Do you do your own taxes or pay someone?

[MooseBucks]

Why pay to have someone mess up your taxes when you can do it yourself?

GAO found significant preparer errors during undercover site visits to 19 randomly selected preparers—a sample which cannot be generalized. Refund errors in the site visits varied from giving the taxpayer $52 less to $3,718 more than the correct refund amount. Only 2 of 19 preparers calculated the correct refund amount.

Paid Tax Return Preparers: In a Limited Study, Preparers Made Significant Errors

[frugal saver]

I've always done my own taxes, on paper, mailed in. Mostly because I'm cheap.

A word about the big preparers: Generally, unless you have something that looks horrible right off the bat, you'll get a first-year preparer, who's making minimum wage. They're trying, but they're not CPA quality.

You can ask if the person is an Enrolled Agent (a step down from CPA) but I don't know if they charge more for you to talk to an EA or not.

[moneybags]

I've always done my own taxes, on paper, mailed in. Mostly because I'm cheap.

A word about the big preparers: Generally, unless you have something that looks horrible right off the bat, you'll get a first-year preparer, who's making minimum wage. They're trying, but they're not CPA quality.

You can ask if the person is an Enrolled Agent (a step down from CPA) but I don't know if they charge more for you to talk to an EA or not.

I suggest finding a small local office that prepares tax returns. Your cost will be cheaper and your service will be more personal.

[feh]

We've never paid somebody to do our taxes.

Used TaxAct for a long time, as the price is very reasonable, but last couple years have used Turbo Tax premier, since Fidelity gives it to us for free.

[YULACU]

I prepare my own taxes.

I participate in the volunteer income tax assistance program each year. They train me how to prepare taxes, so that I can prepare them for low to moderate income families and the elderly. My taxes are fairly simple so the training goes a long way towards helping me prepare my own taxes. They also let me use their software for free to prepare my own taxes because I'm a volunteer.

The tax preparing market isn't highly regulated so there are a lot of fly by night operators who can really screw you over if you're not careful. I've also heard some horror stories about turbotax. I think everyone should consider basic tax knowledge as part of their financial literacy.

[disneysteve]

As I've shared before, my father and uncle had their own accounting firm. My dad did my taxes until his death in 1992. At that point, one of my 2 cousins (my uncle's kids) who took over the firm started doing my taxes and has done them ever since. He is now all but retired and this year will be the very first time I will have an outside professional do them but he is someone we have known for 6 or so years and fully trust.

[~bs]

I prepare my own taxes.

I participate in the volunteer income tax assistance program each year. They train me how to prepare taxes, so that I can prepare them for low to moderate income families and the elderly. My taxes are fairly simple so the training goes a long way towards helping me prepare my own taxes. They also let me use their software for free to prepare my own taxes because I'm a volunteer.

The tax preparing market isn't highly regulated so there are a lot of fly by night operators who can really screw you over if you're not careful. I've also heard some horror stories about turbotax. I think everyone should consider basic tax knowledge as part of their financial literacy.

That is also a really good point. These guys basically set up a temporary shop, file a bunch of return (correct or not), then close up shop after tax season. When the returns get audited for being incorrect, the taxpayer can't locate them, and are left holding the bag.

In my opinion, a 4 year accounting degree from an accredited university should be mandatory requirement to prepare someone else's return as a paid preparer. Easy returns can generally be done by taxpayers themselves. But the bar needs to be set higher if people are trusting a paid preparer with their taxes and financial information.

[frugal saver]

That is also a really good point. These guys basically set up a temporary shop, file a bunch of return (correct or not), then close up shop after tax season. When the returns get audited for being incorrect, the taxpayer can't locate them, and are left holding the bag.

In my opinion, a 4 year accounting degree from an accredited university should be mandatory requirement to prepare someone else's return as a paid preparer. Easy returns can generally be done by taxpayers themselves. But the bar needs to be set higher if people are trusting a paid preparer with their taxes and financial information.

That would imply that people with a 4 year degree would be willing to work for minimum wage--or lower--during tax season.

I know that one major company does this odd "commission" system where you get a guaranteed salary of $2.00 an hour plus a percentage of the returns you do. If more experienced--or pushy--preparers beat you to the customer, you can do a whole shift for $2.00 an hour.

The money in tax preparation is business or corporate taxes, and generally require a CPA.

[Sagalamora]

I prepare my own taxes but my tax profile is really simple, no hassle.

[AJ444]

Use Turbo Tax, with only two W-2's and taxable dividends my return isn't complicated at all.

[scfr]

I use Turbo Tax, Home & Office edition. I suppose our tax return is slightly more complicated than average, but not overwhelming. I completed a tax preparation course ages ago, and I research information on the IRS web site. I find that the tax preparation process is a good time to do a review of our finances and plan some changes.

[Fishindude77]

My situation is way too complicated to do myself; multiple properties, multiple income sources, ownership in a couple businesses, etc. I've got a real good CPA that does a nice job for +/- $500 at year end.

[puck36]

I do my own taxes and this year I used Credit Karma. The best part it is 100% free.

[msomnipotent]

I was thinking of trying Credit Karma this time, too. I'm still debating whether to go pro or not. I really just want advice and to make sure I'm getting everything correctly. I don't mind paying for good advice, but so far all of the advice I have paid for has been wrong. I'm thinking of doing a mock return myself and then comparing it to what they come up with.

[Thrif-t]

I was thinking of trying Credit Karma this time, too. I'm still debating whether to go pro or not. I really just want advice and to make sure I'm getting everything correctly. I don't mind paying for good advice, but so far all of the advice I have paid for has been wrong. I'm thinking of doing a mock return myself and then comparing it to what they come up with.

Yep that's what you need to do! I try to get my sister to do turbo tax. She has NOTHING, a w2 and a little interest. No reason she has to pay what she does to have her taxes done. But she doesn't trust herself, I told her to have her guy do it then do it herself on Turbo tax and compare(you don't pay if you don't submit). If you get the same answer, next year you should feel confident doing it yourself.

Of course I'd do it for her but they don't want me knowing their business.