Doing your own taxes

[BLADEMDA]

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So this year I did my taxes with freetaxusa. Free federal filing and 15$ per state which becomes 13.5$ when you use the 10% off coupon. Took me about 2-3 hours because I had to input everything myself instead of having it being imported like with turbotax. I liked it and recommend it for people with simple tax returns.

I do my grown kids' taxes using Freetaxusa. The returns are simple and free for me (I live in a no tax state). For my personal return, I use a CPA who charged me $500.00. Since I do 1099 work from multiple employers and W-2 work I think the $500 was well worth it. In addition, my investments, dividends, stock trades, deductions, etc are all handled by my CPA.

I highly recommend a CPA for those who can afford one; that typically means attending level income above 40th% MGMA. But, if you have no other income besides W-2, minimal investments, no side-business, don't trade much then the online software is just fine. If you are a resident or first year attending then most of you don't need a CPA.

These days the online software for almost everything is so good you can even issue your own 1099 to others for less than $5.00.

For those with 1099 income or a side-business the cost of a CPA is tax deductible as well making the decision a fairly easy one.

 

[kidthor]

I do my grown kids' taxes using Freetaxusa. The returns are simple and free for me (I live in a no tax state). For my personal return, I use a CPA who charged me $500.00. Since I do 1099 work from multiple employers and W-2 work I think the $500 was well worth it. In addition, my investments, dividends, stock trades, deductions, etc are all handled by my CPA.

I highly recommend a CPA for those who can afford one; that typically means attending level income above 40th% MGMA. But, if you have no other income besides W-2, minimal investments, no side-business, don't trade much then the online software is just fine. If you are a resident or first year attending then most of you don't need a CPA.

These days the online software for almost everything is so good you can even issue your own 1099 to others for less than $5.00.

For those with 1099 income or a side-business the cost of a CPA is tax deductible as well making the decision a fairly easy one.

I did my own takes for my entire life till last year when I used a CPA, which was around $400 for me. I have one W2 job and pretty easy taxes compared to many. But she was able to guide me through some of the reasonable business expenses in a way more aggressive way than I’d do myself, plus she’ll be available in the event I got audited. I think it was well worth the money to get better deductions/expenses plus peace of mind.

 

[deleted87051]

I did my own takes for my entire life till last year when I used a CPA, which was around $400 for me. I have one W2 job and pretty easy taxes compared to many. But she was able to guide me through some of the reasonable business expenses in a way more aggressive way than I’d do myself, plus she’ll be available in the event I got audited. I think it was well worth the money to get better deductions/expenses plus peace of mind.

Any examples of stuff you did differently based on her advice?

 

[narcotics999]

I do my grown kids' taxes using Freetaxusa. The returns are simple and free for me (I live in a no tax state). For my personal return, I use a CPA who charged me $500.00. Since I do 1099 work from multiple employers and W-2 work I think the $500 was well worth it. In addition, my investments, dividends, stock trades, deductions, etc are all handled by my CPA.

I highly recommend a CPA for those who can afford one; that typically means attending level income above 40th% MGMA. But, if you have no other income besides W-2, minimal investments, no side-business, don't trade much then the online software is just fine. If you are a resident or first year attending then most of you don't need a CPA.

These days the online software for almost everything is so good you can even issue your own 1099 to others for less than $5.00.

For those with 1099 income or a side-business the cost of a CPA is tax deductible as well making the decision a fairly easy one.

500$? Mine charges 2500$, claiming that he has extensive experiences with IRS.

For those of you who have S-corp, how much do you pay a CPA?

 

[caveat87]

FYI for those with a fidelity account if you click the link within the fidelity account page for TurboTax they pay the entire state/federal file fee for their “premier” level service. Good enough for people that trade stocks/get paid via w2 but probably not for people with S-corps, complicated 1099 situations, etc

 

[Urzuz]

500$? Mine charges 2500$, claiming that he has extensive experiences with IRS.

For those of you who have S-corp, how much do you pay a CPA?

Unless you have multiple illegal offshore accounts in the Cayman Islands, you’re getting ripped.

 

[GassYous]

500$? Mine charges 2500$, claiming that he has extensive experiences with IRS.

For those of you who have S-corp, how much do you pay a CPA?

Why does he have extensive experience with the irs? I haven't talked to them once

 

[kidthor]

Any examples of stuff you did differently based on her advice?

Yes deducting stuff like portions of my house, internet, cell phone, etc. I suppose I could have figured out that stuff on my own, but I prefer to have the CPA guide me through what's reasonable and in line with other similar clients. I would be worried to make as much business related deductions on my own because I'm not sure what might raise a red flag or be too aggressive.

 

[anbuitachi]

i did my taxes last year and messed up backdoor roth conversion. i didnt realize i had to enter it (haha) because everything was already post tax. this year i havent done taxes yet but i'll have to correct that mistake from last year...

 

[BLADEMDA]

500$? Mine charges 2500$, claiming that he has extensive experiences with IRS.

For those of you who have S-corp, how much do you pay a CPA?

My guess would be $800-$1,000 for an S-Corp as a typical CPA fee. My CPA fees go up with each "employee" my company has on its payroll. The $500 was just me on the payroll. I paid more when I had an employee in the range of $850.

 

[pgg]

My tax tale of woe this year is that not one but TWO hospital where I did PRN work in 2021 auto-enrolled me in their 403(b) plans after I specifically opted out of the signup paperwork. They made contributions before I could tell payroll to stop. Since I'd already maxed my TSP (military 401k), I ended up overcontributing for the year. Unfixable in 2021 - had to wait for W2s from all parties, and then had to file return of excess contribution forms with the employers and the brokerage firms. So now I'm getting 1099-R forms for this year and presumably some kind of penalty for last year.

All over a $153 contribution and a $1706 contribution I told the wankers not to make in the first place.

 

[Neopolymath]

My tax tale of woe this year is that not one but TWO hospital where I did PRN work in 2021 auto-enrolled me in their 403(b) plans after I specifically opted out of the signup paperwork. They made contributions before I could tell payroll to stop. Since I'd already maxed my TSP (military 401k), I ended up overcontributing for the year. Unfixable in 2021 - had to wait for W2s from all parties, and then had to file return of excess contribution forms with the employers and the brokerage firms. So now I'm getting 1099-R forms for this year and presumably some kind of penalty for last year.

All over a $153 contribution and a $1706 contribution I told the wankers not to make in the first place.

This happened to me before med school in an old job. I sent an email and specifically spoke to the plan administrator in person and it still happened. Reading this made me clinch my first.