I used Turbo Tax Premier as I wanted to use the 401k maximizer to get a better idea of how much more I can give to my 457(b) while still having the same net pay. I was able to go a whole 5% more as long as I increased my exceptions from 4 to 7. Filled out the W-4, made the change, signed it, went to payroll and then went to my 457(B) website to increase my contribution from 10% to 15%. What this means is that I can defnitely max out by the summer time…

This is good news for me, because I have to roll over a good chunk of my 457 into my pension so that I can buy back some time. Oh yeah this is happy, happy day!

I agree with that too. But TaxAct (like TurboTax) has 2 versions, online and download.

One thing worth mentioning, even if you have a tax preparer do your taxes, you should go ahead and use one of these software packages to double check it. It prohably would only take about a few hours, and it is a good way to check if your tax preparer made mistakes.

Sales taxes for my business – I buy a lot of things at retail (on sale) for resale out of state (online). That’s not subject to sales tax since it isn’t a B2C sale. However, you try explaining that to the Target cashier. Instead, I have to file with the state to get all that sales tax back (between $500-$1,000 annually). I submitted the forms myself for ’06-’07 and got a hassle, but I had my accountant submit them for ’08 and it wasn’t as bad. $100 accountant time = $500 – $1000 in my pocket.

Real Estate – One of my rentals is a builder leaseback. I’ll probably own it as income property for 2-3 years at which point I’ll either move into it or sell it. Because of that, I’d much rather take accelerated depreciation rather than standard depreciation to shelter as much of the income as possible (keeping today’s dollars in my pocket instead of tomorrow’s). I provided my accountant with the schedule of “upgrades” in the leaseback home, which he then figures depreciation against over 5-10 years rather than 28.5. $100 accountant time = $1,000s in deferred taxes.

The best no-hassle deal around: Express1040, which offers a free Federal return + free Efile + $12.95 for State. Total for both: $12.95.

http://www.express1040.com/

This year will be the real test, as I’ve been testing the waters with some small stock options purchases. We’ll see how the software handles it.

It will be interesting to see next year, when they will require all tax preparers to be certified.

For a little more complex, going to an H&R Block is fine – check on their website for EA’s and make an appointment for a particular person. Do NOT gamble and just walk in and take the next available preparer. You pay the same amount regardless of the experience/credentials, so find the best.

Anything complex with a corp, partnership, etc should probably be taken to a CPA that specializes in taxes.

Complicated Estate, Trusts, etc should be taken to a Tax Attorney.

Personally, I think it is absurd that we go to all the trouble to do this whole “free file” scenario; recommending various private companies. For most people, a web-based IRS form made by the IRS would be ideal. The only reason that they don’t do it is that it would put a lot of accountants out of business.

My answer to that is, “Tough.” Autoworkers have been replaced by robots. Typists have been replaced by computers. Accountants can be replaced. If the work you do could be done as well by a web site, you should find work that actually contributes to society.

Don

That is democracy and free market capitalism for you.

So now turbo tax gets to charge people whatever they want for state return.

If the IRS (federal government) and state wants my money in the first place. They should make the application and processing free. I know it costs money to facilitate those operations. But then the tax payers have to pay taxes and fees to submit their taxes? That is like stabbing someone then charging them for the bandage in the other hand. I know it states Federal is free but only for 1040ez. If the free 1040EZ submission is free because it is ‘simple’ and it takes more ‘whatever’ to process anything other than 1040ez electronically, then the IRS needs to simplify things. What annoys me also, is if you go to an accountant they will tell you THEY HAVE TO SUBMIT ELECTRONICALLY and there WILL BE A CHARGE. You’re paying taxes throughout the year, you pay someone to organize your papers (accountant – I’m ok with paying if needed), then pay taxes if owed, and finally pay to have those organized papers to be submitted. As John Stossel would say “Give Me A Break.

Should probably also mention Costco. They’ve got TT fed/state for $50 regularly and I believe they even have a $10 coupon right now.

That’d make it $40 and certainly worth it to me. Especially if Vanguard is going to charge me $50 for the same thing. (not even a deal if you ask me)

What really gets me is how returning buyers (this is like my 10th year) don’t get a break. I think that there should be some kind of reward for customer loyalty!!!!!!!!!!!!!