Do you prepare your own tax return?

[rjsob58]

This year I may need advice only. I've done my own with the HR Block software, but I'm not sure how to deal with multiple states. Federal is relatively straight forward, but DW got a job in another state and maintains an apartment there. It is only Oct, Nov & Dec income for her in that state (WV). All other income is my IRA withdrawals. From what I've read, WV has reciprocal agreement with VA, but the residency rules/definitions are a bit confusing.

[scaubie]

I’ve always done our taxes. Our tax situation has always been pretty simple and straight forward. Two incomes, mortgage, kids. I started using TT about 10 years ago, until then it was all by hand. When I retired earlier this year, I asked my financial advisor for an accountant recommendation. He said ‘why? If you’ve always done your own taxes, it gets simpler in retirement.’

[Jerry1]

Quote:

Originally Posted by rjsob58 This year I may need advice only. I've done my own with the HR Block software, but I'm not sure how to deal with multiple states. Federal is relatively straight forward, but DW got a job in another state and maintains an apartment there. It is only Oct, Nov & Dec income for her in that state (WV). All other income is my IRA withdrawals. From what I've read, WV has reciprocal agreement with VA, but the residency rules/definitions are a bit confusing.

I’ve found TT to handle multiple states very well. I’m guessing HRB would also. For the cost of the additional state software, I’d bet you’ll be good to go. Especially if your only concern is reciprocity. That’s pretty common and should be no problem for HRB to handle.

[pb4uski]

Quote:

Originally Posted by Jerry1 I’ve found TT to handle multiple states very well. I’m guessing HRB would also. For the cost of the additional state software, I’d bet you’ll be good to go. Especially if your only concern is reciprocity. That’s pretty common and should be no problem for HRB to handle.

+1 When I was working I routinely filed in multiple states as I provided client services in multiple states and each hour on our timesheets required a location code.... the firm provided us with access to TT iuding as many states as we needed.. and it worked flawlessly.

[RunningBum]

Quote:

Originally Posted by Carple Tunnal Printed and filled in the blanks with a pen. Did the arithmetic with a calculator. Federal was 18 pages this year. Saying you prepared you own taxes when you used Turbo Tax is like saying you prepared your own Thanksgiving dinner after microwaving a TV dinner.

I'm not into masochism. And I think I'd probably make a lot more mistakes trying to do it on paper myself.

Your analogy is bad because the end product of using TT is as good, if not better than doing it all by hand. It's more like you are raising a turkey from when it's hatched, and also butchering it, rather than just buying it ready to cook from the supermarket. Or something like that. A lot more work.

[oscar1]

Used TurboTax for years. A few years I used a CPA and HR Block, but I always “pre-prepared” a return in TT to see if the CPA could find something I missed. But I almost always filed on my own (with their advice taken) because I wanted to own my own data and not be stuck forking over fees to someone else to get my data year after year. When I started doing IRA conversions, I had a tough time finding anyone that knew anything about them (this blog, however, was instrumental because all you folks seem to know that one). Then I found Block Advisors. An off shoot from HR Block but Sr. Level tax experts. They understood everything I was asking and at $55/hr, I can pay as I go. There is only one Block Advisor office in most big cities but I find this tool helpful when I need the research across all their advisors.

[lem1955]

I use Turbo Tax Home and Business, since starting a small consulting business. I also have a real estate investment in another state. So mine is not the simplest of returns. I've used other versions for at least the past decade. I had a CPA review my return a few years ago. She found a couple of errors that could have saved me money but not as much as she charged me for the review! And now I've made note of those tax saving entries. I ran into a problem with TT not indicating that some of the taxes I paid in 2018 were online estimated taxes, so the IRS returned $ to me that I did owe. But I got it straightened out with help from the TT online community. Maybe we should start a forum for Turbo Tax users here?

[Carple Tunnal]

Quote:

Originally Posted by RunningBum Your analogy is bad because the end product of using TT is as good, if not better than doing it all by hand. It's more like you are raising a turkey from when it's hatched, and also butchering it, rather than just buying it ready to cook from the supermarket. Or something like that. A lot more work.

I was referring to the act of preparing the dinner, not the quality of the food, nor implying my home cooking is better than a TV dinner. It seems to me that users of tax software feed information to the software, and the software prepares the tax return from that information. When I saw the subject line of this thread, I thought it meant people actually preparing their return themselves, but turned out that is not what the OP meant.

[Souschef]

Quote:

Originally Posted by t49eng Do my own taxes & lots of others, as a volunteer with AARP Tax Aide. IRS provides the software & we are IRS certified preparers after passing a test. I encourage others to give this a shot. Info can be found on the AARP web site.

I also did it as a volunteer until last year. With the new statnard deduction there were far fewer people that needed to file.
I have used TT for many years. I just got a notice that TT2019 will not work with Win7
I will have to see, because I do not want to upgrade my PC due to legacy programs.

[ragabnh]

Always used Quicken and trubotax since 1994, prior to that by hand. Never used or considered a CPA.

It is a great learning experience as you can learn strategies on how to reduce your taxes as others mentioned. Mine is relatively complex but does not require rocket science to complete.

[audreyh1]

DH always insisted that we do our own taxes. He still has that job . With TT help.

However I do the estimated taxes and tax planning as I manage all the investments and bill paying and cash flow/budget.

So now DH doing the annual taxes gives him a snapshot of our finances.

[scrabbler1]

Quote:

Originally Posted by Carple Tunnal I was referring to the act of preparing the dinner, not the quality of the food, nor implying my home cooking is better than a TV dinner. It seems to me that users of tax software feed information to the software, and the software prepares the tax return from that information. When I saw the subject line of this thread, I thought it meant people actually preparing their return themselves, but turned out that is not what the OP meant.

+1

[Philliefan33]

Quote:

Originally Posted by ugeauxgirl I don't. I could, but my husband has a business, and he wants me to deduct things that I think are kind of iffy (or that I happen to know are not legal). I dislike arguing about this. We have a good CPA who isn't afraid to tell him what's what. When DH retires, I'll resume doing our taxes with TurboTax.

You too? This is one reason we had a paid preparer for a couple of years. I got tired of debating with DH about deductions. After having someone else tell him that not everything qualified as a business deduction, he started to believe me. We are now back to preparing our own returns.

[blueskyk]

Hmm - I’m way in the minority here. I use a CPA but don’t pay anything because I developed a custom database system(Access) for his office that tracks the receipt, status and completion of all returns and who they are assigned to. I was amazed to see the huge percentage of returns that arrive just weeks before the deadline. Each year I do a system rollover for the next year and he does our taxes for free.

We moved to a different state a couple of years ago and we continue this arrangement using remote access. When I have an accounting question, I just email and he replies, no charge.

I will be so sad when he retires [emoji22]

[allegra3201]

Been using Turbo Tax for 20+ years while working. Retired in 2017 and continued using TT. I like that it has previous years information and uploads seamlessly.

[coveredbridge]

Quote:

Originally Posted by Souschef I also did it as a volunteer until last year. With the new statnard deduction there were far fewer people that needed to file. I have used TT for many years. I just got a notice that TT2019 will not work with Win7 I will have to see, because I do not want to upgrade my PC due to legacy programs.

Microsoft support for Win7 ends in a few months. If you continue to use your Win7 PC online after end of support know that you are putting your data at risk. I was in a similar position but I recently bought a new Win10 laptop and have successfully installed several legacy programs, such as MSMoney, on the new laptop that are running fine.

[pc95]

For awhile when I had less investments, I did my own taxes without any software.
In the last 5 years or so, I've used TurboTax bought at Costco. This has become necessary with all the different equities I've invested. My returns used to have 6-10 pages; now they're closer to 20.

[Fishingmn]

I had used a tax preparer for 10-15 years. He only charged $210 so it was a no brainer. Last year I did Turbo Tax and it wasn't too bad even with the complex return we have.

Personal return, DW and I both have LLC's for self employed income and 10 rental properties.

Since I bought the software I also did returns for my father, MIL and son.

[Letj]

Quote:

Originally Posted by Fishingmn I had used a tax preparer for 10-15 years. He only charged $210 so it was a no brainer. Last year I did Turbo Tax and it wasn't too bad even with the complex return we have. Personal return, DW and I both have LLC's for self employed income and 10 rental properties. Since I bought the software I also did returns for my father, MIL and son.

Do you prepare schedule Es for the rental or schedule C? My understanding is that you need to do schedule Es even though they are owned by LLCs.

[NavAir]

Have never used a tax preparer or CPA. One audit in 2005, due to huge loss in 2004 from Hurricane Ivan, paying no Federal Tax. Sailed through the audit. Thought it would get easier in retirement, but I now have my own consulting business (very part time), so I had to learn all of the forms for that...