With Turbo tax already being an issue, have you decided to go about filing your taxes this year in a different way? What is your feelings on using online programs now that it is apparent there are issues that are far from resolved- would you prefer to go back to the old method of pen to paper or are you still okay with canned programs?
I don't mind TurboTax since they owned up to their error and are handing people money back. I think they still offer a good service for at home use where there's not much complication involved. If you can find an accountant that would do a joint filing for like a hundred bucks and isn't awful that might be an option. Donations are always kind of odd to deal with, especially in TurboTax. They have a sister company where you can put your goodwill receipts into and what you donated and it finds the lowest value, PERIOD for it and its kind of not great because of that. For example, I had a carpet we got at costco for $160 and used it for a year. Wife wants a new one, so we send this one to Goodwill during a massive clean out at the house. The value of the carpet itself being sold at Goodwill will end up being around $50 and from what the receiver said he thought they might try to price it higher. (Sometimes the people working the donation center will give you some information on the value of the item as far as the organization's eyes go) Anyway, you look online for the donation catalogs and in the catalog it says Area Rugs - $10 - $170 value. I think, great, I'll just put $50 in based on what the guy was telling me. I jumped onto that sister site and it only took the $10 value. Be cautious and use the donation catalog that goes with the tax year you're applying and be conservative or use the information you got from the person taking your stuff (if you got any, some are just kids lifting heavy things) and you'll be able to better value your donation. ...So yea, Turbo Tax is still cool.
I use a CPA. If there are any issues, I have my tax lawyer on speed dial. I never deal directly with the tax man myself. I just look it over when they're done and sign where I'm supposed to sign.
JR, you seem like you have it on the ball. How often do you need your tax lawyer? When did it start to become a thing that you had to worry about that? I'm curious because I'm projecting to raise my income by 7k this year and increase investing by another few thousand and don't know at which point I should be ready with some of these people to come to my aid.
Well, you might find yourself being audited on occasion even if you haven't done anything wrong. Usually this happens if you really have a big windfall in a particular year. I had a year when I inherited a few bucks, another year when I sold a small business, another couple years when a fair amount of oil suddenly came out of the ground, etc. I strongly dislike and distrust the IRS and the current political climate in general, even though I don't do anything illegal - and with good reason IMO.
I understand what you're saying. I don't have a lawyer, or a CPA, so I think maybe it might be time I start looking for them. I've always done things myself but I've never had a net worth that was in the positive until recently and I've never earned as much as I am now. Thanks for the advice, you're really helpful.
I utilize the services of a trusted tax accountant. We've had that particular firm prepare our taxes for fifteen or so years and haven't had a problem. Part of it is due to the insanely byzantine nature of the tax code, but also just not having the time to spare on tax prep. Maybe one of these days this country will move to some kind of flat tax, but I'm not holding my breath.
