Tax Return Prep ?

[4cruisin]

Do you have a professional prepare your annual tax return? We have had the same person prepare our tax return for the past 5 years. He does a decent job but we are forced to file an extension every year because he is "so busy". This year he made us file a 2nd extension and I am not happy at all. He promised to have our taxes finished by last Friday but I can't even reach him. He is a certified financial planner and enrolled to practice before the IRS. We pay a significant amount of money to have him prepare our taxes (usually about $1300 - 1500) eventhough I fill out an extensive tax organizer online that he issues.

Some background...we do file a long form because we own 1 piece of rental property but there is nothing else unusual. We are just plain old working class people...no big investments etc.

Someone I know that owns more investments and rental prop just told me they pay about $400. to have their taxes prepared by a different CPA. I have called my preparer and also emailed him. I told him if I don't hear from him by 5 p.m today, I will be at his office tomorrow to pick up all of my pertinent documents so that I can have someone else prepare my taxes.

How much do you pay to have your taxes done? I think I'm getting taken big time.

 

[Bob Slydell]

I think I'm getting taken big time.

$1300 - $1500 for a reasonably basic tax return? Yeah, sounds like you're getting taken.

Honestly, I think you could probably do your own with a copy of TurboTax Deluxe.

 

[4cruisin]

Yup, that's what I was thinking. I looked into Turbo Tax but the only thing that has me worried is scheduling the depreciation that has already been started. I figure I might as well try it and if I can't figure it out, I can always go to another CPA.

 

[AllyandJack]

I agree...Turbo Tax is awesome. The best part is that you don't have to pay unless you file or print. So, if you get to the end and don't like what you see, just cancel the whole thing and go back to the "professional".

I was able to pay the money I owed to the state through them and I got my tiny federal refund within 2 weeks. It only cost about $35. I went through the long form....it took about 2 hours, but it's very detailed. It goes through rental properties, investments, etc....it mentions all the deductions, so they'll all be brought to your attention.

It was great. I did it online and didn't buy any software.

 

[Bob Slydell]

Yup, that's what I was thinking. I looked into Turbo Tax but the only thing that has me worried is scheduling the depreciation that has already been started. I figure I might as well try it and if I can't figure it out, I can always go to another CPA.

As long as you've got all your past returns and schedules, the program will walk you through everything. And it sounds like you're organized enough to have everything available.

And once you'd done your taxes one year, TurboTax will remember everything in future years so you won't have to reenter everything, just add the updates.

 

[JudicialTyranny]

I do my own using TurboTax for Business. I have my own small business (no employees) and once had a rental property and could almost always figure out how to do it using TurboTax.

The only time I paid someone to do the return was the year I moved to a new house and converted the old house to a rental and had a home office in two different houses in the same year. I forget how much I paid to have it done that year done, but it was probably $400 - $500.

(I had the same accountant do the return the following year and I also did the return myself with TurboTax and compared the two. I found an error the accountant made on a stock sale, requiring me to file an amended return. After that, I decided I could do just as well myself.)

If your return is largely the same year after year, try TurboTax and compare what comes out to the forms filed the previous year - for the most part, the only thing that should change is the numbers.

 

[Toby'sFriend]

$1300 - $1500 for a reasonably basic tax return? Yeah, sounds like you're getting taken.

I agree - especially considering it is now September and it isn't even done yet.

I think that this guy probably specializes in a clientele that is alot more difficult and alot more profitable than your return. You just are not his top priority.

 

[4cruisin]

Thanks for all the info. I just started the Turbo Tax prep so I can do it myself. I figure it can't be that hard and I have nothing to lose at this point. Thanks for the help.

Nancy