately is easy, the problem is making some sort of interpretation mistake. With best of both, so long as you choose carefully, you have somebody else check your work and then guarantee it and then they are on the hook for fines and representing you in an audit, all for $100 or so. This is good value for money imho.

 

[Rand]

well with college you can deduct interest paid on college loans

also there is some sort of hope grant? that you can take upto 2 times(lifetime) thats something like 1500 tax credit..

I get the friends and family discount at H&R block and its worth it. it went up this year it was 29.99$ the normal would have been about 140$ I dont pull my hair out trying to interpret tax legalese and I know I got the right amount back.

if you are filing 1040ez h&r block will do your federal free this year. then take that and file state online in 5-10min yourself. If they find something where you should file 1040A and get a bunch more back.. well that costs but usually you get much more back if they have to do that.


And I'm not even going into any kind of energy credits homeownership headofhousehold etc EIC etc... blah

 

[zyxelenator]

Used to do it myself when they were easy, now TurboTax for past 3 years. I do pay $60 and file it electronically with direct deposit for both Fed and State. Money comes in 3 times faster.
You can use TurboTax, and than print it out and mail it. But I don't feel like printing 30 pages, driving to post office, paying postage and waiting 3 month for check to come.
P.S got last paper and Filed forms last morning. By the end of day got e-mail that Fed tax is accepted, State pending.

 

[aquariuscsm]

DIY all the way! I`ve always done my own taxes.

 

[daves87rs]

Turbotax!

 

[Shannow]

It's easy down here, as the chief breadwinner of a family of 4.

Go to work, pay tax;
Earn Interest on savings, pay tax;
Get a dividend, pay tax;
sell a share, pay tax...

Dedutions
$150 for cleaning work uniform.
Any charity donations

Pay tax !!!

Most complicated part is whether I have private health insurance...don't have that and pay another 1.5% tax.

 

[The_Jeff]

Originally Posted By: 65cuda
I've been using Tax Act for a few years now and don't feel like I've been losing money because of it. From what I saw it looked like the tax guy was just also following down the list on the computer like I do with Tax Act. I also knew that if there was a problem that more than likely he wasn't going to admit fault and I would still be on the hook. Unless you have something odd I'd at least try one of the services. I've thought about going to a place to have it figured out and then compare it but never have. Would be interesting if someone would.


^ This. The software also found a big refund credit I wouldn't have thought to take. I'm pretty thorough but the gov't is pretty obtuse.

 

[Turk]

DIY with Turbo Tax!

Although & bought & sold a lot of stocks & moved money around, so it'll be some typing this time......

 

[Shannow]

It's been vastly simplified downunder.

Govt provides the e-tax software free of charge...it's also what your accountant will use.

Your employer sends group certificate data of your earnings and taxes paid. Your bank sends details of interest earned (and funds greater than $4,999.99 in a 24 hour period), and your broker sends in details of bought, sold, how long held, and divedends.

It's all there for you when you open up the programme, and give your tax file number and medicare number.

Pretty neat eh ?

 

[Pop_Rivit]

My income comes from a number of difference sources, including two small businesses and several different investments. Add my wife's law firm partnership on top of that and it's much more complicated than I want to get.

We have a CPA/consultant who guides us to minimize our tax exposure, and also does our quarterly and annual taxes. It's well worth a thousand dollars or so per year for the amount of taxes he saves us alone, not to mention the time it takes to do the taxes.

 

[dwcopple]

I've done TaxAct for 4 yrs now. Amazingly easy and great returns. Entered info for this year on Monday. Got married last May so tried married joint. I have a feeling a larger return can be had filing separate with the wife claiming both kids and myself claiming head of household. I think we are gonna use a CPA this year.

 

[01rangerxl]

My taxes are pretty straightforward so I do them myself. I have had good experiences with H&R Block online. They allow you to file for free in many cases (I did, absolutely no charge for the service). The whole process was very quick and hassle free, and my returns were deposited straight to my checking account. It was actually a lot easier than I thought it would be.

 

[demarpaint]

CPA money well spent for me.