Taxes – File Yourself or Pay Someone Else?
I received all of my W-2s in the mail yesterday (finally!) and I’m ready to file (and anxious for my refund), but I’m not sure how to go about tackling my taxes this year.I have always filed my own taxes using online software. Back in the day when I was renting and my only investment was my 401(k), I used the super-simple (and kinda cheesy) TaxSlayer. Last year was the first year I was able to write off mortgage interest and it made sense to itemize my deductions - so I upgraded to TurboTax.
I am fairly confident that I am filing correctly (my sister, the business accountant, can easily handle the type of questions I have), but I do worry about mistakes. I have considered trying the H & R Block software (the idea of having “People” as their ad suggests is alluring), or I could hire a tax accountant - I know several good ones from my days as a lender.
I’m not sure what to do - I am still single this year, so my taxes aren’t very complicated - but I’ve been doing them on my own for so long, I think that a second opinion may be a good idea.
For those of you out there that hire someone to do your taxes, do you feel it’s worthwhile? Please leave your thoughts in the comments section below, and thanks in advance for the feedback!
Stumble it!
January 27th, 2008 at 6:10 pm
This year, probably TurboTax. I used to do them myself, but this has been a complicated year.
January 27th, 2008 at 6:40 pm
I’ve been using Turbo Tax Deluxe for the past 3 years and I love it! I bought The “basic” version last year and hated it. I sold it to a friend and went back to the store to buy the “deluxe” version. It is super easy to use and flags any errors that it finds.
I used to pay a CPA $250 to do my taxes until I glanced at his computer while we were going through everything and saw that he was using Turbo Tax!!
If you have a Sam’s Club membership, they are selling the Deluxe version. Our Sam’s has it for $31.27.
January 27th, 2008 at 10:23 pm
The more complicated the more it makes sense to use someing to do it. But for most of us TurboTax is the way to go.
January 28th, 2008 at 10:12 am
I have a guy - my Father!
He’s a CPA and I keep fixing his computer for free as long as he does my taxes.
It works out for me. I don’t have to worry about it much as he keeps me honest, but then again I rent, and so my taxes are relatively simple.
I would reccomend going with the HR online / software option if you really feel like you need ‘people’. but DO NOT take their ‘instant refund’ option - it’s a loan at like 25%. You should be able to wait
Otherwise - even my Dad, the CPA uses Turbo Tax to do our families taxes.
January 28th, 2008 at 2:09 pm
Use turbo tax or whatever is cheapest if you feel that would be greatly helpful. Generally, unless you are going to be getting into more interesting things like a Schedule C for business or a weird tax item like excess contributions to an IRA, then I doubt you need a paid preparer (unless you are generally uneasy about such things…which it doesn’t sound like you are). Based upon the items you mentioned, it sounds unlikely you would make a significant mistake (check and recheck your work) and you’ll save yourself some $$.
January 29th, 2008 at 9:16 pm
TurboTax for me. Doing my own taxes makes me more aware of what I can do to legally lower my tax bill.
January 30th, 2008 at 12:49 pm
I hope you see this, I ran across a link reading the consumerist & remembered something about it from my MBA days
http://www.irs.gov/individuals/article/0,,id=107626,00.html
Hope it helps, spread the word.
Rob
February 1st, 2008 at 3:01 pm
I’ve been doing my taxes myself for 10 years. I’ve had my CPA check them and sign them for the past 2 years.
last year, I had to let my CPA do it since turbo tax barfed on a 1031 exchange calculation and claimed I owed 18K.
I explained everything to my CPA and my net tax was ZERO!
of course it cost $350 to get it turned around in 24 hrs. but I was desperate since I needed the return for a refi.