taxes, accountant or turbotax?

masraum · 03-03-2010, 06:05 AM

So, what do you use to do your taxes?

My taxes should be relatively simple. Wife and I both have income, and we have a house. Is there much to be gained by going with an accountant to do taxes over something like turbotax (I've been using TT since 1997).

If I should use an accountant for my taxes, how do I find a good one and what is a reasonable cost?

legion · 03-03-2010, 06:15 AM

I've been fine with Turbo Tax for years.

When I have significant investment income or rentals or own my own business, I will use an accountant.

stomachmonkey · 03-03-2010, 06:22 AM

Accountant, same guy forever. Don't know what I'm going to do when he finally hangs up his hat.

Rot 911 · 03-03-2010, 06:25 AM

I used to use an accountant until I found out that all he was doing was using turbo tax. So now I do it myself using either turbo tax or the H&R Block tax software.

Joeaksa · 03-03-2010, 06:36 AM

If you have no outside investments or anything fancy, turbotax is usually fine.

With all my overseas stuff I have to use an accountant. First year he saved me more than enough to pay for his fees, so its worth it for me.

As well the older I get the more I need someone who really knows what they are doing.

Also, any of you guys putting your valuables in a private trust? Is really a good way to secure things that you worked your rear off to get, and do not want to lose. Also does wonders for estate taxes...

Rick Lee · Rick Lee's Garage

I'm torn on this. Last year's taxes were somewhat complicated, as I was a resident of VA and AZ for parts of 2008, had investment income, etc. But I didn't have enough deductions to justify itemizing, so I ended up paying an accountant to tell me what was already the very easy way to do things. Still, I kind of wonder if she was wrong, since I would have thought my rental depreciation and moving expenses would have exceeded my standard deduction. I think I fall into that loophole for the homeowner buying another house tax credit too, so I probably can't claim that.

GH85Carrera · GH85Carrera's Garage

If you don't have complex investments just use Turbo Tax. I have used it for years.

I e-filed and got my federal refund in 4 days. I owe the state, so they get a paper check via snail mail in April.

cashflyer · 03-03-2010, 06:58 AM

I used a tax preparer for many years. Then, like Rot 911, I found that my tax preparer was just using TurboTax or a similar package. I started doing my own taxes with TT.

When I had multiple business holdings, I used an accountant.

(And please note that there is a difference between a tax preparer and an accountant.)

scottmandue · 03-03-2010, 07:09 AM

Can you use TT online? I think I have seen their add.

Been using a accountant forever... I also torn because I have a simple job, own a house and one rental so taxes shouldn't be rocket science... but worry I will "miss" something if I don't go to an accountant.

Isn't the accountant fee deductible? I justify the expenditure with that.

berettafan · 03-03-2010, 07:36 AM

W2's, sch A, turbo tax

Sch C, corp, LLC, estate planning, use an accountant.

We (CPA's) all use software packages.

It's not just about putting the numbers in the right places. For example with careful planning I put $6k into a client's pocket by maximizing certain credits and working with payroll in one of their corps. You don't get this kind of service from H&R Block or Turbo Tax.

Buying a small business? If you are otherwise in a 28% tax bracket and the business assets cost $500k you can very easily make a mistake that will cost you $150k+ in tax over the ensuing years.

Looking at buying/starting a small business? Most CPA's have seen countless small businesses fail and can provide very specific advice that could save your financial butt.

Tishabet · 08:25 AM

This is a timely thread... am I the only person left who still does his taxes by hand? Back when I had an S-Corp and was consulting I had an accountant do my taxes, but these days the landscape seems pretty straightforward.... but perhaps I am being naive?

This years wife and I have:
Two W2s
investment income (stocks)
interest income (savings)
paid off student loans
paid off home loan (2nd mortgage)
Spent about 10k out of pocket on home improvements
paying first mortgage on home
donated money/goods to various charities

Seems pretty vanilla to me... would I still benefit from using turbo tax or the like? I'm not particularly sophisticated/experiences with taxes, I just try to follow the directions on the various schedules etc.

masraum · 03-03-2010, 08:27 AM

Quote:

Originally Posted by Tishabet

This is a timely thread... am I the only person left who still does his taxes by hand? Back when I had an S-Corp and was consulting I had an accountant do my taxes, but these days the landscape seems pretty straightforward.... but perhaps I am being naive?

This years wife and I have:
Two W2s
investment income (stocks)
interest income (savings)
paid off student loans
paid off home loan (2nd mortgage)
Spent about 10k out of pocket on home improvements
paying first mortgage on home
donated money/goods to various charities

Seems pretty vanilla to me... would I still benefit from using turbo tax or the like? I'm not particularly sophisticated/experiences with taxes, I just try to follow the directions on the various schedules etc.

It's not hard to do with the forms (that you can download these days), but it's even easier with TT.

TechnoViking · TechnoViking's Garage

$250 to a CPA saves me a weekend of yelling at the computer and being mad at the government.

And she's there if I get audited or have questions.

TechnoViking · TechnoViking's Garage

Subtract the $50 you pay for Turbotax and it's $200 you "pay" for having someone else handle this headache.

cashflyer · 03-03-2010, 08:38 AM

Quote:

Originally Posted by berettafan

You don't get this kind of service from H&R Block or Turbo Tax.

Hell, I didn't get that kind of service from my accountant.

berettafan · 03-03-2010, 08:55 AM

Everybody's circumstances are different. AGI has to be right, etc etc.

stomachmonkey · 03-03-2010, 09:49 AM

My guy comes to the house. Does them with me sitting there. All by hand. Brings previous 3 years returns and has them out to cross reference for the current year. Usually spends half hour talking to the wife and I about what went on during the year.

He routinely gets info from us that is to our benefit.

Pay him under $200 and have always come out way ahead. If he doubled his rate I'd happily pay it.

legion · 03-03-2010, 09:57 AM

Quote:

Originally Posted by stomachmonkey

My guy comes to the house. Does them with me sitting there. All by hand. Brings previous 3 years returns and has them out to cross reference for the current year. Usually spends half hour talking to the wife and I about what went on during the year.

He routinely gets info from us that is to our benefit.

Pay him under $200 and have always come out way ahead. If he doubled his rate I'd happily pay it.

And that's the rub. A good accountant is worth his weight in gold, but they can be hard to find. A bad one can cost you a fortune.

stomachmonkey · 03-03-2010, 10:10 AM

Quote:

Originally Posted by legion

And that's the rub. A good accountant is worth his weight in gold, but they can be hard to find. A bad one can cost you a fortune.

Yup, like I said I'm screwed when he retires.

David · David's Garage

Turbotax basic!

Mine's not super complicated, but I do have some K-1's and 1099's.

But then I'm an engineer and it just pissed me off to pay someone to do something so simple