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30 Jan 05 - 02:13 PM (#1393416) Subject: BS: U.S. Income Tax--any accurate free info? From: Stilly River Sage It's tax season again, and I'm getting started now that I have all of the forms that filter in from banks, employer, and the feds. I do my taxes myself, I always have, because I don't trust the Turbo-type programs to intuit my tax situation well enough to get me the optimum return. I had an accountant do them for a few years when things were pretty complex (handling an estate, comingled accounts, and a divorce). The last time I plopped down $100 for what turned out to be a simple form (yet inaccurate, because he missed a credit I could get and I had to submit a revised form to get the cash) I decided to go back to doing it myself. I don't make a lot of money, so I'm eligible for a number of credits. But since I don't make a lot of money, I'm reluctant to go to an accountant to ask a relatively simple (I think) question that I'll have to pay them to answer. In theory, I SHOULD be able to ask the U.S. IRS people, but it was my experience on the few times that I got through in years past that they don't really know what they're talking about, and have given me misinformation. I'm not going to describe my question in detail here, beyond to say that it has to do with how to fill out the form to get a credit regarding a child who lives with me but I can't claim (per decree). This thread is started (the old tax threads are on different matters or have been closed) to ask if there are other U.S. Mudcatters who have found a reliable way to get accurate answers to relatively simple questions. Or, have you worked with an accountant in a limited way (not asking them to sign on the form, just to answer questions) and did you simply pay them by the hour? SRS |
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30 Jan 05 - 02:17 PM (#1393423) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Amos We've always found it worth our money to pay a good accountant, especially when our finances were comp[licated (which they no longer are). Saved us thousands. The alternative is to use Intuit's 2005 version and then also to back it up with queries to IRS help desks. BEst I can think of. There might be a mailing list for tax problems somewhere, I reckon. A |
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30 Jan 05 - 02:22 PM (#1393431) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Rapparee Check your local public library. They not only have web sites, but might be able to put you in touch with the local AARP tax help people. Nothing like having a retired CPA do your taxes or answer your questions -- and those who volunteer are trained. |
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30 Jan 05 - 02:23 PM (#1393436) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Rapparee Forgot to mention -- like Amos, I have my taxes done and have been having them done for about 20 years. Our current tax accountants charge abour $350, but last year I got over $3,500 back. 10 to 1 is a pretty good return in my book. And having the taxes done has certainly taken a strain off my marriage! |
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30 Jan 05 - 03:34 PM (#1393507) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Stilly River Sage In the past I've been to the library--and read tax code books (fat binders with flimsy pages). I learned a lot and was able to do my taxes confidently after an inheritance. I suspect much of that code is online now. I resist the movement toward the tax preparation choices that seem to be out there--"professionals only" (who, like attorneys, have helped make the field so obscure that individuals can't do much for themselves) or the automated computer program treatment, hoping it has algorithms to take all of your variables into account. Choosing a volunteer or taxpayer support organization to get the information right is part of this query. By definition, AARP members would seem least likely to be in the position to answer questions about dependent children, presuming that their children are long since grown. But that's my generalization. In this day of children being raised by grandparents, who knows--maybe they are expert in this. I'll have to Google the topic and see what turns up. Anyway, I didn't plan this thread just to deal with my question for the 2004 tax year. If there are questions from other Mudcatters or examples that would help us prepare our taxes, they are welcome here. And as always, good links! SRS |
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30 Jan 05 - 05:04 PM (#1393604) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Bev and Jerry We've used an accountant for more than 20 years but last year, after the accountant was done, we bought Turbotax and did it over. Came out about the same except for one big deduction which even other accountants had not caught. This year we bought Tax Cut and plan to use it with no accountant. The official IRS site has a lot of information but it's very hard to find it. After all, this is the official IRS site. Bev and Jerry |
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30 Jan 05 - 09:18 PM (#1393825) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Stilly River Sage I've mulled this over all day. Publication 501 (it's online) has information about dependents, and I'll read through it before I make the call. But I think I'll call my old accountant's office first (the guy who started it has moved on, but the office is still there). I'll point out that I've done my taxes but would like to pick their professional brains for 30 minutes or so and what is their hourly rate for consultations? If they say "we don't do that" I'll call someone else. Over last year I scrimped and saved and "paid myself first" and put the maximum amount that I could in my ROTH IRA. I found an interesting tax credit this year that I was only marginally available before (but considering a couple of corrections to my 2003 taxes, I may go back for it). With my salary, and with as much as I paid into the IRA, I was able to take $1000 off of my taxes. Not off of my taxable income, but off of my taxes. I discovered this when I was reading up about taxe breaks people often miss through a link from Microsoft Money. It is the first time in recent memory that I can say "Thank you, Bill Gates!" SRS |
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31 Jan 05 - 04:37 AM (#1394023) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Joe Offer I'd suggest getting Publication 17 from the IRS. It's a comprehensive guide that will answer most questions, and it's well-written and well-indexed. It's available as a PDF file here (click). -Joe Offer- |
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31 Jan 05 - 09:22 AM (#1394205) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Rapparee I've found that if you itemize business expenses you can get a bigger break on per diem costs by using the tables in Publication 2106 than by listing what you actually paid. The AARP folks here help anyone who walks in -- and they're good, damned good. But that's here, and your mileage may very well vary. |
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31 Jan 05 - 10:17 AM (#1394271) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Stilly River Sage Publication 17 (Your Federal Income Tax) as a PDF file has 322 pages and is about 2 meg. If, as you read it online, you want to print parts of it, be sure to use the Adobe Reader's print symbol--I've found that makes it easier to select and print than to use the browser symbol or dropdown print command. Publication 501 (Exemptions, Standard Deduction, and Filing Information) that I mentioned above isn't nearly so large, at 197k and 24 pages. Despite my complaints about the efficacy of information when one calls the IRS (I haven't tried in years--do they even have people you can call any more?), the development of access to the forms and publications online via PDF was a profound move for this agency. It has been quite a few years now that I've been retreiving forms online, but I don't have to work very hard to remember how amazing it was to find that first form online and print it on demand, not to have to jump through the hoops of writing away for the what I needed or visiting the local library and queing at the copier to photocopy the master pages from the big binder of forms they kept handy. We have a large table full of publications and forms at the university library where I work, and I haven't asked our gov docs librarian if he has seen a change is usage, but I'm sure there is one and that it is remarkable. My local post office right now has a bedraggled and incoherent collection of forms and publications (none of the big ones), and a sign on the wall saying that they don't have any 1040 forms. I suggested to the guy who is in charge of the lobby that they add the web site address to that sign. His response was that "the people who come here looking for forms don't have computers or know how to use them." Then it seems all the more important that they make sure that the basics are readily available at this kind of contact point. Otherwise it's just for show. SRS |
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01 Feb 05 - 02:12 AM (#1395316) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Stilly River Sage It took a lot of reading, and following lines of inquiry ("just what is this child credit they say I might qualify for? Hot damn, $366 more back!"). I did finally answer my initial question myself. It took getting my hands on the form to see where to put the information so they won't kick out my return as flawed. I'll let it sit for a day or two then go back over the numbers. A cool calculator review works for me. I found a couple of errors from yesterday's work, so who knows what else I might catch after a little distance. Thanks, all! SRS |
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01 Feb 05 - 02:39 AM (#1395323) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Kaleea "Gol durn %$#**&^# revenooerz!!! Fetch m' gun, pleeze, Ellie May! Best git th' jug, too." Now that I'm retired, (I was tired before, and I'm re-tired just thinking about it.) I don't have to put up wif them thar $#*%*@~++*&^%$># revenooerz agin!!!!! |
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01 Feb 05 - 04:29 AM (#1395367) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: JohnInKansas Since the cost of your tax prep program is deductible, it makes good sense to use one if you can find one that you can trust. The major ones generally do a good job of covering all the exceptions and special conditions. The main difficulty is that they don't always tell you why they ask for specific bits of info and where they're going to put it, so it's sometimes hard to be sure whether or not an item has been included where you intended. It usually takes me about as long to verify the program-prepared return as it used to to prepare one when I used a manual typewriter. Most of the forms you should need can be downloaded from the IRS, and they've greatly improved what's available in terms of the instructions. A note though on .pdf forms - you have to do the download, which is the slow part with my dial-up connection, before you can read it; so you might as well do the save of the whole thing unless disk space is really critical. Reopen from the copy on your hard drive, and you'll find you can skip around much faster than working from the temp file copy, if you need to copy out extracts for your own notes. The only form I've found that you can't download is the 1099 you send to the IRS if you pay workers. That one is barcoded with fluorescent ink, or some such magic, and you are (or were last year) required to send an original. (The specification for how to print it was about 300 pages long last year. It's a lot easier just to get one from the IRS if you need it.) You do not have to use a specific form for the 1099-MISC that you send to the workers you paid, as long as you include all the required info. If you want a "sit down" book with all the rules I've found the Laskers' Guides pretty good, but it's been a few years since I've needed that much info so I haven't looked at a recent one. (The cost of the book is a deductible "cost of tax preparation" just like a program, isn't it?) Incidentally, the only two returns I've sent in that I know had errors were the two that I paid someone to do for me. Both were when I was on extended business travel so I let the ex-wife take them to a "preparer," since I couldn't get to my records to do them myself. Nothing major in either case, and that's not the only reason she's the ex... . Both cases were rather stupid errors, due to the preparer not kowing about how to treat "unusual" business expenses; and both cost me a little bit of money. I don't really believe the "seasonal tax offices" can do anything you can't do yourself, although it may be nice to let someone else handle the paperwork for you. Real accountants usually charge more than it's worth to me - and are worth it if you really need help. John |
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02 Feb 05 - 12:10 AM (#1396530) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Stilly River Sage I had the various paper copies of the forms I needed, but decided to try the PDF online IRS forms. They let you enter your information and you can save a copy to your computer. It makes taxes slightly more entertaining to do it this way, and it's certainly neater than my handwriting and easier to line up than my old typewriter ever was. SRS |
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11 Apr 05 - 11:56 AM (#1458057) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Pauline L I know from my own experience that there are problems with income tax software. A few years ago, I tried to use a commercial software package. Part way through I spotted a mistake. The software omitted mention of one key fact. I could see the problem but I couldn't correct it, so I did my taxes by hand. Last year I used free software by H&R Block, and it worked fine. It even suggested helpful things that I was not aware of. Yesterday I started doing my income tax again with H&R Block free software. Part way through, it told me that it lacks an online version one of the forms I need to use, and it told me to go to an H&R Block office (and pay). Today I'm going to H&R Block. A word to the wise: The form not available online is for deducting money paid into a flexible spending account for health care. |
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11 Apr 05 - 03:13 PM (#1458211) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: PoppaGator I think that much of the fear/reluctance of tax preparation programs is misplaced. While I'm not terribly surprised that one software package omitted one fairly obscure wrinkle of the code, I think it's more likely that an individual (even a highly-trained accountant) would forget about, or never know about, a possible angle that'll help you. For most people in most situations, a package like TurboTax will explore all possible ways to process your information in your best interests. Electronic memory is simply more capable of maintaining more complex information than the human brain. |
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11 Apr 05 - 06:30 PM (#1458423) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Stilly River Sage My refund arrived a month ago, but it was about 25% less than I was expecting. I'm now awaiting their letter to tell me what the difference was in my math and theirs. I suspect there is another form they need that I didn't have (something that lets me affirm that my daughter lived with me all year, even though she is claimed on her father's income tax as part of the divorce settlement). Despite this discrepancy, I still would rather do my taxes myself than do them via a tax program. But if you want to file electronically free via the IRS site, you have to plug your information into somebody's program and it does the calculations. A word of warning--that PDF system I found so easy and convenient to use? It was in my computer when it was stolen, with all of my critical numbers in place in that saved PDF file. If you keep a copy, DON'T keep it in the computer. I've been changing account numbers and tracking credit ever since. SRS |
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12 Apr 05 - 09:14 AM (#1458978) Subject: RE: BS: U.S. Income Tax--any accurate free info? From: Rapparee There are $50 or so flash (jump) drives that fit on your keychain and hold up to 512MB of data. Spend more and get more memory -- I've seen them up to 2GB. We sent off our taxes yesterday. They were done by a professional accounting (CPA) company I hooked up with when I worked around Cincinnati. Between the Feds and the State we're getting back around $3,200; the tax prep charge is around $350. It seems expensive, but it's a 10 to 1 return and we don't have to do much except keep good records and put the data in the right spot in the organizer the company sends every year (i.e., answer some questions and put paperwork in the right page of the organizer). Having the taxes done has prevented MUCH marital discord. Did I mention that I like the 10 to 1 return? |