Do you prepare your own tax return?

[gwraigty]

Back in 2016, I tried using TurboTax as a check on my spreadsheet. It gave me garbage, totally nonsensical data. So TT went into the garbage. From my own admittedly warped perspective, I don't know how anyone gets TT to work properly.

I've done taxes manually most of my life, using free fillable forms and filing electronically the past several years. I used TT for 2 years in a row, hoping for some simplicity. Both years it messed up on the employer HSA contribution. Afterwards, I learned that everyone with an HSA had the same issues. Some kind of programming error. I've been afraid to trust it since, even though our taxes have become more complex to the point that I wish I could.

 

[gwraigty]

Each year, I don’t make New Years’ resolutions, but I do have an overarching theme. In preparation for retirement, 2014 was the “year of simplification”. One of the results of this focus has been a marked reduction in financial complexity - and associated tax filings. Instead of seven (!) financial institutions, we now have two. Instead of dozens of investments, we now have seven. And many, many other changes. As a result, it is now a straightforward affair for me to do our taxes in TT, where before, I had to use a CPA for what he described as a moderately complex return.

This is what I'm working towards. Using Free Fillable Forms is barely a step above doing it manually, expect it does some of the math for you. You still have to pretty much know how to do the taxes manually, including which forms/schedules to use, which isn't a bad thing. More complex investments makes for more work, which I want to minimize going forward.

 

[Gumby]

I have done my own returns since 1977. I used to buy a new J.K Lasser book every year, until I started using the H&R Block computer program (or its predecessor) back in the 1990s. I have always printed them out and mailed them in; never have e-filed.

I always do my taxes by the end of December. When the W-2s and 1098s and 99s eventually arrive, I confirm my numbers and then file in April. As I do this year's taxes, I also run a pro-forma (with appropriate assumptions) for the year ahead so I can check and adjust my withholding, 401k contributions, etc.

This year, 2019, has been tricky, since we retired mid-year and, while we had a very close idea of how much we would get from our pensions, it was not clear precisely how much would be withheld. Terminal payoffs of unused sick time and vacation time also complicated the situation. Next year should be much cleaner.

 

[kaneohe]

File paper return. Spreadsheet and paper return confirm that detail and category subtotals are correct. These along with input into Taxslayer software and the 1040 mortgage calculator confirm that the tax calculations are correct.
The most difficult thing these days is getting the forms. In the old days you could order the forms in early January and get them by Feb. Now ordering the same time results in forms in mid-late March. Usually I will start before the forms arrive using previous yr forms and don't want to re-do for fear of copying errors so they get sent in on marked up previous yr forms.

 

[Lawrencewendall]

My own, with TT. Tried to save a few bucks with H&RB one year and had to file amended twice due to their errors/omissions. Back to TT for good. My taxes are usually pretty simple, and doing them myself helps me better understand how to make tax-efficient decisions.

Same experience but I went with TaxAct instead. Did have a CPA do it one year for $600. Never again. I have 1099-Is, 1099-R, 1099-Ds, 1099-S, K-1s and this is the last year of W-2. CLASS OF 2019!

 

[jkern]

I have always done my own taxes. In addition, I have been volunteering for VITA doing free tax returns for low to mid income folks for the last 10 years.

 

[cathy63]

We've been using TT since tax year 1987 when it was a DOS based program. It was a free employer benefit for most of those years, but since retirement we have to pay for it. For a cost of less than $100, it's just easier to keep using it than switch to something else, even if the something else would save me a few bucks.

 

[Rex]

TurboTax for the past 20 years.....And have rental income, K-1's, etc. and find that I'm always good to go.

(I buy it thru the Southwest Airlines Rewards Shopping site and I get 1,000 miles)

 

[SumDay]

I use H&R Block to do ours. We've been married a few decades, and I've never paid anyone to do them.

 

[LarryMelman]

Free TT from Fido.

Fidelity gave me free TT for several years, but this year they told me "the terms of the promotion have changed, and your relationship with Fidelity is insufficient to qualify now". With over 30 years as customer and over $2M in various accounts. If they continue to give you free TT, do you know why?


I usually do my taxes three ways - in TT, on the forms, and in my own spreadsheet. When I get all three to agree, I know I'm good to go.

 

[easysurfer]

I used to not. Years back, I used to have an enrolled agent prepare but would find mistakes had the impression I was getting overcharged .

Since, then, now I prepare with Turbotax. Been using TT about 15 years.

 

[gwraigty]

File paper return. Spreadsheet and paper return confirm that detail and category subtotals are correct. These along with input into Taxwise software and the 1040 mortgage calculator confirm that the tax calculations are correct.
The most difficult thing these days is getting the forms. In the old days you could order the forms in early January and get them by Feb. Now ordering the same time results in forms in mid-late March. Usually I will start before the forms arrive using previous yr forms and don't want to re-do for fear of copying errors so they get sent in on marked up previous yr forms.

What forms do you need that you can't download and print off at home?

 

[aja8888]

I have been filing taxes on my own since I started paying taxes over 20 years ago. Paper return and all! Its piece of cake with modern tax softwares.

Ditto, but it's been over a 40 year span.

 

[Katiek]

I used to do my own, but have had a CPA prepare them for a number of years.

 

[Starsky]

Ever since I found an ex-IRS employee/accountant who enabled me to deduct all my graduate school expenses, I have been a huge fan of someone else doing my taxes. I did get audited, forwarded everything to my accountant, and the IRS never bothered me again. She did my taxes until she retired in the 90s. I don't think she ever charged me more than $250, usually less.

Now that we have rental properties, I just consider it a business expense and have someone else care of it. It takes an hour a year out of our lives, that's it.

My experience is that the more complex tax issues you have, the more value there is in having someone else manage your taxes. There are times when paying an accountant or lawyer can be the best investment you can make.

 

[breger1]

I have always done my own taxes except when I had to settle my mother's estate then used CPA. Been using TT since 1999.

 

[swakyaby]

Fidelity gave me free TT for several years, but this year they told me "the terms of the promotion have changed, and your relationship with Fidelity is insufficient to qualify now". With over 30 years as customer and over $2M in various accounts. If they continue to give you free TT, do you know why?

go.

It does seem odd that your level of Fidelity assets doesn’t qualify you for private client level perks like free Premier TurboTax. My Fidelity assets are less than yours, and I still received the perk last April. Can you email or call your private client representative and ask how did the terms of the promotion change?

 

[kaneohe]

What forms do you need that you can't download and print off at home?

Nothing special except I don't want to pay (via ink/paper) for all those forms.
And now printer doesn't print black so it's even worse. Guessing 20 pages for Fed..............thinking it's a plot to make the paper filers surrender and I ain't gonna..................

 

[LarryMelman]

It does seem odd that your level of Fidelity assets doesn’t qualify you for private client level perks like free Premier TurboTax. My Fidelity assets are less than yours, and I still received the perk last April. Can you email or call your private client representative and ask how did the terms of the promotion change?

I spoke to multiple reps who all said the same thing. They didn't say how the terms changed but they all used the phrase "you relationship is insufficient". After hearing that 2 or 3 times, I called my Schwab rep who gladly gave me $2500 to move my IRA's over to them.

As to an other "private client level perks", my statements said "private client" for many years (and still say "Premium Services" since I still have a sizable taxable account there) but I never got anything because of it.

 

[jollystomper]

I have always done my own taxes. In my "nerdier" days I enjoyed building spreadsheets to do them. For the last 14 years I have used tax software, usually based on which one has the best deal for me. My information is not complicated so no big deal if I need to switch.

 

[Walt34]

I always did my own, except for the first year I owned a house with the ex-wife, and I had no clue as to how to deal with the mortgage deduction. This would be tax year 1979 so no TurboTax then. In following years I just cribbed off the one we'd paid for and changed the numbers accordingly since nothing major changed.

When we finally got a computer I thought TurboTax was one of the greatest inventions since canned beer.

 

[socca]

Using a professional tax preparer for my personal tax returns is likely to add aggravation to my life, not remove it. My tax returns are sufficiently complex that I'm likely to have questions about whatever a pro would do. Your average pro is far too overburdened with work during the 1Q of each year to respond to complicated questions in a timely fashion. I want to get my taxes out of the way during the 1Q of each year so I can enjoy the rest of year relatively tax-concern-free, so filing for an extension isn't an option. Therefore, I use TurboTax and do it myself.

I've had good luck with TT on Mac for many years. In 2018, Intuit and the IRS screwed up e-filing for people trying to take the Domestic Production Activities Deduction following the 2018 IRS instructions rather than Form 8903, which has been deprecated for 2018. After arguing with IRS on this topic, I gave up and told the agent that I am donating the excess 2018 federal taxes I paid to reducing the National Debt. For some reason, this made the agent more agitated than if I had called her ignorant - don't know why. She urged me to keep fighting the IRS if I thought I was right, as if dealing with the IRS is a pleasure. Speaking truth to power sometimes doesn't work when the power is the IRS.

 

[foxfirev5]

I spoke to multiple reps who all said the same thing. They didn't say how the terms changed but they all used the phrase "you relationship is insufficient". After hearing that 2 or 3 times, I called my Schwab rep who gladly gave me $2500 to move my IRA's over to them.

As to an other "private client level perks", my statements said "private client" for many years (and still say "Premium Services" since I still have a sizable taxable account there) but I never got anything because of it.

Trust me it's a good thing. Personally I have a similar amount with Fido. While I got free Turbo tax for some reason I was dropped from their Private Client Group. One quick call shed a lot of light. I value my ability to question and get honest answers. (good cop). They simply don't make that much off me. Brokered CD's and low ER ETF's. Virtually no transaction fees and minimal amounts in their MM funds (Vanguard funds are used when appropriate).
If I no longer get free Turbo Tax I'll feel I've won the game. Next on the list is the relationship bank accounts I have with my local B&M. Somehow they must be making money off me if their giving me free stuff.

 

[jebmke]

I have always done my own except when I was an expat and filing in other countries as well as more complicated US returns.



I still do. Also file about 100 returns a year for other people.

 

[travelover]

........ Also file about 100 returns a year for other people.

Do they know about this?