Tax filing question. (1 Viewer)

[HEMI6point1]

I know tax time is another 4 months away, but just want to ask....

Was talking to a few co-workers and the topic of the glorious time when I get my tax refund. Some of them simply said, "don't go to H&R Block, you'll get ripped."

They recommended going to an independent accountant or a place like Jackson-Hewitt to get my taxes done "because the refund will be much bigger."
But wasn't Jackson-Hewitt the one where the CEO was arrested for fraud?

My parents refuse to go anywhere else other than H&R because they trust them, but I'm willing to try another place if it LEGITIMATELY gets me a bigger refund. Any thoughts?

 

[The Swegian]

Sam, my personal opinion is why would anyone go to somebody else to have their taxes done? My wife runs a daycare business out of our home so believe me when I say our taxes can be quite complicated. Beyond just the usual expenses, income, etc. we have to figure depreciation on certain things. However, we've used TurboTax software for the last seven years and have found it to be a great program. It asks you all the questions you won't think of and now that they've built in the ability to file electronically and receive your refund (if you get one) within two weeks, we wouldn't do it any other way. It wouldn't surprise me if alot of these places like H&R Block, Jackson-Hewitt are using TurboTax.

I suppose if you've got a lot of income derived from capital gains and property dealings, perhaps TurboTax wouldn't be right for you. But, based on my experience, I highly recommend TurboTax.

 

[DrRocket]

I've used Turbo Tax for the last five years myself, and highly recommend it also.

 

[none]

Absolutely Turbo Tax.

But this raises the question. Why would anyone give an interest free loan to the govenment every year? Does anybody ever give you an interest free loan?!?

Makes much more sense to structure your finances and withholdings so that it is pretty much a wash on 4/15. You don't owe much or the IRS doesn't give you back much . $100-$200 either way is my personal goal.

Put your money to use for YOURSELF through the year. It IS your money, at least until 4/15.

 

["Dr. Dirt"]

Sam, it really depends upon the complexity of your return. If you are an employee, many times the return is quite simple in comparison to the self-employed and the H&Rs/JHs of the accounting world are great and many times will offer suggestions and find deductions from your interview to help you pay less to Uncle Sam.
On the other hand, if you are self-employed or an independent contractor you may want an accounting firm. My return is generally about sixty pages and very complex. I wish it wasn't but I haven't worked for somebody else since I was 21. The professional accounting firm not only does my taxes but, more importantly, their advice, year around is very important. I have been advised to put more or less into self directed plans, instructed to purchase vehicles during a certain calendar year, even given great advice about possible deductions I didn't know were available to me. Every year their expense for such service pays for itself many times over and I depend upon them. Conversely, most of my kids (now married) use the complete version of TurboTax and take the time to read about every possible deduction. They are saving a bunch themselves in professional fees.

 

[Jenn]

My answer is the same as Mr. Miller's. I use an accountant year around who offers me advice on purchases, depreciation and financing. He's not cheap, but the service I receive is more important. When we chose him, we chose him not because of the money we could get back (although that's a bonus) but the service, honesty and accuracy he provides. Not to mention he's a local small business like ours and its' important to us to support other small businesses within our community.

Since my accountant already knows my business, he files my individual tax retun as well.

I think having a relationship with your tax advisor is the best thing rather than just going in and getting whatever dude is available, but in my entire career, I've had two tax advisors, so I've never actually had a 'casual relationship' with a tax advisor (that sound a little odd to say )

 

[mick]

all of what doc said, and if your taxes are complicated enough and/or
you feel you do not have the time, by all means use a professional.
H&R Block does a fine job; what they offer are tax professionals that
are up to date with current tax laws - this is VERY important, especially
when looking for maximum return or minimum payment.
Also, if you take a sampling of 6 local tax guys, you will find 6 different prices.
it has been my experience that you get what you pay for.
the more complicated your return, the more $$ you should be willing to
spend, it will be worth it.
good luck.

 

[Kati]

We use an accountant for our shop..corporate taxes. I do everything but the corporate forms. w2's...1099's...all payroll stuff...and I let him do the "heavy" paperwork!


Turbo Tax for home and race team. Have used Turbo Tax for the past 10-11 years. Of course when I first started it was just the basic one...but for the last 4 years....Home & Business. LOVE IT!

But I like to do them...and maybe that's the difference.

 

[T.J.]

My wife is self employed so our taxes and deductions become complicated, so we have a CPA we use year round much like Bobby does. Our first year we tried H&R Block and they wouldnt let us deduct nearly half of our items that we kept reciepts and logs for that we should have been able to deduct, so we began using the same CPA my father in law uses for his business and it is SO much better going that route if you are self employed.

 

[club]

Let's see...

Rental properties, sole proprietor business, partnership business, full time employment, investing, foreign investments, sales tax filings. Yeh an accountant is worth the money.

But if all you get is a check and a W2, then Turbo tax is great.

I also agree with Steve, never let the IRS hold you money hostage. It's amazing how many people don't get that a refund is not a gift from the IRS. Another thing I enjoy watching is the person who gets to make quarterly payments for the first time. Nothing will open your eyes more than having to sit down and write a check to the IRS every few months.

 

[Jenn]

I also agree with Steve, never let the IRS hold you money hostage. It's amazing how many people don't get that a refund is not a gift from the IRS. Another thing I enjoy watching is the person who gets to make quarterly payments for the first time. Nothing will open your eyes more than having to sit down and write a check to the IRS every few months.

I've advised my own new hires to consult their tax advisors when filling out the standard W-4. You'd be amazing how many people don't understand that form!!!! (I don't offer advice when employees ask me about it, beyond read the form careful and consult their tax advisors)

 

[none]

Let's see...

Rental properties, sole proprietor business, partnership business, full time employment, investing, foreign investments, sales tax filings. Yeh an accountant is worth the money.

But if all you get is a check and a W2, then Turbo tax is great.

I also agree with Steve, never let the IRS hold you money hostage. It's amazing how many people don't get that a refund is not a gift from the IRS. Another thing I enjoy watching is the person who gets to make quarterly payments for the first time. Nothing will open your eyes more than having to sit down and write a check to the IRS every few months.

Good advice from all. And, as you state, Jim, the complexity of ones total financial picture really is the driving factor.

To add to your comment regarding quarterly payments, can you imagine the tax revolt this country would finally have if there were no withholding?

If one draws a paycheck from an employer, most don't even look at their gross pay, only their net. But if they had to write a check 4 times, or even 1 time a year to the IRS, all he// would break lose.

And that's precisely why there is such a thing as tax withholding. Less immediate pain.

Much like the frog in boiling water...

It's much smarter to make your money work for you.

 

[Jenn]

Good advice from all. And, as you state, Jim, the complexity of ones total financial picture really is the driving factor.

To add to your comment regarding quarterly payments, can you imagine the tax revolt this country would finally have if there were no withholding?

If one draws a paycheck from an employer, most don't even look at their gross pay, only their net. But if they had to write a check 4 times, or even 1 time a year to the IRS, all he// would break lose.

And that's precisely why there is such a thing as tax withholding. Less immediate pain.

Despite what we all think of the IRS, they aren't idiots. Most people, particularly those living paycheck by paycheck as it is, aren't going to put away savings for the IRS Estimated Tax Payments.

 

[d'kid]

heck, I stroke uncle sugar a check every year, not much, $500-$1000, depends on Kat's O/T... weird, if we were just shackin' up, we'd both break even... I with-hold one, Kat 0, no kids to claim anymore, renters, just do short form with my calculator and a legal pad...

But what pisses me off, is the whole second income tax we all pay called FICA, look at your pay stub, it's more than Fed Withheld... and the chance of getting that back in full is slim in our lifetime... it goes into the general fund, there isn't a SS 'lockbox'... heck, it gets spent every year... hopefully our children's payments will cover ours...

Like Meatloaf sang: "I Want My Money Back"
In the last 30 years, Kat and I have pissed away 80,000 to FICA... don't think we're gonna get it back the last tens years of our life...

d'kid

and let's not even talk about state.....

 

[none]

heck, I stroke uncle sugar a check every year, not much, $500-$1000, depends on Kat's O/T... weird, if we were just shackin' up, we'd both break even... I with-hold one, Kat 0, no kids to claim anymore, renters, just do short form with my calculator and a legal pad...

But what pisses me off, is the whole second income tax we all pay called FICA, look at your pay stub, it's more than Fed Withheld... and the chance of getting that back in full is slim in our lifetime... it goes into the general fund, there isn't a SS 'lockbox'... heck, it gets spent every year... hopefully our children's payments will cover ours...

Like Meatloaf sang: "I Want My Money Back"
In the last 30 years, Kat and I have pissed away 80,000 to FICA... don't think we're gonna get it back the last tens years of our life...

d'kid

and let's not even talk about state.....

Yep, and that's why we should be able to invest ALL of our retirement money, at better rates, in the investments WE chose.

SS won't even begin to cover our retirement. But, thankfully, other investments we've made over the years will.

My SS check will be beer money. (Hope I don't have to stop drinking at 65!)

 

[The Swegian]

Yep, and that's why we should be able to invest ALL of our retirement money, at better rates, in the investments WE chose.

SS won't even begin to cover our retirement. But, thankfully, other investments we've made over the years will.

My SS check will be beer money. (Hope I don't have to stop drinking at 65!)

I couldn't agree more. SS is a farce. The premise is fine, when it was adopted, but it doesn't work now. Uncle Sam didn't figure that average life expectancy would be in the mid-70's by now, unlike mid to late 40's like when it was first adopted.

 

[HEMI6point1]

BTW, I googled Jackson-Hewitt, pretty much horrible across the board. Remember those ads on TV saying they could get you a huge refund? Well people got their refunds.... but then the IRS audited them for thousands.

 

[Jim]

Also remember that no matter who does you taxes it is you that signs and is responsible for what is in that return.

A number of years ago I read that $600, either in refund or owing, is what you should aim for. That way your money is working the best for you. But I have a feeling that the next guy would say $500 and the following guy would say $750.

 

[DragFan2]

I know tax time is another 4 months away, but just want to ask....

Was talking to a few co-workers and the topic of the glorious time when I get my tax refund. Some of them simply said, "don't go to H&R Block, you'll get ripped."

They recommended going to an independent accountant or a place like Jackson-Hewitt to get my taxes done "because the refund will be much bigger."
But wasn't Jackson-Hewitt the one where the CEO was arrested for fraud?

My parents refuse to go anywhere else other than H&R because they trust them, but I'm willing to try another place if it LEGITIMATELY gets me a bigger refund. Any thoughts?

Samuel,

TurboTax or Tax Cut (from H&R Block) are both great programs and either one will walk you through a short or long form return with incredible results. If you don't have a bunch of stock sales or other income, then a short form is all you need, and that probably doesn't even require ANY software or the H&R Blocks or Jackson Hewitt's of the world to do your taxes. I've never paid ANYONE to do mine in 30+ years.

 

[Nitrohaulic]

Saw this thread late. I agree with what others have said on one thing. Regardless of who does your return, I wouldn't look at a refund as a great thing.

On the OTHER hand, if you insist and would like any assistance in saving even MORE of your OWN money via interest free loans, I might....just might....be able to help you out in that area!!!

Your very good friend, Ron Dunlap

To encourage you to save even more, I have an idea on how to structure a savings plan in which I charge you a fee for this valuable service!