Posted by pat/WA on 3/11/13 7:23pm
Msg #460644

taxes

Just paid $300 to have my tax return prepared. Maybe next year I will do my own.

Reply by Jack/AL on 3/11/13 7:40pm
Msg #460646

OK by me................. n/m

Reply by Tim Cameron on 3/11/13 9:30pm
Msg #460660

1st thing my dad taught me as I entered a life in the sales/service wars was, never do anything you can pay others to do at a reasonable rate.......in other words, concentrate on what you do and there will always be plenty of money to pay others for the things that take you away from your income....let your CPA do his thing, and you yours...2 appts and write his fee off next years taxes and your even.......plus he has to represent his work in an audit

Reply by Sha/CA on 3/11/13 10:26pm
Msg #460665

Re: I used to do my own taxes. Then I tried an experiment. n/m

Reply by Sha/CA on 3/11/13 10:30pm
Msg #460666

Re: Okay, again... I used to do my own taxes. Then, I

tried an experiment. I did my own and I had a CPA do them, just to compare. There wound up being about a $1200. difference, to my benefit. They know so much more than I do. I have never done them since.

Reply by BrendaTx on 3/11/13 10:33pm
Msg #460667

LOVE IT!! n/m

Reply by sueharke on 3/11/13 10:46pm
Msg #460670

I've read the other comments in this topic. The one that says to do what you do best to make money and pay for whatever you do not do well is wise advice. I say the same to tax clients when it comes to hiring a bookkeeper rather than do his or her own bookkeeping.

Also, meeting your CPA or EA midyear or in Nov or Dec to discuss how any new events or new tax laws affect you is a good idea.

Want to setup or take money out of your retirement account, don't listen to the clerk at the bank or wherever your retirement account is as it could cost you an overall tax of 40% of the money you take out.

Moral: you time is valuable. Make time to work and relax. Allow others to help who know more than you. One state has recently said not to use Turbo tax as it creates incorrect returns. Do you have time next year in case the software has issued and you have to do your tax return over?

Reply by Buddy Young on 3/11/13 11:47pm
Msg #460678

Rely on your CPA, he or she is the expert, mine has saved my lots of money over the years. I'll stick to my area of expertise.

Reply by MikeC/TX on 3/12/13 6:11pm
Msg #460797

Are you sure?

"One state has recently said not to use Turbo tax as it creates incorrect returns."

There is a phishing scam currently making the rounds where people are receiving an email, allegedly from TurboTax, saying that their state tax return was rejected. Of course, those who didn't use TurboTax will ignore it, but those who did might take it seriously. Clicking on the attachment in the email launches some malware that captures a lot of personal financial information.

So if that's what you're referring to, it's a hoax. I haven't seen anything about any state specifically warning against using TurboTax, so if you have more information to share, please do so.

Other than that, i agree completely that you should pay others to do for you what you do not do well. But if you CAN do it, there's no reason to pay someone else. I've been doing my own taxes since before there was software available - it has never been complicated enough for me to hire someone else to do it for me.

Reply by MW/VA on 3/12/13 2:47pm
Msg #460764

This one always gets me, and no offense to the CPA's and

tax professionals here. First, we have a complicated & burdensome tax system, with the burden of proof falling on the taxpayer. It's so complicated, many people have to pay someone to wade through the difficult system. To me it's ludicrous. We have to pay taxes & also pay someone to prepare the return for us. Granted, most tax professionals will save you money & offset their fee. I still have difficulty with the whole concept. So much of it is based on the fear of an audit.
I was a tax preparer a few years ago for one of the highly visible tax prep cos. Most of the money they made was on the poor. They get EIC (free money--generally $4,000/$5,000. They pay the fees & fees for getting the money fast because it's not their money in the first place.
It's a very sore subject for me. I paid an outrageous amt. of taxes last year & this year based on some money I received from an x-husband's pension & life insurance. All taxable income, and received 1099's in these situations.
I've used TurboTax for several years & do my own taxes. I think the software that is available now is helpful for those who have a good understanding of taxes, but the question & answer concept walks you through the whole thing.
It is more complicated for those of us who file a schedule C for business.

Reply by Linda_H/FL on 3/12/13 3:18pm
Msg #460768

My .02FWIW

I think anyone who runs a business and wants to do their own taxes (yes, like me) should afford themselves the benefit of taking a tax prep course. They're not that expensive, you're not obligated to work for the companies and you get a world of knowledge and information about our tax system.

I took one years ago - was some of the best money I ever spent. And it has helped me tremendously in understanding how to prepare my tax returns and/or how to find the information I need.

I may take another one this year - maybe dabble in some simple returns...

But that's my .02

Reply by MW/VA on 3/12/13 4:12pm
Msg #460777

IMO that's great advice, Linda. I've taken the tax course

when I worked for the tax prep firm. That gave me a good understanding of the Schedule C & business income/expenses, etc.