I used TurboTax until I bought into an S-Corp. Now, its complicated, though I looked through my filings this year, and it didn't look terrible, but I had NO idea on which forms to fill out.
Anybody else do their own taxes?
- Thread starter freedom_in_4low
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OP
Yeah stuff can escalate really fast. Its easy to end up having to fill out half a dozen forms that feed into each other. If TurboTax can figure it out, I've done it one year with them and then the next year I know what forms to use.
Fwiw, I ended up using Turbo this year. Just too busy to mess with it, which sucks because I rented all year and didn't have to itemize so it would have been the easiest in recent memory.
Many years ago I made a mistake on my taxes that cost me a good chunk of money, that was the last year I ever did my own taxes.
My only run in with the IRS was an error by my accountant. That cost me a good chunk of money as well. It took over a year to get the accounting group to honor their "money back guarantee" . Thus, I learned to do it myself.
Not unlike auto mechanics I guess. Most here do it themselves after learning the process and tools rather than have others do it unless it's significantly outside the norm.
WestCoastDan
TJ Addict
Oddly, the only time that I ever had an issue with the IRS was because of THEIR error.
Years ago I was in the middle of a divorce when the IRS sent me a letter that said we had severely underpaid. They even attached my paycheck and were quite ruthless in their financial assault.
Following the completion of the divorce, I received all of my tax paperwork back from my attorney and I started looking into it.
The ex had worked through several different temp agencies, and each reported her earnings, withholding, etc.
The IRS actually double-entered all of her earnings, but only single-entered all of her withholdings.
This created quite the discrepancy.
When I realized this was the issue, I drafted a very detailed letter showing each amount earned & withheld. I actually highlighted values in different colors for clarity.
It was fairly easy to figure out because some of the dollar amounts had unique number sequences (like $1,111), which was easy to see once I started digging.
Two weeks after sending the letter, I received a follow up call from a "Problem Resolution Officer" @ the IRS.
I explained the error that I had found, and shortly after the call, I received a hand-written letter of apology from the IRS, a refund of all payments that I had made, and interest on all of the funds.
This told me 2 things about the IRS;
1- They don't (didn't) have a form letter that says, "Sorry, we made a mistake."
2- They didn't want a record of such a letter being generated.
I still have that letter somewhere.
Years ago I was in the middle of a divorce when the IRS sent me a letter that said we had severely underpaid. They even attached my paycheck and were quite ruthless in their financial assault.
Following the completion of the divorce, I received all of my tax paperwork back from my attorney and I started looking into it.
The ex had worked through several different temp agencies, and each reported her earnings, withholding, etc.
The IRS actually double-entered all of her earnings, but only single-entered all of her withholdings.
This created quite the discrepancy.
When I realized this was the issue, I drafted a very detailed letter showing each amount earned & withheld. I actually highlighted values in different colors for clarity.
It was fairly easy to figure out because some of the dollar amounts had unique number sequences (like $1,111), which was easy to see once I started digging.
Two weeks after sending the letter, I received a follow up call from a "Problem Resolution Officer" @ the IRS.
I explained the error that I had found, and shortly after the call, I received a hand-written letter of apology from the IRS, a refund of all payments that I had made, and interest on all of the funds.
This told me 2 things about the IRS;
1- They don't (didn't) have a form letter that says, "Sorry, we made a mistake."
2- They didn't want a record of such a letter being generated.
I still have that letter somewhere.
OP
did it actually "cost you" any money or did you just have to pay money later that you would have had to pay anyway if they'd done it right on the first go round?
The only time I've ever had an issue was when I was 21 and I pulled a few grand out of a mutual fund account that my dad had set up for me to use for college, and either forgot about it or didn't realize I needed to report it on my 1040 and pay taxes on the gains. They sent me a letter saying I owed the entire balance of my withdrawal, which was obviously wrong, but I did the work to calculate the cost basis and ended up paying the capital gains tax. It stung but the only thing it "cost" me was a little bit of interest, since i would have had to pay that amount either way.
OP
the hands off attitude that most people have is how we (American taxpayers collectively) continue to allow them to screw us over. If people had to do their own taxes and saw how much was being stolen, we'd have been throwing tea in a harbor again.
I use the H&R Block one for years, it was called something different when I started using it. You can do all the taxes with the lowest cost version, like $14.95. State forms will cost extra, but not used in FL. I've had rental houses, businesses, all kinds of deductions throughout the years.
If you read and take your time, the software pretty much has everything you need. Even did a 1031 exchange myself with it. The only difference between the lowest cost version and the higher cost versions is the interview process. Both versions have all the forms available.
I guess the real way to make it easier is to think about taxes all year. Everything you do, think about how that affects your taxes, then there are no surprises.
David
If you read and take your time, the software pretty much has everything you need. Even did a 1031 exchange myself with it. The only difference between the lowest cost version and the higher cost versions is the interview process. Both versions have all the forms available.
I guess the real way to make it easier is to think about taxes all year. Everything you do, think about how that affects your taxes, then there are no surprises.
David
Interesting question. I owed more tax so I owed the money. It took a hundred hours of my time (I'm a consultant that sells time) to unwind the mess, deal with the IRS and force the accounting group to give me back my fee... because they guaranteed services. So... yeah it cost me.
OP
Live and learn. My old man (graduated HS in the depression) told me that NO ONE will care for your money more than you do.... I've learned everything I can possibly learn about taxes, investing, business etc. as a result.
If I was dictator for a term, I would stop paycheck withdraw and force everyone in the US to write a check each month. One for SS, one for Medicare, one for taxes.
Amen. I'd add to that everyone also has to write the check for their Healthcare Insurance.... business can still subsidize it, but everyone needs to see the full cost. Let's add FICA in there as well. Few under the age of 40 realize that the FICA taken out is only 1/2 or less of the total.
Amen brother. When I hear my employees complaining about how expensive their insurance is (that they pay about 15% off the premiums for) I just have to nod and walk away. They don’t have a clue, and the insurance co and .gov want to keep it that way.
Last time I tried to do my own taxes was about 10 years ago. I felt my tax guy was getting a little pricey for relatively simple returns. I bought turbo tax down loaded it. $$ I started entering numbers, oh you have a LLC with a rental in it, you need professional version, down loaded professional version $$$. I need a break, I come back the next day fire up computer, dreaded blue screen. One week until April 15. Bluetooth forms from tablet to printer, put it all in a folder take to my tax guy. Pay tax guy stop by store buy IMac.
