(Topic ID: 260672)

Tax Returns 2020

By easye9901

2 years ago


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  • 97 posts
  • 53 Pinsiders participating
  • Latest reply 2 years ago by Taxman
  • Topic is favorited by 3 Pinsiders

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    There are 97 posts in this topic. You are on page 1 of 2.
    #1 2 years ago

    Got my W2s ready and looking for suggestions this year

    What are you all using?
    TurboTax,
    H&R Block,
    Or do you pay someone to do them?

    14
    #2 2 years ago

    I don't trust programs at the store and deal with a CPA that cares about me, and looks out for my best interest.
    You should add a poll to this topic.
    -Mike

    #3 2 years ago

    Cpa is better way to look out for you.

    28
    #4 2 years ago

    If all you have are W2s and 1099s, can read and follow basic directions like "Put number of box 1 in Form 1040 line 7". You should be able to do it yourself.

    If you have your own business, rental properties, anything complex or over use LEDs get an accountant because it sounds like you don't know what you're doing.

    #5 2 years ago
    Quoted from easye9901:

    Got my W2s ready and looking for suggestions this year
    What are you all using?
    TurboTax,
    H&R Block,
    Or do you pay someone to do them?

    Turbotax is fine if you have a basic understanding of tax laws and deductions, and especially if you are not itemizing which is much more rare for middle class with the new tax laws passed two years ago. The local tax deduction (the combination of real estate/personal property/state income tax) being limited to only $10000 really sucks.

    #6 2 years ago

    I've always done my own taxes using paper forms. Don't trust
    the internet to be secure. Taxes are not that difficult.
    Steve

    #7 2 years ago

    We used to go to an H&R Block location for about 3 years. They kept increasing the price by around $50-$75 each year. Also the people that did our taxes didn't seem to know anything more than what their computer program told them. We now go to a private CPA that looks out for us and charges about half the price.

    #8 2 years ago

    My accountant takes care of my stuff. I just print out the reports. I have a job and a business so it's a little more detailed than your standard return.

    #9 2 years ago
    Quoted from easye9901:

    Got my W2s ready and looking for suggestions this year
    What are you all using?
    TurboTax,
    H&R Block,
    Or do you pay someone to do them?

    I've used TurboTax online for something like 15 years. You basically get suckered into using them for life because they always import in all your old information. It's much easier than starting fresh each year.

    I have a home business, my wife has a home business, I have tons of investments and other income streams, plus my W2 from my 8-5 job. TurboTax makes it pretty simple to file your own taxes even doing all that. Sadly I have to file in two states since I live in MO and work in KS, so my overall cost each year is around $150-200 to TT home and business with e-filing federal and two states.

    #10 2 years ago
    Quoted from Taxman:

    If all you have are W2s and 1099s, can read and follow basic directions like "Put number of box 1 in Form 1040 line 7". You should be able to do it yourself.
    If you have your own business, rental properties, anything complex or over use LEDs get an accountant because it sounds like you don't know what you're doing.

    listen to this guy

    18
    #11 2 years ago

    As a CPA who has worked in the tax industry for 13 years, my advice is to use a local CPA you like and trust. We charge less than H&R and do a much better job. Plus we are around year round to discuss all aspects of our clients financial situations. I will even advise someone to use a free file software if there is absolutely no need for me. I always tell clients my goal is to save them more than I cost them over the course of our working relationship. *end of CPA plug*

    #12 2 years ago

    For the vast majority of workers, the IRS already knows what you owe.

    Why we still play the game of "I'll tell you what I think I owe and then you tell me if I'm wrong?" is just a waste of everyone's time and money.

    Unless of course you're really wealthy and you can hire accountants to game the tax law.

    https://www.bankrate.com/finance/taxes/how-to-pay-zero-taxes-1.aspx

    #13 2 years ago

    I use Turbotax Business to create K1 statements for a small LLC I have. I use Mac computers almost exclusively, but have to bust out a PC once a year for TurboTax Business.

    My personal taxes are super complex due to a bunch of rental properties I have, so use a CPA that I trust. Not super cheap, but received $25k back last year from mostly phantom deductions like depreciation, so it's money well spent.

    #14 2 years ago

    Been using the same guy for 20 years. He knows his shit and it’s headache free. I think the fee has gone from $250 to $350 in that timeframe. Money well spent.

    #15 2 years ago

    I'm a CPA and I use Turbotax.

    #16 2 years ago

    I'm also a CPA and use TurboTax.

    Any tax preparer/CPA is going to be using a tax application anyway, they need it for the updated forms.

    #17 2 years ago
    Quoted from Taxman:

    If all you have are W2s and 1099s, can read and follow basic directions like "Put number of box 1 in Form 1040 line 7". You should be able to do it yourself.
    If you have your own business, rental properties, anything complex or over use LEDs get an accountant because it sounds like you don't know what you're doing.

    What do LED's have to do with it? Should I convert back to standard bulbs? Now I'm scared. Although, I haven't over used them, they are all tastefully done.

    #18 2 years ago
    Quoted from gliebig:

    What do LED's have to do with it? Should I convert back to standard bulbs? Now I'm scared. Although, I haven't over used them, they are all tastefully done.

    Those LEDs will increase your chance of being selected for audit... .

    #19 2 years ago
    Quoted from gliebig:

    ...they are all tastefully done.

    That's a red flag there buddy!

    #20 2 years ago

    Pro Tip: Declare your business a religious entity (like Scientology) and skip out on paying any taxes.

    https://www.huffpost.com/entry/start-your-own-church_n_55d24635e4b07addcb43bd60

    #21 2 years ago
    Quoted from rad:

    Those LEDs will increase your chance of being selected for audit..

    Or get you thrown in the rainbow puke club!!

    #22 2 years ago

    Been using H&R Block for a very long time, they've done a good job through the years.

    #23 2 years ago

    Went from using H&R Block to a private CPA and am happy to have made the switch. Definitely better savings for me.

    #24 2 years ago

    Anyone using R&M? I heard that Rick knows his way around taxes.

    #25 2 years ago
    Quoted from loneacer:

    I have tons of investments and other income streams plus my W2 from my 8-5 job.

    I only have the one source...and it's an income trickle (not a stream).

    Quoted from Taxman:

    If you have all your W2s and 1099s you should be able to do it yourself.

    That could depend on if he stayed at a Holiday Inn Express recently or not.

    #26 2 years ago

    I don't make enough money to worry about paying a CPA, plus...that's another cumbersome relationship with a human I'd rather not deal with. Company discount through HR Block, it's what I used last year, will be again this year.

    #27 2 years ago
    Quoted from rad:

    Those LEDs will increase your chance of being selected for audit... .

    I just received an IRS audit letter, sure wish I'd listened to you guys.
    led strips (resized).jpg

    #28 2 years ago
    Quoted from marcus0202:

    I just received an IRS audit letter, sure wish I'd listened to you guys.

    Shit dude, looks like it may have been worth it!

    #29 2 years ago

    CPA's use Turbo Tax. You can purchase "Audit Defense" if you think you need it.

    #30 2 years ago

    I have done it about every way possible. I studied accounting in college but got a degree in business instead because I really didn't like accounting all that much. Did my own for years, then started with a great CPA for a few years. After we moved to Central PA I started using H&R Block just because for $30 I can get their "piece of mind guarantee". I figure if I get audited I'll let them explain some of the shit they did instead of me having to deal with it.

    H&R isn't the cheapest way out and like stated above "they really don't know anything more than what the computer tells them" but at least I am not spending a half a day dealing with it. Spend 45 minutes in their office & it is done instead of spending 1/2 a day doing it myself.

    #31 2 years ago
    Quoted from easye9901:

    Got my W2s ready and looking for suggestions this year
    What are you all using?
    TurboTax,
    H&R Block,
    Or do you pay someone to do them?

    Which schedules are you filing?

    Note: if you don’t understand the question, use a CPA.

    #32 2 years ago
    Quoted from too-many-pins:

    I started using H&R Block just because for $30 I can get their "piece of mind guarantee". I figure if I get audited I'll let them explain some of the shit they did instead of me having to deal with it.

    As an FYI, I got audited and there peace of mind guarantee didn’t cover it for some technicality. I’m glad I keep notes on everything and save everything. But that’s why I don’t use them anymore.

    #33 2 years ago

    Don't you just love those letters that begin with: "We are proposing changes to your 20XX Federal Income Tax Return".....

    #34 2 years ago

    My experience says that if your life hasn't changed much from last year, or the tax forms haven't, then most of it is a copy job anyway, meaning the forms to fill and what you need to be watchful of and what to fill out. Low effort. Last year was not one of those years with the tax changes, but this year will be like the last one. Last year would have been a good year to get a CPA for sure, this one not so much.

    #35 2 years ago

    For the CPAs here: Who can explain having to claim your last year's state tax refund on your current year federal tax form as taxable income? Don't understand the logic in that.

    #36 2 years ago

    H&R Block are to real CPAs as walk-in clinics are to doctors offices. If you have a real simple medical concern/tax situation, you can get away with the Doc/CPA-in-a-box. Otherwise, go to an experienced professional. I've been using a CPA for over 20 years, but one year was in the middle of a move and didn't have a CPA yet and went to H&R Block, night and day difference. They're pretty much just filling in TurboTax for you.

    #37 2 years ago

    I use a CPA.

    #38 2 years ago
    Quoted from NintenBear:

    As an FYI, I got audited and there peace of mind guarantee didn’t cover it for some technicality. I’m glad I keep notes on everything and save everything. But that’s why I don’t use them anymore.

    I do keep notes & great records also. I know all the info I am giving them is good but some of the ways they save me money kind of worries me at times. Since I have always had a couple businesses I typically have tons of write-offs and they are normally my biggest concern. A couple years ago when I bought my latest new van there was some type of "special" write-off they used that saved me several thousand dollars. That is the type of stuff you might miss doing taxes yourself! Typically they save me more than they cost me in fees.

    #39 2 years ago
    Quoted from VALIS666:

    H&R Block are to real CPAs as walk-in clinics are to doctors offices. If you have a real simple medical concern/tax situation, you can get away with the Doc/CPA-in-a-box. Otherwise, go to an experienced professional. I've been using a CPA for over 20 years, but one year was in the middle of a move and didn't have a CPA yet and went to H&R Block, night and day difference. They're pretty much just filling in TurboTax for you.

    Great way to "sum it up". If you don't know tax code fairly well and have anything complicated a CPA is the way to go for sure. Typically when I go into H&R I know more about the tax stuff then they do. But they do know the latest "hidden little stuff" because it is in their computer program and I love that part of what they do for me.

    I think who you use should be based more on your needs than anything else.

    #40 2 years ago
    Quoted from KozMckPinball:

    For the CPAs here: Who can explain having to claim your last year's state tax refund on your current year federal tax form as taxable income? Never understood the logic in that.

    What's so hard to figure out? You essentially overstated the deduction for the prior year, so this nets the two to get an accurate number.

    #41 2 years ago
    Quoted from KozMckPinball:

    For the CPAs here: Who can explain having to claim your last year's state tax refund on your current year federal tax form as taxable income? Never understood the logic in that.

    1. As an individual, you are on the cash method of accounting. So a state income tax refund check you received in 2019 (based on your 2018 taxes) is cash that you received.

    2. That said, you only need to include the state income tax refund check in income on your federal return if you deducted those state taxes (as an itemized deduction) which, for a refund received in 2019, would have been on your 2018 federal return. With the Trump tax law, you are now much less likely to itemize state taxes on your federal return.

    #42 2 years ago
    Quoted from marcus0202:

    1. As an individual, you are on the cash method of accounting. So a state income tax refund check you received in 2019 (based on your 2018 taxes) is cash that you received.
    2. That said, you only need to include the state income tax refund check in income on your federal return if you deducted those state taxes (as an itemized deduction) which, for a refund received in 2019, would have been on your 2018 federal return. With the Trump tax law, you are now much less likely to itemize state taxes on your federal return.

    #2^^^ That's what I was looking for as an explanation, thanks. See you can get free, useful advice here. With the tax changes, last year, I can no longer deduct state income taxes (part of SALT) on my Schedule A, taking the standard deduction now, hence do not have to claim the state refund anymore as income. I missed that last year. You just saved us $125 this year and I'll amend my return from last year as well. I hope this helps others. Thanks again!!

    #43 2 years ago

    If you decide you're going to prepare our own taxes with TurboTax, maybe check out this little link: https://www.reddit.com/r/LifeProTips/comments/esf8n7/lpt_dont_pay_for_turbo_tax/

    #44 2 years ago
    Quoted from KozMckPinball:

    #2^^^ That's what I was looking for as an explanation, thanks. See you can get free, useful advice here. With the tax changes, last year, I can no longer deduct state income taxes (part of SALT) on my Schedule A, taking the standard deduction now, hence do not have to claim the state refund anymore as income. I missed that last year. You just saved us $125 this year and I'll amend my return from last year as well. I hope this helps others. Thanks again!!

    Strategic Arms Limitation Talks?

    #45 2 years ago
    Quoted from MrBally:

    Strategic Arms Limitation Talks?

    https://smartasset.com/taxes/trumps-plan-to-eliminate-the-state-and-local-tax-deduction-explained

    Careful, in this case, no SALT causes high blood pressure.

    #47 2 years ago

    So my sister the CPA has been doing my taxes for decades. She said she users turbo tax. Now that she's retired and moved out of state my son said he'd do them.
    He has used turbo tax purchased from Costco. So that's what I'm doing. Corporate and personal.

    #48 2 years ago

    I couldn't pass the CPA exam. That damn thing is hard

    #49 2 years ago

    I used an accountant for years, worked out great:

    https://turnto10.com/news/local/ri-tax-preparer-pleads-guilty-to-44-counts-of-tax-fraud (I'm one if the 44)

    The IRS letters requesting thousands were an awesome surprise as well..

    I use Turbo Tax now. Went to a new accountant the year after the sh$t hit the fan, then tried turbotax, got the same result. Screw accountants...

    #50 2 years ago
    Quoted from Irishbastard:

    I used an accountant for years, worked out great:
    https://turnto10.com/news/local/ri-tax-preparer-pleads-guilty-to-44-counts-of-tax-fraud (I'm one if the 44)
    The IRS letters requesting thousands were an awesome surprise as well..
    I use Turbo Tax now. Went to a new accountant the year after the sh$t hit the fan, then tried turbotax, got the same result. Screw accountants...

    Always be wary of a tax preparer who, knowing nothing about your finances, promises that he can get you a big refund. We have dealt with the aftermath of this from a couple of bad preparers (Google Everett Bias if you want to read about some of the schemes).

    There are 97 posts in this topic. You are on page 1 of 2.

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