I Actually Enjoy Doing My Tax Returns…

[jebmke]

You do so much work to get it all set up for the accountant, and then hope he pays attention.
It would probably be faster and more correct to do it yourself.

exactly; by the time you organize the paper and then check the accountants work, you might as well do it yourself. Same reason I don't download the brokerage data.

 

[Happyras]

I still do it myself first in Turbo Tax, and pass it along to our accountant for blessing and filing. I am really gun shy of the IRS. Here is a funny recent scare;

The IRS claimed I owed them after my Accountant said to short pay due to a credit in 2020. They claimed they notified me 3 times, did not. I paid with a penalty to avoid conflict, knowing they were wrong. Last year out the blue they were wrong, sent me my money back and paid me interest, HA!

This week, I saw an IRS letter coming through USPS Informed Delivery. It did not come, I was worried about what kind of issue or Audit and nearly approached my accountant prior to even getting the letter.

Last night I opened the letter to find a friendly reminder to include the interest they paid me last year when I file our return. What a relief, happy to pay.

 

[scrabbler1]

Being good with math and numbers, I enjoy it, too. So much so that I have been doing the tax returns for my ladyfriend, my best (the snake-bit SB one) friend, and for the last 3 years my dad's returns.

Most years they are pretty routine. But some of them have been much more challenging. My LF's returns the first year she moved to NY were tough because she had part-year state returns from 2 states. My SBF had some tough returns in 2012 when his remaining parent died and he received a considerable inheritance. And mine were extra-tough the year I ERed and cashed out my company stock. For 8 years, including that one, I had 2 state returns because I worked out-of-state.

Since the mid-1990s, I have used homemade spreadsheets to mimic the calculations on the forms. Since 2014, I have used the free fillable forms, another handy aide.

These homemade spreadsheets have been useful for adjusting withholding allowances for me (when I was working), my LF, and my SBF. They have helped me with determining estimated taxes, too.

The first year I was working, 1985, I figured out that I would be getting a large refund because I worked only 6 months but my withholding was based on a full-year's salary. There were many more tax brackets back then (pre-1986 tax reform). Using just a calculator, pencil and paper, and the withholding tables my payroll people gave me, I was able to figure out the proper allowances (12!) so I could get that refund now instead of waiting until I filed my returns. That enabled me to buy my first car sooner and without needing a car loan.

I haven't been perfect, though. I have made some mistakes on the many returns I have filed over the years. I had to file some amended returns, paid some extra taxes, got some extra refunds. Nothing serious, and all turned out well in the end.

I have already begun work on the 8 returns I will complete for the 4 of us. Can't get a lot done until I get all the W-2 and 1099 forms. But I know a lot of the data which will appear on them. I don't e-File anything but I have been using ACH for most payments and refunds to remove paper checks from the equation.

I won't go near any of those software packages such as TT. One year, as a check on my work, I tried TT and I got garbage numbers. So I threw TT into the trash.

 

[RunningBum]

I like the tax planning, for the most part. I don't like actually doing the taxes. TurboTax is pretty cumbersome. I get that for about everything you enter there has to be another page asking for special situations, but they seem inconsistent with making you check the "None of these apply" box or just letting you continue. And the running calculator on how much you owe or get back throws me sometimes, like the tax owed going up when I enter an HSA contribution, until I get to the next page and answer that I did have a qualifying medical plan.

I just finished fed and state taxes in about an hour and a quarter without rushing through it. I already had my 1099s downloaded so the only accounts I needed to login to where EFTPS and the state tax payment system to enter my quarterly estimated tax payments. The step that took me the longest was calculating how much of my ordinary divs was govt interest since Vanguard doesn't do this for you.

I'll still review the numbers, especially where they are different from my worksheet. Most of that is because VG qualified/ordinary dividend splits were different from expected. VOO was estimated to be 98% QDI as of 12/8, but turned out to be 100%. That's to my advantage, but it's a little hard to do tax planning with VG's inaccurate estimates. Fortunately MAGI or total taxable income is usually my target, not regular income, but I had considered keeping my regular income at 0% at one point this year. Instead I opted for 0% QDivs and I think I got within $10 of that.

 

[frayne]

In the last 38 years of doing my taxes I had to deal with the IRS four times, won two, lost two and at no time was it a problem dealing with them with the exception of their lack of timeliness. Having some knowledge of the tax code and handling the issue in a non emotional manner and more of a business deal, helps every time. I've got nothing but respect for the IRS people I've dealt with, doing a very hard job with less than adequate resources. People tend to forget, they are a collection agency and don't make the rules.

 

[MarieIG]

You do so much work to get it all set up for the accountant, and then hope he pays attention.
It would probably be faster and more correct to do it yourself.

Yes, he does. He says I'm his best client that way. I do see his check-offs on my list and he calls me with any questions. (I also pay him immediately, so maybe I'm a good client that way too, LOL.)

It's a peace of mind thing. (I also look at the tax schedules to get my own estimates.)

 

[RunningBum]

My new thing is doing my returns in both H&R Block and Turbotax. I was using H&R Block for years and then found out about the free Fidelity version of Turbotax a few years ago (after I had already purchased H&R Block version). I used both and now I can't stop.

Do they come out the same every year? They should, but it could be like looking at 2 clocks and not being sure what the correct time is.

 

[BruinBones]

One year I had a professional do our taxes. It was $500 and I still ended up doing a lot of up front work and then back end verification. I caught omissions and errors. For $500+ I will do it myself.

I did my own taxes for many years. Then when I got married, I used my wife's accountant and found they weren't providing much value, So now I'm back to doing our MFJ returns myself.

BTW, thank for starting this string. I enjoy reading the posts.

 

[pacergal]

Guess I am an oddball here, hated doing our taxes for years, finally switched to an accountant. Don't mind paying them at this point.

 

[dmpi]

I use Turbo Tax. While I'm doing my taxes there's always that stress that I didn't withhold enough. I'm relieved when I finished. One part of taxes which is not fun is entering in all the slot jackpot winning slips. This year I only had four but there were years that I had over twenty. The IRS already knows all the numbers I enter, why do they need me to tell them?

 

[sofarsogood]

Been doing our own taxes for many years. Am also a VITA volunteer tax preparer for the past 4 years and enjoy the work.

 

[djsander]

I loathe doing my taxes. It's probably one of my most hated chores each year.

Why? Well, I can't stomach the thought of making even a small mistake and having to pay any sort of penalty, so I spend hours (upon hours, upon hours) checking and re-checking (and re-checking) all my numbers. Also, navigating the labyrinth of all the elaborately worded rules, limitations, deductions, credits, exceptions, penalties, and worksheets makes me angry at all the people in gov't (IRS, Congress, lobbyists) who have contributed to this monstrous tax code that places such a time-consuming burden on everyone here in the U.S. Our tax filing process is by far the most complicated and burdensome of any other first-world country, and early April is a harsh reminder of that fact every year for me.

I often wonder why everything we enter says this information is being reported to the IRS. My K1 sales information says we needed to include a 751 statement about ordinary income and calculation is available from the partnership upon request. Doesn’t the irs already know all this just by the fact of how everything is reported? If not they should. Just a short rant about how absurd tax reporting is. I know this could all be done via computer and the irs, but it would put a lot of people out of work. Even just get rid of paper filing. I don’t mind doing taxes, but as an engineer I believe in efficiency and can see where the efficiency could be greatly improved!

 

[marko]

Our accountant takes care of all of that as we have a fairly complicated profile. I try to not get involved.

Having said that, two years ago I did a 'phantom' entry on TT (just didn't file it). It was fun to do and de-mystified a lot of the whole process for me. A bit empowering to see such a complicated activity crunched into some sort of order.

 

[qwerty3656]

Do they come out the same every year

Ultimately, I get them to match, but it usually requires some work. That is why I keep using both, because the 1st year they were not initially matching

 

[braumeister]

Ultimately, I get them to match, but it usually requires some work. That is why I keep using both, because the 1st year they were not initially matching

I tried that once and found it interesting because I was putting in my entries to the penny and TT and HRB used different rounding conventions. Only a couple of bucks different in the end, but noticeable.

 

[iloveyoga]

I have always enjoyed doing taxes. I have ours all ready to efile today or tomorrow.

 

[rodi]

I enjoy it. I've paid to have my taxes done once... and the CPA missed a pretty big overpayment I'd made. (I had changed jobs and states - and there were moving costs paid for by the company, with tax gross up paid for this benefit - CPA missed that because of the two states/two employers, extra income that wasn't wages, I'd overpaid SS by a a lot.)

I'd taken it to the recommended CPA because of the move/gross up thing. And she messed it up.

That was the early 90's and I've used Turbo Tax ever since.

My husband has used a tax professional once. He was working as an hourly consultant for two architectural firms. CPA was a bit too aggressive in claiming work expenses. Hubby got audited. CPA refused to deal with the audit. Hubby paid what he owed and did his own taxes thereafter.

So as a couple, we're twice as averse to hiring out taxes.

I also do his mother's taxes (hubby is her financial guardian), our older son's taxes, and a friend's taxes. Only MIL's taxes are in a different state.

 

[Midpack]

Also, navigating the labyrinth of all the elaborately worded rules, limitations, deductions, credits, exceptions, penalties, and worksheets makes me angry at all the people in gov't (IRS, Congress, lobbyists) who have contributed to this monstrous tax code that places such a time-consuming burden on everyone here in the U.S. Our tax filing process is by far the most complicated and burdensome of any other first-world country, and early April is a harsh reminder of that fact every year for me.

Now I do agree with that sentiment. Our tax code is needlessly complicated, but I'm not holding my breath that it will change in any meaningful way.

Many other countries send citizens their tax returns completely filled out, and the citizen only needs to approve it or ask for corrections. Like every other country, everything that goes on our tax returns is reported to the IRS anyway - so there's no reason they could not do the same here - other than

I have dealt with the IRS twice, they were wrong both times, off by over $26K once (they overlooked 3 estimated tax payments). And I ran into a penalty of $23 for my 2022 taxes for unequal estimated quarterly payments, but I am absolutely positive the IRS is wrong in this case too - so I have checked to waive the penalty and documented why in the Form 2210 explanation. So they will be wrong 3 for 3 times after this year...

 

[Walt34]

I can't say that I love doing taxes, but I don't hate it either. It's a necessary chore and for all the hate thrown at TurboTax and the other tax programs, I'm extremely grateful that those programs exist, and I think they're a bargain at twice the price. (Just don't tell them I said that.) I remember well having to do the taxes myself with pencil, paper and a pocket calculator, and before that paying a guy to do it because I didn't have the foggiest idea of what to put on those forms or where. And that guy charged a lot more than any of the personal tax programs.

Even better, now I don't even have to go to the post office and mail them, just click the "send" button when it's done. Now that's cool!

 

[friar1610]

For years enjoyed doing my taxes using TT so much that I joined the AARP Tax-Aide program as a volunteer preparer. Did it for 2 years but took a pass this year. I think I burned out on the software they use (Tax Slayer) - I find it very unwieldy. I’m also slower than many of the other volunteers at my local site. That makes it stressful for me as I know people are waiting and I’m holding them up when their friends who were assigned a faster volunteer are already finished and enjoying a coffee and a fat pill at Dunkin’ Donuts.

Last year I paid our district Tax-Aide coordinator to do mine separate from the TA program. She’s an Enrolled Agent and in addition to her TA work has a part-time tax prep business. Was happy with the results and will retain her again this year. That’s one of the steps I’m taking toward making financial matters easier for my wife if I predecease her. I tried to teach her to prepare returns on TT several years ago but let’s just say it didn’t take. (In her defense, she’s tried to teach me many things that haven’t taken. Like doing laundry.)

 

[38Chevy454]

Taxes are no fun for me. I have a small side business, so lots of extra tracking of business expenses. The rest of the basic taxes are not too bad, just entering the 1099s and other income. Use Turbo Tax.

Then i do a trust return which I am trustee for. Not too bad, but additional time. I do this on paper, rather than paying the required high cost Turbo Tax for 1041. I also do my sister's personal return, that's super simple. Past couple years I had to do second trust return for parent's estate, should not need one this year.

My biggest challenge is ensuring I don't miss anything and minimize the amount of taxes paid. Overall it is not a fun process, especially because of my business and year long records that consolidate into the tax return.

 

[Sunset]

TaxAct reported to me:
"
Intuit, the owners of Mailchimp, a company which provides email services, recently notified us that Mailchimp had suffered a compromise after Mailchimp employees and contractors granted an unauthorized user access to Mailchimp’s administrative and support systems.

TaxAct is one of 130+ Mailchimp accounts that were affected by this incident. We do not use Mailchimp to store sensitive customer data. Data accessed by the unauthorized user was limited to certain individuals’ first name and email address, including yours. No passwords, account information, or other sensitive data are part of this incident.

We are contacting you as a precaution and to remind you to stay watchful against scams, where an imposter may contact you pretending to be TaxAct, also known as phishing.
"

I wonder what other companies out of the over 130 will notify users.

 

[RobbieB]

Like doing taxes? Nope, would rather be out on the river.

Just another chore that I DIY instead of paying someone else.

 

[Jerry1]

How are you all doing your taxes so soon? You don't have any 1099-R's or SSA-1099's or other items that don't come out until the last day of January? I know some things get sent before the due date, but generally, I've never received any of those forms before the end of January. Then there's other things like brokerage statements that don't tend to come until February. You have none of these?

 

[tulak]

I enjoy doing my own taxes. Before TT, I had spreadsheets that modeled tax forms and allowed me to easily try different scenarios. I’m too lazy to do that now, but I still review all the forms in TT before I submit the return. I’ll also try different scenarios in TT and analyze the results (usually having to look at the actual forms).

I believe that doing your own taxes gives you more knowledge so you can manage your income, etc, to your benefit. If you use a CPA, then you lose that benefit.

Not to mention there’s no guarantee the CPA will do a better job than you entering data into a tax program.