The Tax Man Cometh.....Suggestions

[Pcola04/30]

Tax season is right around the corner and I am looking for a little guidance on preparing my taxes this time around.

I just got married this year and I'm not sure about the benefits of filing single or married returns. I was hoping some of you would recommend a particular company you use that you've gotten good results from.

I was also wondering how many of you use CPA's to file your returns and if so do you have any recommendations for someone in the Corpus area?

Just trying to get every penny I'm entitled to! I normally do my own taxes but I think I am screwing myself out of some potential deductions.

 

[The Chief]

I recommend using the PC based "Tax Cut". It is my belief that you will do a better job than paying someone else to do it. For example: run it twice, do a joint return, then separate. The program will alert you to potential deductions, give you insight to red flags that might initiate an audit, and a bit of assistance and advice on planning for next year.

You would really need a complicated return to require the services of a CPA.

Tax Cut is not the only program out there, several more. Think Tax Cut is done by H&R Block, for what ever that brings to the table.

State tax programs are also available, usually with some sort of rebate for buying two. Last year it think it cost me $24.00 for both Fed and State, to hire a "tax service" would have been $450 because of the complexity of my return, e.g., limited partnership filing and etc.

 

[smittyrunr]

I got married last year- we used Turbo Tax... it will let you know whether its better to file jointly or not. One problem with it was that we were each residents of different states, and once we had Turbo Tax file jointly, it wanted to do the state returns jointly, too- it was really a pain to get around that. I think it would have been less aggravation to have paid someone else to do it, but didn't look into the price. Good Luck!

 

[Sabre170]

In my years of experience, if you have a simple claim do it yourself. Once you get to the point where you itiemize everything and your deductions are more than the standard deduction, I recommend hiring a CPA. I was audited for 2001 and the CPA did everything for me, all I had to do was bring all the documents back to his office. He fought for everything and I saved a lot of money. The IRS wanted almost $4000 more, the CPA got it down to $1200 and his time cost me $200.

 

[cindy]

..... IRS wanted almost $4000 more, the CPA got it down to $1200 and his time cost me $200 ...

If I had a CPA do my taxes and he/she made a $4,000 mistake, I would find me another CPA, quickly.

Itemizing deductions does not make for a complicated tax return. Anyone with an tenth grade education sould have no problems.

 

[Sabre170]

I converted my Sole Propritership into a Sub Chapter S Corp, and ended up with a more complicated tax return than I would have rather dealt with. I don't think the CPA made a mistake. The IRS will always try to find a way to get you to pay more. The CPA fought against everything the IRS guy tried. We only lost 2 of about 7 arguments.

This also goes without saying... KEEP GOOD FINANCIAL RECORDS! I heard that all the way through college and from my parents... and I thought I had good records, but until you sit through an audit you are only hoping your records are good enough.

 

[Mcaf]

You can go to VITA on base and have your taxes done for free. Just got done with a week of training to become a "volunteer" (its my stash job, woohoo). The training was very thorough and I learned more than i could have imagined.

 

[Goober]

You can go to VITA on base and have your taxes done for free. Just got done with a week of training to become a "volunteer" (its my stash job, woohoo). The training was very thorough and I learned more than i could have imagined.

My thoughts exactly. The VITA guy here actually knew of deductions we were eligible for that we didn't (new ones from the year prior). We ended up getting about $1000 more back on our return than we would have gotten otherwise. Everything gets filed electronically, and you get of copy of everything for your records. It's pretty painless.

 

[Pcola04/30]

I ended up using turbo tax.....got about $900 more dollars than I would have on solo ops. Very user friendly.....ended up costing me about $60 in fees for state and federal including direct deposit. The fees are a little high but I justified my expenses with the $900 dollars I would not have had.

P.S. I have heard good things about TAX CUT as well....I think I will try that next year just to compare the two.

P.S. I used turbotax online.....great experience overall

 

[Brett327]

The idea that you need a CPA just because you itemize is ridiculous. Any major PC based package will handle all your tax needs. I've used TaxAct which is super cheap and available on the web, but this year I switched to TurboTax. It handled all my rental property and depreciation stuff without a headache. PC based is the way to go.

Brett

 

[ben4prez]

I, too, was a volunteer with VITA before API. I can tell you that in addition to it being free, we went through a pretty intense course sponsored by the IRS with tests and all. They are probably your best bet.

You can also go to statetaxfreedom.com (a TurboTax website), and if you are a member of the military, get your taxes done free online. You have to do it yourself, but it is very step by step and ensures you dont miss any deductions or credits. You can even file your state taxes free most of the time (depending on the state you live in) .

As for filing separate of jointly, it is almost always in your best interest to file jointly. The only occasion in which you wouldn't want to is if you or your spouse are afraid of liability from fraud stemming from the other person (usually not an issue). Many credits and deductions are not permitted to be taken if you file separately. In short, file JOINT!

 

[Tripp]

If you do use a CPA...GET ON THE BALL...many CPAs (my father being one of them) won't take new clients as it gets closer to April (I usually do mine in January to February).

 

[Pcola04/30]

Military specific Tax Deductions

Looking for some prior experience with military related Tax Deductions.

Here are a couple that fellow SNA might be interested in:

1.Travel expenses related to your Job: Cross country expenses, food lodging, taxis. Your travel claim is DESIGNED to cover 80% of your expenses. Dont forget about the other 20 during Tax time.

2.Moving your spouse. If for example your wife traveled separate from you. (for EX you go to API alone and your wife meets you in primary) the plane ticket is a deduction.

3. If you had to pay to move your pet. Same as # 2.

Just a couple off the top of my head.....I know its not the most exciting sh1t to talk about on the form....but putting as much money as possible in my fellow SNA's hand is the goal :icon_mi_1

Anyone else got any that come to mind?