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

[TractorTYMe]

I'm married to a CPA, so I've never done taxes........HATE it like the current administration.

 

[Larry Caldwell]

Why do us old folks (over 80), who only make a little money (less than $40,000) have to pay / file taxes? Seems like to me that we should not have to bother with it after all these years of ...Working....Military Service..... and....paying taxes.

Boy,......is that a stupid question!!!
Cheers,
Mike

You got that right. Everybody wants free stuff.

When I was working I used a really good CPA who planned tax reduction strategies for me a year in advance. After we closed out the corporation, we went to TT for a while, until things got complex again. Next year will be the last year at the CPA, unless I have to sell stocks at a loss and can use the loss to offset future earnings. For a simple return with no tax planning, TT is quick and simple. Expert systems are great, but they are stupid.

 

[Larry Caldwell]

I'm lucky since my wife did tax returns for H&R back then so she knows the ins and outs.
She always uses the long forms as they offer more possibilities.
Now retired we have our taxes pre paid so as to avoid that year end shocker.

Now on municipal taxes I wish they'd offer some incentive to those that could pay in one lump sum vs the optional delays. Some delays spread them over 5 installments and charge interest.

My county offers a 5% discount if property taxes are paid in full on the due date, the first week in November. I have my RMDs scheduled for October and write the check.

 

[Alan46]

My county offers a 5% discount if property taxes are paid in full on the due date, the first week in November. I have my RMDs scheduled for October and write the check.

My Oregon county also offers a 5% discount if paid in full!

 

[goeduck]

My County in Washington State charges more because I pay in automatic electronic monthly transfers.

 

[RickB]

My County in Washington State charges more because I pay in automatic electronic monthly transfers.

But yet you do it, apparently by choice. Discounts come to some who pay in full, on time. Convenience typically is accompanied by extra cost.

 

[WM75Guy]

I've done my own taxes since I was toilet trained. For a decades I used Turbo Tax. Then...in 2016 or there abouts, TT decided not to include many of the forms I used in their Basic software package, in order to "force" us into buying the more expensive "Deluxe or Premium" versions.. Simple stuff like Sch D, some health insurance stuff, nothing complicated. So I switched to HRBlock about 4 years ago. Never looked back. Has all of the forms, easy to use, and you can get the basic program (without state) for about $25. And HRB will import your TT return from last year to do the HRB return this year.

TT lost a ton of business and got raked over the coals on social media and lousy reviews on their website, as well as Amazon's, Sams, Costco, etc. A year or 2 later TT relented and added back some, not all, of the forms needed, and begged all of us that left to come back. I told them to "go pound sand".

Re: using a CPA/accountant...if you look at the CPA "worksheet" that you need to fill out, it is in the same exact order as the 1040. The worksheet just looks different. So they have a "dooser" input your numbers that you put together in the first place, into their software and then the CPA "reviews" it, and charges you $250. Absurd IMO.

Now...having said all of that, you DO need to be diligent in doing your own taxes. The key is not to wait til the last minute, but rather break up the input of data into several sessions. Personal info and wages in one session, interest-Dividends in another, cap gains on investments in another, etc. That way you won't be over-whelmed and get frustrated, lazy and make mistakes, or more likely, omissions. HRB does a good job of guiding you thru the process, and there is a ton of info embedded in the program, and on their website to help you thru stuff. And, you can always do a topic search on the IRS.gov website to get the info you need.

We use a local CPA and no worksheet. I sort our stuff by categories just to make sure it is all there and put a paperclip on each. W2s &1099s in one group, homestead property taxes and interest in another, & farm income and expenses such as taxes, royalties, and crop revenues in another. It all goes in a manila envelope and gets dropped off. We get a phone call when it is ready. Very reasonable and have never had an issue with the IRS.

 

[notaz3]

We found that it is much safer to pay CPA. Two different businesses, rentals in three different states, and land we are developing in yet a fourth state.

 

[ROUSTABOUT]

Never paid to have taxes done. Cut my own hair too with some 4 dollar Clippers.

 

[Alan46]

Never paid to have taxes done. Cut my own hair too with some 4 dollar Clippers.

Pictures please!