Taxes, do you DIY?

[nicknageli]

Very cool, nottoolatetostart.

[Numbers Man]

For anyone who uses TurboTax, this is a reminder that rates will go up on March 22, so you'll want to file before then.

Thanks Serpentstooth. I was going to do my on Saturday but I'll do it tonight. I've been waiting for a form from my HSA but I say fuck it. It's time to do the taxes.

[nottoolatetostart]

For anyone who uses TurboTax, this is a reminder that rates will go up on March 22, so you'll want to file before then.

Thanks Serpentstooth. I was going to do my on Saturday but I'll do it tonight. I've been waiting for a form from my HSA but I say fuck it. It's time to do the taxes.

Thanks, Serpentstooth too, for the PSA. Got everything in TT right now, but just waiting on some paperwork from DH before clicking the final button. Glad to get this off my list for the year!

[nottoolatetostart]

Another thing....not sure if it will work....but try accessing TT through eBates for an additional 7.5% off.

[annann]

Accountant here.  I have used TurboTax since it first came out.  The early years it was iffy--today it is excellent.

I never recommend H&R Block or any of the similar services.  Those folks generally don't know any more about taxes than you do.  My mother used to have them do her taxes until the year she turned 70 and her company cut her a check for the balance in her 401K.  Block said she owed a fair amount of money and she freaked.  She called my sister complaining and sis said to call me (after all I am the only accountant in the family).  All she needed to do was either 5 year average the 401K money or roll it into an IRA. 

My sister once went to them knowing what she did not know.  They could not answer her questions and she was convinced she knew more about her taxes than they did.  She did them herself.

I always buy the BASIC TurboTax which is becoming harder to find each year.  It does everything and I have no idea what they put in the more expensive ones to convince folks they need them.

I used to say I had done every form except Trusts and Farm Income and then the year before my dad passed, I had to do his taxes which included farm income.

All that said.  I really do understand the basics of tax returns and really understand tax planning.  If you don't have some idea of what you are doing, I would only advise DIY if your return is not too complex.  Really understanding the sale of business assets (like your car you use for business and personal) can be daunting.  And my favorite form ever was the installment sale of a business asset.  The numbers were easy, the form was nearly impossible to fill out--with or without a tax program.

[pachnik]

I usually do them myself. 

This year I have some new things to deal with.  I did my taxes myself but didn't send them in.  Just this afternoon, I also took them up the street to an accountant.  I am really curious to see if he comes out with a bigger refund for me and whether or not it was worth it to have a professional do them.  I will post when I see what the result is. 

[nawhite]

I usually do them myself. 

This year I have some new things to deal with.  I did my taxes myself but didn't send them in.  Just this afternoon, I also took them up the street to an accountant.  I am really curious to see if he comes out with a bigger refund for me and whether or not it was worth it to have a professional do them.  I will post when I see what the result is.

You're using an accountant wrong if you expect them to find a bigger refund with the same numbers you used. They'll get a number very similar to what you did and you'll feel ripped off. Pay an accountant so that you can go see them in August and PLAN your taxes for that year. That is where the value is.

[greenmimama]

I did them myself using TaxAct, I am glad they are done, although I guess I wonder…. but not enough to pay to get them done I guess. Once our situation is more complicated, I have no problem paying a professional again, this just happen to be an easy year.

Thanks for all of your advice!

[dan@themadrealworld]

I recommend doing your own taxes with TurboTax.  It also helps a lot if you use some sort of book keeping program to track everything throughout the year.  I have capital gains, interest, rental properties, etc.. TurboTax handles it all easily.  It walks you through every step of the way.

By doing your own taxes you will get a better understanding of filing and learn ways to reduce your taxes in future years. 

[El Limon]

I learned to paper file while working as an IRS volunteer for a few years. It really helps to know the fundamentals of a 1040 and a Schedule A when you're using Turbo Tax or other software. Best thing is to try your taxes on paper, and when you run into questions turn to the instructions book to learn the rules; then compare after Turbo Tax and see what you may have overlooked.


Knowledge is power! Mastering your tax situation will help you make positive decisions throughout the year regarding charitable contributions, tax advantaged investing, filling out your w4 at work, etc.

P.S. Don't listen to people who are saying, "I deduct everything" or "My guy takes care of it for me." They're most likely cheating and don;t even know it.

[TeresaB]

I've done my own taxes for a few years now. (My first couple years of college, my mother did them for me!) Last year I used TaxAct for federal and did the state right off the forms. That was actually the easiest way to do it, as well as the cheapest. (I had a weird tax situation with carryover capital loss from a state that I didn't have to file a return in, so my state income was higher than my federal income. The program pitched a fit about that and wouldn't let me continue. Understandable, but in my case wrong.)

I will never use H&R Block again. They miscategorize scholarship income in a way that is illegal and costs lots of extra money. The IRS has been very clear about how scholarships should be reported. H&R Block is aware of this. They refuse to change it. Because of this, I will never trust them.

I plan to do my own taxes again for 2014. I think it will involve one federal and two state returns. It will be the most complicated return I've ever filed. Wish me luck!