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      03-28-2023, 10:29 AM   #1
JMcLellan
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Taxes

Tis the season to figuring out how to pay the government the least amount of money possible, and ensure that the tax industry continues to exist.

We switched to H&R Block this year vs going to our local tax guy as their prices had gone up a bunch. We paid $545 last year for tax prep and didn't have anything too extravagant aside from W2's and a 1099 for investments. H&R Block advertises an "$80" tax service but after they line item up everything we were charged $412. A couple examples of how it's ridiculous: they are charging $14 per dependent (I have two kiddos), and $45 for the child tax credit we are allowed to get. The business model must suck if they have to charge for stuff like that.

Seems like the best solution is to sit down and do my own taxes but I struggle having the patience to do it.

What do others do and/or pay for tax prep?
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      03-28-2023, 11:05 AM   #2
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We have an accountant that we go to.
Business tax prep - 500$, personal(w2) - 250$.
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      03-28-2023, 11:36 AM   #3
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$545 seems like a stretch. Maybe use TurboTax? Or find a smaller CPA firm. They exist and are just as competent but charge far less.

I've got one W2, a couple 1099s and LLCs, and I itemize so I prefer having a CPA handle it. $450 this year.

Prior to owning a home back then and the LLCs (so no need to itemize via Schedule A), I filed myself via TurboTax. Can't recall the cost but it was under $200.
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      03-28-2023, 11:55 AM   #4
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I use Turbo Tax now that things have become more simple. Used to have business and multiple states, so I had my taxes done.
Now it's relatively easy and I get it done pretty quickly. Plus it's already done, refund already received and spent.
and I think it's around $50


I think there's a referral discount of 20% too. PM me and I can send you info and save you a few bucks and get a little credit on my end.
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      03-28-2023, 12:20 PM   #5
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I’ve always done my own taxes, from way back in the paper days when I’d go to the post office to pick up forms, instructions and such. I started with TurboTax when it came out and have used it ever since. It isn’t perfect so I check my taxes carefully before filing (they have an on-line user group that helps if there are questions).

I refuse to use any web or cloud based service. My taxes don’t belong in cyberspace (along with SSN, address, etc). Just me and the IRS. So I use the desktop (Mac) version. When my taxes were very complex I used their top product, now I’m down one notch and hoping to simplify further next year.

But, I’m pretty experienced and educated in taxes and the tax code. It is very close to overwhelming for me, takes a lot of time and is always frustrating. I’m very organized - I start an annual tax folder at the beginning of each year, and everything remotely tax related goes in there. I have a similar email folder. So when I start my taxes, the documents are already in one (or two) places and somewhat organized. I make a checklist of all income sources (to be sure I get the W2, 1099, K1 or whatever) and a similar list of deductions so I don’t miss anything. I print out the entire check register and credit card annual statements so I have that to refer to as well. All of that documentation will help if/when I get audited.

If your return is complex, or you have limited understanding, it is best to use a professional who can represent you in the event of an audit (how many new agents were just hired?).

Edit: I am not a CPA nor tax expert and won’t do others taxes.
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      03-28-2023, 12:25 PM   #6
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To the OP, it might be worthwhile to buy TurboTax, Lassiter or whatever you prefer and do your taxes but not file. See if you can handle it, and if your result matches H&R. Maybe that will give you the confidence to do your own using one of those software products, or convince you that a pro is best for you.
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      03-28-2023, 12:37 PM   #7
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Because I'm too lazy to fill out the few forms we require, I use TurboTax for both Federal and state returns. Our inputs are only W-2s and 1099s - nothing fancy or complicated at all. With state sales tax, it runs $108 for both returns. I rate the product as being easy to use.
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      03-28-2023, 12:47 PM   #8
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Been using turbo tax online for a long time, it keeps getting a little more exp but all the history keeps me there. The product keeps getting too idiot & beginner proof that bugs me as a tax expert. I don't know if its always perfect, but I am not missing out on anything. one year with 4 states I think it screwed up in my favor but no audit. Used to develop a tax product plus accounting & tax background.

$500 for W2s and 1099's is outrageous. All the online tax programs can import all that and be done in 2hrs or less for about $100 with a state.
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      03-28-2023, 12:50 PM   #9
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$545??!! I was paying $150 to a great CPA for years to do mine. Since retiring I just do TurboTax free online. Based on your described situation, that would probably work fine for you too.
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      03-28-2023, 01:00 PM   #10
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We have an accountant for the Clinic. His firm also does our payroll. He also does all the staff individual returns for free. Everything is done electronically and by direct deposit. Some have already received their refunds.
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      03-28-2023, 01:11 PM   #11
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That seems high to me. When I had a regular job I use to pay like $150 for my personal taxes and maybe another $150 for my side business. I had my gf go to the same accountant once and he did her taxes but basically showed her what to do to do it on her own and told her she didn't need to spend the money on him for her basic tax return. She does her own to this day.

Now that I've had my own business for a few years my accounting bill is getting higher and they keep raising prices, but I've been with them forever and never had any issues so I just keep paying it.
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      03-28-2023, 01:16 PM   #12
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I do taxes for a living and the rate the OP quoted sounds reasonable. If you are willing/able I have heard good things about turbotax. The issue with a lot of these places is lack of support if the IRS comes calling.
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      03-28-2023, 01:17 PM   #13
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+1 for TurboTax. Been using them for years.
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      03-28-2023, 01:24 PM   #14
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Wifey + Turbo Tax = Done
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      03-28-2023, 01:34 PM   #15
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Quote:
Originally Posted by KevinC View Post
$545??!! I was paying $150 to a great CPA for years to do mine. Since retiring I just do TurboTax free online. Based on your described situation, that would probably work fine for you too.
Yes I know. The previous year we paid $400 ish and we also had tax stuff with selling a rental property. Bumping up to $545 for just W2's and a 1099 (with no rental home sale) made us look for something else.
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      03-28-2023, 01:36 PM   #16
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Quote:
Originally Posted by M_Six View Post
Wifey + Turbo Tax = Done
I have half of that equation in place as my wife was the one coordinating the taxes this year. It was going good until she saw all the bullcrap line item charges from H&R Block. TurboTax next year for sure
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      03-28-2023, 02:24 PM   #17
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I charge my individual clients a flat fee in the $150-300 range depending on what they have. From what you describe, I’d say $250.

Aside from the tax prep, I spend on average 30min to an hour talking with my clients. I answer questions throughout the year if something comes up.
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      03-28-2023, 03:18 PM   #18
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Quote:
Originally Posted by rcracin View Post
I charge my individual clients a flat fee in the $150-300 range depending on what they have. From what you describe, I’d say $250.

Aside from the tax prep, I spend on average 30min to an hour talking with my clients. I answer questions throughout the year if something comes up.
That is very reasonable and that's basically the service we have been getting. Good to know
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      03-28-2023, 03:51 PM   #19
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My wife is an indy contractor. So you can imagine our tax bill ...

I get a shit ton of 1099's so it takes a while but ive found i get the same general results as using a tax pro. But it's not much cheaper to do it yourself when they start adding fees for different types of workers and deductions.
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      03-28-2023, 04:06 PM   #20
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I have used TurboTax for years as well. It's good but not perfect. For example it won't handle sales from employee stock purchase (ESP) plans without a healthy dose of massaging. Also if your 1099s contain any asset sales be aware that simply importing them electronically may leave you with only part of the information, in particular if the financial agency doesn't have the correct (or any) cost basis. Bottom line for me is that I don't think our taxes are all that complex but I still spend a good bit of time on them.

All that said, we had to fill out a gift tax return (Form 709) for 2022 and there is no electronic handholding for that. Going back to reading the arcane, cryptic, circular referencing federal instructions reminded me of just how much effort TurboTax saves me!
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      03-28-2023, 04:07 PM   #21
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FreeTaxUSA.com it's free for most simple taxes I have some minors like 1099-r and 1099-k plus W2's. But I make less than 6 figures not sure if it cost above that. State on the other hand is 35 bucks.
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      03-29-2023, 05:32 PM   #22
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Also our E90 330 and 325 will soon have some sort of boost. So there is actually more of a chance to get more hp out of a 330 then a 335 in my opinion
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