Income Taxes: Turbo Tax - H&R Block - File Your Own?

[coldsteelva]

I've used TT for a number of years but never experienced the W2 auto populate. Is there a setting for that to occur?

It is specific not only to the employer, but also the payroll processor (ADP for example). My wife and I work for 2 different companies, but we were able to take advantage of the ADP import. I was also able to take advantage of the import functionality for my brokerage account (1099-B) and my corporate stock accounts (1099-DIVs).

The 1099-B import from the brokerage is a lifesaver; every sale transaction is reported with the associated short or long term capital gains. To do that manually would take forever.

 

[dfkrug]

The 1099-B import from the brokerage is a lifesaver; every sale transaction is reported with the associated short or long term capital gains. To do that manually would take forever.

I specifically started using MacInTax (acquired by TT) back in '91 to help input Schedule D data for stock sales. I used Excel for that (and still do) and transfer the numbers. I also use it for options sales.

Major brokerages have had electronic import of 1099s into TurboTax for several years now, but they often get basis data wrong. It has improved, but it is not quite there yet, so I continue to enter 1099 data manually.

TT has also handled short sales cap gains fine.

Historically, many pro tax prep companies have not bothered to enter Sched D capital gains into their tax software, choosing to enter just the ST and LT totals and the entry "various". Attached listings of the "various" sales of capital assets was optional. I was never comfortable with that.

 

[orezok]

I turned 75 last week and to the best of my recollection I have done my own taxes since TT first appeared and never have had an IRS inquiry using computer programs.

 

[JasperFrank]

"Gov't: You owes us taxes and its your responsibility to figure out how to pay us. Oh, and if you make a mistake we will fine or jail you, or both. Good luck." - Tradosaurus.

I've done my own taxes for 40 years, and through several businesses that needed somewhat complicated filings. The idea that the IRS is some sort of draconian branch of the government is entirely untrue. I have made mistakes, and the IRS has made mistakes. If you are willing to work with them, they will work with you. You have to be actively attempting to hide income for them to be concerned. Over the 40 years, I only had three filings that were questioned. Two resolved that the IRS sent me an adjustment check, and one, which WAS entirely my fault, I had to pay a 116 dollar penalty for not filing quarterly. And in these three cases, everyone I dealt with on the federal level was very nice, and very professional.

State Taxes are a whole other story. I'm lucky enough to live in Oregon. Almost routinely, my filings were looked over and they said I OVER PAID, and here is your adjustment refund check and the reasons why I was getting a refund. When I lived in Maryland, it was the opposite. That State WAS draconian. You owe this much more, and its up to you to prove us wrong.

 

[duffer]

Ever since the gov't mandated that a custodian of a brokerage acct must include the cost basis for investment transactions, the IRS has the capability to "reconcile" your ST & LT gains (losses) against what the custodian reported to them for the SS number on the acct.

I'm a retired Financial Advisor and Tax strategist, and I have used the Various-ST and Various-LT totals for years, without any problems (assuming that what I reported matches the 1099 numbers provided by the custodian). Saves me a ton of time not having to log each transaction, or even importing it.

 

[oosik]

I just got my report back from my preparer. I will be getting a small refund. Wonders will never cease. First time in I don't know how many years.

 

[ap0915]

Always do my own now. One W2, mortgage interest statement, charitable donations to church. Much simpler than years ago when me and the wife had multiple jobs.

 

[dfkrug]

Ever since the gov't mandated that a custodian of a brokerage acct must include the cost basis for investment transactions, the IRS has the capability to "reconcile" your ST & LT gains (losses) against what the custodian reported to them for the SS number on the acct.

I'm a retired Financial Advisor and Tax strategist, and I have used the Various-ST and Various-LT totals for years, without any problems (assuming that what I reported matches the 1099 numbers provided by the custodian). Saves me a ton of time not having to log each transaction, or even importing it.

Yeah, brokerages are getting better at reporting the cost basis of equities accurately. However, they still have some stocks that come up as "uncovered", and they have not always dealt with splits and return of capital distributions accurately. Options basis reports are improving, but not always right.

If you use "various" to report totals, then you still need to properly account for each transaction outside of your tax software. There can be a lot of them if you own mutual funds, participate in dividend reinvestment plans, or do short sales.

Mutual funds may also make it easier to report LT and ST gains by generating an "average cost basis" for you. That method may not be advantageous, however.

 

[duffer]

If you use "various" to report totals, then you still need to properly account for each transaction outside of your tax software. There can be a lot of them if you own mutual funds, participate in dividend reinvestment plans, or do short sales.

Mutual funds may also make it easier to report LT and ST gains by generating an "average cost basis" for you. That method may not be advantageous, however.

 

[duffer]

You're right, average cost basis is rarely the best way to account for your gains. But the dividend reinvestment cost basis should be (key words: should be) detailed by your custodian. It would be on your statements, and if your custodian is like mine, I can drill down to the day of purchase for every share bot or sold, and it is included in the cost basis on the 1099 after the sale. Perhaps not all custodians do this, even though they're supposed to. I had some major issues with Schwab a long time ago, and their pi$$ poor accounting. Ended up moving the account to another custodian.

Not a fan of mutual funds anymore, ever since ETF's came on strong. Lots of reasons, but to each his own. Sometimes it's the only choice you have, like in a 401k or 403b plan.