Could Turbo Tax be wrong?

[Fire14]

One thing that could have you owing state taxes but getting refund from fed is more than 1 job or them not taking enough state taxes out. I had to fill in another STATE w4 to correct this with my job. I owed 200+ to state but got money from feds.

 

[Abby's Dad]

I spoke with a lady who works for h&r block, and she said that they will check over your taxes for you for free. I don't know if this applies for every hr block, or if this lady was trying to convince me to let her do my taxes. LOL. I am thinking I might let her look it over this year, just to be sure.

Oh, and last year TaxAct gave me $1000 more than Turbo Tax. I am really curious about this year.

For what it's worth, the only time that I have ever been audited was the one and only time that I paid someone else to do my taxes (which was H&R Block), and the IRS turned down a deduction that Block insisted that I could take (though I told them that I couldn't - they said trust us, if you get audited we will go to the audit with you and pay any penalties and interest. They didn't show up for the audit, and took their sweet time in paying the penalty and interest.).

 

[Abby's Dad]

I would never do my taxes myself again or at HR Block after what happened to me in 1998. We fill out everything by hand. $900 owed. We take it to HRBlock--$1450 owed. Next year, I have a home-based business and figure it was worth it taking everything to an accountant to get it right. He takes one look at 1997's taxes and says, "Who on earth did these?" Amends the previous years' taxes, and we not only get back $1450, but we also get another $1000. Last trip to HR Block. Accountants know and get the tax laws. The people at HR Block don't. And I overheard a lady at Jackson Hewitt today tell a lady, "I've never itemized before, so you'll have to bear with me." And she was going to let her finish the taxes? Not me.

Not all accountants are any more familiar with doing taxes than the homeless person on the street. Being an accountant does not mean that they have ever taken even a Jackson-Hewitt (extremely minimal) tax class. They know good accounting principles, and how to run those numbers, but training in taxes is something they get otherwise, and may be minimal, or extensive, allowing them to be an enrolled agent (can go to an audit for you). But you have to ask about their training and expertise.

 

[Sethsmom]

My DH and I have had to pay the state before and gotten a refund from federal. I don't think that it is that unusual. We increased our deductions just a little after that and have not had a problem since.

I would get a second opinion though. Some states offer free tax help if you don't want to have to pay someone.

 

[pirateparrot]

There are many federal tax credits that may not apply to your state return. A credit is actual money, not just a deduction off of income. I suspect something like a child credit that applies on the federal side could get you a refund there but still have to pay on the state side.