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View Poll Results: Do you do your own taxes?
Yes 59 68.60%
No 27 31.40%
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Re: Do you do your own taxes?
Old 12-20-2005, 04:42 PM   #21
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Re: Do you do your own taxes?

Quote:
Originally Posted by Sheryl
Yeah, KWYM there. I never know if my firm is going to show a profit or not until late in the year (we convert from accrual to cash, P/L is always a suprise), so I do a lot of extra withholding to make sure I don't get bumped into needing to make quarterly payments. I really resist that - I only want to think about the IRS once a year.
I'm not sure about your situation but if my income when up from the previous year, I never paid more than 100% of the previous year's tax amount. I drove the payroll clerk nuts changing the deductions every few months.
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Re: Do you do your own taxes?
Old 12-20-2005, 05:41 PM   #22
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Re: Do you do your own taxes?

I didn't start when I was 16 but have been doing them for 35+ years. The first year out of college with a new job in a state that had income tax, I went to H&R Block a large national firm. The next year I decided to try it myself using the previous year to check myself and found a fairly large mistake in the previous year filing, that I paid to have done. Not large enough to be worth the hassle of filing an amended form, but enough that I never considered going back and letting someone else screw up my filing again.

I don't file electronically (pay for their convience) and I don't use software like TT. I saw to many years where they were making changes to the software right up to the 15th so I never paid for the software approach. I made a spread sheet that does most of the work I use to do on yellow pads and then just fill in the blanks. This last year I used one of the online programs to check my work and it came out with in a few dollars, so I used my numbers.

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Re: Do you do your own taxes?
Old 12-20-2005, 07:18 PM   #23
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Re: Do you do your own taxes?

As a matter of principle I have always prepared my own taxes and I'm no math whiz! Gosh, I had to pay a tutor top dollar to help me get a whoopin' "D" in College Algebra so that I could graduate.

I just simply refuse to contribute to a multi-billion dollar industry (such as H & R Block) and all their tax lawyers when anyone with a basic elementary education should be able to file their own taxes on the back of a simple post card. But the industries lobbyists' will make sure that we will always need a tax lawyer to get it right.

I've made lots of mistakes and have had to pay a few penalties because of, but I will continue to remain loyal to my principles while filling up my elected representatives with my mail!
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Re: Do you do your own taxes?
Old 12-20-2005, 07:37 PM   #24
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Re: Do you do your own taxes?

Quote:
Originally Posted by MJ
I'm not sure about your situation but if my income when up from the previous year, I never paid more* than 100% of the previous year's tax amount. I drove the payroll clerk nuts changing the deductions every few months.
Yup - I do that on a regular basis. Its just a crap shoot because I have to pay for my share of the firm's taxes, and it's hard to know what they will be.
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Re: Do you do your own taxes?
Old 12-20-2005, 07:47 PM   #25
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Re: Do you do your own taxes?

Quote:
Originally Posted by Jeb-NY
I don't use software like TT. I saw to many years where they were making changes to the software right up to the 15th so I never paid for the software approach.
I have simple solution for software changes. I wait until the 14th to mail my return since I usually owe the guvment money. I know, there could be a final change on the 15th but not very likely.
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Re: Do you do your own taxes?
Old 12-20-2005, 07:56 PM   #26
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Re: Do you do your own taxes?

I use H & R Block Taxcut software(deluxe). I have also used Turbo Tax but like Taxcut a little better.
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Re: Do you do your own taxes?
Old 12-20-2005, 07:59 PM   #27
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Re: Do you do your own taxes?

Since I am doing my taxes, another technic I use to keep my money a little longer is, if at the beginning of the year I have determined that I am due a refund for 2005, I lower my estimated taxes by the refund amount and on my 2005 return apply my refund towards the current year's estimated taxes.
This way I don't have to wait for the IRS to mail me my check.

MJ
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Re: Do you do your own taxes?
Old 12-20-2005, 08:47 PM   #28
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Re: Do you do your own taxes?

Quote:
Originally Posted by MJ
Since I am doing my taxes, another technic I use to keep my money a little longer is, if at the beginning of the year I have determined that I am due a refund for 2005...
What is this "refund" of which you speak?!?
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Re: Do you do your own taxes?
Old 12-20-2005, 08:53 PM   #29
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Re: Do you do your own taxes?

Quote:
Originally Posted by Nords
What is this "refund" of which you speak?!?
I was referring to the tax amount on your return that you overpaid.
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Re: Do you do your own taxes?
Old 12-20-2005, 09:06 PM   #30
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Re: Do you do your own taxes?

Quote:
Originally Posted by MJ
I was referring to the tax amount on your return that you overpaid.
Sarcasm.

I have zero witheld from my pension and spouse has 10 exemptions on her part-time paychecks. We pay quarterly estimated taxes and I can't remember the last time we had a refund.

State taxes have been another matter. We finally had to boost spouse's HW-4 to 47 exemptions, which apparently is perfectly legal, and I think we might have it under control for the next few years. Until all those solar tax credits run out, anyway...
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Re: Do you do your own taxes?
Old 12-20-2005, 09:14 PM   #31
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Re: Do you do your own taxes?

Quote:
Originally Posted by MJ
I'm not sure about your situation but if my income when up from the previous year, I never paid more* than 100% of the previous year's tax amount. I drove the payroll clerk nuts changing the deductions every few months.
That works for me as well, but if your income is high enough, you have to pay 110% of last year's tax. Of course, there was the time that payroll misplaced a decimal point and my entire paycheck went to taxes.
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Re: Do you do your own taxes?
Old 12-20-2005, 09:45 PM   #32
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Re: Do you do your own taxes?

I have always done my own, though it has become increasingly more complicated over the years, especially with overseas investments. I would like to file electronically, but that does not appear to be possible with a non-US address. Also, none of the software packages I have looked at have some of the forms I need (like Form 8621 for PFICs), so I do everything by hand -- or actually, in a spreadsheet I made for myself. Despite filings that have approached 50 pages in the recent past, I haven't actually owed US taxes in many years, so I would be loath to pay someone to file them for me. Besides, I wouldn't trust a 3rd party to know how to fill out my forms correctly; even the IRS has given me wrong information on occasion, so I have had to figure out everything myself (and then document the heck out of it for audit-proofing).

I wish there were a rule that if you don't actually owe taxes, you don't need to file...

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Re: Do you do your own taxes?
Old 12-20-2005, 10:42 PM   #33
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Re: Do you do your own taxes?

Quote:
Originally Posted by Nords
Sarcasm.
Although you had no smiley, I should have known better.

Hey, I have serious stuff on my mind, I need a little help. :
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Re: Do you do your own taxes?
Old 12-21-2005, 07:48 AM   #34
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Re: Do you do your own taxes?

I received TaxCut standard federal edition free in the mail this week, but I don't know why.

I bought and used TaxCut for the past couple of years and didn't order this one. Did anyone else get a free CD?

I've always done my own taxes, but it was getting to be an uncomfortably complex task until I started using tax software a few years ago.
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Re: Do you do your own taxes?
Old 12-21-2005, 09:24 AM   #35
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Re: Do you do your own taxes?

Quote:
Originally Posted by LOL!
That works for me as well, but if your income is high enough, you have to pay 110% of last year's tax.* Of course, there was the time that payroll misplaced a decimal point and my entire paycheck went to taxes.
My entire paycheck goes to taxes. Practice for ER.

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Re: Do you do your own taxes?
Old 12-21-2005, 09:27 AM   #36
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Re: Do you do your own taxes?

Quote:
Originally Posted by Martha
My entire paycheck goes to taxes.* Practice for ER.*

Most of mine does too........only mine is not intentional.
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Re: Do you do your own taxes?
Old 12-21-2005, 10:11 AM   #37
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Re: Do you do your own taxes?

Regarding state tax and withholding. My wife retired under the Maryland State retirement system (teacher). When we moved to Virginia I called the Maryland office to find out how to change her pension withholding to Virginia and was very surprised when they said they don't withhold for other states! I had to increase the Virginia withholding from my federal pension to cover my wife's state tax.

I have always done my own tax returns. I use TT and find that using a combination of the interview process and direct entry of values on some forms gives me the flexibility to interpret vague tax provisions in the way that is most favorable to my situation. I have never had a problem with the IRS.

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Re: Do you do your own taxes?
Old 12-21-2005, 10:15 AM   #38
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Re: Do you do your own taxes?

Anybody that does their own taxes by hand may be interested in the IRS's latest improvement in tax forms. Now some of the forms you download from IRS.gov have the option to enter your data in adobe acrobat reader, and then save the file (so your entered info is retained). That way, if you don't finish your taxes or need to make a change, you just pull up the saved file, change what you want and reprint it.

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Re: Do you do your own taxes?
Old 12-21-2005, 10:20 AM   #39
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Re: Do you do your own taxes?

Quote:
Originally Posted by justin
Anybody that does their own taxes by hand may be interested in the IRS's latest improvement in tax forms.* Now some of the forms you download from IRS.gov have the option to enter your data in adobe acrobat reader, and then save the file (so your entered info is retained).* That way, if you don't finish your taxes or need to make a change, you just pull up the saved file, change what you want and reprint it.*
I was REAL happy to see that when I started doing the tax returns for a non-profit.

Our state forms are all Adobe-editing too, which is especially convenient if TurboTax hasn't caught up with a change yet.
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Re: Do you do your own taxes?
Old 12-21-2005, 01:26 PM   #40
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Re: Do you do your own taxes?

Regarding state tax and withholding. My wife retired under the Maryland State retirement system (teacher). When we moved to Virginia I called the Maryland office to find out how to change her pension withholding to Virginia and was very surprised when they said they don't withhold for other states! I had to increase the Virginia withholding from my federal pension to cover my wife's state tax.

I have always done my own tax returns. I use TT and find that using a combination of the interview process and direct entry of values on some forms gives me the flexibility to interpret vague tax provisions in the way that is most favorable to my situation. I have never had a problem with the IRS.

Grumpy
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