Doing your taxes on your own

[nikkistevej]

Turbo Tax, cost like $70 for federal/state(some states don't have state though) I like they file electronically also. Did mine last Thursday night, state taxes already going in my account tomorrow.

 

[tvguy]

The "Free Fillable Forms" mentioned earlier in this thread are part of this.

I saw that, but not the IRS site directly.

 

[DisneyMandC]

Tax Act is $13.99. It takes everything from federal and drops it in the state form. I can't file my state form for free. That's only available to lower income filers. So to file both electronically I have to pay.

Wait, what are you paying to file for state? We live in the same state and I've never paid anything... I use the free Turbo Tax.

 

[havaneselover]

Wait, what are you paying to file for state? We live in the same state and I've never paid anything... I use the free Turbo Tax.

My total cost for state and federal is $13.99. In VA there is no free filing available if your agi > $62,000.

 

[kj2mom]

I have used Tax Act for years. It used to be that federal was free and state (MA) was a nominal fee but this year both were free, already have my refunds.

 

[Sagginit]

I use Turbo Tax (but pay the online fee rather than buy software). I work in one state and live in another, so I have one federal and two states. It makes it easy for me to do it. In my experience if you file before a certain date the fee is lower too. I am fine paying the fee and letting the program calculate things for me as filling out three forms myself makes me nervous.

 

[njpyro]

Here is yet another vote for Turbo Tax.

 

[havaneselover]

I have used Tax Act for years. It used to be that federal was free and state (MA) was a nominal fee but this year both were free, already have my refunds.

It looks like I paid $7.99 for federal and $6 for VA. Their pricing structure is confusing. Regardless it's a great product.

 

[mom2t]

I am sick of paying HR Block to do our taxes. Is there an easy way to do them on our own. I would have to believe we are pretty boring when it comes to our filing. What does everyone else do? Any ideas? We are moderately intelligent so I think we could figure them out on our own..

We moved to a CPA 3 years ago. HR had always done ours but the knowledge of their preparers have gone downhill over the years as their price increased. We needed some advice about some things as I am moving toward retirement. Believe it or not our CPA was cheaper, she offered financial advice and we itemized.

 

[Madteaparty001]

A couple years ago my DH and I went to H&R block for their 'try us for free' where they do everything except file and show you how much you would get back. Then they told us the price to file . Went home and bought Turbo Tax, filed that night for $34.99 federal plus $19.99 for the online state (printing and mailing in is free) and got an extra $20 on my return then what H&R found for us. Tried the H&R block version of Turbo Tax and it was frustrating to use plus it would let me do my city taxes, Amazon gave me a refund and I bought that years copy of Turbo Tax. Definitely a satisfied customer.

 

[momtosam]

I used Tax Act several years and liked it, but this year a banker friend suggested freetaxusa. It was even simpler to use and I'll use it again next year.

 

[OneOftheB's]

We used Turbo Tax for years. Until one year I entered a mileage deduction incorrectly (still not sure what happened) and we got a $1400 bill from the IRS. Given that our tax situation was changing by becoming small business owners we decided to start using an accountant. Best move ever, especially when the IRS sent us letters stating we owned additional $ two years in a row and our accountant proved that the mistake was on the IRS side, not ours.

 

[NYCDiane]

I am sick of paying HR Block to do our taxes. Is there an easy way to do them on our own. I would have to believe we are pretty boring when it comes to our filing. What does everyone else do? Any ideas? We are moderately intelligent so I think we could figure them out on our own..

I would just lay out the bucks and use Turbo Tax online. You don't have to buy the software' just go to their site. They walk you through every single thing so you don't miss any possible credits or deductions. I've been using them for many years and have never, ever had a problem.

 

[agavegirl1]

Disclaimer: I am a professional tax preparer and the opinions expressed are my own and do not reflect those of the indaustry or company for which I work.

Okay OP and a few others who have chimed in. Everything depends on the complexity of your return. For those with sole proprietorships, Turbo Tax Home and business works well if you have a good grasp on your accounting and only do business in one state. I used it for years when I had a business without issue. It costs about $80 and your state filing will cost extra but federal is free.

For online so called "free filing"...the free part is for the 1040 and 1040A. If you itemize deductions, there may be an additional charge for Federal and state. Multi-states cost extra and require a knowledge of reciprocity or no reciprocity. Check the fine print. Remember, you are responsible for the representations and information on your return if you make an error. The most common reason I get new customers is that they tried to file on their own, messed up, assumed the taxing authority was correct then they later got a bill for extra tax. They then said..."I am not doing this on my own anymore".

I frequently Amend previously filed returns for years when the taxpayer made an error. The adjustment was really NOT going against the taxpayer, they just didn't know how to answer all the questions correctly in the software they used and they were often unaware of other deductions and credits to which they were entitiled.

All of this said...simple returns (no itemizing, no business etc) use an online free file program. If you consider your time more valuable or your return more complex, consider your tax knowledge and either use purchased software for your situation or use a tax service. Research your preparer well if you do use a preparer. Some Tax services are better than others for home based businesses or complex Schedule A (employee business expense comes to mind).

I hope this helps some of you out there and please note my disclaimer. PS....I am a CPA

 

[QueenIsabella]

I have to second what the PP said. If you have an uncomplicated return, it makes little sense to go to a paid preparer. However, if your return is complicated, you're better off seeing a professional. We started seeing one years ago, when we had rental property. We no longer have that, but last year, DH switched jobs--twice. He worked in three different states. We had a relocation package, which included different types of payments, some of which are taxable. We bought a house and sold a house. He got a huge bonus. Bottom line, I don't know what our accountant will charge us to do our returns (federal and three state, plus two for our college-age kids). But whatever he charges, it'll be worth it for the peace of mind that it'll be done correctly.

 

[Sadie22]

Some people mentioned having to pay to fill state income tax returns. Our state has free online filing. We can prepare our return using the usual software and then go to the state's website, enter the figures, and file online for free.

 

[sdoll]

OP here I am not expert but i think we have simple returns. we each have 1 W2, our mortgage interest paid, taxes on our house, 1 student loan interest, 2 kids. Nothing else exciting we luckily had a very cheap medical year (didn't even touch our deductible for the first time ever with kids!!!) So i would have to believe it would be easy enough for us. Think we will give it a whirl and see what happens!

 

[Vernie822]

I have very basic taxes, and I always have an easy time with turbotax. This year, I paid $34.99 each for Federal and State, and then $34.99 to have it direct deposited into my bank account. I probably could've looked for a better deal because that seems awfully high to me.

 

[Stacy's a freak]

Have always done my own taxes and I have used H&R block's home tax program (don't remember the name) and the past few years have used TurboTax. These programs ask you every possible question if you spend the time and go through the whole program options which makes it very hard to miss things. We have 3 jobs total, 1 kid, a house sale, a house purchase, itemized deductions for property taxes, mortgage interest, etc. etc. and we have been able to do all without incident with TurboTax. Now if I had gambling winnings, or multiple state filings, or were self employed, you bet your butt that I would go to a professional accountant and NOT one of those H&R block people in the Walmart. For anyone who might be offended, forgive me, but I have seen those "tax preparers" who likely got a job 2 weeks ago and are asking the same questions to check the same boxes that I can answer and check at home on TurboTax. If you have truly complicated taxes and unconventional income/deduction matters throughout the year, you should go to an actual accountant - not a fly-by-night "tax preparer" who has a seasonal job and does not know the nuances of tax law.

 

[yupikgal]

We used Turbo Tax for years. Until one year I entered a mileage deduction incorrectly (still not sure what happened) and we got a $1400 bill from the IRS. Given that our tax situation was changing by becoming small business owners we decided to start using an accountant. Best move ever, especially when the IRS sent us letters stating we owned additional $ two years in a row and our accountant proved that the mistake was on the IRS side, not ours.

Thanks!! I am thinking of using the Best of Both again. I enter information, but whatever I can't figure out, they will do. It's about $90, but last year I think we paid a lot more for some reason!