Tax Question

[street]

So, tax time is getting closer and I'm changing who does my taxes this year.

How important is it to have a CPA do your taxes verses a tax preparer? I don't do my own and I don't feel comfortable using online service to do them either.

I'm thinking of having H&R Block do them and does anyone have any advice on what to look for in a tax person.

Thanks

 

[Souschef]

Nooo! They charge a small fortune. You are the best tax person. I use Turbotax and have for many years. I used it when I had a rental, and am planning to use it again this year.
Their interview method is very good.
Unless you have some real complex return, use Turbotax.

 

[splitwdw]

May depend on how complicated your return is, don't know for sure. Aren't the people that work for H & R Block tax preparers not CPA's. I used a tax preparer for years. She is certified by the IRS. I think that it's certified. She has to take classes every year...every couple of years. Anyway, never had a problem but thought I'd try a CPA one year. No different between his return and my old tax preparer other than he messed up the code where I live and another township was trying to hit me up for past due taxes. Oh, his fee was a lot higher. I thought he would advise me on things I could do to reduce my taxes but he had nothing for me. On this site many people are saying that they use tax programs and say they are easy to use. I pm'd someone on this forum to ask how easy it was and they said it wasn't easy. There, I was absolutely no help at all.

 

[kaneohe]

If you have this nearby and if your return is within "scope", you might consider
AARP Tax-Aide. https://www.irs.gov/individuals/free-tax-return-preparation-for-you-by-volunteers

The price is right........whether your return can be done depends what it contains. https://nhtaxhelp.org/images/Reference/AARP-Foundation-Tax-Aide-Scope-Manual-TY18.pdf

 

[RobbieB]

A cpa is not needed, an "enrolled agent" cred is usually good enough. H&R Block uses people off the street.

I'd do Turbo Tax before H&R

 

[street]

My taxes are straight forward nothing complex at all. Not sure if ACA causes more work for tax purposes or not, no business any more but have one spouse SS income.

I just don't care to do them even if they are easy. Lol

Yes, the CPA I had do mine for over 35 years just got to high price and really never had any advice for me on how I could do things to help me out.

I know people that use H&R here in a little town and pay around a couple of hundred bucks. When I looked them up it said, they have tax preparers not CPA's.

 

[RetiredAndLovingIt]

+1 for Turbo Tax. It interviews you just as if you were sitting in front of a tax person in their office. It asks you what documents you have received for tax purposes, W2, 1099-R etc. It truly is the simplest thing ever. I buy the DVD on Amazon usually Black Friday weekend for about $50 If interested, here is a long video that shows you the interview process.

 

[Souschef]

If you have this nearby and if your return is within "scope", you might consider
AARP Tax-Aide. https://www.irs.gov/individuals/free-tax-return-preparation-for-you-by-volunteers

The price is right........whether your return can be done depends what it contains. https://nhtaxhelp.org/images/Reference/AARP-Foundation-Tax-Aide-Scope-Manual-TY18.pdf

I used to volunteer as a tax preparer for the AARP program, and they do a pretty good job.

 

[Sunset]

OP - Here is my thoughts:

I use H&R Block tax software (its probably the same thing they use in the office).
I buy it when it's $25 or less including the State return, in Nov or Dec

I have self employment, rentals, dividends, capital gain, sometimes option trades, SS, and DW with all her own stuff.

It is NOT hard and it's really important to do your own taxes as NOBODY cares about it more than you. Once you start doing it, you see how much taxes are affected by what you do.

If you are chicken, buy the program, try to do it, and if you cannot, then go to AARP or H&R Block to get it done.

Your cpa sounds like a big waste of money.

 

[street]

Thanks and I will look in to online tax preparation.
Ya, I'm done paying them, that I do know.

 

[ERD50]

...
It is NOT hard and it's really important to do your own taxes as NOBODY cares about it more than you. Once you start doing it, you see how much taxes are affected by what you do.

If you are chicken, buy the program, try to do it, and if you cannot, then go to AARP or H&R Block to get it done.

Your cpa sounds like a big waste of money.

Yep. My MIL and FIL had a CPA when they had their small business. But when he retired, he kept going to the CPA for their simple taxes. Inertia.

After FIL passed, my DW helped getting her Mom's tax documents together for the CPA. She had some questions for me, and I told her that filling out the questions from the CPA was basically the same as entering the data in the tax program.

We eventually switched to a local tax preparer ( a neighbor, I got good referrals from other friends/neighbors). It was easier to work with the tax preparer (he basically wanted last year's returns for reference, and I explained that most was the same, and the few differences this year). He was about 1/4 the cost of the CPA, and everything looks good.

You could take last years return, plug it into one of the free programs for 2018, and you'll probably see how easy it is.

-ERD50

 

[Sunset]

OP I don't do it online.
I buy the program and install it on my windows computer.

I use it to also do some older folks tax returns in addition to our own.
Having on my own computer feels safer, and I have all the years co-existing on the machine, and have the software and pin to re-install it on another machine if needed.

 

[pb4uski]

So, tax time is getting closer and I'm changing who does my taxes this year.

How important is it to have a CPA do your taxes verses a tax preparer? I don't do my own and I don't feel comfortable using online service to do them either.

I'm thinking of having H&R Block do them and does anyone have any advice on what to look for in a tax person.

Thanks

Do you have rental property or a small business? a complicated investment portfolio with complex transactions? What aspects of your return are so complex that you don't feel comfortable doing it on your own?

 

[swakyaby]

I had a CPA do my taxes for 21 years. I started off self-employed and the tax code seemed so complex. Then, halfway through my career, I became employed with a W-2 and my tax prep seemed so much simpler. But my CPA’s fee always rose higher and seemed so expensive compared to the simplicity of the tax prep. He explained I was also paying for year-round tax advice (which I really didn’t utilize).

Last year, I retired so I called his office to ask some questions about Roth IRA conversions. He didn’t return my call despite a 2nd inquiry. I rationalized that he was too busy dealing with the financial calamities of his clients whose homes burned down in the Paradise, CA wildfire. Still, I felt I was not getting what I paid for. It did give me the motivation to try preparing my own tax returns for the first time. I turned to TurboTax Premier (if you sold any stocks or mutual funds). There is an option to pay for Live Assistance, where you can consult a CPA during your preparation, and the CPA will review your final return prior to you submitting it. I chose this option and I thought the assistance was invaluable to a tax prep newbie like me.

 

[Dtail]

I had a CPA do my taxes for 21 years. I started off self-employed and the tax code seemed so complex. Then, halfway through my career, I became employed with a W-2 and my tax prep seemed so much simpler. But my CPA’s fee always rose higher and seemed so expensive compared to the simplicity of the tax prep. He explained I was also paying for year-round tax advice (which I really didn’t utilize).

Last year, I retired so I called his office to ask some questions about Roth IRA conversions. He didn’t return my call despite a 2nd inquiry. I rationalized that he was too busy dealing with the financial calamities of his clients whose homes burned down in the Paradise, CA wildfire. Still, I felt I was not getting what I paid for. It did give me the motivation to try preparing my own tax returns for the first time. I turned to TurboTax Premier (if you sold any stocks or mutual funds). There is an option to pay for Live Assistance, where you can consult a CPA during your preparation, and the CPA will review your final return prior to you submitting it. I chose this option and I thought the assistance was invaluable to a tax prep newbie like me.

Curious what did they charge for the live assistance?

 

[RetireBy90]

It is NOT hard and it's really important to do your own taxes as NOBODY cares about it more than you. Once you start doing it, you see how much taxes are affected by what you do.

Just my thoughts, I believe the above quote that it is important to do your own taxes. For me it is my once a year opportunity to look at my overall financial situation. How much we take in and how much is left for the retirement draw. I have used Turbo Tax for years and I think it is the best option. You can use the interview mode and it will walk you through all the various items or you can use the form mode and use last year's return to determine what forms you need (provided your situation has not changed).


I could go on and on, but I would just close with thought; if you don't feel comfortable with doing your own taxes, buy TT and do them then take them to a certified agent and then ask about any differences you find. I think you will find you can do it and it provides insight into your current situation.

 

[street]

No business anymore and no complicated financial issues, just very straight forward. I will look into the suggestions offered and see what I think.

 

[CardsFan]

OP:

Also note that Turbo Tax can download all your brokerage data directly. No data entry and no typo's.

 

[VanWinkle]

I used to volunteer as a tax preparer for the AARP program, and they do a pretty good job.

A second vote for VITA (Volunteer Income Tax Assistance) as long as it is a fairly simple return(depreciation of rental properties is out of scope). I have been volunteering for 4 years including doing some while snowbirding in Florida. If you don't want to do it yourself with a simple return, this is a great alternative.

VW

 

[donheff]

I turned to TurboTax Premier (if you sold any stocks or mutual funds). There is an option to pay for Live Assistance, where you can consult a CPA during your preparation, and the CPA will review your final return prior to you submitting it. I chose this option and I thought the assistance was invaluable to a tax prep newbie like me.

Curious what did they charge for the live assistance?

I too am interested in how that went. I am considering doing that this year because of some strange issues with our taxes. I know you can enroll in this if you use TT Online. Can you also do it with the downloaded version or does it have to be online?

 

[timbervest]

Always used Turbo Tax as my taxes are simple but this year I had several out of state filings due to out of state LLC investments and other one time items and didnt want to hassle with it. Used a CPA friend and it was reasonable. I originally went to H&R Block but when the guy did not know what a Donor Advised Fund was I quickly made for the door.

 

[pb4uski]

No business anymore and no complicated financial issues, just very straight forward. I will look into the suggestions offered and see what I think.

One thing that you might do is to buy 2019 TT download version and create a trial return using your 2018 supporting documents and see that the total income is the same as the return filed by your CPA... the taxable income will be different because the standard deduction changes each year.

Or you could but 2018 TT for about $10 on Amazon and do the same thing and it should perfectly align with your filed return.

I agree with you on the online version... I prefer the download version... besides, the download version fits better with my needs since I do a number of returns for family and friends.

 

[target2019]

Note that many preparers at H&R are temp workers. YMMV.

The software they use is not the retail version.

 

[Midpack]

I’ve been using TurboTax CD for over 15 years (got hooked when it was “free” from Vanguard), my return is middle of the road complexity at worst for a personal return. I could do it by hand but I don’t because a) TT is much faster and I often don’t need to read IRS instructions, and b) it “remembers” my last year data and plugs it in as needed.

I’m not comfortable with the online only versions either, though I’ve been eFiling Federal for years, so maybe I’m kidding myself?

The problem with a CPA is it’s expensive and the return is only as good as the documentation you provide. I know someone who did taxes at HRB and he said most people don’t have the records needed, some just dumped a shoebox full of paper on him to figure out. And presumably like a CPA, the TT interview style at least prompts you for what might benefit your return, still up to you to provide data.

 

[bingybear]

I know someone who has used a CPA and always complains how much tax they pay. This is not the CPA's fault as he fills out based on what happened the prior year. There was no tax planning being done.

The other issue is you still would have to organize you tax data for the CPA/preparer to do the taxes. So you will likely do some of the work anyway as you collect all the necessary data.

I see it useful to see the whole picture to understand the things I do that cost me in the end on taxes. It helps me plan what to do next.

I'm sure you can hire that done at a price additional to doing the actual tax forms.