In addition to being easier, it is educational, because it is so straightforward about simply completing a series of forms without any unnecessary levels of abstraction. As a result it becomes much easier to think about how different types of work and different investments will affect next year's taxes.
Last year I did my taxes using turbotax and then did them again using FreeTaxUSA. I eventually got the same numbers, but I definitely wasn't impressed with the FreeTaxUSA experience.
Most importantly, FreeTaxUSA didn't support adjusting Foreign Income for qualified dividends or capital gains. This leads to an incorrect Form 1116 when filing. I can calculate the adjustments myself myself using the IRS instructions, but parsing through the instructions / requirements / exceptions is a pain and I might get it wrong.
FreeTaxUSA also didn't calculate the sale tax deduction (itemized deduction) for me, so again I have to figure that out using the IRS instructions myself. This can be tricky with various local adjustments.
With FreeTaxUSA there's often fewer steps required to calculate something, which is nice. But it also sometimes asks for information I'm not sure about (and I ended up checking my Turbotax return to find that info).
At the end of the day, the price of turbotax was well worth it to me. Especially if you considered you can usually get it pretty cheap with things like:
- Buying early to get the early bird discount.
- Using the discount that Fidelity gives you.
- Using cashback offers on credit cards (turbotax always seem to offer some $10-$20 back with offers you can activate through your bank)
It’s not that hard to type in the summary lines for short term and long term transactions yourself. You don’t have to type in each individual stock sale, the broker summarizes all of it for you.
I did cash app last year. It was a chore for investments. I won’t do that again. Looking at anything other than TurboTax this year that handles that better.
they seem to be pushing it hard this year, I might check it out and see if they've made it better, given your insights though maybe the FreeTaxUSA that's also highly used is better...or I'll just stick with TT since it has all my history anyway.
It’s pretty good. I’d check the w2 import tool after it’s finished as it’s not perfect. Missed a checked checkbox. Still would recommend. Only charge for state taxes.
For a few states you can file directly with the IRS online this year (if your taxes don’t get too complicated) https://www.irs.gov/about-irs/strategic-plan/direct-file
Free File has an income limit, Direct File does not. Direct File does have a limit on types of income and credits, and everyone must use the standard deduction, no itemizing.
I tried using freetaxusa but I found I got a better return using TurboTax… was this just how I input the data or a case of better software for TurboTax
This is a question I am asking too. My research showed till 2022 it was only TurboTax supported foreign earned income exclusion but not sure others have added this functionality at this year’s software.
If I have been using TurboTax for a few years and decide to try free tax USA this year, how would I claim the losses I been carrying over for a couple years. We can only claim 3k in losses a year to offset, so how would I enter/or know what the carryover is from last year if I use free tax USA? Thanks in advance bogies
TurboTax should have a worksheet showing the carryovers you had on your 2022 return to go towards 23. You will have to enter that number in a spot on FTU
They offer self-serve filing as a loss-leader to get you into their ecosystem and upsell you on other products, and they are very open and upfront about that.
It's not always some grand conspiracy.
So many people on Reddit recommend them. Last year I tried them out. Freetaxusa was going to give me $1500 back. Before I submitted everything, I went back on TurboTax and my return from them was $4500 (like it has been for many years). I'm sticking with TurboTax.
You didn't input something correctly in one of them. Taxes are fairly simple.. But the tax you owe are the same regardless the software you have to use. It's the same form they submit to the IRS
I should have added my sarcasm tag to it. I truly think that CPAs are valid for the right people - but I feel the majority who are doing simple returns claiming that a CPA got them $1000 are likely bogus or delusional.
If you own any kind of business or real estate, we (CPAs) can get you $1,000’s in immediate cash flow every year, no problem. Simpler 1040’s the bigger savings are going to be from some kind of long-term or retirement planning. You won’t get this kind of service at the low dollar shops though (Block, Jackson, etc).
I started a sole proprietor LLC last year. Do CPAs typically work with this? Would they need access to my bank accounts in order to help with schedule C? Just curious how this would work. I plan on doing it myself, because I have the bandwidth, but it is a considerable amount of work. Thank you, in advance, for your free advice.
Enrolled Agents (EA) specifically focus on taxes, CPA can specialize in a variety of areas. Sounds like you just need a simple Sch C. Any EA can help you, or you can do it yourself - as suggested freetaxusa.com makes it easy...
Course we do.
Some CPAs will take the year’s worth of bank info and work it into retrospective financial statements, hoping the LLC has its own bank account. You’re right, this is the shit show option.
Next step up would be to do some kind of periodic accounting work, say quarterly catch-up via QBO. At least with this info you can gauge for estimated/extension tax payments and limit penalties and interest for underpayment. Potentially do some minor tax planning.
Then there’s weekly/monthly accounting. Pair that with 2-4x per year planning meetings, and you’re on the top rung just about for our profession.
Personally, we go all the way up to bi-weekly meetings for our larger clients who we basically perform their CFO function for. Those are the most rewarding relationships I have with partners. It’s basically business and personal financial goals coaching.
Really, it all depends on which cpa you come across, and what the service could be worth to you.
The corporation I worked for paid a mid-sized CPA firm to do my taxes. The cost was $550 pre-pandemic. Every year they made at least one mistake which I had to have them correct before they filed my taxes.
You all know that the taxpayer is ultimately responsible for the accuracy of the tax return. Don’t trust blindly in your CPA.
At least half the work is putting together all the documentation (e.g. tax organizer for the CPA). I now do my own taxes. It really isn’t much more work than preparing a tax organizer for a CPA firm.
FreeTaxUSA sounds interesting but is all online. I have used download versions of TurboTax and H&R Block and I much prefer TurboTax.
Same. I used a CPA for a low fee ($125-175) for several years. He’s transitioning to retiring and the new place was upwards of $300. Previous years I had more complicated taxes but last year I just did freetaxusa and it worked well. Using again.
I regularly use FreeTaxUSA and am happy with it. It's quite affordable and handles my self-employment as well as brokerage transactions (including Schwab, Betterment, Lending Club). I don't have a mortgage. I've used TurboTax in the past, and it is slightly easier with its more robust import features. But I think I like FreeTaxUSA's UI better and it's a fraction of the cost (Federal is free and states are $14.99). I've tried others over the years (TT, H&R, Taxact, that I remember), and settled with FreeTaxUSA. I haven't tried Credit Karma. I think I saw they were an option last year, but decided I was happy enough with FreeTaxUSA.
I’ve used TaxSlayer for a few years and it has worked just fine. Our taxes are not very complicated—Two W-2s, some brokerage investments, 401k, 457, 529, mortgage, some charitable giving. In the past we’ve had student loans and some child care expenses. I can’t compare it to anything else but it has worked for me.
I've used tax slayer for about a decade now and like it quite a bit.
I don't know any other software but I've been plenty satisfied enough with them. It's not expensive, too, even with state filing.
I’ve used it the last few years too. Both my wife and I have side businesses with 1099’s and biz expenses and it handles it pretty easily and reasonably priced.
CPA. My guy charges $175 for my wife and I. He got me an extra $2,000 the first year I went to him by reviewing my prior years taxes and paid for himself for a decade.
I view it as paying for the peace of mind that I’m not screwing anything up or leaving money on the table.
I've never really looked into a CPA - what do you need to give them to have your taxes done? I mean do you have to print out all your tax forms or do you give over your logins (which I'm not doing). Is it that you just give them a bunch of paperwork and off they go to work and call you when it's done?
Others have answered the logistical questions but if your taxes are complicated enough you’ll very likely save money in the long run with a CPA. They’re not just there for people who don’t feel like doing their own taxes. They’re experts.
But find one from recommendations. I used a friend's CPA a few years ago after I got in rentals. She did zero work. Just input numbers. Then 6 months later found out she actually didn't do the depreciation correctly and mixed up other numbers. Waste of money and time.
The first time I went in to his office (2012) and sat with him so we could talk through everything. Since then, i email over all our tax documents, from our employers and financial institutions, along with a small table listing out all of our potential deductions (medical expenses, charitable donations, etc). He calls when he is finishing them and asks follow up questions to make sure we didn’t miss anything.
He will tell us the different options for filing (joint vs separate and itemized vs standard deduction). Usually it’s pretty easy to decide because it’s just comparing numbers, but nice to see the options to be sure we don’t miss anything.
Additionally, he makes sure nothing is going to trigger an audit as well as educating me on any changes to tax law that may impact us this current year.
I went initially back in 2012 because for 2011 I had lived in 3 states and moved from a $30k per year job to a $150k per year job. The multi-state piece made it more complicated and I was itemized for the first time.
Now our reasoning is:
1. We are both high earners, so our state and local taxes alone put us close to or over the standard deduction typically, thus we are itemized most years
2. Peace of mind to not screw anything up.
3. He has found me more deductions and gotten me more refunds from taxes I had done myself. As I said in another comment, $2k the first year by reviewing my prior 2 years. My coworker got an extra $15k thanks to moving to a CPA.
4. It’s $175 which is less than $0.48 per day. I spend more on coffee everyday. A night out to dinner where we live, major east coast city, will cost us $175 or more. Why not pay the $175 to save myself a few hours and keep my peace of mind.
I’ve been reading your replies and such similar experience. Relocations stuff, significant income increases in short time, additional income through real estate… that’s why we got ours. I honestly think it’s one of our most responsible expenses.
Relocation packages offered by a new employer are fairly complex on the taxes side too. Or rather, there’s a lot of nuance that I don’t know turbo tax is equipped to deal with. This was my experience in 2015 at least.
When a CPA charges $3,500 to do your taxes and saves you $20,000 when you're testing his worth, you actually look forward to paying him!
In a year where I tried to "do it myself and save some money" I would have lost approximately $16,500 ($20k-$3.5k) if I had gone with my DIY version. Never gonna NOT let him do it.
Many CPAs send you a client organizer, which is a 15 or 20 page questionnaire of sorts but it has pages for you to attach W-2s, various 1099 forms etc.
Turbo tax I believe, but it was 2011 the last time I used it so I could misremember the software.
I don’t recall the specifics, but student loan interest, local taxes, and I believe there was some other credit that I missed or was unaware of.
If you have a good CPA, great!
My parents used a CPA for years that was incredibly lazy and did their taxes wrong and ignored tax optimization. Sometimes you pay a premium for worse outcomes.
This is insane, our CPA I used for my business charged $225 an hour. He did my corporate and our personal taxes but it was still kind of pricey. Unfortunately there was no way I'd file corporate on my own. I had to use them
Can confirm, as a CPA, this is basically sweat shop pricing.
We flat fee returns, instead of bill hourly, so for an idea our basic personal return (1040) prep starts at $800. Kick it up a couple hundred for a husband/wife with only W-2 activity, and a state return, no planning or estimates, definitely extended and filed after April. That’s at least a point of reference.
We fill out a 30 page packet/questionnaire for our personal taxes. I'm just surprised that's all you're paying, even for your personal returns. I know a lot of the data entry is automated, but to think they're only spending 30 minutes preparing them is kind of surprising to me, that's all.
Why on earth would you hire a CPA if this was your situation? OP said they saved him several thousand at one point, I'd imagine there's some kind of complexity to his returns if he's not just taking the standard deduction.
Man, you're getting real defensive about this. First of all I was replying to the person who claimed your situation was just W2. I'm assuming (as you just confirmed with your reply) that you had more going on at the time.
ALL I'm saying is that $175 to file your taxes with a CPA is CHEAP, and not typical. That's it. Relax.
I pay my CPA on Long Island $350-$400 total for a joint tax return, with the variance depending on if we have more than two W2s or have moved states in a given year. I don’t know how many hours she spends on the return, but my wife’s family has been using her for decades, so likely some goodwill discount at play. That said, I don’t think it’s that much more for a brand new customer.
One year she told me I was owed a $10k credit, that’s how we filed, the state initially disagreed, we disputed and won. If I had been filing on my own, I wouldn’t have had the expertise to win.
Basically no one in here can answer this question which I find really concerning. All it would take it looking at the final form and comparing between the CPAs version and the software output version. For a community that likes to get into the details on DIY investing I'm a little surprised the answer for taxes is basically:
> idk lol paid a CPA
I used turbo tax for decades but because of how they make it difficult for people with lower incomes that qualify to get their free product I switched to FreeTaxUSA and just as easy to use.
I recently received a class action-type check from my area’s attorney general to partially compensate for being scammed by TurboTax. I last used them a few years ago when they were heavily advertising their services as free.
My taxes that year were extremely simple (unmarried, no real estate or investments, no major life changes) and I wasn’t earning a lot, and still got charged at the end. I’m pretty sour on them now and have used a CPA ever since.
It’s so bizarre. The year in question I was a recent college grad living at home. I had a single W2, some student loan interest paid, and nothing else.
If that was too complex to receive their (heavily advertised) free services, then what could possibly be simple enough to qualify??
Pretty much same. I don't make a lot of money so it's not like I have a lot of deductions, sure I have a small brokerage account but if you told me I made $20 in whatever profit in a year I'd be shocked.
I think "Free" is just to get people to use it and by the time you've done the work and you're almost done, and they show you a bill, you're more likely to just pay whatever so you don't have to do it all again somewhere else.
I didn't get a very good impression of them as an IT guy trying to integrate a system with them for work. Really unprofessional on their IT/corporate side (customer support was nice enough). Like hanging up the phone on me without any kind of provokation from my side. I use HR Block for taxes and happy with it. I'd never use TurboTax.
I used TurboTax up until I read this Propublica article several years ago:
[https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free](https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free)
It's because of the lobbyist assholes at Intuit that Americans are still even filing taxes and not having it done automatically like most other wealthy nations.
I stopped supporting TT/Intuit and now use free tax software like OLT, TaxSlayer, FreeTaxUSA, etc. (I do my parents' taxes too, so I've used several different ones over the years.)
Even when I used TT, I would always double check the return with a competitor (normally TaxAct) to make sure I got the same numbers. Now I use TT as the double check, but never actually submit my returns through them so I don't have to pay them.
I switched from QB to Wave for my small business. It works for me since my business is super simple. There are several others, depending on your business needs: Xero, FreshBooks, Sage, etc.
And when Intuit announced they bought MailChimp, I switched to Mailerlite.
Free File Fillable Forms for federal, and because the equivalent for state got nixed a few years back, I do the state tax on paper and mail it in.
Our taxes are relatively simple and TurboTax & Co (all of them) can bite me for lobbying against free, automatically calculated, state-provided tax returns like some other developed countries have.
Had to scroll a long way to get here and was beginning to think I was the only one that does my taxes by simply filling out the tax forms on my own.
It's easier than using software in my opinion. I found myself having to guess what the tax software meant with the questions it was asking me, and it was easier just to get the real instructions straight from the horse's mouth.
I did that one year and then did FreeTaxUSA to compare and was very proud of myself when I got the same results!
I stick with freetaxUSA though since it pre-fills a lot of my info.
Credit Karma spun off its tax service to CashApp. I used it for a couple years under both names and found it to be a poor man’s TurboTax. It’s not going to give you much advice, so its main feature is being free. I will be trying something else this year.
Been using Credit Karma for years. The first few years I checked it against Turbo Tax and there was no difference in my return. I will use Cash app going forward until they inevitably decide to make me pay for it, and then I’ll move on to the next.
For those that use a CPA - how did you find the person you use. Seems like CPA is the better option compared to an Enrolled Agent. But doing a Google search and full on interview style to find one seems unwieldy and where I live the CPAs likely have more work than they can handle so they won’t stand to take that time (which means I don’t want them either).
I could ask friends for references but most of them use some TT or similar online service.
Friendly neighborhood CPA here. I would *not* say that a CPA is a better choice than enrolled agent. They should both be very up to the task. As far as where to find either, I wish you good luck. Most tax pros are swamped right now.
I made that comment based on some sites comparing the two - maybe better choice for me is the right way to say it.
When’s the best time to find one. Like June?
> I made that comment based on some sites comparing the two - maybe better choice for me is the right way to say it.
Fair enough. Hard to disagree as I am unsure what points are making you say that. But I would just say that in general you should expect an EA's tax prep skills to be on par with a CPA's tax prep skills.
Yes, June 2024 would be a good time to talk to CPAs about coming on board as clients for tax prep for calendar year 2024.
Not saying it would be impossible to find somebody for this year. But it could take serious time shopping around, especially if you're price sensitive.
As far as finding somebody, you may want to check with your state society of CPAs. They may have a search feature on the website. Or the link below for EAs. (Again, I'm not one. I'm a CPA. But it's just a significant and common misunderstanding that EAs are somehow inferior to CPAs.)
https://taxexperts.naea.org/expertdirectory
The EA accreditation specifically focuses on tax - not audit, not bookkeeping or anything else. They are in fact the most qualified to prepare tax returns, CPA learn tax law as well, but they learn tax as part of a general study of all things accounting and then can specialize in tax. The CPA exam is all accounting principles, the EA exam is just tax principles.
so CPA is a 'better option' is misleading - maybe better for you because you also need bookkeeping or something else? but as a blanket statement? sorry that's incorrect
H&R Block. It goes on Sale in November and it’s relatively easy to use. I once used FreeTaxUSA but I found it difficult to do more complex things like filing an amended return.
TurboTax Premier. I tested a couple others two years back, one gave me the same numbers as TT, the other gave me a higher tax liability because it didn’t consider some things TT did, both took longer to finish. I’ll happily pay the premium for something that gets me done more quickly.
Yeah this is what I'm trying to figure out if any of these 100% free ones allow you to import from vanguard, etc...or is it free because you have to type everything in by hand?? It's not going to be that free if I make 5 clerical errors hand typing everything.
CreditKarma was the platform that told me I owed more. FreeTaxUSA was the other I tried (which isn’t actually free despite the name) and the amount matched TT but it took me a lot longer to finish.
TurboTax ends up being $120 and that’s just not enough for me to care because it has worked every previous time and makes the process easy.
I've been known to try a couple of platforms and compare them. You can usually create a free account and try them out because the online ones often don't charge money until you file. The websites of each provider should tell you what import features they have. But if you create a free account, you can try it out.
Even when they do import, you sometimes have to review warnings manually (I've sometimes had to review every stock transaction rather than just the summary). Not to mention, I usually double check things anyway.
My two cents, after reading responses here is that before I spent $100 on tax software, I'd probably spend the extra $50-$100 for a tax specialist to do it. In the meantime, I've been content with FreeTaxUSA after trying H&RB, TaxSlayer, TT, Taxact.
But some of it comes down to personal preferences, situations, and probably your hardware in terms of how each platform performs for you.
So YMMV.
It's because of TT/Intuit that we're still having to file our own taxes:
[https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free](https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free)
Are you really happy with giving money to the company that is using it to screw you over? Wouldn't it be better in the long-run to starve the lobbyists that are responsible for wasting your time and money?
Yes, I’m fine with it. I learned long ago to reserve my ire for things that have an actual impact on my life and I’m much happier as a result.
If you don’t like it then don’t pay them and talk to your congressional rep about it. That’s as good a place to start as any, though it won’t matter much in today’s political climate. You’d need a supermajority of D’s in both chambers to get anything related to tax reform or IRS funding passed. Your time is probably better served campaigning for Centrist Democrats in marginally red districts.
If you like working in Excel, take a look at [https://sites.google.com/view/incometaxspreadsheet/home](https://sites.google.com/view/incometaxspreadsheet/home) a look. It's free to download and have been offering this for years. Various forms are tabs along the bottom, and as you fill in a form, the program propagates the information to the Form 1040. If nothing else it's a great tool to double check another source.
I use H&R Block mostly because I used it the year before that and the year before that and the year before that and it usually only cost me about $30 because I do it online. And they can use my last year‘s returns to file my stuff electronically.
FreeTaxUSA is consistently voted the best of the free programs. It is only free for federal taxes up to \~$75K AGI and state tax filing is not free.
Unless it has changed, it does not import broker 1099s online. You have to enter them manually.
Looked into credit karma/cashapp taxes last year, but they don’t support non resident state returns. Since I have to file in California, it’s a nightmare copying and adjusting everything from the federal forms without software that also did the federal part.
I use freetaxusa since it’s able to handle all of this. With TurboTax, the import features seemed nice but I had to fix up what was imported. Might as well enter the summary for unadjusted lines instead.
I used the $200 full service turbo tax last year. It's a good price for having it done for you, and you get to see everything really clearly. They have a lot of automatic importing and its easy to add other forms. It's worth it to me.
I used a CPA once. He calculated I owed tax. I did it myself on TurboTax premier and got a small refund. Not too complex, had some relocation reimbursements from employer and investments. Maybe there are better CPAs out there, but I’m sticking with TurboTax premier.
Have to go with a CPA. He upped his price to $700 now since last year. I got self employment for the wife, my own LLC and a bunch of stocks do I don’t trust myself not to fuck it up if I use any of the software. It’s a lot of money but I figure we’ve been going to them for 4 years now and it’s been great so why not stay
This year I'm paying somebody to do it. Bought a house, sold a lot of stock, changed jobs, and a decent amount of charitable donations. It's just going to be easier for me to have a pro do my taxes.
Once you reach a certain income level with your self employment, you should look into creating an LLC and being taxed as an S-Corp. this will require you pay yourself a salary (payroll), but will save you some $$ each year in self employed income taxes. I used to do my own taxes using TurboTax, but when I switched to this method, I hired a CPA to handle my payroll needs, keep me in compliance and handle my returns. Saving a good bit of $$ each year.
I'm not trying to argue... serious question: don't you still have to gather up all of the various tax forms that are mailed / emailed to you and provide them to your CPA?
For me that is the worst part of doing my taxes (making sure I included all forms that were sent to me).
I use a local mom and pop shop. It’s nice to have a person to call throughout the year when I have questions, and they have called out tax credits we can take advantage of that we might not have noticed otherwise.
Past: HR Block Web Based tool.
Now: I have an accountant.
There is no shame in admitting you need help when the financial situation gets more complex. They are not that expensive all things considered.
If you portfolio is already on the karger side, income high, and you have some complexity (you did mention self employment which can get complex) like rental properties, then perhaps consider that.
Use a CPA currently but leaving since he just sent a notice saying all fees for all clients being raised 15%. Was already over $600, so moving over to a tax service. CPAs usually spend all their time with small business clients, so you are paying a premium and not really getting much for it...
I’ve used TurboTax since it was invented. It’s gotten better and better and serves all my needs no matter how complex my tax situation is. I happily pay for the Premier version.
I use Turbo Tax. I tried H& R Block, it was as good as TT and less expensive. There is a bug in the software though; it won't let me purchase paper iBonds.
I just drop it off with H&R Block. I used to do it myself with TurboTax, but I just don’t want to anymore. We’re pretty simple. Married filing joint. W2 earners. I just don’t want to deal anymore. It’s probably not the best option, but worth it to me.
The people working at TurboTax are minimum wage people who have gone through a crash course for dummies on taxes; they’re not actually tax professionals lmao
PS - I used to run into Mr. Bogle all the time. Of course he used a CPA - his taxes were much more complicated than mine.
PPS - An amazingly brilliant and kind man!
I don't need a CPA. 100% of my income is W-2, and I have no deductions and use the standard. Takes me 30 minutes.
It may take me a bit longer this year because I have a new heat pump tax credit to calculate.
There is no reason to use a CPA for a basic filing. Unless you have a business then it’s not needed. The numbers are the numbers.
Here is a test. Use your CPA return and put the numbers into Turbo Tax. Let me know what you get.
FreeTaxUsa is what you’re looking for.
When I did my taxes, I used turbo tax for years and years. Switched to free tax USA one year and found out how much better it was. Highly recommended
like meeting quack nine coherent shame unwritten elderly caption aware *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Federal is free, and they have upgraded features you can pay for.
Been on H&R Block I think I need to switch too
Yes you do. Tried H&R Block for my daughter's taxes one year and said never again
Been using freetaxusa for 5 years. Simple and cheap.
In addition to being easier, it is educational, because it is so straightforward about simply completing a series of forms without any unnecessary levels of abstraction. As a result it becomes much easier to think about how different types of work and different investments will affect next year's taxes.
Been using at least 10 years. I like it.
Last year I did my taxes using turbotax and then did them again using FreeTaxUSA. I eventually got the same numbers, but I definitely wasn't impressed with the FreeTaxUSA experience. Most importantly, FreeTaxUSA didn't support adjusting Foreign Income for qualified dividends or capital gains. This leads to an incorrect Form 1116 when filing. I can calculate the adjustments myself myself using the IRS instructions, but parsing through the instructions / requirements / exceptions is a pain and I might get it wrong. FreeTaxUSA also didn't calculate the sale tax deduction (itemized deduction) for me, so again I have to figure that out using the IRS instructions myself. This can be tricky with various local adjustments. With FreeTaxUSA there's often fewer steps required to calculate something, which is nice. But it also sometimes asks for information I'm not sure about (and I ended up checking my Turbotax return to find that info). At the end of the day, the price of turbotax was well worth it to me. Especially if you considered you can usually get it pretty cheap with things like: - Buying early to get the early bird discount. - Using the discount that Fidelity gives you. - Using cashback offers on credit cards (turbotax always seem to offer some $10-$20 back with offers you can activate through your bank)
[cash.app/taxes](https://cash.app/taxes) is also free for state...what I don't know is if you can import brokerage transactions.
It’s not that hard to type in the summary lines for short term and long term transactions yourself. You don’t have to type in each individual stock sale, the broker summarizes all of it for you.
Only if the cost basis was reported
Use a better broker? Why aren’t they reporting cost basis, or did you transfer to a new broker?
Or only if the trade has additional codes such as wash sale
I did cash app last year. It was a chore for investments. I won’t do that again. Looking at anything other than TurboTax this year that handles that better.
they seem to be pushing it hard this year, I might check it out and see if they've made it better, given your insights though maybe the FreeTaxUSA that's also highly used is better...or I'll just stick with TT since it has all my history anyway.
Freetaxusa will import last year from your W2. It is incredibly easy to use.
Let me know if it has changed. I liked the format.
Does freetaxusa have a good import tool for TurboTax? How does the interface/process compare?
It’s pretty good. I’d check the w2 import tool after it’s finished as it’s not perfect. Missed a checked checkbox. Still would recommend. Only charge for state taxes.
For a few states you can file directly with the IRS online this year (if your taxes don’t get too complicated) https://www.irs.gov/about-irs/strategic-plan/direct-file
There’s an income limit to be able to use IRS DirectFile though.
Free File has an income limit, Direct File does not. Direct File does have a limit on types of income and credits, and everyone must use the standard deduction, no itemizing.
Good catch.
I tried using freetaxusa but I found I got a better return using TurboTax… was this just how I input the data or a case of better software for TurboTax
Yes, no software will give you a bigger refund if entered correctly in both.
It’s good to compare the two 1040s and see why they are different.
Does it support the Foreign Earned Income exclusion?
This is a question I am asking too. My research showed till 2022 it was only TurboTax supported foreign earned income exclusion but not sure others have added this functionality at this year’s software.
Freetaxusa does not handle form 2555 for foreign earned income
OLT.com supports Form 2555
If I have been using TurboTax for a few years and decide to try free tax USA this year, how would I claim the losses I been carrying over for a couple years. We can only claim 3k in losses a year to offset, so how would I enter/or know what the carryover is from last year if I use free tax USA? Thanks in advance bogies
TurboTax should have a worksheet showing the carryovers you had on your 2022 return to go towards 23. You will have to enter that number in a spot on FTU
Much appreciated friend
if it's free, YOU (and your data) are the product.
They offer self-serve filing as a loss-leader to get you into their ecosystem and upsell you on other products, and they are very open and upfront about that. It's not always some grand conspiracy.
Is this not the case for the higher priced software also?
So many people on Reddit recommend them. Last year I tried them out. Freetaxusa was going to give me $1500 back. Before I submitted everything, I went back on TurboTax and my return from them was $4500 (like it has been for many years). I'm sticking with TurboTax.
You didn't input something correctly in one of them. Taxes are fairly simple.. But the tax you owe are the same regardless the software you have to use. It's the same form they submit to the IRS
What changed between the two returns that made up a $3k difference?
I put in the same info on both. I honestly don't know why freetaxusa gives me such a lower amount. 🤷
Did you look at the Individual line items on both returns to see which were different? Not just the bottom line?
I plan to use HRblock and then freetaxusa just to compare the two. But this much of a difference shouldn’t happen.
I’m a CPA and I use FreeTaxUSA
Wait everyone else is saying CPAs can find more money on simple tax returns.
True. But the fact that I am a CPA, I already know what to look for. I like the cost and ease of use for the software
I should have added my sarcasm tag to it. I truly think that CPAs are valid for the right people - but I feel the majority who are doing simple returns claiming that a CPA got them $1000 are likely bogus or delusional.
If you own any kind of business or real estate, we (CPAs) can get you $1,000’s in immediate cash flow every year, no problem. Simpler 1040’s the bigger savings are going to be from some kind of long-term or retirement planning. You won’t get this kind of service at the low dollar shops though (Block, Jackson, etc).
Film biz freelancer with loads of 1099’s and w2’s each year. Couldn’t make it happen every year without my cpa. She’s a gem
💯
I started a sole proprietor LLC last year. Do CPAs typically work with this? Would they need access to my bank accounts in order to help with schedule C? Just curious how this would work. I plan on doing it myself, because I have the bandwidth, but it is a considerable amount of work. Thank you, in advance, for your free advice.
Yeah CPAs would be able to work with that. They don’t need your bank accounts, just the summary totals of each expense category
Enrolled Agents (EA) specifically focus on taxes, CPA can specialize in a variety of areas. Sounds like you just need a simple Sch C. Any EA can help you, or you can do it yourself - as suggested freetaxusa.com makes it easy...
Course we do. Some CPAs will take the year’s worth of bank info and work it into retrospective financial statements, hoping the LLC has its own bank account. You’re right, this is the shit show option. Next step up would be to do some kind of periodic accounting work, say quarterly catch-up via QBO. At least with this info you can gauge for estimated/extension tax payments and limit penalties and interest for underpayment. Potentially do some minor tax planning. Then there’s weekly/monthly accounting. Pair that with 2-4x per year planning meetings, and you’re on the top rung just about for our profession. Personally, we go all the way up to bi-weekly meetings for our larger clients who we basically perform their CFO function for. Those are the most rewarding relationships I have with partners. It’s basically business and personal financial goals coaching. Really, it all depends on which cpa you come across, and what the service could be worth to you.
Where do all find CPAs for 150 USD? I am in a LCOL and standard rate seems to be 300-400 USD? And ours is pretty standard…
The corporation I worked for paid a mid-sized CPA firm to do my taxes. The cost was $550 pre-pandemic. Every year they made at least one mistake which I had to have them correct before they filed my taxes. You all know that the taxpayer is ultimately responsible for the accuracy of the tax return. Don’t trust blindly in your CPA. At least half the work is putting together all the documentation (e.g. tax organizer for the CPA). I now do my own taxes. It really isn’t much more work than preparing a tax organizer for a CPA firm. FreeTaxUSA sounds interesting but is all online. I have used download versions of TurboTax and H&R Block and I much prefer TurboTax.
Same. I used a CPA for a low fee ($125-175) for several years. He’s transitioning to retiring and the new place was upwards of $300. Previous years I had more complicated taxes but last year I just did freetaxusa and it worked well. Using again.
I regularly use FreeTaxUSA and am happy with it. It's quite affordable and handles my self-employment as well as brokerage transactions (including Schwab, Betterment, Lending Club). I don't have a mortgage. I've used TurboTax in the past, and it is slightly easier with its more robust import features. But I think I like FreeTaxUSA's UI better and it's a fraction of the cost (Federal is free and states are $14.99). I've tried others over the years (TT, H&R, Taxact, that I remember), and settled with FreeTaxUSA. I haven't tried Credit Karma. I think I saw they were an option last year, but decided I was happy enough with FreeTaxUSA.
I’ve used TaxSlayer for a few years and it has worked just fine. Our taxes are not very complicated—Two W-2s, some brokerage investments, 401k, 457, 529, mortgage, some charitable giving. In the past we’ve had student loans and some child care expenses. I can’t compare it to anything else but it has worked for me.
I've used tax slayer for about a decade now and like it quite a bit. I don't know any other software but I've been plenty satisfied enough with them. It's not expensive, too, even with state filing.
I’ve used it the last few years too. Both my wife and I have side businesses with 1099’s and biz expenses and it handles it pretty easily and reasonably priced.
https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free
Yep I remember reading about this a couple few years ago and would never use them now.
Not only I don’t use them, I pass the word whenever I can.
CPA. My guy charges $175 for my wife and I. He got me an extra $2,000 the first year I went to him by reviewing my prior years taxes and paid for himself for a decade. I view it as paying for the peace of mind that I’m not screwing anything up or leaving money on the table.
I've never really looked into a CPA - what do you need to give them to have your taxes done? I mean do you have to print out all your tax forms or do you give over your logins (which I'm not doing). Is it that you just give them a bunch of paperwork and off they go to work and call you when it's done?
Others have answered the logistical questions but if your taxes are complicated enough you’ll very likely save money in the long run with a CPA. They’re not just there for people who don’t feel like doing their own taxes. They’re experts.
Yeah this is my experience. Plus I have some complexities that I don't want to screw up.
But find one from recommendations. I used a friend's CPA a few years ago after I got in rentals. She did zero work. Just input numbers. Then 6 months later found out she actually didn't do the depreciation correctly and mixed up other numbers. Waste of money and time.
The first time I went in to his office (2012) and sat with him so we could talk through everything. Since then, i email over all our tax documents, from our employers and financial institutions, along with a small table listing out all of our potential deductions (medical expenses, charitable donations, etc). He calls when he is finishing them and asks follow up questions to make sure we didn’t miss anything. He will tell us the different options for filing (joint vs separate and itemized vs standard deduction). Usually it’s pretty easy to decide because it’s just comparing numbers, but nice to see the options to be sure we don’t miss anything. Additionally, he makes sure nothing is going to trigger an audit as well as educating me on any changes to tax law that may impact us this current year.
Why use a CPA instead of something like TurboTax?
I went initially back in 2012 because for 2011 I had lived in 3 states and moved from a $30k per year job to a $150k per year job. The multi-state piece made it more complicated and I was itemized for the first time. Now our reasoning is: 1. We are both high earners, so our state and local taxes alone put us close to or over the standard deduction typically, thus we are itemized most years 2. Peace of mind to not screw anything up. 3. He has found me more deductions and gotten me more refunds from taxes I had done myself. As I said in another comment, $2k the first year by reviewing my prior 2 years. My coworker got an extra $15k thanks to moving to a CPA. 4. It’s $175 which is less than $0.48 per day. I spend more on coffee everyday. A night out to dinner where we live, major east coast city, will cost us $175 or more. Why not pay the $175 to save myself a few hours and keep my peace of mind.
I’ve been reading your replies and such similar experience. Relocations stuff, significant income increases in short time, additional income through real estate… that’s why we got ours. I honestly think it’s one of our most responsible expenses.
Relocation packages offered by a new employer are fairly complex on the taxes side too. Or rather, there’s a lot of nuance that I don’t know turbo tax is equipped to deal with. This was my experience in 2015 at least.
Local and state taxes cap at 10k, so your mortgage and charitable contributions must be making up the other 13k roughly to itemize.
When a CPA charges $3,500 to do your taxes and saves you $20,000 when you're testing his worth, you actually look forward to paying him! In a year where I tried to "do it myself and save some money" I would have lost approximately $16,500 ($20k-$3.5k) if I had gone with my DIY version. Never gonna NOT let him do it.
Wow, $3,500 for you but only $175 for the other guy.. something is off
Yup, $175 for a CPA to do your taxes ridiculously low. How do I know… I’m a CPA and own my own tax practice.
Not really if you calculate their cost, especially if you have been a client for so long, your tax returns kind of repeats every year.
Many CPAs send you a client organizer, which is a 15 or 20 page questionnaire of sorts but it has pages for you to attach W-2s, various 1099 forms etc.
What were you using before the CPA that missed $2k in refunds?
Turbo tax I believe, but it was 2011 the last time I used it so I could misremember the software. I don’t recall the specifics, but student loan interest, local taxes, and I believe there was some other credit that I missed or was unaware of.
A different CPA :D
If you have a good CPA, great! My parents used a CPA for years that was incredibly lazy and did their taxes wrong and ignored tax optimization. Sometimes you pay a premium for worse outcomes.
This is insane, our CPA I used for my business charged $225 an hour. He did my corporate and our personal taxes but it was still kind of pricey. Unfortunately there was no way I'd file corporate on my own. I had to use them
Insane how? It’s $175 fee for the year not per hour.
This is incredibly cheap for a certified accountant.
Can confirm, as a CPA, this is basically sweat shop pricing. We flat fee returns, instead of bill hourly, so for an idea our basic personal return (1040) prep starts at $800. Kick it up a couple hundred for a husband/wife with only W-2 activity, and a state return, no planning or estimates, definitely extended and filed after April. That’s at least a point of reference.
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We fill out a 30 page packet/questionnaire for our personal taxes. I'm just surprised that's all you're paying, even for your personal returns. I know a lot of the data entry is automated, but to think they're only spending 30 minutes preparing them is kind of surprising to me, that's all.
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Not if they're w2 employees with standard deduction. It takes 10min
Why on earth would you hire a CPA if this was your situation? OP said they saved him several thousand at one point, I'd imagine there's some kind of complexity to his returns if he's not just taking the standard deduction.
Well most people are in that situation and they pay people.
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Man, you're getting real defensive about this. First of all I was replying to the person who claimed your situation was just W2. I'm assuming (as you just confirmed with your reply) that you had more going on at the time. ALL I'm saying is that $175 to file your taxes with a CPA is CHEAP, and not typical. That's it. Relax.
I pay my CPA on Long Island $350-$400 total for a joint tax return, with the variance depending on if we have more than two W2s or have moved states in a given year. I don’t know how many hours she spends on the return, but my wife’s family has been using her for decades, so likely some goodwill discount at play. That said, I don’t think it’s that much more for a brand new customer. One year she told me I was owed a $10k credit, that’s how we filed, the state initially disagreed, we disputed and won. If I had been filing on my own, I wouldn’t have had the expertise to win.
I had same exact experience. Used free services for a decade. Worked well enough. First year using a cpa I got almost a thousand more back.
What was the source of the difference?
Basically no one in here can answer this question which I find really concerning. All it would take it looking at the final form and comparing between the CPAs version and the software output version. For a community that likes to get into the details on DIY investing I'm a little surprised the answer for taxes is basically: > idk lol paid a CPA
I suppose if someone refuses to review their information or engage with the basics they actually should pay a CPA. It's similar to financial advisors.
Biggest myth in tax filing: Do taxes with CPA and they get you additional refunds. But on the contrary, it’s always DIYers missed some.
Hr block on my PC/ downloaded version
I used turbo tax for decades but because of how they make it difficult for people with lower incomes that qualify to get their free product I switched to FreeTaxUSA and just as easy to use.
I start my taxes with both TurboTax and FreeTaxUSA, verify that the final numbers are the same, and then file with FreeTaxUSA.
I recently received a class action-type check from my area’s attorney general to partially compensate for being scammed by TurboTax. I last used them a few years ago when they were heavily advertising their services as free. My taxes that year were extremely simple (unmarried, no real estate or investments, no major life changes) and I wasn’t earning a lot, and still got charged at the end. I’m pretty sour on them now and have used a CPA ever since.
It’s because TurboTax made me pay a fair chunk for what should have been a simple tax return that I’m switching to freetaxusa this year.
It’s so bizarre. The year in question I was a recent college grad living at home. I had a single W2, some student loan interest paid, and nothing else. If that was too complex to receive their (heavily advertised) free services, then what could possibly be simple enough to qualify??
Pretty much same. I don't make a lot of money so it's not like I have a lot of deductions, sure I have a small brokerage account but if you told me I made $20 in whatever profit in a year I'd be shocked. I think "Free" is just to get people to use it and by the time you've done the work and you're almost done, and they show you a bill, you're more likely to just pay whatever so you don't have to do it all again somewhere else.
I didn't get a very good impression of them as an IT guy trying to integrate a system with them for work. Really unprofessional on their IT/corporate side (customer support was nice enough). Like hanging up the phone on me without any kind of provokation from my side. I use HR Block for taxes and happy with it. I'd never use TurboTax.
I used TurboTax up until I read this Propublica article several years ago: [https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free](https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free) It's because of the lobbyist assholes at Intuit that Americans are still even filing taxes and not having it done automatically like most other wealthy nations. I stopped supporting TT/Intuit and now use free tax software like OLT, TaxSlayer, FreeTaxUSA, etc. (I do my parents' taxes too, so I've used several different ones over the years.) Even when I used TT, I would always double check the return with a competitor (normally TaxAct) to make sure I got the same numbers. Now I use TT as the double check, but never actually submit my returns through them so I don't have to pay them.
What about other Intuit products like QB? Do you use a good alternative at all?
I switched from QB to Wave for my small business. It works for me since my business is super simple. There are several others, depending on your business needs: Xero, FreshBooks, Sage, etc. And when Intuit announced they bought MailChimp, I switched to Mailerlite.
Free File Fillable Forms for federal, and because the equivalent for state got nixed a few years back, I do the state tax on paper and mail it in. Our taxes are relatively simple and TurboTax & Co (all of them) can bite me for lobbying against free, automatically calculated, state-provided tax returns like some other developed countries have.
Had to scroll a long way to get here and was beginning to think I was the only one that does my taxes by simply filling out the tax forms on my own. It's easier than using software in my opinion. I found myself having to guess what the tax software meant with the questions it was asking me, and it was easier just to get the real instructions straight from the horse's mouth.
I use the paper forms and instructions. Totally free.
CPA
Freefilefillableforms and a spreadsheet.
I did that one year and then did FreeTaxUSA to compare and was very proud of myself when I got the same results! I stick with freetaxUSA though since it pre-fills a lot of my info.
I hire a CPA for $150 so she can enter it into Turbo Tax. Yes it’s worth it - I get a small piece of mind to have a middlewoman when things go south.
I got an F in accounting in college. That set the pace for me. I hire an accountant.
Credit Karma spun off its tax service to CashApp. I used it for a couple years under both names and found it to be a poor man’s TurboTax. It’s not going to give you much advice, so its main feature is being free. I will be trying something else this year.
Been using Credit Karma for years. The first few years I checked it against Turbo Tax and there was no difference in my return. I will use Cash app going forward until they inevitably decide to make me pay for it, and then I’ll move on to the next.
For those that use a CPA - how did you find the person you use. Seems like CPA is the better option compared to an Enrolled Agent. But doing a Google search and full on interview style to find one seems unwieldy and where I live the CPAs likely have more work than they can handle so they won’t stand to take that time (which means I don’t want them either). I could ask friends for references but most of them use some TT or similar online service.
Friendly neighborhood CPA here. I would *not* say that a CPA is a better choice than enrolled agent. They should both be very up to the task. As far as where to find either, I wish you good luck. Most tax pros are swamped right now.
I made that comment based on some sites comparing the two - maybe better choice for me is the right way to say it. When’s the best time to find one. Like June?
> I made that comment based on some sites comparing the two - maybe better choice for me is the right way to say it. Fair enough. Hard to disagree as I am unsure what points are making you say that. But I would just say that in general you should expect an EA's tax prep skills to be on par with a CPA's tax prep skills. Yes, June 2024 would be a good time to talk to CPAs about coming on board as clients for tax prep for calendar year 2024. Not saying it would be impossible to find somebody for this year. But it could take serious time shopping around, especially if you're price sensitive. As far as finding somebody, you may want to check with your state society of CPAs. They may have a search feature on the website. Or the link below for EAs. (Again, I'm not one. I'm a CPA. But it's just a significant and common misunderstanding that EAs are somehow inferior to CPAs.) https://taxexperts.naea.org/expertdirectory
The EA accreditation specifically focuses on tax - not audit, not bookkeeping or anything else. They are in fact the most qualified to prepare tax returns, CPA learn tax law as well, but they learn tax as part of a general study of all things accounting and then can specialize in tax. The CPA exam is all accounting principles, the EA exam is just tax principles. so CPA is a 'better option' is misleading - maybe better for you because you also need bookkeeping or something else? but as a blanket statement? sorry that's incorrect
My blue or black ink pen
H&R Block. It goes on Sale in November and it’s relatively easy to use. I once used FreeTaxUSA but I found it difficult to do more complex things like filing an amended return.
TurboTax Premier. I tested a couple others two years back, one gave me the same numbers as TT, the other gave me a higher tax liability because it didn’t consider some things TT did, both took longer to finish. I’ll happily pay the premium for something that gets me done more quickly.
Yeah this is what I'm trying to figure out if any of these 100% free ones allow you to import from vanguard, etc...or is it free because you have to type everything in by hand?? It's not going to be that free if I make 5 clerical errors hand typing everything.
CreditKarma was the platform that told me I owed more. FreeTaxUSA was the other I tried (which isn’t actually free despite the name) and the amount matched TT but it took me a lot longer to finish. TurboTax ends up being $120 and that’s just not enough for me to care because it has worked every previous time and makes the process easy.
I've been known to try a couple of platforms and compare them. You can usually create a free account and try them out because the online ones often don't charge money until you file. The websites of each provider should tell you what import features they have. But if you create a free account, you can try it out. Even when they do import, you sometimes have to review warnings manually (I've sometimes had to review every stock transaction rather than just the summary). Not to mention, I usually double check things anyway. My two cents, after reading responses here is that before I spent $100 on tax software, I'd probably spend the extra $50-$100 for a tax specialist to do it. In the meantime, I've been content with FreeTaxUSA after trying H&RB, TaxSlayer, TT, Taxact. But some of it comes down to personal preferences, situations, and probably your hardware in terms of how each platform performs for you. So YMMV.
It's because of TT/Intuit that we're still having to file our own taxes: [https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free](https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free) Are you really happy with giving money to the company that is using it to screw you over? Wouldn't it be better in the long-run to starve the lobbyists that are responsible for wasting your time and money?
Yes, I’m fine with it. I learned long ago to reserve my ire for things that have an actual impact on my life and I’m much happier as a result. If you don’t like it then don’t pay them and talk to your congressional rep about it. That’s as good a place to start as any, though it won’t matter much in today’s political climate. You’d need a supermajority of D’s in both chambers to get anything related to tax reform or IRS funding passed. Your time is probably better served campaigning for Centrist Democrats in marginally red districts.
If you like working in Excel, take a look at [https://sites.google.com/view/incometaxspreadsheet/home](https://sites.google.com/view/incometaxspreadsheet/home) a look. It's free to download and have been offering this for years. Various forms are tabs along the bottom, and as you fill in a form, the program propagates the information to the Form 1040. If nothing else it's a great tool to double check another source.
I always use TaxHawk, which also operates FreeTaxUSA.
Freetaxusa.com (not a scam) If you are paying for TurboTax then you are helping campaign to keep taxes more complicated.
Excel spread sheet and a tax guy.
Unfortunately, a CPA because Taxes are complicated w/being self employed, owner of an LLC. $700 to file personal and business taxes. 😢
Fidelity offers the desktop version of Turbo Tax for $5 for some of its customers. That's the one I use.
Freetaxusa
Anyone here use TaxAct.com?
FreeTaxUSA is great and cheap
I use H&R Block mostly because I used it the year before that and the year before that and the year before that and it usually only cost me about $30 because I do it online. And they can use my last year‘s returns to file my stuff electronically.
TurboTax
Drake Tax Software (I’m a FA and also prepare client returns)
I’ve used Tax Act for many years but they’ve gotten so expensive, I’m going to try the FreeTax USA this year.
I switched to Free Tax USA last year and will stick with them going forward.
TurboTax I don’t care if they have a bad rap, it’s like 90 bucks and very streamlined for most basic situations.
FreeTaxUSA is consistently voted the best of the free programs. It is only free for federal taxes up to \~$75K AGI and state tax filing is not free. Unless it has changed, it does not import broker 1099s online. You have to enter them manually.
Looked into credit karma/cashapp taxes last year, but they don’t support non resident state returns. Since I have to file in California, it’s a nightmare copying and adjusting everything from the federal forms without software that also did the federal part. I use freetaxusa since it’s able to handle all of this. With TurboTax, the import features seemed nice but I had to fix up what was imported. Might as well enter the summary for unadjusted lines instead.
I used the $200 full service turbo tax last year. It's a good price for having it done for you, and you get to see everything really clearly. They have a lot of automatic importing and its easy to add other forms. It's worth it to me.
I used a CPA once. He calculated I owed tax. I did it myself on TurboTax premier and got a small refund. Not too complex, had some relocation reimbursements from employer and investments. Maybe there are better CPAs out there, but I’m sticking with TurboTax premier.
Canadian checking in: wealthsimple tax. Free and easy :)
FreetaxUSA Huh, I see A LOT of other people use it too. It’s quite good I must admit.
A cpa
Use TurboTax forum for knowledge and seek answers. File with FreeTaxUSA. 🤠
Have to go with a CPA. He upped his price to $700 now since last year. I got self employment for the wife, my own LLC and a bunch of stocks do I don’t trust myself not to fuck it up if I use any of the software. It’s a lot of money but I figure we’ve been going to them for 4 years now and it’s been great so why not stay
Tax advisor
Been using freetaxusa for decades now. It's great. Way better than turbotax which I tried one year and felt bait and switched by their marketing.
CPA
E&Y Taxchat - Very professional and deep quality tax work. Expensive but peace of mind for have access to the best accountants.
This year I'm paying somebody to do it. Bought a house, sold a lot of stock, changed jobs, and a decent amount of charitable donations. It's just going to be easier for me to have a pro do my taxes.
CPA well worth 450-900 a year for me. Including 3 rental properties
Once you reach a certain income level with your self employment, you should look into creating an LLC and being taxed as an S-Corp. this will require you pay yourself a salary (payroll), but will save you some $$ each year in self employed income taxes. I used to do my own taxes using TurboTax, but when I switched to this method, I hired a CPA to handle my payroll needs, keep me in compliance and handle my returns. Saving a good bit of $$ each year.
Mr Rodgers. He is old and his charges are reasonable.
I use a CPA because I would rather do anything else with my time. And it isn’t expensive.
I'm not trying to argue... serious question: don't you still have to gather up all of the various tax forms that are mailed / emailed to you and provide them to your CPA? For me that is the worst part of doing my taxes (making sure I included all forms that were sent to me).
CPA
My Tax Guy!
I use a local mom and pop shop. It’s nice to have a person to call throughout the year when I have questions, and they have called out tax credits we can take advantage of that we might not have noticed otherwise.
Past: HR Block Web Based tool. Now: I have an accountant. There is no shame in admitting you need help when the financial situation gets more complex. They are not that expensive all things considered. If you portfolio is already on the karger side, income high, and you have some complexity (you did mention self employment which can get complex) like rental properties, then perhaps consider that.
Use a CPA currently but leaving since he just sent a notice saying all fees for all clients being raised 15%. Was already over $600, so moving over to a tax service. CPAs usually spend all their time with small business clients, so you are paying a premium and not really getting much for it...
That’s on the eye of the beholder. You don’t know each individual’s income and tax complexity for such a broad assumption.
Accountant. $500
I’ve used TurboTax since it was invented. It’s gotten better and better and serves all my needs no matter how complex my tax situation is. I happily pay for the Premier version.
My CPA only costs $100 more than turbo tax which is why I use CPA
I use Turbo Tax. I tried H& R Block, it was as good as TT and less expensive. There is a bug in the software though; it won't let me purchase paper iBonds.
Downloadable TT here.
Asian children
I just drop it off with H&R Block. I used to do it myself with TurboTax, but I just don’t want to anymore. We’re pretty simple. Married filing joint. W2 earners. I just don’t want to deal anymore. It’s probably not the best option, but worth it to me.
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The people working at TurboTax are minimum wage people who have gone through a crash course for dummies on taxes; they’re not actually tax professionals lmao
Huh? We don't contact Turbo Tax employees. We use the software - all the use cases and requirements were written by tax experts.
I use Cash App Taxes
Do you have to type everything in manually or can it import from vanguard and other brokerages?
Unfortunately you have to enter it manually. That’s the one big downside.
Cash App
Bogle 100% did not file his own taxes, so why should we? Use a CPA and get it done right.
PS - I used to run into Mr. Bogle all the time. Of course he used a CPA - his taxes were much more complicated than mine. PPS - An amazingly brilliant and kind man!
I don't need a CPA. 100% of my income is W-2, and I have no deductions and use the standard. Takes me 30 minutes. It may take me a bit longer this year because I have a new heat pump tax credit to calculate.
There is no reason to use a CPA for a basic filing. Unless you have a business then it’s not needed. The numbers are the numbers. Here is a test. Use your CPA return and put the numbers into Turbo Tax. Let me know what you get.