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MikeD · Feb 20, 2007, 10:06 PM

I don't trust my accountant for whatever reason. I'm looking for either a second opinion or need to just learn to do it myself. Is turbo tax really good for most users? How easy is it to use assuming I have everything (all paperwork) in front of me?

Why don't I like my accountant? We're making roughly the same amt as last year and didn't have to pay anything and now he's telling me I make too much and wants me to put in $5000 or so into an IRA to 'balance things out' somehow. I don't really understand the details because I could barely understand the guy period.

My wife and I are both teachers and on my end, I make a little more this year over last but my wife switched jobs and is actually making a little less. Someone please tell me how we make 'a lot'. Sigh....

Just another hassle....

Buckaroo · Feb 20, 2007, 10:15 PM

I've done my taxes every year for over 30 years. Turbo Tax is very easy to use. I've used it for several years. I might switch to Tax cut next year because it is cheaper. I don't know much about Tax Cut, but I'm sure it is ok.

If you did any stock trades, you should get the Premeir version.

climber · Feb 20, 2007, 10:29 PM

I think you need a new accountant. Not because of bad advice, but because you need someone you can trust. I don't see how a computer program will help much.

SirCastor · Feb 20, 2007, 10:32 PM

I've been using TurboTax online for a few years now (and before that we had a friend that used his copy to do our taxes). Actually, I make it under the bar to go through the "Tax Freedom Project" which makes it free. I paid in 05 because I was in two states, but even then, it was only $15. Well worth it. It's always worked Fantastic. I like it a lot, walks you through everything, and explains most things pretty well.

As for an IRA, putting that much into one is a good idea, but you can only put in a maximum of $4K a year at the moment. (That'll go up next year, but that's next year). If you're a teacher, go with your 403e (or whatever it is). </unsolicited advice>

MikeD · Feb 20, 2007, 10:34 PM

Should I seriously just go to a firm like H&R Block or do I need to just ask around to see who friends/family/coworkers use??? Or, should I just learn to use TurboTax and do it myself?

greenG4 · Feb 20, 2007, 10:34 PM

You can go all the way through with turbotax to see what you'll get back. If you don't file, you don't pay. I have used TB for the last 5 years. I love it. My tax return this year bought me a new MacBook with plenty of room to spare. :-D

SirCastor · Feb 20, 2007, 10:54 PM

Originally Posted by MikeD

Or, should I just learn to use TurboTax and do it myself?

Kind of the great thing about Turbotax is... there's not really a learning curve about it. You just punch in the number, answer some questions, and let it do it's thing.

macroy · Feb 21, 2007, 06:53 AM

What SirCastor said. Its simply a question/answer session. And it can be even easier if your employer/bank has their info online. I was able to download all my info using my employer's Tax ID. I also have TDAmeritrade, which also has that feature.. but that didn't work too well as they info wasn't separated out correctly.

Bottom line, if you have all your documentation, all you need is an hour or so to plug in the numbers.

Also check your credit union or employer, they may offer the online version for free.

IceEnclosure · Feb 21, 2007, 06:59 AM

Originally Posted by macroy

Its simply a question/answer session. And it can be even easier if your employer/bank has their info online. I was able to download all my info using my employer's Tax ID.

true and good.

Dork. · Feb 21, 2007, 07:24 AM

The accountant does sound a little fishy to me, but there might be valid reasons behind what he is saying. There can be any number of reasons why you might not have had to pay tax last year but might have to this year. (Did you get a bonus last year? More tax gets taken out of that.) And the way IRA's work now, you can make a contribution up until April 15th of the current year and apply the tax benefit to the previous year's tax return that you're in the process of filing.

I'm partial to TaxCut because it's not owned by Intuit (and I've had bad experiences with Quicken), but TurboTax is pretty good also. Both are very easy to use, but I've found TurboTax to be a little more newbie-friendly. Either program will do fine with typical tax returns, and it shouldn't take you more than an hour or two (less if you have all the relevant forms in front of you). It's well worth the cost, IMHO.

If your tax return is pretty typical (W-2 income, standard or itemized deductions, simple capital gains), I'd argue that you shouldn't be using an accountant anyway. File your taxes yourself, and find a good financial planner if you think you need help figuring out what to do with your money.

RAILhead · Feb 21, 2007, 08:55 AM

Get TurboTax. End of story.

ort888 · Feb 21, 2007, 09:28 AM

My wife and I use Turbotax and it's super easy. Our taxes are pretty simple though.

finboy · Feb 21, 2007, 09:50 AM

Originally Posted by IceEnclosure

true and good.

Yep, TurboTax is simple and effective. No need to use an accountant unless you're having some special circumstances or complicated business income/expense situations.

mac128k-1984 · Feb 21, 2007, 09:52 AM

We use turbo tax and I've been a user for several years. Easy to use, quick and painless.
The knock I've had against some of the tax accountants was the fact that I had to fill out this huge tax survery that wasn't much better then a 1040. On top of that they charged me a couple of hundred of dollars for just plugging in that sheet into his accounting software program. Since I'm already doing the work for him why not just get turbo tax and cut out that useless expense.

RAILhead · Feb 21, 2007, 09:56 AM

Just so everyone knows, the software most accountants use to input your taxes is made by Intuit and sold to subsidiaries. So, basically, the fact of the matter is, accountants are pretty much using TurboTax.

zerostar · Feb 21, 2007, 10:12 AM

Yep, I even know a few that use the off-the-shelf TurboTax because its supposedly cheaper. I have done my own taxes for several years now, I prefer TurboTax to Taxcut but basically because it take the info form the previous year so I don't need to fuss with too much. I have a few special situations and TurboTax guides me through them very easily.

climber · Feb 21, 2007, 10:14 AM

I am sure TurboTax is a great program, but I fail to see how it really helps you with your problem. It is not going to tell you much about the need for putting money away in an IRA. Therefore I think it will be a poor substitute for a second opinion on the advice you have been given so far.

Dork's suggestion is a good one. Replace the accountant with a financial planner and do your own taxes.

Dork. · Feb 21, 2007, 10:25 AM

Originally Posted by climber

I am sure TurboTax is a great program, but I fail to see how it really helps you with your problem. It is not going to tell you much about the need for putting money away in an IRA. Therefore I think it will be a poor substitute for a second opinion on the advice you have been given so far.

Well, it is a good check on the accountant's work. If he could barely understand the accountant in the first place, who's to say that his work is accurate?

I've read about accountants who have totally screwed up the telephone excise tax rebate thing, and claimed much more for their clients than they're entitled to. The IRS had some extra-special "discussions" with them already.

(BTW, if you have multiple phone numbers in your name (like a home phone and a cell phone or two, VOIP phones count also), and they have calling plans with local and long distance bundled together, it's worth reading up on the excise tax rebate and finding your old phone bills to claim your actual rebate instead of the standard rebate...)

mindwaves · Feb 21, 2007, 10:26 AM

I filed mine online via StateFarm's (my insurance company) free e-filling thing. Probably just as easy as TaxCut.

But yeah, I would strongly urge you to buy TaxCut or the like or go to H&R Block. I heard their fees are fairly modest.

::maroma:: · Feb 21, 2007, 10:45 AM

I noticed that either Turbo Tax or Taxcut sells their software on a memory stick now. So you can buy it, use it and then reuse the memory stick. I'm not sure how big the stick is, but at least its better than buying a disc that you can't reuse.

And I use Turbo Tax online usually. Probably do the same this year.

climber · Feb 21, 2007, 10:48 AM

Originally Posted by Dork.

Well, it is a good check on the accountant's work. If he could barely understand the accountant in the first place, who's to say that his work is accurate?

I've read about accountants who have totally screwed up the telephone excise tax rebate thing, and claimed much more for their clients than they're entitled to. The IRS had some extra-special "discussions" with them already.

(BTW, if you have multiple phone numbers in your name (like a home phone and a cell phone or two, VOIP phones count also), and they have calling plans with local and long distance bundled together, it's worth reading up on the excise tax rebate and finding your old phone bills to claim your actual rebate instead of the standard rebate...)

I agree, the computer program will provide a decent check on the accountants' work. But if you need help with financial planning then this program will not serve that need. A financial planner or an accountant that you trust will. That was my point. I think it was yours as well.

Dork. · Feb 21, 2007, 11:14 AM

Yup, we're really saying the same thing. Great minds think alike!

Dork. · Feb 21, 2007, 11:19 AM

Originally Posted by ::maroma::

I noticed that either Turbo Tax or Taxcut sells their software on a memory stick now. So you can buy it, use it and then reuse the memory stick. I'm not sure how big the stick is, but at least its better than buying a disc that you can't reuse.

And I use Turbo Tax online usually. Probably do the same this year.

You can also use it to archive and store all of your tax docments. I burn a CD-R every year with whatever tax program I'm using, the program's data file, saved copies of the actual tax forms generated using "Save as PDF" when I print them, and any supporting data in electronic form (like paystubs and account statements). Of course, the memory stick is more expensive than a CD....

Art Vandelay · Feb 21, 2007, 11:30 AM

Originally Posted by SirCastor

As for an IRA, putting that much into one is a good idea, but you can only put in a maximum of $4K a year at the moment. (That'll go up next year, but that's next year). If you're a teacher, go with your 403e (or whatever it is). </unsolicited advice>

If you're of a certain age, you can contribute $5000. It's a way to allow people to catch up on building a retirement nest egg.

Moderator · Feb 21, 2007, 11:34 AM

I use TaxSlayer online...its cheaper than TurboTax and seems to get me better refunds...somehow.

Art Vandelay · Feb 21, 2007, 11:35 AM

I vote TurboTax over TaxCut. TaxCut calculated that I owed $10 more this year. When I audited line-by-line both of the returns they generated, TaxCut erroneously used the wrong value from the IRS tax tables.

I also give TurboTax the edge in ease of use. My partner and I had stock options, mutual fund transactions, home purchase, residential rental income and education expenses to deal with this year. It was incredibly easy to complete our returns with TurboTax.

Millennium · Feb 21, 2007, 01:53 PM

I've used TurboTax for years (since before they changed MacInTax's name, actually), and I've never had any problems. TaxCut also has a very good reputation, but I don't have any experience with it.

Why don't I like my accountant? We're making roughly the same amt as last year and didn't have to pay anything and now he's telling me I make too much and wants me to put in $5000 or so into an IRA to 'balance things out' somehow. I don't really understand the details because I could barely understand the guy period.

Ideally, what you really want is to pay exactly what you should be paying over the year, so that come April 15 you owe nothing and get no refund. Otherwise you're essentially giving the government a short-term interest-free loan, and while thus far the government has been very good at paying these back (in the form of tax refunds), it's still money you don't owe the government that you could be using over the course of the year.

Obviously it's not practical to get this perfect every year; things happen, and so there is pretty much always going to be some error. Getting a small refund is obviously preferable to owing a small amount -aside from just plain feeling better, it means you don't risk owing money at a time when you might need every cent you've got- so that's what you want to do. If you're getting a large refund, then you should adjust your withholdings and do something with the money.

It sounds like this is what your accountant is suggesting you do with this IRA idea. Since you don't seem to be using this money you're getting as a refund over the course of the year, using it to help fund your retirement would be quite wise. You won't miss the money on a day-to-day basis since you aren't using it anyway, and it allows you to build up quite a nest egg for later.

My wife and I are both teachers and on my end, I make a little more this year over last but my wife switched jobs and is actually making a little less. Someone please tell me how we make 'a lot'.

If you're meeting all your expenses and getting a big refund every year, then yes, you are making a lot, at least in relative terms. What you do with your extra money is up to you, but the accountant has a very good point about saving for retirement.

SVass · Feb 21, 2007, 03:35 PM

Turbo Tax is very nice for those who use it every year as importing last year's data simplifies filling out the forms to almost no time if the data are similar. It even informed me of the telephone tax rebate during its error check. As far as IRAs are concerned, the main benefit would be the placing of money into "Roth" IRAs thereby eliminating all taxes on both current earnings and future withdrawals. I can not believe that H&R Block charges less than the cost of Turbo Tax if one has any kind of complexity in their life.

I suggest that the first time that you use Turbo Tax, or whatever, you have a copy of the actual forms filled out last year available and compare the results manually to verify the output. sam

Buckaroo · Feb 21, 2007, 07:05 PM

Darn. Next year, I might have to stick with Turbo Tax after all. I was hopeing to switch to Tax Cut because it was cheaper.

Originally Posted by Art Vandelay

I vote TurboTax over TaxCut. TaxCut calculated that I owed $10 more this year. When I audited line-by-line both of the returns they generated, TaxCut erroneously used the wrong value from the IRS tax tables.

I also give TurboTax the edge in ease of use. My partner and I had stock options, mutual fund transactions, home purchase, residential rental income and education expenses to deal with this year. It was incredibly easy to complete our returns with TurboTax.

residentEvil · Feb 21, 2007, 07:23 PM

been using turbo tax online for a few years now, and before that the software version in conjunction with a CPA's hand work. when i saw turbo tax doing/matching what the CPA was doing, i stopped double checking what he was doing; i trusted the software. when the online version could do everything i needed, i switched to that.

piece of cake. i use their e-file options for federal and state, choose direct deposit and get my money in just over a week. the service i use/pay for is the middle level one (that includes audit defense). i think the small cost is worth the piece of mind.

LeftWingLock · Feb 21, 2007, 07:54 PM

Originally Posted by SVass

I suggest that the first time that you use Turbo Tax, or whatever, you have a copy of the actual forms filled out last year available and compare the results manually to verify the output. sam

I used Turbo Tax for the first time this year after going to the accountant for the last 10 years and that is exactly what I did. I found the Turbo Tax interview process to be almost exactly the same as what the accountant asks and when I compared last year's forms from the accountant to what I did with Turbo Tax this year everything was essentially identical. I plan on using Turbo Tax again next year.

torsoboy · Feb 21, 2007, 08:36 PM

Another vote for TurboTax. Use the online version and don't bother buying it. I tried TaxCut this year but it was a lot more confusing, so I would suggest TurboTax (like everyone else).

SirCastor · Feb 21, 2007, 09:08 PM

A little FYI:
Always always always look around for the free options. I suspect that you should never really have to pay to do your own taxes (unless you're falling into a high tax bracket, or you have a ton of associated stuff.) For instance, I paid for neither State nor Federal.

torsoboy · Feb 22, 2007, 02:25 AM

Originally Posted by SirCastor

A little FYI:
Always always always look around for the free options. I suspect that you should never really have to pay to do your own taxes (unless you're falling into a high tax bracket, or you have a ton of associated stuff.) For instance, I paid for neither State nor Federal.

If you make under a certain amount, yes filing is free. If you make over that amount the preperation is always free on TurboTax, but to file it will cost you between $15 and $60.

Dork. · Feb 22, 2007, 06:21 AM

I personally have no problem paying for tax software -- after all, it is saving me a lot of time and (theoretically) doing all the hard math for me -- but I refuse to pay to electronically file. I'm doing The Government a favor by electronically filing, after all, the least they can do is make it easy for me. I have no problem waiting for my refund.

Also, a lot of the free tax software options involve putting my information into their servers over the Web, which has the potential to not really be Free in the long run....

macintologist · Feb 22, 2007, 06:45 AM

I don't see why people just do their own taxes.

Ah well the entire idea that you just MAY need an accountant shows how f-- up the tax system is.

torsoboy · Feb 22, 2007, 12:27 PM

Originally Posted by Dork.

I personally have no problem paying for tax software -- after all, it is saving me a lot of time and (theoretically) doing all the hard math for me -- but I refuse to pay to electronically file. I'm doing The Government a favor by electronically filing, after all, the least they can do is make it easy for me. I have no problem waiting for my refund.

That seems like a silly thing to say. The companies that you are buying your software from to file for free (mailing it in) are the same companies that let you use the preparation software for free online, but then charge you for filing (unless you make under $xx amount). If I am going to pay $20 to do my taxes either way ($20 for the software or $20 for filing online) I choose to do it online and get my refund in a week instead of filing it and waiting a month or more.