Who does your taxes? - Page 2

jodi · #21 (**permalink**) 12-08-2006, 08:41 PM

I used to do them myself with pen and paper. The first year that I sold real estate I went to our credit union. Every year since, I have used Turbo Tax and did them myself. I do them for my brother-in-law too, and might even do my MIL's this year. I kind of like it

puck36 · #22 (**permalink**) 12-08-2006, 08:49 PM

I do my own taxes because it is free and I have no state tax (SD).

MonkeyMama · #23 (**permalink**) 12-09-2006, 07:45 AM

Quote:

Originally Posted by creditcardfree

I used various tax software in the past. My father in law was a CPA and he did our taxes a couple of years, but then he would file extensions for us because he was so busy to get to us. That's when I started using the software and his past returns to get similar deductions. He has since passed away and I may have to resort to a CPA this years because of moving to a new state and selling our house, but I may see what I can do on my own first.

Oh, I love e-file. Quick refunds!!

If your gain is less than the exemption ($250k single/$500k married), and you qualify (2-year rule) you don't have to report your home sale on your taxes. I Would keep a calculation & paperwork in your files though, to back up you were under exemption. But you are right, switching states is UGLY. Good Luck. That is the other time you may need to see a CPA. But Turbo Tax can take care of that too if you don't have much earnings beyond wages/investment portfolios. Good Luck.

Everyone is leaving CA and I am SO SICK of multi-state returns. Blech. I have one client who keeps moving back and forth between CA & NY, and I just can't take another year of this - hehe. SO help me if he moved again!

Oh my gosh, I do LOVE e-file.

JBinKC · #24 (**permalink**) 12-09-2006, 07:55 AM

I have always done my own tax returns and still do a few for some friends some who own businesses. I used to even do my father's return by hand which took roughly 100 hours to complete because I had to do a business sale and a bunch of passive investments and had to do all of the alt min calculations by hand. Yuck! I knew I saved him a fortune when I did it but it wasn't an easy task.

creditcardfree · #25 (**permalink**) 12-09-2006, 08:26 AM

Quote:

Originally Posted by MonkeyMama

If your gain is less than the exemption ($250k single/$500k married), and you qualify (2-year rule) you don't have to report your home sale on your taxes. I Would keep a calculation & paperwork in your files though, to back up you were under exemption. But you are right, switching states is UGLY. Good Luck. That is the other time you may need to see a CPA. But Turbo Tax can take care of that too if you don't have much earnings beyond wages/investment portfolios. Good Luck.

Everyone is leaving CA and I am SO SICK of multi-state returns. Blech. I have one client who keeps moving back and forth between CA & NY, and I just can't take another year of this - hehe. SO help me if he moved again!

Oh my gosh, I do LOVE e-file.

Yes we will qualify for the exemption. I just don't know much about that part of the tax return...which form, ect. I'm sure TurboTax will walk us through most of it. And I will teach myself when I get there. I think it really is the two state return that will be the hardest. I remember trying to help my sister one year with a interstate move and it was a bit complicated, but we did get it done.

vsjhoc · #26 (**permalink**) 12-09-2006, 10:21 AM

Quote:

Originally Posted by MonkeyMama

OF course if you have more complicated issues I would recommend a CPA. Whatever the fees would be worth saving you taxes now and headaches down the road. I See a lot of people crossing the line on the penny=wise pound-foolish thing when it comes to small businesses. They don't realize how helpful a CPA could be. Most of the time we save these people more money than we charge.

I agree. I was a Turbo Taxer until I started my own business. I don't have the time or interest in learning about how to depreciate assets, etc. My accountant also told me about a discount on computers and peripherals I could get through my professional association. The money I saved on the computer made the accountant's fee worthwhile. And the tax preparation fee I paid is deductible in the next tax year. Priceless.

MarianneJ · #27 (**permalink**) 12-09-2006, 10:26 AM

My husband is no longer self-employed this year so it is back to good ol' paper and pencil for us as well! I am thrilled as I actually enjoy doing our taxes myself.

zabbkoff · #28 (**permalink**) 12-10-2006, 11:07 PM

It sounds like we should definitely go to a CPA this year since we moved mid-year. Maybe next time I'll try one of the before mentioned tax programs. I'll see how complicated this years seems to be.

Another question, I was reading about the new potential tax breaks at this link and was mainly curious about the "State & Local Sales Tax Deduction." It sounds like you might have the option of deducting your local sales tax from your taxes. Does that mean that you'd have to keep every receipt from the year and add up the amount of tax you paid for products. I'd have hundreds of receipts! Or am I reading this wrong? I just can't see going to a CPA with a bucket o' receipts and having this poor person sit there and add them for hours.... or I suppose I could add them up before hand. Either way, it just sounds odd.

JBinKC · #29 (**permalink**) 12-11-2006, 03:37 AM

Quote:

Originally Posted by zabbkoff

It sounds like we should definitely go to a CPA this year since we moved mid-year. Maybe next time I'll try one of the before mentioned tax programs. I'll see how complicated this years seems to be.

Another question, I was reading about the new potential tax breaks at this link and was mainly curious about the "State & Local Sales Tax Deduction." It sounds like you might have the option of deducting your local sales tax from your taxes. Does that mean that you'd have to keep every receipt from the year and add up the amount of tax you paid for products. I'd have hundreds of receipts! Or am I reading this wrong? I just can't see going to a CPA with a bucket o' receipts and having this poor person sit there and add them for hours.... or I suppose I could add them up before hand. Either way, it just sounds odd.

Regarding the state sales tax deduction: You have an option to take your state income taxes or a figure predetermined by a table provided by the IRS per the state you live in. Not both. In the old days when any state tax deduction was allowable you would save the receipt.

Regarding using a tax program: I have seen plenty of mistakes mainly from people who has pertenent information from a prior year return and they fail to carry over the important data to the current year's return.

mom-from-missouri · #30 (**permalink**) 12-11-2006, 08:43 AM

Normally I do, with Turbo Tax. But this year, I am going to do it, then we are going to have a CPA do it. I just got married this year and we combined households, have 2 in college. and this is a farm. I want to make sure I don't miss anything. I haven't done kids in college or farm expenses-deductions before. Plus, the rules of what you can & can't count when you move and rent a house are confusing also. But, after he does it for this year, I will go back to doing it again myself in the future.

LivingAlmostLarge · #31 (**permalink**) 12-11-2006, 11:51 AM

Can I comment that if you are paying for HR block it's a waste of time. The HR block people who do your taxes have taken a 10 week course and passed, they are not accountants or necessarily have a business background. You're paying them for something can do yourself with turbotax if necessary. I just think it's waste of money to pay someone you could be more educated then, or know more about taxes.

If you are going to have your taxes done, might as well pay and have them done by a real accountant.

JBinKC · #32 (**permalink**) 12-11-2006, 01:14 PM

Quote:

Originally Posted by LivingAlmostLarge

Can I comment that if you are paying for HR block it's a waste of time. The HR block people who do your taxes have taken a 10 week course and passed, they are not accountants or necessarily have a business background. You're paying them for something can do yourself with turbotax if necessary. I just think it's waste of money to pay someone you could be more educated then, or know more about taxes.

If you are going to have your taxes done, might as well pay and have them done by a real accountant.

Agreed H& R block and the other franchised tax services are nothing but earned income credit mills.

Elgin526 · #33 (**permalink**) 12-11-2006, 01:32 PM

Turbo Tax does my taxes! But ours are pretty cut and dried, just two normal jobs and a house with the usual deductions to go with it, plus our charitable deductions. If we were self employeed or had a lot of investment income, that would be differant.

abowers · #34 (**permalink**) 12-11-2006, 02:56 PM

I do it myself! Or I use the free version of TurboTax or whatever online.
The only thing special about mine is deducting undergrad loan interest I've paid.

vishenda · #35 (**permalink**) 12-11-2006, 03:00 PM

I got assistance from NHBS, INc plus my cousin is an accountant there is double checking.

SavedintheCity · #36 (**permalink**) 12-11-2006, 03:58 PM

I was always a pencil and paper filer, but this year I think that I am going to do the TurboTax and efile stuff. I agree with the other posters, most on this site have enough marbles to put together a vanilla 1040. Unless you have exotic deductions, everyone here with some helpful software can do it. If all you have is w-2's, mortgage interest deductions/student loan deductions, and a few stocks you have no need to hire anyone to do it. I also feel that it is an either/or proposition: either you use Turbotax or go to a CPA, NEVER H&R Block. This is a "Where's the customer's yachts" situation.

tabbycat31 · #37 (**permalink**) 12-11-2006, 07:54 PM

I work for H&R BLock so I do them myself (at work)

About the tax course that we have to pass (on top of a month of training). I recently took it and it was as much work as any college course, if not more. Everything in the class was done by hand (pencil and paper) and we had to pass the class wtih an 80 or more in order to work for the company. My next step is trying to combind the course with the computer system.

LivingAlmostLarge · #38 (**permalink**) 12-11-2006, 09:17 PM

I looked over material of the course, because I thought it might be interesting to have such knowledge and stop paying an acccountant. It wasn't too bad, pretty easy to be honest. If you are concerned about finances, then it would be right up anyone's alley.

Snoopy2645 · #39 (**permalink**) 12-11-2006, 10:19 PM

My mommy she does it for free she is also a cpa or something like that she just graduated from college this year & she worked at H&Rblock for years I usually give her a gc though H&R block used to charge us a arm & a leg so for her to do it for free is worth at least $50 or $75 & she wont take our money so we give her a gc it works!!! I am good at math but not accounting & taxes that is way way out of my league!!!

yellow heel · #40 (**permalink**) 12-12-2006, 01:11 AM

I usually go to H&R block. I go for the convinience. I started working in 2000 and have went to same place ever since... more of a habit now. I should do it myself since I think it is straight foward.

I am really looking forward for the tax return this year. I recently got married so i am expecting a large return.