Replies

1. 
   BillHartmann | Dec 31, 2007 05:50am | #1

   I have not use TT in long time.

   Been using TaxCut.

   But they have similar deals.

   Looking on the webpages for TC they have comparision charts.

   Really did not find anything that was in their that was not in their Delux version. More videos and stuff like that, but not anything that would really make a difference.

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   A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.
1. 
   rasconc | Dec 31, 2007 06:34am | #2

   Thanks, sort of what I thought.  It may give some more advice on deductability, expenses, etc but think the IRS help would probably do the same. 

    

1. 
   BillHartmann | Dec 31, 2007 06:18pm | #5

   Here is a completely different alternate.Go to a CPA and rent his brain for an hour or two.Not to do the taxes, but discuss options and how you structure things. For example the number of retirement plans has increased drastically in the last couple of years. Sole 401-k's, Roth/401k's, etc..
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   A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.

2. 
   jagwah | Dec 31, 2007 07:19am | #3

   I used the business version last year. It seemed to me to ask all the right questions and I was very pleased with the results although time will tell, no audit so far I intend to use it again this year and unfortunately I feel I'll owe a sizeable tax. I had an unexpectedly good year.

   I've never used the deluxe version.

    

1. 
   rasconc | Dec 31, 2007 07:39am | #4

   Thanks, I have pretty similar situation.  Exceeded my usual year by a pretty large margin.  Bought the Deluxe ver at Sam's, just got a $10 rebate form, may go ahead and exchange it for the upgrade.  I Still think it may no be worth the dif.  You can do a free trial on line.

1. 
   jagwah | Dec 31, 2007 06:27pm | #6

   Bill has the best advise in getting started. If you can afford it a CPA is the way to go. You get to talk to a human and you'll'll feel more confident when you leave that you've left no stone unturned.

   I've used a CPA for several years until last year when his fee, which went up every year 10% each year, jumped from $170 to $250. I felt it might be worth it to try a tax program. While I'm somewhat confident the program is good I still worry if something has ben missed. And frankly as to retirement issues and investment talks maybe his price wasn't so high. I still may go back to him this year. 

1. 
   unTreatedwood | Jan 01, 2008 05:13pm | #7

   I use both! The increase in price is justified by keeping everyone honest. For example, NE PA has a 1% tax on gross income!! And you are supposed to know that on your own. One of my friends who insists on doing his own just found this out after living here for 5 years!! ouch. I want to know ballpark items so the CPA gives me numbers that I expect. If there is an issue, he will take it up, as happened in the move a few years ago. He gives me a cut deal because I have everything ready to go for him. But he takes care of the problems/audit issues if they come up. In any case, I sleep better!"The nearest thing to eternal life we will ever see on this earth is a governmental program"  -Ronald Reagan 

3. 
   frenchy | Jan 01, 2008 07:38pm | #8

   rasconc

      This is hard to accept but it's true..

    Find a really good tax preparer.. one that has worked for the IRS and really understands the rules and what they mean.

      there are 22,000 + pages in the currant tax code.   In addition there are virtually unlimited rulings and interpitations of those rulings. and finally there are endless settlements and other sorts of things which affect the amount of tax owed..

    I used to either get a tiny refund or pay a small amount of the standard rate given from the charts.

     When I found my tax people (who had recently retired from the IRS) I can't tell you the amount they found for me.., really massive!

     Then they told me to take additional dependants rather than give Uncle Sam an interest free loan of my money.  In the last decade I've worked with these people I've never been audited,  and they try to keep the refund/ payment under a few hundred dollars either way..

    What those tax programs don't do is research how your situation fits all the various allowances and deductions. The programs make standard assumptions based on given facts.  they aren't smart enough to ask you the critical  but unknown questions.

    Plus looking at the cost of them I'm not paying all that much more than buying the progam costs..

     

1. 
   rasconc | Jan 01, 2008 08:07pm | #9

   Thanks, my situation is really pretty simple though.  Military retirement, standard deduction, plus anywhere from 30-60k gross business (inc material, subcontract, labor).  Probably will go talk to my BIl's accountant.  As discussed before, major questions are how much tool exp one can just expense in this throw-away age.  Last years ge whiz cordless stuff goes to the back of the bus and Li-ion replaces it.  Batteries die off and cheaper to get new set, etc. 

   How does an operation with service trucks handle mileage logs, etc. 

   Certainly questions for the accountant.

   Bob

1. 
   frenchy | Jan 01, 2008 09:29pm | #11

   rasconc,

     That clearly calls not for an accountant..  What does he know about tax interpitations and prior decisions?   He may be able to tell you where it's best to take a tax break (now or against future earnings) but he doesn't know for example if that tool (s) is fully deductable in year one or does it have a longer depreciation schedule requirement.

      I can assure you what you get when you read the instructions  you aren't really reading  the final decision.   Bob Jones* in  Alaska may have changed the rules since the instruction book was written. Or when they wrote the instructions The Bob Jones case was considered the exception.  Whatever!

   * fictious

2. 
   BillHartmann | Jan 01, 2008 08:57pm | #10

   "Then they told me to take additional dependants rather than give Uncle Sam an interest free loan of my money. "For anyone lurking.frenchy has mixed up 2 different things;WITHOLDING ALLOWANCES &
   DEPENDENTSWithhold allowance are what are put on the W-4 and determine the amount of income taxes that are withheld on wages and reported on the W-2.There are several different ways of calculating withould allowances. Typically one starts with marrital status and number of dependents, but there are other adjustmensts that can be made to come up with a withold ing allowance.And for some people one can decrease the allowance (increase witholding) if they have other income such as investments or small amount of SE income. And thus don't need to do estimated payments.Likewise, the withholding formula does not account for things like 2nd jobs, how much mortgage interest that you pay and the amount of income from a spouse. So some times it can withhold way too much.But this ONLY affects withholding on W-2 income. For investments and self-employment income then, if it is signficant, then need to make estimated paymnents.Nowever, no of that affects how much income tax that you actually pay. That is figured on REAL DEPENDENTS, among many other things, and goes on the 1040.And they need to be REAL. When the IRS started requiring SS for dependents there was a lot of "deaths in the family" that year. And, except in the "classical American family" there are lots of rules about who can claim a dependent and it can get tricky. Divorce, foster children, child of a family member living with you, etc are all complications about who is a deductable dependent.But putting fake dependents on a TAX RETURN, just to increase the tax refund, is fraud. And almost every year you will see an article about people being charged with a crime for doing just that. Often it a ring lead by a tax preparor. And some of that are former IRS employees..
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   A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.

1. 
   frenchy | Jan 01, 2008 09:34pm | #12

   BillHartman,

     Thank you for clarifing what I said.  Short line, you claim additional dependants or no dependants to adjust your witholding to fit your circumstances.. I believe there is a penalty for excess witholding but can't tell you what it is.. a good tax preparer will help you avoid that penalty..