Author Topic: How hard is it, really, to DIY taxes?  (Read 2389 times)

OzzieandHarriet

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How hard is it, really, to DIY taxes?
« on: February 28, 2019, 02:52:34 PM »
Out of curiosity, I downloaded all the forms and instructions from the IRS for 2018, and it doesn't seem too terribly complicated. We will need, in addition to the 1040, Schedules 1, 4, B, C, and D. No Schedule A because we don't have enough deductions. Also one state return. 

I've used TurboTax several times in the past, but this year there seem to be a lot of glitches with their system, and it's not all that cheap. We do have a tax guy we've used, but I was thinking I might try to run through the process myself. I also went through the TT online version, so I can compare my results with that.

Anyone who has done their 2018 taxes themselves, how did it go? Did you run into problems?
« Last Edit: March 04, 2019, 03:47:49 PM by OzzieandHarriet »

PoutineLover

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Re: How hard is it, really, do DIY taxes?
« Reply #1 on: February 28, 2019, 03:00:03 PM »
I'm in Canada, but I used to always do my taxes on my own on paper. I found it pretty easy, but the most common problems I would have were not having something on hand when I needed it, forgetting to include something and having to go back and re-do it, or not realizing that something did apply to me, so with that in mind, these are my tips:
-set aside a not rushed time
-gather all the relevant documents, including last year's assessment
-do it in pencil until you're sure everything is right, then at the end do it in pen to submit
-go line by line, and if something confuses you, go look it up before continuing
-double check everything before submitting
-keep a copy of everything, somewhere that you won't lose it
Good luck!

mavendrill

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Re: How hard is it, really, do DIY taxes?
« Reply #2 on: February 28, 2019, 03:05:15 PM »
Depends on the state IMO.
Some states are stupid easy, others are all but impossible to deal with.  Federal is always pretty straight forward, but the value of any tax prep software to me is them working with the state.

OzzieandHarriet

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Re: How hard is it, really, do DIY taxes?
« Reply #3 on: February 28, 2019, 03:22:50 PM »
Depends on the state IMO.
Some states are stupid easy, others are all but impossible to deal with.  Federal is always pretty straight forward, but the value of any tax prep software to me is them working with the state.

Our state form (MD) looks fairly simple.

HappyCheerE

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Re: How hard is it, really, do DIY taxes?
« Reply #4 on: February 28, 2019, 05:28:04 PM »
I really prefer DIY on the actual forms. I've tried the automated methods and hated the loss of control. https://www.freefilefillableforms.com is awesome - like paper but does most math for you, carries info over between schedules - and this year our state (MA) has it as well. You can always see how far you get and switch out if you feel overwhelmed. The only issue is you need to be aware of what you're eligible for, like the saver's credit, because nothing will prompt you if you miss it. (But if you do make a mistake you can file a 1040X... I've done that a couple of times and it's not hard either).

ender

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Re: How hard is it, really, do DIY taxes?
« Reply #5 on: February 28, 2019, 07:16:44 PM »
One thing you can do is fill it out online and then not pay to have it auto filed.

Use these numbers as a reference for your paper DIY taxes.

HPstache

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Re: How hard is it, really, do DIY taxes?
« Reply #6 on: February 28, 2019, 07:23:55 PM »
One thing you can do is fill it out online and then not pay to have it auto filed.

Use these numbers as a reference for your paper DIY taxes.

Maybe other online programs / software are different than turbotax, but you cant see your completed for lms with TT until you pay.

ender

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Re: How hard is it, really, do DIY taxes?
« Reply #7 on: February 28, 2019, 07:27:02 PM »
One thing you can do is fill it out online and then not pay to have it auto filed.

Use these numbers as a reference for your paper DIY taxes.

Maybe other online programs / software are different than turbotax, but you cant see your completed for lms with TT until you pay.

You don't need to see the forms, the end number is useful enough for this purpose.

RedwoodDreams

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Re: How hard is it, really, do DIY taxes?
« Reply #8 on: March 02, 2019, 09:52:32 PM »
I use taxact.com and really like it.

Unlike paper forms, you can play around with adding and changing different items to see what your tax outcome is. This has taught me so much about how taxes work in general.

For example, if I max out IRAs for myself and my husband this year, and max out his HSA, how does that change our taxes owed?

For example, if I prepay my property taxes for the following year, does that affect my taxes (so is it worth doing so or not)?

For example, this year it looked like we would earn the EITC, but after I added some test numbers for long term capital gains on some stocks I sold, the EITC refund disappeared from taxact, much to my dismay. This taught me that there's a cap on investment gains for the EITC ($3600 for 2019, I think), and knowing this I'll now be more cautious this year in selling under that cap.

Worth every penny of the $71 I paid this year.

remizidae

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Re: How hard is it, really, do DIY taxes?
« Reply #9 on: March 02, 2019, 10:08:48 PM »
I do Free File Fillable Forms too. Will never go back to paying for tax software. You do have to understand and interrogate every line, or you will miss credits you might be eligible for. For instance, the student loan interest deduction is not on the 1040 itself this year, and the lower tax rate on dividends is not obvious from the 1040 either. But I enjoy mastering this stuff.

Dee18

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Re: How hard is it, really, do DIY taxes?
« Reply #10 on: March 03, 2019, 06:49:08 PM »
I did my own federal taxes on free fillable.  But then I got an ad from Credit Karma that said they had free filing for federal and state.  So I ran my numbers through CK.  Glad I did as I had missed something in the “calculate your tax” step.  CK saved me $400 on the federal. 

DadJokes

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Re: How hard is it, really, do DIY taxes?
« Reply #11 on: March 04, 2019, 08:48:26 AM »
I find the software pretty simple to understand, and I've filed my own taxes I think every year but one in my adult life.

I also happen to be an accountant, so it may come easier to me than others, but I think the free software is generally pretty user friendly. I've used Turbo Tax, Tax Slayer, and freetaxusa.com in the past, and the latter is probably the best bet out of those three to keep filing costs down.

OzzieandHarriet

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Re: How hard is it, really, do DIY taxes?
« Reply #12 on: March 04, 2019, 03:12:43 PM »
To clarify: I meant doing them without using any software, just filling out the forms myself. I used to do it years ago but probably screwed up a bunch of stuff.

robartsd

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Re: How hard is it, really, do DIY taxes?
« Reply #13 on: March 04, 2019, 03:47:39 PM »
My first time filing was as an "independent Carrier Contractor" for the local newspaper (a paper route I did in High School). Taxed as cash based self employment business. It was a bit of a pain to figure out which forms I needed, but once I had figured that out, it was easy enough to fill them out. Everything has seemed pretty easy since then (just W2 and 1099-INT income - I haven't had taxable investment accounts or a real business to make things complicated).

Kwill

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Re: How hard is it, really, to DIY taxes?
« Reply #14 on: March 04, 2019, 03:56:43 PM »
I used to do my US taxes on paper, then switched to software. I had such a bad experience with TaxSlayer with the 2017 taxes, that I'm determined to go back to either paper or the free fillable forms for 2018 taxes. Much of this was because I live and work overseas but still have ties to the US, so my situation isn't typical. I've tried various programs over the years, but a lot of them don't work for my current situation or else charge extra for it.

If you have copies of the final versions of your 2016 and 2017 taxes, that should be helpful to compare when you do your own since you will likely need a similar range of schedules and so forth. I think the instructions are written out more clearly in the IRS documentation than they are in the directions for some of the software packages.

phildonnia

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Re: How hard is it, really, to DIY taxes?
« Reply #15 on: March 10, 2019, 09:30:40 PM »
I've always done my own taxes.  The last two years I've used FreeFileFillableForms.  Unfortunately, even though FFFF has a "Do the Math" button, it doesn't always do the math, especially at critical points like actually calculating your tax.  I've had to supplement it with a few self-created Excel spreadsheets.  For example, the Schedule D Tax Worksheet is essential.  I also lean heavily on TurboTax's forums when I have questions.  (On Quora, you just get a lot of "Consult a Tax Attorney")

Two reasons I don't use TaxAct or TurboTax anymore: 1. I hate trying to figure out where in the "interview" to enter something that I know needs to go on a particular form, and 2. when a number appears on a form I want to know where it came from.  I've found subtle errors in just about every free online tax software I've used, and sometimes it makes it unusable, or gives me a false sense of correctness.  To be fair, these were on some pretty obscure situations.

As to the question, "How hard is it", I would make an analogy to other DIY projects: changing the brake pads on a Camry, or installing a new electrical outlet.  Anyone can do these things, but it is very important that they be done right.  You must read all the instructions, watch all the YouTube videos, and always assume that the Dunning-Kruger effect is in play.

Most importantly, you must understand what you are doing.  You are not adding this, subtracting that, and finding the lesser of these two numbers.  You are actually calculating something that means something.



simonsez

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Re: How hard is it, really, to DIY taxes?
« Reply #16 on: March 11, 2019, 03:57:58 PM »
Totally depends on your situation and what you're comfortable with.  I use FFFF for federal, wait until that gets accepted by IRS and then do state.