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'Fess up: use of accounting /tax filing service


shootingstar

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..for filing your taxes, do you use a tax filing service with human being or accounting firm?  

I never have before, since it's been simple for me.  But later, might get more a wee more complex.   

Or you only used such services for certain years because of atypical financial situation?

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  • shootingstar changed the title to 'Fess up: use of accounting /tax filing service
7 minutes ago, shootingstar said:

..for filing your taxes, do you use a tax filing service with human being or accounting firm?  

I never have before, since it's been simple for me.  But later, might get more a wee more complex.   

Or you only used such services for certain years because of atypical financial situation?

I pay people to deal with with that stuff. 

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I have used TurboTax for decades.   I'm almost done with our 2023 taxes.

I also use Quicken to track my money.  I just run reports when needed.   I just printed our 2023 charitable donations report and the 2023 medical expense report.   Soon that info will be entered into TurboTax.

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18 minutes ago, shootingstar said:

Or you only used such services for certain years because of atypical financial situation?

Most of the time my taxes are simple. 

I just answer the questions TurboTax asks and enter any needed data.  And TurboTax fills out all of the IRS tas forms needed even for atypical stuff.

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I used to do them myself for years but switched to a local woman in a year when I had some more complications.  She's retired now, but I stuck with having someone else do them.  Currently with a small, local firm who just changed ownership.  I'll see what I think of them this year.

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1 minute ago, ChrisL said:

Pretty much this. The only difference is we are done! 😉

I received three 1099-R tax forms in the mail yesterday.  I downloaded a 1099-INT tax form yesterday too.   

I received an email from a brokerage firm telling me since I didn't have any transactions (letting things sit) and there was less than $10 to report they won't send out any 1099 forms for 2023.   In 2022 I just use TurboTax and download their 1099 forms into TurboTax.  That makes it soooo much easier than trying to figure out where 2 or 3 pages of numbers need to be entered and which tax form I need to use.

I just have to double check all of my typing and I'll be good to go.

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2 minutes ago, jsharr said:

Why would one need to "fess up" to using a great service?  Nothing wrong with using TurboTax in my book.  I have used it for years.  We have also used a family friend who does tax preparation for a living.

 

My wife had a side business doing taxes for her friends back in the day and my SIL (A Tax Accountant/CPA) does the same for his parents, many of his friends and my son & his GF.  

Absolutely no shame in paying others or using a program like turbo tax.  Do what works for you. 

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22 minutes ago, jsharr said:

Why would one need to "fess up" to using a great service?  Nothing wrong with using TurboTax in my book.  I have used it for years.  We have also used a family friend who does tax preparation for a living.

 

Me too, I've been using Turbotax for last few years.  My post was more to 'fess up if you did use an accounting service.  

I messed up last year with software since I was dealing with an atypical situation. So I thought 2nd corrected filing would be clear to tax authorities.  But it was not...  

Anyway, there are some other tax filing matters which will not be quite same as previous years.

26 minutes ago, Kirby said:

I used to do them myself for years but switched to a local woman in a year when I had some more complications.  She's retired now, but I stuck with having someone else do them.  Currently with a small, local firm who just changed ownership.  I'll see what I think of them this year.

I only want to go to paid service if I genuinely feel I can't file for what I thought I did financially a few months ago, was supposed to be more tax efficient. 

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Firm believer in the KISS system. No need to hire an accountant. I keep it simple and just don't pay taxes.:D

I really miss the piles of tax forms you would pick up what was needed at the library. Gained insight and was able to understand the convoluted math the IRS created and how it applied. Now it is all hidden inside a computer program interview. I've gotten use to H&R Block over TurboTax and when I tried to switch over, it didn't like importing the prior year data, so stay with H&R Block.

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14 minutes ago, Tizeye said:

Firm believer in the KISS system. No need to hire an accountant. I keep it simple and just don't pay taxes.:D

I really miss the piles of tax forms you would pick up what was needed at the library. Gained insight and was able to understand the convoluted math the IRS created and how it applied. Now it is all hidden inside a computer program interview. I've gotten use to H&R Block over TurboTax and when I tried to switch over, it didn't like importing the prior year data, so stay with H&R Block.

Very early in our marriage, my wife would do our taxes AND go to H&R Block as she didn’t trust her work.  I still remember going to the post office to get the forms.

But it got to the point where she didn’t trust their work so stopped going and submitted her forms. 

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9 minutes ago, ChrisL said:

 I still remember going to the post office to get the forms.

Yeah I remember doing that too.   I used to file our own taxes filling out the forms, etc...    I got to read more than a few IRS instructions and publications.  :(  Sometimes that was a PAIN, but I figured it out. 

Then the post office didn't have some of the forms I needed.  That's about the time I found TurboTax.   Problem solved.

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39 minutes ago, MoseySusan said:

We use an accountant to do our taxes. It’s not a crime, nor even a minor transgression, that would require a confession. 

I don't have a problem paying someone who knows all the tax laws that can get me the best tax breaks I can get. It's no different than paying someone to fix your car, bicycle or have a plumber install your toilet. 

 

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33 minutes ago, BR46 said:

I don't have a problem paying someone who knows all the tax laws that can get me the best tax breaks I can get. It's no different than paying someone to fix your car, bicycle or have a plumber install your toilet. 

 

1 hour ago, MoseySusan said:

We use an accountant to do our taxes. It’s not a crime, nor even a minor transgression, that would require a confession. 

I've done mine for decades, because I've had simple tax filing requirements.  But last yr. I probably could have used some help. I don't know about this yr.

I already paid someone to churn out numbers yr. by yr. from a tax impact perspective to help me decide certain (limited) options in future. It was totally worth it ..'cause I was a bit unpleasantly surprised.

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20 minutes ago, Kirby said:

I remember the good old days of the Form 1040EZ.  They even had a page in the directions to show you how to write numbers properly.

Apparently I now use form 1040-SR   This is from last years taxes that TurboTax filed.

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I used an accountant twice.  The first was when I needed to use a tax accountant to do the taxes for an estate I was the executor for.  I figured that as long as I was there she could do mine too.  The second was the year a motel that I had a minor share in went belly up.  The accountant went back over previous years and turned paper losses into real ones and refiled each year.  These are the sorts of situations that a tax professional is great at.  For our own joint return womaxx and I have an easy time with a 1040-SR.

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I’ve been using TurboTax for years for our personal taxes.  They make it easy.  We use a tax CPA for our business taxes.  Every year we file an extension so business taxes aren’t due until September.

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28 minutes ago, maddmaxx said:

I used an accountant twice.  The first was when I needed to use a tax accountant to do the taxes for an estate I was the executor for.  I figured that as long as I was there she could do mine too.  The second was the year a motel that I had a minor share in went belly up.  The accountant went back over previous years and turned paper losses into real ones and refiled each year.  These are the sorts of situations that a tax professional is great at.  For our own joint return womaxx and I have an easy time with a 1040-SR.

Excellent idea to get accountant, to do double duty.

For sure, on closing an estate as executor, it's safer to use an accountant for that just to ensure everything is filed accurately that it doesn't haunt later, and it would be different boxes/form areas for deceased.

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4 hours ago, bikeman564™ said:

No, I do them by hand and mail them in :)

I've used turbo tax, but they're too expensive

I know... I did share the Turbo Tax subscription cost, with dearie....for a long time.  You're probably more numerically inclined and would be quite accurate if life has been simple so far.

I'm not quite like that though I did file by paper before TurboTax/dearie.  I never used an accountant or HR Block.

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1 hour ago, shootingstar said:

For sure, on closing an estate as executor, it's safer to use an accountant for that just to ensure everything is filed accurately that it doesn't haunt later, and it would be different boxes/form areas for deceased.

I managed the money for my MIL for nearly 5 year when she had Alzheimer's.   WoBG was the health care person.

I also filed the MIL's taxes for those 5 years and for the last time after she passed and the house was sold.  I just read a lot more of the tax code than I wanted to know about.   

It's been many years now... and no IRS audit.  I still have all of the records saved 'just in case'.    

I just answered some more of the questions TurboTax asked me and filled in the data. 

After all the bills were paid, etc... there was a bit less than $2000 left in the estate.  Which was the estate limit allowed by Medicaid since they were paying the nursing home bills for the last year or two.  Medicaid got paid first, and that took all but the $2000 from the estate.

Yeah... I read LOTS of stuff about how to manager this at the time. 

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I have a special tax issue with my mother's estate and filing final taxes. While I normally complete my own taxes, I will use her CPA. It is funny as I completed most other Executor duties, I called the CPA last August, giving him enough time for extensions with his other clients and while I easily had the IRA Distributions and dividend interest payments, learned I had to wait until this tax year as the IRS hadn't even finalized the rules, nor had the tax software been developed. So made all other distributions and held back enough cash to pay taxes and of course, his fee. 

While I now have the IRA distribution 1099, I don't have it for the Trust yet - nor do I see it pending. The big issue is Schwab taking over TD Ameritrade. The Trust was with TD Ameritrade and I always got duplicate statements. The change from my mom as Trustee to myself as Trustee occurred with the transition to Schwab and my first official act as Trustee was to flatten the Trust with distribution to the accounts of the 4 beneficiaries of the Trust. So obviously no reportable trades, interest or dividends on the Schwab account side, and among all my accounts, no indication that a 1099 will be issues for the Schwab account. Not a surprise, but no way to access the old TD Ameritrade account as it rejects the former user name and password. GGGRRRRRRR! The remainer of my Schwab accounts are projected for 1099 release on Feb 16th so hopefully the TD Ameritrade account will as well. Looks like I need to swing by the Schwab office with both account numbers to see if falling between the cracks.

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36 minutes ago, Bikeguy said:

I managed the money for my MIL for nearly 5 year when she had Alzheimer's.   WoBG was the health care person.

I also filed the MIL's taxes for those 5 years and for the last time after she passed and the house was sold.  I just read a lot more of the tax code than I wanted to know about.   

It's been many years now... and no IRS audit.  I still have all of the records saved 'just in case'.    

I just answered some more of the questions TurboTax asked me and filled in the data. 

After all the bills were paid, etc... there was a bit less than $2000 left in the estate.  Which was the estate limit allowed by Medicaid since they were paying the nursing home bills for the last year or two.  Medicaid got paid first, and that took all but the $2000 from the estate.

Yeah... I read LOTS of stuff about how to manager this at the time. 

Without reading IRS' requirements for records retention, you probably don't have to keep all those year records unless it's very recent, she died. Maybe the final yr. as an example for yourself...though I don't why because there would have been changes in tax law and forms.  In Canada, the requirement is keeping for only 7 yrs, --personal and corporate.

So helpful when family member can do it well.  

Have 2 relatives in Toronto with formal accounting backgrounds.... 1 is wife of lst cousin's son.  She would have her CPA 'cause she worked for the same global accounting firm at same time as I did in Toronto..except she was just a recent grad and worked in a totally different business unit on different floor.   Another is son of a different cousin.

Then on top of this is a BIL, who was a former securities lawyer for the Ontario Securities Commission...this regulation of Canada's stock markets, financial instruments, etc.  I know for certain, he does file for his family + his 94 yr. mom.

However...... I would like some privacy from my own family, about my finances for now.  :party:   

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19 minutes ago, Tizeye said:

While I now have the IRA distribution 1099, I don't have it for the Trust yet - nor do I see it pending. The big issue is Schwab taking over TD Ameritrade. The Trust was with TD Ameritrade and I always got duplicate statements. The change from my mom as Trustee to myself as Trustee occurred with the transition to Schwab and my first official act as Trustee was to flatten the Trust with distribution to the accounts of the 4 beneficiaries of the Trust. So obviously no reportable trades, interest or dividends on the Schwab account side, and among all my accounts, no indication that a 1099 will be issues for the Schwab account. Not a surprise, but no way to access the old TD Ameritrade account as it rejects the former user name and password. GGGRRRRRRR! The remainer of my Schwab accounts are projected for 1099 release on Feb 16th so hopefully the TD Ameritrade account will as well. Looks like I need to swing by the Schwab office with both account numbers to see if falling between the cracks.

Yeah I lived thru that take over too.

In early 2023 one of my stocks, the company spilt into 2 companies.  This happened just before the take over by Schwab.  

So far, I have received no 1099 statement(s) from Schwab for the same reasons you mentioned.  I also got an email from Schwab telling me they won't be issuing me any forms.  I'm still  waiting to 2/16 for any 1099 forms that Schwab may issue.   I don't want to send in my tax filing now and have to amend them 3 weeks from now.   

I can't access my old TD Ameritrade account either.  BUT... I was able to download the 2023 TD Ameritrade 1099 info directly into TurboTax.  That still worked.  :facepalm:

 

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4 minutes ago, shootingstar said:

Without reading IRS' requirements for records retention, you probably don't have to keep all those year records unless it's very recent, she died. Maybe the final yr. as an example for yourself...though I don't why because there would have been changes in tax law and forms.  In Canada, the requirement is keeping for only 7 yrs, --personal and corporate.

I'm sure I'm WAY past the retention date for the IRS.   

I also kept the records just in case some distant relative to the MIL would happen to complain that they didn't get any inheritance. etc... 

Yeah... I probably should just shred all of that stuff sometime soon. 

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24 minutes ago, Bikeguy said:

I'm sure I'm WAY past the retention date for the IRS.   

I also kept the records just in case some distant relative to the MIL would happen to complain that they didn't get any inheritance. etc... 

Yeah... I probably should just shred all of that stuff sometime soon. 

If a lawyer signed off on the distributions/similar, then they shouldn't be contesting the will now. There is normally a strict time period to allow beneficiaries to file a claim, at least in each Canadian province 

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