Filing Federal taxes?

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JOhnH

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As the title says, what is the best way to file Federal tax forms?

I vaguely remember suffering over a bunch of tax forms and schedules with a pen and a box of receipts many years ago. But for the past 40 years or so I had a CPA do my taxes because they got too complicated for me to do by myself after I opened a business and started hiring people.

I have now been retired or almost 10 years and have continued to use a CPA. But my taxes are not all that complicated any more. My wife works one day a week and gets a W2. Other than that I have about 5 1099s.

Should I buy a software package like Turbo Tax? Is there a good on-line web site that I could use? I have always thought places like H&R Block were for simple tax forms for simple people, but maybe I have been wrong. IDK.

Does anyone still get their forms at the post office (or download them)?

Suggestions:
 
JOhnH said:
But my taxes are not all that complicated any more... Should I buy a software package like Turbo Tax?
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You might qualify for the free version. I'd investigate that route.

But that's if you're due a refund. If you owe, then pen and paper writing as illegibly as you can without being completely illegible. :)
 
If you don't need any assistance, you can file for free straight with the IRS: https://www.irs.gov/filing/individuals/how-to-file

I have been using TurboTax for a few years now because it boogies with my investment accounts and the like and sucks all the information into its database directly which saves me a lot of retyping I used to have to do when I was filling out the forms myself. It also prompts you for stuff as you go along and does a lot of consistency checking for you.
 
you can certainly download them. It doesn't hurt to download them and draft your forms before you go online.

I use the https://www.freefilefillableforms.com/home/default.php to file. (and taxachusetts has efile options for the state taxes).

I have 2 1099-R forms, a 1099-Int, and a 1099-G. Eventually I'll get a 1099-SSA (or whatever it is).

Nice and simple, kind of a consequence of not being particularly wealthy. And I'm too cheap to buy software or hire a tax prep professional.

it's fast enough. The free IRS thing opened up 27 Jan. I have already received my small refunds
 
I drop off the forms and let someone else do it, then come back to sign and submit.
 
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We have been using TurboTax for several years.
 
JohnH, if you use Turbotax, just buy their low-end “Deluxe” product. From your description, that’s what you need. Almost no individual needs more, but Intuit will certainly try to upsell you anyway. Buy the desktop computer download from Costco or Amazon. Aside from TT, there are competing products that will probably meet your needs as well.
 
My tax consultant retired this year,so I’m studying my options.
 
Turbo tax from Costco. My form is complicated, but the cheap "Premium" is fine.

I did have too many bank accounts from shopping for the highest interest CD's. Closed 4 last year, removing 4 1099's for next year.

Many years error free with TT.
 
When I was very active in affiliate marketing with my own business, I had a local CPA firm do everything - business and personal. That was not cheap! Now that I have (mostly) retired I've been using TurboTax - for the same reasons FlyingRon mentioned above (especially that it saves me a lot of typing).
 
I’ve used H&R Block for a long time, and Turbo Tax before that. IRS has its own free online version but I don’t know how simple your return needs to be to use it.

HRB and TT, the basic versions, do everything I’ve ever needed. You collect all your receipts, records, and statements and then follow the prompts and enter all the info. It does the rest.

For State returns I use my State’s online service.
 
I've been using TaxAct for quite some time now. It used to be downloadable software, but now it's all web based. For the state I use the state's own online filing.
 
TurboTax fees for electronic filing have gotten absurd. Last year I used FreeTaxUSA. Just as good at a fraction of the cost.
 
Last year I had a high tax bill, with my usual TurboTax, a few big changes. I decided to try a local, reputable tax preparer, see if they could work some ‘magic’. That office was within a few $100 of what I came up with on TurboTax.
This year I’m back to doing it myself, so far things looking pretty good.


It sounds like you have a fairly simple situation. You can use TurboTax for free up to filing, so just see how it goes.
 
I've been using TurboTax for many years. Simple, avoids arithmetic errors, I like the way it prompts for info so I don't overlook things, etc., etc. I haven't yet had a reason to try anything else.
 
I don’t know how TT charges for filing. HRB basic gives you 4-5 Federal filings free, so if you have someone else in the house they can use it, too.
 
I have used Turbo Tax for several decades.

I once asked our small business accountant about doing out taxes. She asked a few questions about our finances and how we did them now. She said with ours, she would use a pro version of TT, and the results would be the same. So save the money and use TT.
 
I have been using the H&R block software(Business version) for several years now and I'm dealing with various 1099s of different types, small business income/expenses, rental income/expenses, etc. If you pretty much know your situation and what you need to do it's fairly straightforward, there's a bit of a learning curve sometimes in how the software wants you to input things and in what order.

One feature I really like is if you have investments with one of the huge list of supported financial institutions you can log in to your online account and it will automatically import all of the 1099s and enter them.

After doing this a few times and being able to import last year's return so I don't have to re-enter every single thing I can knock out most of it in an hour or two.
 
NoHeat said:
JohnH, if you use Turbotax, just buy their low-end “Deluxe” product. From your description, that’s what you need. Almost no individual needs more, but Intuit will certainly try to upsell you anyway. Buy the desktop computer download from Costco or Amazon. Aside from TT, there are competing products that will probably meet your needs as well.
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If you are acting as a consultant and have your own business, then you need the version for small business so that you get the correct self employment tax and qualified business exemption deduction calculated. The Deluxe version does not have small business forms.
 
Oh, I don't have to pay texas.

'Cause I live in one of the other 49.
 
CPA with lots of vowels in his last name
 
Speaking of CPAs, how do you know when you have a good one or need to find another? How do you confirm they are working in "YOUR" interest. I had one for the last 25 years which set up my S corp and never had any issues. They were pretty aggressive if you want to call it that. They retired and the one they recommendened says, you can't do this or that, you can only do precentages of this or that. Basically a total opposite than the first. The first one had worked for the IRS at one time so I don't believe everything they did was wrong. I understand they have to cover their rears,I just don't understand the big differance between the two.
 
the dude said:
Speaking of CPAs, how do you know when you have a good one or need to find another? How do you confirm they are working in "YOUR" interest. I had one for the last 25 years which set up my S corp and never had any issues. They were pretty aggressive if you want to call it that. They retired and the one they recommendened says, you can't do this or that, you can only do precentages of this or that. Basically a total opposite than the first. The first one had worked for the IRS at one time so I don't believe everything they did was wrong. I understand they have to cover their rears,I just don't understand the big differance between the two.
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at work (a USAF program office), there were the finance people (I can't remember their titles and certifications). Everytime we tried to do something like take excess money from one pot and move it where it was needed, the bad/useless ones would say "you can't do that", and they were correct. But the good ones would say "you can't do that, but this is how you can achieve your objective..."

Perhaps the same type of "test" could be applied to a CPA.
 
asicer said:
You might qualify for the free version. I'd investigate that route.

But that's if you're due a refund. If you owe, then pen and paper writing as illegibly as you can without being completely illegible. :)
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Paper filing is always free (well, costs stamp and envelope). If your income is relatively static and the same sources you can simply copy the previous year just alter the amounts (the line items will be the same).

'Free' online filing has a max adjusted income of $84,000. And very few pay services offer free state tax prep.
 
pfarber said:
Paper filing is always free (well, costs stamp and

'Free' online filing has a max adjusted income of $84,000. And very few pay services offer free state tax prep.
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The way I read it, the fillable forms have no income limit, unlike the free online filing using the free software from the various providers

and the state might have a free online filing option (taxachusetts does)
 
I finally got TurboTax to work. But it didn't work at first and it gave me no explanation.

One of the steps was that it logged onto my Charles Schwab account and automatigically downloaded and included all of my Schwab tax forms.

Except that it didn't.

It logged on ok, and it listed my accounts, then it exited. But nothing changed. I had my paper W2's in hand. I could log on and view my W2s online. All the info was there but TT wasn't getting it. I tried it 3 times. I got three messages from Schwab saying I authorized a 3rd party to access my account and said to contact them if this was incorrect.

Then about three days later I got an email from Schwab saying my W2's were ready for tax software. I wasn't exactly sure what that meant but I tried TT again.

This time it logged on and started asking me a bunch of questions about the accounts (It didn't do that before). In a few minutes (seconds) it was done and the numbers now looked right.
So I filed and got a small refund.
 
That's a feature, not a bug. Accessing 3rd party APIs is always a lose/lose for the customer. The app you pay for doesn't have the 1st level customer support to even know what the issue is, and the 3rd party is not gonna help t/s another company's app.
 
the dude said:
Speaking of CPAs, how do you know when you have a good one or need to find another? How do you confirm they are working in "YOUR" interest. I had one for the last 25 years which set up my S corp and never had any issues. They were pretty aggressive if you want to call it that. They retired and the one they recommendened says, you can't do this or that, you can only do precentages of this or that. Basically a total opposite than the first. The first one had worked for the IRS at one time so I don't believe everything they did was wrong. I understand they have to cover their rears,I just don't understand the big differance between the two.
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I'm curious, if you were audited and your accountant "bent" or "broke" some of the rules, without your knowledge, who is responsible? Is there any consumer protection by using a CPA.

I use a CPA for our taxes at the moment. My wife and I have multiple income streams, LLCs, rental property depreciation schedules, etc., that makes ours just convoluted enough I don't know what I don't know. It seems like cheap insurance to have a pro work on it. I've wondered if Turbo Tax is smart enough to hold my hand through doing it in the future, especially as we look to simplify our finances in the future.
 
I've never had any problem with TT. I have to enter the 1099s from our pensions, but the investment stuff is sucked straight in from Investor360 (what our broker uses). It takes what used to be several hours of manual entry on my point to seconds.
 
I just did my taxes with Turbo Tax. I get a number of 1099 forms and for last year, two W-2s. I used the option to take a picture on my phone and have it read by TT to pull the numbers. It worked perfectly and saved me a lot of typing.

Unfortunately, it did make it so I got money back. :D

FYI, the good accountant joke. A guy posts an ad for a new accountant. Three applicants got past his initial screening and were brought if for interviews. He asked the first one, "What is 1 plus 1?" The accountant answered, "Two" Ok. Second applicant, same question, and same answer. The third one comes in and is asked the same question. He gets up, closes the drapes, walks over and locks the door. He turns off the overhead lights, sits down, leans forward, and say "What do YOU want it to be?" Guess which one got the job? :D :D :D
 
I've been using TurboTax for quite a few years now. Started out with the home & business version when I had my business, now I just buy Deluxe at Costco, Amazon, Sam's or wherever it's discounted. There seem to be a number of variations; I get the one with free Federal electronic filing and one free state download. That does NOT include state e-filing -- that's an extra $29 or some such so I file the Federal return electronically, and mail in the state return.

Gotta pay attention to the questions. For years I must have missed or skimmed over one that would have gotten me a significant state tax credit. I finally found it this year after someone told me about it -- a candidate for office in fact, so guess who got my vote? I just filed amended forms for the last three years of that. TT did ask me about it, but it was one of those "Did you have any of these situations" question with a long list of things that didn't apply to us, and I somehow missed the one that did. I'm just glad it was fora tax credit, not something that would have cost me...
 
DaleB said:
Gotta pay attention to the questions. For years I must have missed or skimmed over one that would have gotten me a significant state tax credit. I finally found it this year after someone told me about it -- a candidate for office in fact, so guess who got my vote? I just filed amended forms for the last three years of that. TT did ask me about it, but it was one of those "Did you have any of these situations" question with a long list of things that didn't apply to us, and I somehow missed the one that did. I'm just glad it was fora tax credit, not something that would have cost me...
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Oh, come on... don't leave us hanging :lol:
 
Baked Potato said:
Oh, come on... don't leave us hanging :lol:
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Nebraska gives you a state income tax credit for the community college portion of your property taxes. It's changed almost every year; at one point it was half your school system taxes and half the CC taxes. The three returns I sent in for the past three years added up to almost $3K in tax credits I'd have missed entirely if someone hadn't told me to look for it. This year's credit is only about $350, but still not money I'd pass by if it were laying on the ground in my yard.
 
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