Taxes... Advice needed!

amother

Bronze

Wed, Mar 08 2017, 8:30 pm

In the past we had an accountant do it but the one we used in the past didn't return my calls. Not sure if he is still in business...
I was thinking of going to an HR Block or doing it via turbo tax or one of the programs out there. Just to get it done and to file already.
What are your recommendations for someone who has never done it before?
We have no investments, don't own property...
Our medical insurance is through work if that matters.

Can I do turbo tax online for federal and state?

gamanit

Wed, Mar 08 2017, 8:39 pm

I've used HR Block online in the past but recently switched to a friend of mine that's a CPA. If you have a straightforward return it's a good option but be sure you read through each category carefully and see what you may be eligible for. A real life accountant is more likely to know off the bat and make sure you get all the money coming to you. If you can't reach the person you used in the past it might be worth it to try someone else in your area.

gamanit

Wed, Mar 08 2017, 8:45 pm

I've never tried. If you have one in your area and bring along a copy of last year's return (as long as not much has changed) I'd imagine it'll be more like seeing a regular accountant.

harriet

Wed, Mar 08 2017, 8:52 pm

If you make under a certain amount of $ (I forget how much, $95k? You can google it) you can file for free using IRS software.

I use (and have used) turbo tax for years, it's really simple and cheap (under $50).

BabsB

Wed, Mar 08 2017, 9:44 pm

CPA or EA (enrolled agent)-
Pros: they know their stuff, can work very quickly, over time they learn your situation and can help you plan, they SHOULD come with assistance if you get audited, can represent you in an audit (an ea has restrictions to this though)
Cons: more expensive (but not by much)

HR Block or similar, in person -
Pros: can file very quickly, a person you can interact with and ask questions
Cons: probably won't get the same person year after year, training is probably pretty minimal
Neutral: mid-range on price

Online software -
Pros: basic returns are straight-forward, appropriate for most filers, do it in your own time, cheapest option or even free
Cons: no one to ask questions, have to pay extra for audit assistance, may take you longer

seeker

Wed, Mar 08 2017, 11:42 pm

I find TurboTax very thorough, they ask a lot of questions which have been set up very carefully by people who know what they're doing. In the past I've paid highly skilled accountant friends a relatively tiny amount (because it only takes them minutes and I don't do it during their crazy time) to review the final return from Turbo Tax and answer any questions I still had.

TwinsMommy

Wed, Mar 08 2017, 11:43 pm

I was a tax advisor for H&R Block for 4 years over a decade ago. If things haven't changed, you CAN ask for the same person year after year. If your return has massive amounts of depreciation, you might want to ask for the office manager who has likely been there the longest. But for any regular return with schedules A, B, C, D, E ---- any tax advisor will do---- we didn't get as much training as EAs do, obviously, but I knew more about specific tax laws than CPAs who weren't as focused on tax. Interestingly, there ARE EAs working in some of the offices--- and the advanced courses that H&R offers each year are quite good. To retain the license and bonding each person needs to take classes every year and those of us worth our salt wanted to take more and more advanced stuff to get more in depth knowledge.

However--- it's more expensive than turbotax and for most of you who don't have 15+ rental properties and depreciation up the wazoo, turbotax is likely enough. I do multiple sch C's on turbotax each year. H&R needs to charge for EACH schedule.

fiji

Thu, Mar 09 2017, 12:53 am

I did it myself for the first time this year using turbo tax. It was pretty simple and when I got stuck at some point in the process I contacted them and they helped me resolve my problem immediately. Would definitely recommend!

amother

Azure

Thu, Mar 09 2017, 1:00 am

BabsB wrote:

Nice summary! I'm an EA. I don't think I have any restrictions compared to a CPA representing a client.

As an EA I'll also say that you need an EA with relevant experience, to get someone who "knows their stuff" same with a CPA.

chatz

Thu, Mar 09 2017, 9:44 am

If you have a straightforward tax situation - you work as an employee, get a w-2, use a standard deduction - I see no reason why you can't do it yourself. I like Turbotax.

In general, it's a good idea to have a basic idea of how the income tax system works.

If it's more complicated - you're self-employed, file a schedule C, work/live in different states, use itemized deductions, etc - then it's a good idea to pay someone. You can look at past year's 1040 and see which lines/schedules were used.

amother

Smokey

Thu, Mar 09 2017, 11:12 am

fiji wrote:

Ditto!
It worked well. I had to pay $67 in the end because I needed certain forms that only came with the 1040 and not the 1040A, but it was worth it