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Yay for tax cat!! I need to get going on getting our paperwork in order so I can make an early appointment with our accountant.
Yay for tax cat!! I need to get going on getting our paperwork in order so I can make an early appointment with our accountant.
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For those that would like professional help without having to pay for it - look into the IRS Volunteer Income Tax Assistance program (VITA). There are sites in your area where a trained volunteer will help you prepare and file your return, and many sites offer speedy e-filing as well. No charge, but only taxpayers making under a certain threshold are eligible. Last year it was in the low 40's, IIRC. Check your local law school, you might find a tax law geek like myself who can prepare your return for free. Call 1-800-829-1040 or check here (new window) for more info.
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@dlynch: Yes! Go to VITA. They're trained and tested by the IRS to prepare returns. And they do free e-filing!
@teh: this is probably true, but there are some problems with this. first is the tried-and-true maxim, \"garbage in, garbage out\". if you aren't aware of all the activity you're undertaking that has tax implications, you won't always enter it into a software package. i realize that they have an \"interview\" process in the beginning of the program, but it is sometimes better to be able to discuss things with a real live person, who can ask followup questions that may bring to light issues the software might miss.
also, lots of folks who used software packages last year had their stimulus payments delayed because of the deduction from their refund to offset the cost of preparation. see this article (pops) for more details.
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I've missed tax cat...
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So is H&R Block OK?
I'm smart enough for the software, I suppose, but to be truthful I'd prefer not to have to screw with it.
@LoganAdams: They have a lot of shady & ethically questionable practices - or at least they did in 2006. Perhaps they've reformed? Last I heard, their 'instant refund' program was the subject of a lawsuit by CA because of extremely high interest rates on the 'refund' which was actually a loan you get from H&R block, and they get your IRS refund.
I get very, very growly when I see their commercials on tv. Instant refund = Refund anticipation loan = payday loan = not a good idea.
Also, they weren't able to calculate their own taxes properly - embarrassing.
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@LoganAdams: If you can use the software, do so. Paid tax preparation, for most people, is a ripoff - and H&R will charge you WAY more than what you should pay.
@LoganAdams: Last year was my first full year as a freelancer and I went to H&R... This is after a few years of using TurboTax. I could not believe that all this guy did was use the same frickin program that I could of used for 30 bucks on their site. The guys profile when I booked the appointment said he was a 12 year H&R veteran... the guy actually advised me not to even file 12k of my income and said \"Well, if they find out, all they will do is send you a bill\". I opted to be truthful and just setup a payment program with the IRS. All in all it cost me almost 400 bucks and it was an expensive lesson. for that money (or a little more) I would much rather get a real CPA who I can use throughout the year on other financial matters. If you do still want to use H&R, just use their online program. I sh*t you not its the exact same thing as what they use in person.
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@Chongo: I'll confirm that - the program they use is more or less the exact same program as TaxCut, with a less dumbed down interface.
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@LoganAdams: H&R Block's software (TaxCut) is ridiculously easy. I've used it 6 years in a row.
I tried TurboTax, but didn't care for it. It missed a bunch of stuff (especially on my state return), so I deleted it and started from scratch with TaxCut. It's far from perfect, but much better than doing it longhand. And unless you're a small company, it's great to learn how everything ties together. I'd highly recommend DIY. Usually they have a guarantee, so if you change your mind, you can get your money back.
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tax cat iz not availavel 4 prepearing ur taxez
tax cat onli consultz
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What are Tax Cat's hourly rates? I'm willing to pay in Tender Vittles and Friskies.
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You should put some tips up on what 18 year olds need to know about taxes. I have no idea if I need to file taxes, or if my parents still need to do it filing me as a dependent.
This stuff is so confusing.
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@Suttin: Check out the first few pages of the 1040 instructions. You can download them online at irs.gov. One of the first things they address in the instructions is \"do I have to file?\"
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@Suttin: Basically, you need to file if you have substantial income of any kind or could benefit significantly from various tax credits. I think there is some really low threshold for income below which you don't have to file, but you generally should as you'll probably not pay many taxes anyway and might get a refund if you were overwithheld.
@Suttin: Well step one should be asking you parents if they plan on claiming you as a dependent for 2008. They will likely be doing that if you were still in school.
This is important as my sister learned. Filing taxes for the year she graduated college, she claimed herself. So did my parents. My sister got audited as a result.
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I've used TurboTax the last few years and don't have a complaint with the way the program works I DO have an issue with the price increase and the fact that they don't tell you up front how much it'll cost to file online.
I'm considering using Tax Act or the H&R Block software; I don't have a lot of odd things; just a MCC certificate and that should be standard.
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So.... any preferences between Turbotax and TaxCut?
@NotChoinski: I'm Taxcut all the way. See my post above--TurboTax had one shot with me, and I wasted several hours just to have it miss a bunch of stuff. Taxcut did the same return smoothly, all the way through. YMMV depending on complexity of your situation, your state return, etc.
@Ash78: My situation; Own 1 home, refinanced twice this year, purchased stock but did not sell it. Also, I'm in a legal same-sex marraige so I'm required to file jointly by state and forbidden to file jointly Federally. (We use a Preparer familiar with this new, uncertain aspect of tax law but from his perspective he's filing three versions of our taxes, and the fees have risen considerably)
@NotChoinski: I have used both in the past, I liked TurboTax better. Unfortunately with a house/kid/investments/whatever, I have to spend the money on a CPA :(
I've been using the www.irs.gov site to find free-filers. lol. I can always find one that will help me do the federal taxes, which are the big money for me. I don't usually bother with State, because it would cost me ~30 to file, and I'd get back about ~35....
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Avoid H&R Block. If you're going to go there, why not just get ready to call the people who can get the IRS to settle for pennies on the dollar.
Try to find someone local who has been there for a while, and see if anyone you know has used them before.
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doesnt the irs have free sites to e-file online?
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Doesn't the IRS have a program where if you make less than X amount a year you can file your federal return for free?
I know I used it in grad school, but once I got a job I made too much money for the program, grrr...
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You should also check out your local senior center. They usually have tax preparers that do all the paperwork for free. You just need to bring all your paperwork - W2's, etc.
Of course, when I went last year I left them a nice tip, but it's sure cheaper than getting them professionally done.
@rkaufman: @dlynch: As dlynch points out, yes it probably was an IRS VITA site, which means that accountants volunteer themselves to help those of low to moderate income (I believe that means < 40K / year) to prepare their taxes.
As for the \"compensation\" that he may not have been entitled to, I felt he deserved it, mainly for 2 reasons. First, he saved me a lot of time, money, and hassle trying to do the taxes on my own or having to pay another overpriced accountant to do it for me. And second, I think that if politicians can receive kickbacks (in the hundreds or thousands of dollars) from lobbyists in order to sway the vote one way or the other (which as public servants they should be even less entitled to), I don't see the harm in giving a few extra dollars to a volunteer accountant.
@rkaufman: this was almost certainly an IRS VITA site, and preparers are forbidden to accept tips or any other form of compensation.
Taxact has been really good for me. Its free if you just file federal like us Tennesseans must do.
@spoco: I liked Taxact too. Used it free through the IRS site. It handled student loan interest deduction & tuition reimbursement very well.
It cost $$ (nothing exhorbitant) to file PA state taxes, but it turns out you can do that on the PA tax site for free.
Random thoughts...
Avoid - The cat is probably more qualified than Jackson Hewett franchise people.
Avoid - H&R Block is just hard-core upsell now - an IRS audit would be more pleasant than paying them to upsell you financial products while they do your taxes
Avoid - online services where you type in all your intimate personal information and it's stored on someone else's web site.
@Trencher93: Not all Jackson Hewitt franchisees are idiots... The franchise I work part time for has had the same staff for 6+ years (how long I've worked for them) and we generally only add 1-2 new people every year. We have 2 CPAs on staff, as well as 5 EAs, and most of the rest of us are working on either a CPA or EA (or working on becoming a tax attorney, like myself).
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It should also be noted that you should work with someone that specializes in your profession. There are a lot of different things you can deduct if you work in different fields. If you work in entertainment, you can write off DVD purchases, cable bills, movie tickets, etc etc etc. But you need someone that knows what you can and can't do.
Secret: Do your own taxes. Unless you have some super complicated tax return --which, I highly doubt. Even if you make a mistake, the IRS will send you a letter and say you either owe more or they will send you a check if you overpaid. If you take the 1040 tax booklet and go line by line, you will find that doing taxes is rather easy.
I advise to use H&R only if you have no other option. I spend over 200 bucks there one year and I didn't have anything complicated. I had a mortgage, one full time job and a wife. That's pretty much it. The year after that I used TurboTax and it was easy and only cost something like 30 or so bucks.
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@Gokuhouse: H&R is a dangerous rip off. There charge you by the form and file as many as they can, including things that the government doesn't even want or require. I've seen too many people get charged way too much for simple returns and some weren't even done right. Stick with local CPA firms and don't just go to the cheapest. You may pay a little more but at least you can plan your taxes year round instead of relying on seasonal help or boxes.
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A nice military perk is that you can have your taxes done free at any on-post tax center. You can also go through militaryonesource.com and they have a link to file your taxes free with H&R Block's online tax filing. I like to use the online service myself - I'm not really a people person.
the advantage of H&R block is they offer refund anticipation loans so you can get your money really fast if you need to.
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Please don't forget about itsdeductible.com! It's free to use, and can help you value your donations, even junk you gave to charity has surprising value. That bag of old clothes? Worth about $200 or more potentially. There is a TurboTax pitch for services, but you can just print out the forms FOR FREE.
Is it me or does that cat looked ticked? His claws look ready to swipe.
A few facts:
My tax firm gets 40% of it's new business from people getting audited complements of the tax software messing something up. Taxcut is extremely bad at handling stocks. Turbotax? Anything involving any schedule.
The next 40% is from the chain companies. Did you know that the typical front office person is the bottom 20% of the classes the previous year?
The remaining 20%? CPAs and Tax Attorneys. Yes. that's right. Why? CPAs are Accountants, not tax professionals. While they handle some taxes, their primary business is accounting. Tax Attorneys specialize in law, not math. They know how to fight the IRS in tax court, not in filling out forms.
If you can't figure out your taxes with the calculator in your cell phone, go see a professional. I suggest any EA or unenrolled preparer that subscribes to NATP. The money you spend is well worth it. http://www.taxprofessionals.com/
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How about \"Do you actually need a tax preparer?\" Most people can do just as well (or better) with one of the readily available software packages.
@teh: Hell, most people can do it *without* a software package. Really, it's easy. And there are simple tax tables and worksheets provided.
@teh: hooray for posting my reply in the wrong spot! oh well.
@teh: this is probably true, but there are some problems with this. first is the tried-and-true maxim, \"garbage in, garbage out\". if you aren't aware of all the activity you're undertaking that has tax implications, you won't always enter it into a software package. i realize that they have an \"interview\" process in the beginning of the program, but it is sometimes better to be able to discuss things with a real live person, who can ask followup questions that may bring to light issues the software might miss.
also, lots of folks who used software packages last year had their stimulus payments delayed because of the deduction from their refund to offset the cost of preparation. see this article (pops) for more details.
@teh:
+1000
People can do this on their own. I managed it the year I had to file in 3 different states and figure out how to handle dealing with mortgage interest with someone I'm not married to. It was not a fun year, but at least I saved some money by doing it myself with TurboTax.