I need help with taxes too

[Broken Arrow]

I need some input on this one....

My ex and I are in talks right now as to how to file the taxes.

We spent the last year living separately. We had a house together, but she lived there for the first 5 months while I lived at my mother's place. After that, she decided to move out, and I moved back in to clean the house and get it ready for sale. I lived there for the next 3 months after that, before we finally sold it. We had the house for about 5 years total.

She had also been a freelance technical writer for some unknown period of time before she got a job working full-time some time last year. We've also agreed that she would claim the kids and as the head of household.

Our divorce wasn't finalized until early January.

If there are any questions, please let me know. So, what do you think of this? Should be go to H&R Block and consult someone, or is this something that we can do on our own through TurboTax? And, how should we file it?

[Scanner]

I'm a business owner and know a little about taxes or two and I would advise retaining accountant for the years you are going through a divorce. I know - another expense but your question is complex and you don't want to make a mistake.

[sweeps]

BA, I agree with Scanner on this one. At least for this one year, I'd hire an accountant.

[Broken Arrow]

Actually, that's what I wanted to do as well (going to H&R Block), but my ex wants to do it online through TurboTax. I think she also wants to file jointly to save money, but I suggested that we should file "married, file separately" instead.

I intentionally left out our preferences in the first post.

[PrincessPerky]

why do you want to file seperatly?

I am lazy and jointly is well easier I think, but you must have a reason for not wanting to do it that way?

[Broken Arrow]

Well, that's part of my set of questions. Should I go ahead and file jointly, or should I file "married, filing separate"?

Part of my concern-- and I admit that I could be all wrong about this. If so, please let me know. -- is that I honestly don't know what she has done, financially, the past year. All I know is that she spent most of the year working as a self-employed freelancer. So, in a way, I don't want to be partly responsible for whatever financial consequences that may come from having it done jointly.

But I guess that's why I am asking, to see which way to file is better, and if there are any specifics that I should be aware of?

[LivingAlmostLarge]

Broken Arrow not to bash H and R block, but you know those are NOT professional accountants? They pay $99 and take a course on taxes which if they pass with 95% they are able to do you taxes? If I were you I would go ahead and get a CPA to do your taxes.

If you are going to pay $100 to H and R block, might as well spent a couple hundred more to get it done by someone who knows the tax law more in depth. Get referrals or references to find someone.

[PrincessPerky]

Ah now I get it, hmm......

If you really have no clue what she has done, Then it makes sense and I would go with seperate, and tell her your lawyer said it was so or something (oh your financial advisor said so! .)

Unless you have a way of looking at her finances/records in advance to see what she has done? not sure how though.

If she gives you trouble....

Umm can you go file without her? do you need her to file? (I never looked at filing anyway but boring) not that I recomend being sneaky, but if you tell her your plans and offer to maybe pay her part this year, since you are the one wanting seperate (only if you have the loot and don't mind) maybe you can go ahead and do it after you tell her and sweetly point her to HR block for her turn with your Gift card to pay? (if they don't have one availible try a visa prepaid card thing for the cost?)

At this point I don't think it is about frugal filing? more like get it all done quick and safe....next year you can do it all yourself online and simple....well except for January..K ,maybe two years of hassle?

Course Ihope you get a real finance tax person to tell you if you would be responsible regardless.......dunno how legally married works in that situation....

[scfr]

BA: Are you sure that your Divorce Agreement doesn't spell out how your taxes are to be filed? If you're not sure, you may want to pull those papers out and look them over. [I've known people who have divorced and HAD to file a certain way because of what their divorce agreement says.] If it's covered in your DA, then at least you'll know what you need to do and won't have to worry about it any more.

I concur with the others that if you decide to hire a professional, H&R Block is not necessarily the way to go, unless you can get someone in their office who is a real tax pro, such as a registered agent with the IRS. [The owner of the H&R office may be qualified to handle your taxes, but a mere seasonal employee may not.]

[Broken Arrow]

LAL:
You are right of course. H&R Block won't cut it. Of course, you're talking about an ex who wants it filed jointly through turbotax.com, so... I doubt she'd go along with a CPA for a lot more money.... H&R Block was sort of a compromise, but I see your point that it's not a good one.

PrincessPerky:
My ex said that we'll have to look at each other's statements regardless of how we file it. She's right, but it's not so much as her looking at my statements that bothers me. It's the fact that she wants to file this one herself that bothers me. However, I tired of arguing with her, so... I haven't said anything about that yet.

scfr:
Unfortunately, it does not. I wish I had thought of it though... but... didn't.

[sweeps]

Perhaps off-topic, but if you do file jointly to save money and your ex tries to pull a fast one on her income, you can be eligible for innocent spouse relief.

[Snoopy2645]

I would file seperate just my opinion I know someone who filed with his ex & she took the whole refund & paid a divorce lawyer she hired to take him for all he was worth. He was very very upset. I just believe in protecting myself & in the middle of a divorce you never know what one might do.

[Broken Arrow]

Thank you Snoopy! That's exactly why I'm reluctant to have her file it.

Sweeps:
That's amazing! And who says the government doesn't have all the answers?

[Ima saver]

I would file seperately also. I have had good luck with H and R Block, I ask for the owner. When we had a business I used a CPA. He did a terrible job and took forever. I had to go to another CPA and he did not do it right either.

[MonkeyMama]

Originally Posted by Broken Arrow

Thank you Snoopy! That's exactly why I'm reluctant to file it with her.

Sweeps:
That's amazing! And who says the government doesn't have all the answers?

I would file separate. GOOD LUCK proving innocent spouse relief...

If you are wary, file separate for piece of mind.

Ask your lawyer for a good CPA recommendation.

[scfr]

A bit of additional info on H&R: As Ima mentioned, she asks for the owner of the office (franchise). Very good idea! The owner may well be very qualified. When I took a course at H&R (to learn more about taxes back when my husband was planning to start his own business), the owner of the office (who taught the course) was a registered agent with the IRS. As I understand it, that means he is sort-of a cross between a tax accountant and an attorney. I would think someone like him would be qualified to do your taxes. But someone like me (I was offered a seasonal job but declined) would most definitely NOT be qualified to do your taxes.

So, if H&R is the compromise your ex is willing to go with, maybe you could agree but ONLY if the owner of the office is qualified and agrees to do your return?

[sweeps]

Originally Posted by MonkeyMama

Ask your lawyer for a good CPA recommendation.

Not to pick on you, MM, but I hear that advice occasionally: Ask your XXX for a recommendation of a good attorney or ask your attorney for a good XXX recommendation. I personally don't want to take any chance that my attorney is in cahoots with my other professional advisors, whether it be a financial advisor, accountant, realtor, mortgage broker, doctor or whoever it may be. I want to make sure my attorney is as objective and unbiased about the other person (and vice versa) as I am.

[MonkeyMama]

Perhaps. But on the flip side if you have a good quality lawyer, there aren't in cahoots with anyone and can recommend a good quality CPA. A good quality CPA (or any good quality professional) is not in cahoots with anyone. & so it goes.

I assumed BA trusted his lawyer and if so he would have a good CPA recommendation. He may perhaps be in cahoots with a CPA and in that case I would steer clear of both - LOL.

I do see your point. It depends, is good to ask questions. Since his attorney did not already so obviously see he may need tax help I assume he is not in cahoots with anyone. I would not pick a CPA without a good qquality reference - there are a lot of bad seeds unfortunately. So I think starting with a trusted professional is a good place to start. But you bring a good point to never pick a professional on blind faith. I would be objective and skeptical all the same - whoever is recommended by whom.

[sweeps]

Yeah, "cahoots" may be kinda strong. But there's definitely the possibility of a conflict of interest since there's a good chance the 2 people are friends and/or have aligned business interests.

This is the same reason one should never rely on a realtor's recommendation for a real estate attorney. You want the attorney questioning everything that the realtor is doing, and vice versa.

[tinapbeana]

Originally Posted by sweeps

This is the same reason one should never rely on a realtor's recommendation for a real estate attorney. You want the attorney questioning everything that the realtor is doing, and vice versa.

well, i wouldn't rely on it, but it never hurts to ask. when we bought our house, the sellers had already been using an attorney when a previous contract fell through. the used him b/c his office was in the same shopping plaza as their store.

we decided to look him up, and turns out it was someone DH had known all through high school, the father of one of his friends. the friend was even working in the office!