topic Re: taxes -- pay or do it myself? in SmorgasBoard

taxes -- pay or do it myself?

moneypenny02 — Tue, 29 Jan 2013 17:39:06 GMT

Hi all,

I typically do the taxes for my husband and myself. I was planning to do it again this year, but was wondering if it was possible that a tax professional may be able to obtain a greater refund than I have been able to. Our tax situation seems pretty uncomplicated -- our income is from jobs with W-2s, and we have some regular savings accounts that have given us interest but no investments or other sources of income. We also do not own a home. We paid a lot of interest on student loans -- but it seems like our incomes are just barely too high to be able to deduct those payments. (Although I am considering filing separately to see how that affects our refund.)

Just curious as to what those who have used a tax professional think the value added may be (and what the cost typically is).

Thanks!

Re: taxes -- pay or do it myself?

QAMngrGirl — Tue, 29 Jan 2013 18:43:12 GMT

Do you file using 1040EZ?

Re: taxes -- pay or do it myself?

moneypenny02 — Tue, 29 Jan 2013 18:48:20 GMT

I typically use an online product. I used turbo tax in the past, but for the last few years I have been using TaxAct.com. I can't remember why I made the switch, but it was likely the cost for state filings (after I checked that the refund amount was the same with both products in my 'switch' year).

Re: taxes -- pay or do it myself?

moneypenny02 — Tue, 05 Feb 2013 01:08:35 GMT

Any insight/opinions from those who have used tax preparers?

Re: taxes -- pay or do it myself?

laz98 — Sun, 10 Feb 2013 03:57:18 GMT

It never hurts to have a CPA look at your taxes. They know what the most current tax regulations are. It's pretty often that they find something you didn't think of, or ask questions about things you overlooked. I guess it just depends on how confident you feel about how you have been doing your taxes.

Re: taxes -- pay or do it myself?

bcdudley — Thu, 21 Feb 2013 21:19:25 GMT

About 3 years ago, I did my taxes on Turbo tax. It said I owed $2500 and I went through every section 4 or 5 times. I then went to H&R and paid them the $150. I wound up getting $1500 back. I have been going back th them every year since without hesitation. My returns have not been that big again, but they always come out better than any online software and I always end up on top. Try it for yourself and see if it is worth it.

I just did my taxes online a few minute ago and was told I owe $241. I am now anxious to see hwo much I will get back.

Re: taxes -- pay or do it myself?

twall06 — Fri, 01 Mar 2013 17:24:30 GMT

I always do mine online. I don't like paying someone for something I can do.

Re: taxes -- pay or do it myself?

moneypenny02 — Fri, 01 Mar 2013 17:29:43 GMT

Thanks for the responses.... I have my completed taxes online, and have still been debating this. Perhaps if I can get in to get them done this weekend, I will jjust pay the $150 and see if I come out any better....If not, at least I will know!

WOAH!

moneypenny02 — Fri, 01 Mar 2013 18:24:34 GMT

WOAH! I just called to make an appointment, and they quoted me $300 or more (depending on the number of forms). I have only W-2s and a few hundred (MAYBE!) in interest income from savings accounts and it is $300 to enter in that much info???? I could probably do a 1040EZ and end up with the same results and they are charging $300???!?!? That sounds excessive (and double what I thought it would be!)

Re: taxes -- pay or do it myself?

twall06 — Fri, 01 Mar 2013 18:57:41 GMT

Yeah when I turned 18 I had them do my taxes cause I didn't know anything they charged 400 I think . Cause I had several jobs and they charge for each piece of paper you bring so a few w2s intrest from student loans and I think intrest on my retirement plan . That was also the least I ever made in a year and some how I had to pay in that year . Maybe I had a 1099 to.

Re: taxes -- pay or do it myself?

Open123 — Sat, 02 Mar 2013 17:04:15 GMT

With the advent of modern tax programs, 99% of the people are much better off doing it themselves.

Just read the rules, apply for all the deductions you qualify for, and keep all receipts and paperwork for three years. CPAs must prepare taxes on the assumption each return will be "audited" fully; while prudent and conservative, this will never yield the best results. In my estimation, the only reason to use a CPA is if you have a very complex tax return with various enterprises (LLCs, C Corps, K2s, and limited partnerships), trusts, and charitable filings, etc...

Short of that, do it yourself. 99% of the people (especially on W2s) will never be audited, if only because there's nothing for you to really legally deduct. The tax code was prepared with the business owner in mind (which is ripe for abuse given all the deductions a business owner is legally allowed), which is also why it's the business owners who will be audited, and not W2s.

90% of people's returns can be done on Turbo Tax within 45 minutes.

Re: taxes -- pay or do it myself?

Simply827 — Sun, 03 Mar 2013 15:22:57 GMT

I know last year H&R Block did simple Federal returns for free for a limited time. Not sure if they had that promo again this year, but you should look into it.

Re: taxes -- pay or do it myself?

Henchman21 — Mon, 04 Mar 2013 04:22:16 GMT

H&R did have free earlier, not sure if they're still offering it. Also, if you go in to Jackson Hewitt and start the process, when they ask about the costs, just say you saw it online for $40. They will call their boss and lower the price by about 50%. They want your business bad enough to cut deals.

I did mine and husbands as MFJ, just like last year. We always have deductions. Take your time and go over everything two or three times and you'll be golden!

Re: taxes -- pay or do it myself?

Simply827 — Wed, 06 Mar 2013 04:23:25 GMT

I saw an old billboard today. H&R Block was only doing freebies until 2/15.

Re: taxes -- pay or do it myself?

VirtualCuriosity — Tue, 19 Mar 2013 23:27:53 GMT

bcdudley wrote:
About 3 years ago, I did my taxes on Turbo tax. It said I owed $2500 and I went through every section 4 or 5 times. I then went to H&R and paid them the $150. I wound up getting $1500 back. I have been going back th them every year since without hesitation. My returns have not been that big again, but they always come out better than any online software and I always end up on top. Try it for yourself and see if it is worth it.

I just did my taxes online a few minute ago and was told I owe $241. I am now anxious to see hwo much I will get back.

And to make it even more confusing, if not already.... I used to use a CPA and one year I didn't like the amount I owed and decided to try a freee copy of Turbo Tax I had and did it myself. Ended up getting a small amount back, but better than paying. I have used Turbo for the past 7 years since.

Re: taxes -- pay or do it myself?

pakman92 — Tue, 19 Mar 2013 23:45:34 GMT

Given your 'uncomplicated' tax situation, if I were you I would do it myself. There aren't too many variables for you w/o investment income, etc. What you want to determine (w/ due dilligence) is whether you should itemize your deductions. This would make sense if you have charitable donations, energy saving home improvments, unre-imbursed business expenses, etc. Don't leave money on the table. Make sure you look into all available tax credits as well. Although if you are phased out of the student loan interest deduction, you may be phased out on many of the tax credits as well. Personally, I think on-line or purchased software packages do a pretty darn good job. I use turbo tax deluxe and my tax situation is much more complicated.

Re: taxes -- pay or do it myself?

MidnightVoice — Wed, 20 Mar 2013 20:57:40 GMT

I use an accountant (his company also does all my retirement stuff). It is less than $600 for state and federal. We do it bacause my wife is freelance, and that makes deductions, depreciation, etc much more complex. Add to that foreign pensions and we need him! Many more forms to fill out than a "simple" situation