Poll - Who does your taxes?

[martyb]

Another rant was the time that TaxAct planted a virus on my computer that trashed it. CDilla was an anti-piracy software that flipped some boot-sector switches that TaxAct put in their cd. I operated with a multi OS computer, switching from Unix, Windows, Linux to learn more. Their 'sneaking' in boot sector alterations from discs ended up trashing the hard drive that even deep reformatting couldn't save. I didn't recieve a penny from TaxAct, not even to reimburse me for the software. I recommend everyone to stay away from TaxAct.

Is it possible you got the virus someplace else? I've been using TaxAct for years, including the two years I ran my taxes on TaxAct first, then took them to an accountant. I've never had any problem. I've never used any other tax software, not even TurboTax.

 

[traineeinvestor]

Deloitte does my US tax federal and state returns (the firm pays for that).

I do my own HK tax returns which take about 5 minutes for the salary parts (of which 4 minutes is agreeing with mrs traineeinvestor how to split the dependant children allowance) and about 10 - 15 minutes for each rental property.

One year of US returns is thicker than about 8-10 years of HK salary and property tax returns. If I didn't have the rental properties, one year of US tax returns would be thicker than all of the income tax returns I've filed in the 19 years I've been in HK put together.

I really don't understand why a tax code has to be so complicated that so many people need either specialist software or professional advice to comply with their tax obligations - simplifying the tax code would free up so much time for people to spend on more productive activities.

 

[meierlde]

My main complaint with TT is that it is so sanitized that you can't "see" the workings of the process. It' a bit like using a calculator without ever having to actually having to solve a problem with pencil and paper. I do use TT, it's (too) easy to use, but I don't like it.

Actually there is a way to use Turbo Tax use the forms view, and enter the various documents you get, such as w2s and 1099s. The program will generate a copy for each payer. You enter deductions on the page as appropriate.

 

[M Paquette]

I've been doing my own returns since I first had a job. I started using tax software in the mid 1990s, as the forms and supporting worksheets grew in complexity and developed what looked like circular dependencies, at least to an engineer trying to follow the tax code. It's up to 3.8 million words in all of Title 26, and of course ignorance is no excuse.

The returns for this last few years have run to about 70 pages of forms and worksheets for our joint return, an impressive stack of paper for folks with modest income and an effective federal rate of 0%. it's sort of a part time job, without the ability to retire.

 

[Nords]

The returns for this last few years have run to about 70 pages of forms and worksheets for our joint return, an impressive stack of paper for folks with modest income and an effective federal rate of 0%. it's sort of a part time job, without the ability to retire.

And the pay sucks too!

Spouse tells me that when her pension starts (just 10 more years) then she'll take over paying the bills. However she didn't volunteer to take over the taxes... maybe she thinks I'm going to pass that one right on down to our daughter.

 

[audreyh1]

I took over the bills when I retired (DH had been working part time). But DH stll does the annual taxes. But I do take care of the estimated taxes.

Audrey

 

[SJ1_]

Online software (Turbotax)

 

[Dawg52]

I have always done my own, my parents and a friend or two. Pencil in the early years, Turbo Tax today. I buy the deluxe version.

 

[ziggy29]

No surprise in the poll results, IMO.

 

[jclarksnakes]

No surprise in the poll results, IMO.

I was thinking the same thing. Doing our own taxes and playing with the numbers helps to see how to get to where you can retire early. Pencil and paper here for years. TurboTax for the last several years. There is still that nagging thought in my mind that in all the millions of words in the tax code TT may be missing something that could save us some more on the taxes.

 

[FUEGO]

I'm one of those sick fcuks that half way enjoys doing taxes. So I use the 21st century version of pen and paper - spreadsheets and fillable and saveable adobe pdf forms. But I still print and mail them in the 20th century way (USPS).

I just helped my BIL and SIL file their taxes this past weekend. They had a kid in 2011 and I wanted to make sure they were getting all their deductions, exemptions, credits etc. From looking at their 2010 returns they did everything right last year using software (taxslayer.com??) and I added on the child related credits/deductions for state and fed taxes for 2011. Used fillable pdf forms from IRS.gov and the state tax website.

I think doing my taxes myself manually helps me understand all the moving parts and what happens as the different parts change values because there are so many things that phase in or out as your income changes. Good for tax planning now and looking ahead to ER. In general I don't think people really understand how taxes work, and they typically just fill in the fields on TT or similar software and cross their fingers. Manually preparing your own taxes forces you to look behind the scenes to see what happens.

 

[ronocnikral]

we unfortantely have an accountant do our taxes. DW's business launched us into this. But, for some reason, I have ambition to do it ourselves this year...we shall see how this goes.

 

[Lsbcal]

we unfortantely have an accountant do our taxes. DW's business launched us into this. But, for some reason, I have ambition to do it ourselves this year...we shall see how this goes.

Doing a Schedule C in TurboTax isn't all that bad. For a small business I'd think the interview approach would give you a good start. The home office deduction is nice, but the downside is it complicates the return process.

 

[toofrugalformycat]

DH and I use spreadsheets. I counted them as software - customized by us. I'm old enough to remember BEFORE there were spreadsheets. Believe me, spreadsheets are software, and quite different from pencil and paper!
DH does the lions share of the work, and I just check them and find errors, so that he can become annoyed with me. One year I used TurboTax just to see if he/we were missing something, and TurboTax did not have sufficient inputs for our situation. Now after many years I'm tempted to try TurboTax again just to doublecheck, but DH points out that TurboTax didn't serve Geithner well.

 

[GrayHare]

TT has problems, for example its UI remains stuck in the 1990s, but it's the cleanest shirt in the hamper.

 

[samclem]

. . . but DH points out that TurboTax didn't serve Geithner well.

If Timmy had followed TT's instructions he would have been fine (and most folks would have sympathized with his plight). He knew exactly what he was doing.

 

[Sue J]

I've always done ours. Used to use paper and pencil and mailed in the forms. I switched to free online prep as soon as it was available. I keep an Excel spreadsheet and estimate in the fall just to see where we are headed. I also complete my son's Schedule C and the rest of his return.

DH has never helped with taxes, doesn't care, doesn't want to see what goes into it. We used to get a refund when we had dependent kids or college tax credits. Now that he's retired we estimate very close. We will get less than $50 back from the state and have to pay $126 to Federal.

 

[jimnjana]

I do my own, as well as a growing number of family members.

 

[skipro3]

I've always done my taxes until 2006 when we had a house fire and lost everything. Literally was left with nothing, not even my wallet or glasses. It was a fire storm and we barely made it out.
The taxes for the loss was a huge write off. I didn't pay income taxes and went 'exempt' for 4 years. Once the loss was finished with the write-off, it was hard to go back to paying taxes. For 4 years I got to take home all my money basically. When taxes kicked back in, I was amazed how much it hit. I was smart and funded extra to my retirement with the 'windfall'.

 

[ERD50]

Now after many years I'm tempted to try TurboTax again just to doublecheck, but DH points out that TurboTax didn't serve Geithner well.

Gotta second samclem on this one. It isn't fair to blame TurboTax (or any tax software) on this one. And since people are giving opinions on tax software here, I think that's relevant. Let's not give TT a black-eye over that one. I have other reasons to give TT a black eye, that I've mentioned before, but I can't really know that others are any better.

TT has problems, for example its UI remains stuck in the 1990s, but it's the cleanest shirt in the hamper.

GrayHare - have you tried the other programs? What do you base this on? Most of the reviews I've read (and my own experiences) are a mixed bag.

-ERD50

 

[Lsbcal]

Just thought I'd mention this caveat. If you are switching tax software you have to make sure the carryover stuff is working properly. For example, year to year TurboTax carries forward your basis in IRA's. You do not want to loose that info which is needed when you take distributions.

 

[toofrugalformycat]

Gotta second samclem on this one. It isn't fair to blame TurboTax (or any tax software) on this one. And since people are giving opinions on tax software here, I think that's relevant. Let's not give TT a black-eye over that one. I have other reasons to give TT a black eye, that I've mentioned before, but I can't really know that others are any better.

-ERD50

I agree with samclem and erd50, the point I was trying to make (or rather my DH was) was that using commercial software does not necessarily get you the correct result. I shouldn't have implied that TurboTax was bad. In fact, if I do choose to use commercial software it will be that one.

 

[GrayHare]

GrayHare - have you tried the other programs? What do you base this on? Most of the reviews I've read (and my own experiences) are a mixed bag.
-ERD50

I've tried some of the others, but don't know any that get higher ratings than TT, which is to say the other shirts are not as clean. I believe TaxAct is the next most popular after TT and it's weaker. Compared to paper and pencil (and eraser) all the tax programs are far ahead, but compared to other modern programs, they are behind. For example:

I see for 2011 TT finally allows the user to adjust font size, but the program still overrides the user's display color preferences and does not allow any color configuration. Even in recent years TT forced the user to enter 4 digits for the year in fields where 2 digits would have been sufficient. TT still requires the user to enter the *dollar value* of items such as the portion of investment income from US obligations, while most (all?) mutual fund companies report that value in per cent. TT's data field for this should accept either the dollar value or the per cent. TT has other similar user interface elements that also have not yet been upgraded to standards found in most other current apps. Such weaknesses certainly don't render TT unusable, but most UI tweaks I'm thinking of are simple to implement and make the program a bunch easier for everyone.

 

[freebird5825]

TurboTax all the way for me

Mr B does tax returns for some of his veteran buddies, charging them only $50. All he needs to do is 2 returns and we are completely cost reimbursed.

I did mine today, minus being able to download my VG brokerage data. VG's site says the data will be ready by Feb 17.

I am still able to itemize. So far, I have a $1600 refund coming.

 

[misty57]

I use on-line free Turbo Tax only to calculate the AMT, if we owe it at all. Other than that, it's paper and pencil for me cuz it's pretty easy breezy.