Do you guys use an accountant?

[Ian S]

For a simple return, I'd certainly go with TT or H&RB software. TT typically costs more and that's why I switched years ago to H&RB. I pay the extra to have the deluxe version with state. Really makes things easy especially future years where the software brings forward a lot of info.

 

[RetMD21]

I help 4 family members with taxes using Turbotax. E-filing for all for federal and my state return. Usually they don't want to pay the state e-file up-charge. I have talked to accountants on several occasions over the years about tax planning issues. Although I could do paper returns I really like importing 1099s and W2s.

 

[FREE866]

Thank you everyone for your responses-much appreciated!




Going to look into TurboTax!

 

[MarieIG]

I've used an accountant as far back as I can remember for peace of mind. (They both worked for my family.) Very good, down to earth CPAs, and neither charged much. I have also had my current CPA (when I say current, going back about 30 years or so, after our first one retired) do tax returns for kiddos from time to time. He only charged them (I paid for it) $50 each - so basically free.

I could probably do it myself - but tend to worry over taxes.

 

[athena53]

Another TurboTax user here. SS and pension income as well as investments and trading. I'm just very "hands-on" with all my finances and also like to understand the process. I start with "what-ifs" towards the end of the year and sometimes make additional charitable contributions, harvest a loss or do a Roth conversion based on what I have to date plus estimates of capital gains estimates from the mutual funds.

My Ex had an accountant because he and his first wife were geniuses in the area of precious metals chemistry but financial basket cases. I think they just handed him a shoebox of stuff every year and there was probably things missing.

So- I called him, told him W and I had married during the year, I'd be the point person on taxes, etc. I spoon-fed him details and documentation. He put them into his computer. On April-frickin'-14th he calls and says he needs two very large (to me) checks. Marriage had forced the entire income of one of us (we made roughly the same) into the highest marginal tax bracket for the state (NJ) so we were under-withheld. One check was for the underpayment; the other was for Q1 Estimated. The Ex, as usual, didn't have any spare money lying around so I had to cough it up.

I didn't expect him to do a rigorous projection when I first called him but a heads-up would have allowed me to make a decent estimate of what we owed.

That was our last year with him.

 

[rk911]

I'm sure the answers will vary on this.


I've used the same accountant for years for me, my partner, and my mom. Hes very good with returning emails and I like him. That said, the three returns are extremely simple--no real estate, no trading, etc I'd do it myself on TurboTax , but I just like the idea of having a point person and security of knowing it's being done professionaly. Charges us $225 per return.

Today, I asked how much he will charge for an additional return for my sister. He writes back their fees are changing due to costs and new client returns are $500 and the existing returns he does for us will now be $300 per. I find this unacceptable. A 30-40% increase is too much.

For those with relatively simple returns, do you do TurboTax or walk in to like an H & R Block type place? if so, whats your opinion ?


thanks!

TurboTax will do it quite nicely. been using TT for 30+ years.

 

[marko]

We've always had an accountant. Actually the same firm that my grandfather used to use.

Not so much for taxes--which they do--but more for the regular finance questions that arise during the year. We have a fairly complicated, and somewhat unique financial profile and it's nice to have someone to call and speak with, more to make sure we don't do something irretrievably stupid.

Plus, as many here know, I can't reliably get the correct answer of 2+2 even when using Excel.

 

[Ronstar]

I use an accountant. For their tax prep fee around $200, I'm not going too waste my time doing it myself. I did use use turbo tax a couple of times several years ago.

 

[Dash man]

I’ve been using TT for years. My only major mistake was caught by the IRS and they sent a nice letter asking a little over $100k. After I changed my clothes I found the error which had to do with DW’s options from her job. I corrected the error which showed nothing owed, wrote a nice letter to the IRS agent explaining the error and sent it to him with an amended return. Never heard anything back and never made that error again.

 

[pjm-7]

I use the IRS free file fillable forms. I was a tax auditor (state payroll audits) in the 1990's. I'm one of those weird people that actually enjoys reading tax stuff. After I complete my return for the previous year, I print out copies of the 1040 form and various schedules that I need. I pencil in my estimates during the year so I know my situation at all times. Yeah, I probably need to get a different hobby!

 

[MarieIG]

I’ve been using TT for years. My only major mistake was caught by the IRS and they sent a nice letter asking a little over $100k. After I changed my clothes I found the error which had to do with DW’s options from her job. I corrected the error which showed nothing owed, wrote a nice letter to the IRS agent explaining the error and sent it to him with an amended return. Never heard anything back and never made that error again.

 

[48Fire]

I used TurboTax until last year. I hired a tax person to unravel some tax liabilities and resolve some issues. Part of it stemmed from stepped-up values of my wife's inheritance in Tax Year 2018. Merrill Lynch was of no help. TurboTax assistants did not help. Vanguard did not help.

So I am keeping her on board this year. I think if I suddenly become disabled or pass away, my wife would appreciate the close proximity of someone face-to-face. So far, she has been a net savings to me.

 

[Slim11]

I would say its all dependent on how complex your stuff is. Before they changed the code, it was very beneficial for me to use a tax professional. This is probably not needed now. But since I have owned a few properties and had partnerships that the IRS flagged in the past, the tax peson I hired fixed it, as they stood behind the fees they charged. I still use them in case some of the older ventures I had get questioned. In the future this may not be needed.

 

[Slim11]

Oh , too boot , my tax person ripped apart my significant other and thier lawyer in a divorce. So that was priceless and saved me $$$$$.

 

[Koolau]

Fortunately, our taxes are getting less complicated - especially since we've extracted ourselves from the old family business. BUT, I've never done my own taxes and just don't want to try.

Also, at the back of my mind is that using a CPA gives me a bit more "insurance" against the IRS finding something wrong. With 87000 more agents looking, I'm thinking it's better insurance than before but YMMV.

 

[DrRoy]

Been doing Turbotax for at least 20 years. Try it out this year.

 

[big-papa]

I'm sure the answers will vary on this.


I've used the same accountant for years for me, my partner, and my mom. Hes very good with returning emails and I like him. That said, the three returns are extremely simple--no real estate, no trading, etc I'd do it myself on TurboTax , but I just like the idea of having a point person and security of knowing it's being done professionaly. Charges us $225 per return.



Today, I asked how much he will charge for an additional return for my sister. He writes back their fees are changing due to costs and new client returns are $500 and the existing returns he does for us will now be $300 per. I find this unacceptable. A 30-40% increase is too much.


For those with relatively simple returns, do you do TurboTax or walk in to like an H & R Block type place? if so, whats your opinion ?


thanks!

I've always done it myself using HR Block software. But our situation is pretty simple: W2 income, dividends/cap gains from investments with RSU sales probably being the most complex thing though it's much easier these days since both my employer and E-trade send me the info I need to properly account for things.

Now even though my wife sits down with me to double check all of the entries in the software each year, I'm pretty sure she'd rather be doing just about anything else. So in the document I created for a "plan B" should I pre-decease or otherwise become incapacitated, getting an accountant is high on the to-do list for her.

Anyway, the situations you describe look even simpler than mine, so seems to me the software fits the need nicely and there are people behind the scenes who can answer most any question you have. I've used them a couple of times over the years to answer a couple of tricky questions when I had to deal with fairly rare events. Significantly cheaper than any accountant.

Cheers.

 

[athena53]

I did use an accountant for a one-off assignment many years after I ditched my Ex's CPA. Right after I retired (of course), I got two letters about my taxes, one from the state where I lived (I worked across the border in another state) and one from the Feds. The Feds issue I could see immediately. I'd rolled over $200,000 in a 401(k) and the form I received correctly coded it as a tax-free rollover. The "taxable portion" box in the form was blank so that's how I entered it. My tax had been re-calculated by the Feds assuming it was ALL taxable. At his advice I wrote them a letter explaining it. Case closed.

The state issue- I was too cheap to download a second state package so I decided the state where I lived looked less complicated than the state where I worked so I bought only the latter. I was wrong. The residence state form looked simple but it had a lot of "mini-worksheets" behind the lines on the 1040. The taxable portion of SS income could be deducted from state taxable income only if our total income was below some threshold. It wasn't and I'd deducted it anyway. (One wonders how many people make enough to have their SS taxed but not enough for the state to tax it.)

So. yeah, we owed more money. I still saved a bundle over what it would have cost to have an accountant for all those years.

 

[retired1]

I think that Accountant makes sense if you have complicated tax returns with business involved. I’ve never used one because I am a DIY kind

 

[Mark1]

Free866, I suspect that anyone that is smart enough to find a way to retire at 50 years old is smart enough to do their own taxes (whether with a software package or by hand). The question is do you want to do them yourself (i.e. are you more like Ronstar or pjm-7)?

I guess I'm one of those weird people like pjm-7 in that I too use use the free fillable method and always look forward to the doing taxes every spring.

I use an accountant. For their tax prep fee around $200, I'm not going too waste my time doing it myself. I did use use turbo tax a couple of times several years ago.

I use the IRS free file fillable forms. I was a tax auditor (state payroll audits) in the 1990's. I'm one of those weird people that actually enjoys reading tax stuff. After I complete my return for the previous year, I print out copies of the 1040 form and various schedules that I need. I pencil in my estimates during the year so I know my situation at all times. Yeah, I probably need to get a different hobby!

 

[Midpack]

I've always been a DIY investor, accountant and tax preparer (TurboTax), wouldn't have it any other way. I enjoy working with numbers, it keeps my mind active, and I am just more comfortable knowing exactly where we stand financially and being forced to keep up with investing and tax laws and strategies. I've learned a lot here BTW.

 

[pb4uski]

I sort of use an accountant.

I use TurboTax and prepare 6 individual returns... us, DD & DSIL, DS, DM, DAunt & Uncle and a friend. Plus one estate return by hand.

I did returns by hand before TT.

So if I use TT, how is it that I "sort of" use an accountant you might ask... because I am a retired CPA but was not a tax practitioner though I did prepare some individual and corporate tax returns during the first few years of my career. [emoji16]

 

[Ncc1701]

Since we're on the subject, any good links for Turbotax discounts? I know Fidelity had one in the past

 

[Montecfo]

I am a CPA and began my career in tax in one of the big national CPA firms. So I have always done all my own taxes.

I think many financially savvy retirees can do their own as the software is so cheap and accessible.

To me it makes little sense to shift between Block and Turbo Tax due to software pricing. The software is very cheap for the value offered. And I value my time, preferring not to spend it learning software if I do not need to.

I used TurboTax for probably the last 20 years at least.

 

[Rianne]

We use an account on an hourly basis for advice. ER has made everything easier, so we may quit using him in the future.