How do You Handle Your Taxes?

@ginny36 (266)
United States
February 10, 2007 9:24am CST
Here in the US, we're creeping up on tax time again. My former husband always handled the taxes in our household. Now that I'm single again, I'm debating whether to use a program like Turbotax or pay a professional tax preparer. If you live in the US, do you do your own taxes? Do you use a program to help you, and if so what? Do you pay a professional service? Do you usually get a refund or do you end up owing? If you live outside the US, do you have anything comparable to our "tax season" in your country?
9 people like this
37 responses
• United States
10 Feb 07
I do my own taxes online for free. I just sent them in this morning, although I have had them done since mid-January (was waiting for a form). I'm getting about $5,000 back from the federal government and $1000 from the state. So I am excited. Can't wait for the money to get here.
2 people like this
@reinydawn (11643)
• United States
11 Feb 07
4monsters4me - you need to ajust your withholding on your paycheck, or you estimated taxes is possible. That's too big of a refund... You could have been using that money all year long instead of giving Uncle Sam an interest free loan... I hope you don't need that to pay off credit card debt... If you send less to the government out of your paycheck, you have more to live off of every week (or more you can save every week). That was over $400 every month that you overpaid on your taxes. Ideally, you want to be as close to "0" as possible.
@ginny36 (266)
• United States
11 Feb 07
Wow - that's a great refund. I hope you enjoy it!
@janmar (115)
• United States
11 Feb 07
wouldn't that depend on dependents? Say 4monsters4me has ...4 children all under the age of ten. Isn't that a return of like 4000. right there? Are you saying they should claim two of those dependents on their checks instead of 0 and claiming two on their taxes instead of 4?
• United States
10 Feb 07
I use turbotax. I think it is only worth using a professional tax preparer if you are expecting a huge return or your taxes will be complicated due to a home business or a job where you can claim things like work boots, cell phone, uniforms, etc. Turbotax is great! It walks you through each step and asks you all the same questions that a professional will...plus you can do it at home.
2 people like this
@medooley (1873)
• United States
10 Feb 07
I agree with you totally if you just have normal taxes, turbo tax is the way to go. Nice and simple, file online, and get your money even quicker!
1 person likes this
@ginny36 (266)
• United States
11 Feb 07
It seems like a lot of people think Turbotax is the way to go. The one potentially complicated thing on my taxes is that I bought my ex out of our house partway into the year. Not sure how much that will complicate things until I try, I guess. Thanks for the input!
@reinydawn (11643)
• United States
11 Feb 07
Ginny - buying your x out of the house will have no real tax effect on you. What you do need to be concerned with is WHEN it happened, and how the 1098s will be issued. If the 1098 is issued in HIS name with HIS SS#, he can claim the interest. If it's in your name with your SS#, you can claim the interest. Normally, people will split the interest for the time that both parties were living in the house, but that normally ends up hurting both peoples tax position...
@tammyr (5946)
• Etowah, Tennessee
10 Feb 07
You can get FREE help with your taxes from answering a question, to e-filing. If you call this # or visit the website you will be told of an AARP tax aide site nere you and can get this help if you are low to middle income or a senior. I have done this for 5 years and it really is FREE. 1-888- AARP NOW (1-888-227-7669) www.aarp.org/taxaide.
2 people like this
@reinydawn (11643)
• United States
11 Feb 07
Those people are usually pretty helpful for the "normal" stuff, so you should be ok. Most of the time they are people who have a bit of tax experience - retired CPA's, bookkeepers, people like that. I would not take a business return to them, and I'm not sure that they'd do one either...
@ginny36 (266)
• United States
11 Feb 07
Thanks! I am not sure if I qualify - it would depend on how they define "middle income" - but this sounds like a very helpful resource!
• United States
10 Feb 07
TurboTax has worked for me because it basically tells you what to do. Plus I try several different options and try and end up with the solution that helps me the best. I can also help do taxes for my relatives. You could do other peoples' taxes, too, but then you would likely have to register as a tax preparer. Anyway, TurboTax warns you if you make a mistake, and tells you how to correct it. All you need are your W-2s and a workable computer. Filing online is also a decent option so you won't get screwed by the postal service or some idiot IRS employee.
2 people like this
@ginny36 (266)
• United States
11 Feb 07
Another vote for Turbotax - it really does seem to be the most popular way to go.
• United States
10 Feb 07
I filed online using H&R Block, and it was very easy. They found all sorts of deductions I wouldn't have thought about. Make sure that you have the information from last year's taxes; they ask for that information and use it as your "signature". Last year I used Turbotax online, and they were great too. You don't have to buy any software, you can access the online tax preparation through their websites. If your income was less than $60,000 (I think), you can even file for free. Just go to the IRS website and search under e-filing, and they'll give you links to companies that can do your taxes for free. If this is your first time doing your own taxes, though, it may still be a little confusing. Maybe you can have a friend help you file on line, or maybe pick up an instruction guide from the library to help clarify the questions that the tax preparers ask. Good luck!
2 people like this
@ginny36 (266)
• United States
11 Feb 07
Thanks for the input! H&R block is the option I've been considering other than Turbotax ...
• United States
10 Feb 07
When I was single I did them myself, as I just did the 1040EZ, and it was just that, easy. Once I was married and owned a home I used Taxcut software or Turbo Tax. That was with my ex, now my new husband and I have kids as well so we just take all our forms, drop them off at the Accountant's office and pick them up when they are done. My husband knows the guy so he gives us a discount. Well worth it if you ask me, I would pay twice as much. No headache, just drop it all off and then pick it up, sign it, pay for it and that's it.
2 people like this
@mkirby624 (1598)
• United States
11 Feb 07
I had bad luck with the 1040. I tried doing that to estimate our return or payment this year before I could do the turbotax, and it shows I was supposed to pay almost $2000!! When I got around to doing it through Turbo Tax..I am actually getting BACK over $1000
@emarie (5442)
• United States
10 Feb 07
the first year i HAD to do my taxes since i was an adult, my mom actually did them for me. she's a book keeper and does things like that for a living anyway, yet she felt no need to teach me how to properly do my taxes. but since then, i've been filing joint since i got married and we just take it to someone to do it for us. we've been going to Jackson Hewitt for about 4 years now. its been good, they don't take out that much and we normally have a discount and they make sure we get the full amount in retuns as we can back. this year it was over $3000 which is pretty good i think.
1 person likes this
@ginny36 (266)
• United States
11 Feb 07
Yep - I would definitely say a $3000 refund is pretty good! Enjoy!
@reinydawn (11643)
• United States
11 Feb 07
$3,000 is too much of a refund, especially if you are like most people and live paycheck to paycheck. You were sending the government about $250 extra each month... Adjust your withholdings if you expect everything to be relatively the same in 2007. Get the money in your paycheck so you don't have to struggle all year long, waiting for Uncle Sam to graciously give you your money back when you request it.
@venshida (4836)
• United States
11 Feb 07
I usually use Taxcut. I use to do my taxes manually, and taxes has just gotten to complicated to do it that way. I donot want to pay a professional because they are to expensive. I am one of those people who donot get a refund or if I do its minimal so paying H&R Block is waste of time.
@chertsy (3798)
• United States
10 Feb 07
I do mine online through the IRS site. It's easy and free. Just go to there site and it will tell you where to go. It has a long list of tax sites that you can look over to see which is right for you. I mean why pay someone to do your taxes, when you can do them free and get your money back faster with efile.
2 people like this
@limosonia1 (1559)
• United States
11 Feb 07
Do your own taxes it is no different than going to a professional unless you own a business. You can go right to the goverment website. www.irs.gov and they will give you the best program based on your income and also double check it efile it and you can do your state. They also provide you with the same service in getting your money quickly. Also don't forget to take your tax credit for the fed. excise tax it's 60.
1 person likes this
@reinydawn (11643)
• United States
11 Feb 07
Owning your own business is definitely a reason to use a professional, but that isn't the only one. My step-mother did hers by hand last year because she thought since all she had was her income from her job and no house or anything else it should be easy. Well, she made quite a bit of money and when I looked at them this year I had to amend them because she shorted herself over $1,000. If she had used a home tax program like TurboTax, she would have been ok because it would have caught the oversight for her.
• United States
10 Feb 07
A friend of my husband do our taxes.We paid him $60,he is an accountant so he knows what he's doing.We got our tax return yesterday which was about $2000.I think you can use turbotax if you like,i have a friend who uses that.
• Philippines
10 Feb 07
Here in the Philippines tax is deducted in our salary and when we buy things like in the groceries,malls, etc. I work in a call center operated by Americans and we get a very high tax reduction...and it really pisses me off. Everything I work for mostly just goes to paying the tax.
2 people like this
@keeshan (87)
• India
10 Feb 07
i have to submit my investments and other documents by 13th this month.. I have no idea how to do that. Since I recently left the company i was working, I'm thinkin of not submitting the papers... this tax thing always confuses me
1 person likes this
@ginny36 (266)
• United States
11 Feb 07
Nice to know I'm not the only one who finds taxes confusing : ). I agree with Grannymoe, in your situation I think I would definitely consider using a professional tax preparer this year!
• United States
11 Feb 07
I think you should use a professional this year since you are not sure about things. Maybe next year you save money by doing them yourself. If professionals do them then if something is wrong they suppose to stand behind you and handle it. Investments, retirement and company leavings should be done by someone that understand each step.
1 person likes this
• United States
10 Feb 07
I'm 27 and still live at home with my parents. My dad has ALWAYS done my taxes each year. Past few he told us we had to do our own. But yet he still does them each year. They look like a PAIN and I can NOT wait to do them on my own someday. I'll probably have someone else do them cause it looks like too much troubled crap for me :/ I usually get a refund of around $200 or $300 total with both state and whats the other one? Federal? I love the extra money!!!! and I try to save it but I dont usually I spend it too quickly :p
@ginny36 (266)
• United States
11 Feb 07
Yeah, the other one is federal. I'm with you - they ARE a pain. I used to do my own years ago, but I made less money and didn't own a home then, so they were much simpler. And I still thought they were a pain!
@rosie_123 (6113)
10 Feb 07
Here in the UK, we do not have the same thing at all. Most people who are "employed", in a normal job, have their taxes automatically deducted from their monthly wages by their Company's payroll and personnel department, and never have to bother with all the tax stuff at all. The only situation where it is different, is if you run your own businessm in which case you are considered t be Self-Employed, and have to fill in your own Tax return forms by April each year. with most people, this is just done by their business accountant anyway, so there really is no hassle here I am very glad to say!
@ginny36 (266)
• United States
11 Feb 07
I wish our system was that simple. We have taxes deducted from our checks here too, but with exemptions and other factors we still have to file each year and can end up either owing or getting a refund.
• United States
10 Feb 07
I would have to agree with first response. Unless you have a business or complicated deductions. I would just do them myself online I wouldn't even buy the program. But if you have a house, children and charity contributions then I would consider having your taxes done. Also, if you are expecting a big return and really need the money right now a tax office like H&R Block will give you an advance on the money and take the fees for preparation right off the top. Of course I would only suggest getting the instant refund if you were in desperate need of the money.
1 person likes this
@ginny36 (266)
• United States
11 Feb 07
I do have a house, and the fact that I refinanced and bought my ex out of the house this year may complicate things a bit. I have some charity contributions but they're pretty basic. Thanks for the input!
@smkwan2007 (1036)
• Hong Kong
10 Feb 07
My place, Hong Kong, has a simple taxing system and tax rate is very low comparing to that in USA, so most people do not use program or seldem seek advices from professionals. They just hand in the amount of tax printed on the statement to the tax department by themselves before deadline. Only those who are rich or work as managers, supervisors in large firms seek help from specialists on taxation.
1 person likes this
@ginny36 (266)
• United States
11 Feb 07
I wish our system was more simple. My tax refunds each year are usually low enough that I'd almost give them up not to have to do the legwork!
@mbarryton (1872)
• United States
10 Feb 07
i always go to H&R Block to get mine done. that way if they mess up its their fault. about the turbo tax thing im not sure how that works. i think ill just keep H&R block this year
@reinydawn (11643)
• United States
11 Feb 07
If H&R Block messes up, it's not necissarily their fault. When you sign the paperwork you are signing a form that says something to the effect "We prepared this return based on the information provided to us." Which means they can say "We only filled out what they told us to."
@apky12 (769)
• United States
11 Feb 07
I do our taxes every year. I love Turbotax. I just did our taxes with that and it was very easy. I definitely maximized my deductions too. This years is better than previous years. It really takes you step by step through everything. We usually get a refund and this year is the same. Yeah!
1 person likes this
@chazdubs (249)
• United States
10 Feb 07
I have been fortunate (or unfortunate) enough to be able to use the EZ form, which can be filed out in 10 minutes. This year I am going to have to file a 1099int, which is a lot more complicated, I think I will use turbotax. Why pay someone for something you can do on your own?
1 person likes this
@reinydawn (11643)
• United States
11 Feb 07
If your only difference is a 1099-Int, you can still use 1040EZ if the interest is less than $1,500 - it goes on line 2.