How much to get your taxes done?

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Topic Author
veekay
Posts: 77
Joined: Mon Nov 25, 2013 10:39 pm

How much to get your taxes done?

Post by veekay »

Just wondering what a good price is on getting professional help with your taxes. I'm done with 2013 taxes but I think I'm just going to get help next year. Would it be wise to have a consultation with a professional right away so I can get tips on how to minimize my tax burden for 2014? Not sure if it's worth the consultation fees.

i expect to have in 2014:

W2 income
Stock options from work
Restricted stock from work
a house with a mortgage
1256 contracts
lending club income
Ibonds that I don't plan on redeeming in 2014
Brokerage account - Possibly switching over to Interactive Brokers where I'd be investing in foreign equities, derivatives trading and 1256 contracts. It could get pretty messy. If I do this, I'd be holding multiple currencies. I've been thinking of possibly using either Swiss Francs or Australian dollars as my base currency. Now, I just need to scrape together $110,000 for the portfolio margin account with IB. : )
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obgyn65
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Re: How much to get your taxes done?

Post by obgyn65 »

Last year I paid about $400. I do not have stock options, mortgages, second homes, or loans.
Last edited by obgyn65 on Sun Feb 02, 2014 8:15 am, edited 1 time in total.
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4nursebee
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Re: How much to get your taxes done?

Post by 4nursebee »

$200-500 per year from CPA at local firm.
It is your money so got to be responsible still.

I am amazed that anyone pays amateurs (HRB Liberty etc) to do taxes.
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J295
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Re: How much to get your taxes done?

Post by J295 »

$400 with local CPA. Worth every penny.
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pennstater2005
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Re: How much to get your taxes done?

Post by pennstater2005 »

Myself since I was 16, so free I guess.
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SpringMan
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Re: How much to get your taxes done?

Post by SpringMan »

Free thanks to Vanguard's free Turbotax Deluxe and efile. Though for the state tax I use snail mail because Turbotax does not provide efile for the state unless you pay relatively large fee. Add to that the cost of printer paper and ink, and my Canon inkjet loves its ink :happy and postage.
Best Wishes, SpringMan
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Cautious Optimist
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Re: How much to get your taxes done?

Post by Cautious Optimist »

Along this line how much could using a CPA be worth..?? I've done my own taxes for years yet always wonder if I'm missing something (i.e., a larger refund).

I take the standard deduction, have no mortgage to write off but spent over 5K this year in medical costs I would love to write off...
cherijoh
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Re: How much to get your taxes done?

Post by cherijoh »

Your situation sounds like you would benefit from professional assistance of a CPA familiar with the more exotic aspects of your situation. As other posters noted, don't just go to a store-front tax preparer.

I am a DIY using Turbo-tax after many years of doing my taxes manually. However, at one point in the past, I had converted my condo to a rental property and needed assistance with Schedule E. I knew that a co-worker owned several rental properties, so I asked him for a referral for tax preparation. I paid for assistance the first year and when I subsequently sold the rental property. The in-between years, I was able to model my schedule E on the first one that was professionally prepared.

I wouldn't be penny-wise and pound-foolish in seeking qualified assistance, but you might revisit whether you need someone to do your taxes every year going forward.
Traveler
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Re: How much to get your taxes done?

Post by Traveler »

$400 from a CPA. I think I will try them myself (turbotax, etc) next year.
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wilpat
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Re: How much to get your taxes done?

Post by wilpat »

I have done my own taxes every year except one (1988) since 1954. In 1988 we sold a company and my federal tax bill was $279,000 -- I needed help that year.
Contrary to the belief of many, profit is not a four letter word!
pointyhead
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Re: How much to get your taxes done?

Post by pointyhead »

Last year, went to a CPA for the first time. He quoted me $400-500 and I ended up paying $500. I went to a CPA because I just felt that "I had to be missing something." However, I wasn't, and he came up with the same numbers that I had arrived at with Turbo tax. Come to think of it, I may have even found more of a tax reduction due to sales tax exemption on a vehicle that I had bought. Anyway, after I paid him $500 dollars, I felt that I had thrown my money away. I don't feel that way any more. I now realize that $500 was the cost of knowing that with turbo tax and minimal effort I can accurately complete my taxes. Better to pay $500 once than $500 annually for the rest of my life. However, my taxes are not complicated-Married filing jointly, home owner, no kids, some part time income, military. I find it difficult to believe that people like me will pay someone to do their taxes.
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frugaltype
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Re: How much to get your taxes done?

Post by frugaltype »

Cautious Optimist wrote:Along this line how much could using a CPA be worth..?? I've done my own taxes for years yet always wonder if I'm missing something (i.e., a larger refund).

I take the standard deduction, have no mortgage to write off but spent over 5K this year in medical costs I would love to write off...
Take a look at Sched. A and estimate what your itemized deduction would be and then compare it to the standard deduction.

Be aware of this:

2. What amount of my medical expenses can I deduct beginning Jan. 1, 2013?

If you and your spouse are both under age 65, on your 2013 tax return that you will file in 2014, you can deduct on Schedule A, Itemized Deductions (Form 1040) only the amount of your unreimbursed allowable medical and dental expenses that is more than 10 percent of your adjusted gross income (AGI) from Form 1040, line 38.

If you or your spouse is 65 or over, you are temporarily exempt from the increase. The exemption applies to any tax year beginning after December 31, 2012, and ending before January 1, 2017, if you or your spouse attained age 65 during or before the tax year.

The instructions for Schedule A are a good thing to look at, if you don't already.

Note that medical expenses include eyeglasses, unreimbursed dental fees, mileage to doctors' appointments, and parking fees there.
Topic Author
veekay
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Joined: Mon Nov 25, 2013 10:39 pm

Re: How much to get your taxes done?

Post by veekay »

Thanks folks! I've been able to do my taxes this year, using only Google, Turbotax and Bogleheads. I might just wait till we get closer to the end of 2014 and evaluate the situation again. $500 for someone in my situation isn't that expensive but hey, that's 3 bottles of Johnnie Walker Blue!
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Dale_G
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Re: How much to get your taxes done?

Post by Dale_G »

veekay wrote: ... snip ...$500 for someone in my situation isn't that expensive but hey, that's 3 bottles of Johnnie Walker Blue!
One bottle should do. The taxes will get much easier as you get to the bottom of the bottle. No guarantee on the accuracy however :D

Save bottle #2 for when the letter from the IRS arrives.

BTW, I've done my own taxes for nearly 60 years.

Dale
Volatility is my friend
S&L1940
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Re: How much to get your taxes done?

Post by S&L1940 »

I did taxes myself for many years but then had some complicated returns because of business issues.
Semi-retired but every time I think things will once again become simple, they do not.
So, I have been paying about $300 for solid advice from a local CPA that I feel is well worth the investment.
Gonna hit 75 soon and will probably retire for the third and final time and will go back to my do it yourself format.
Don't it always seem to go * That you don't know what you've got * Till it's gone
chaz
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Re: How much to get your taxes done?

Post by chaz »

I use TurboTax.
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Cautious Optimist
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Re: How much to get your taxes done?

Post by Cautious Optimist »

frugaltype wrote:only the amount of your unreimbursed allowable medical and dental expenses that is more than 10 percent of your adjusted gross income (AGI) from Form 1040, line 38.
If this is all there is to it, it's a simple answer for me...Thank you for your reply frugaltype.
sambb
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Re: How much to get your taxes done?

Post by sambb »

$600 for me
mevertsen
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Re: How much to get your taxes done?

Post by mevertsen »

We are going to a local CPA this year due to the complication of things for 2013.

1. Got married
2. Bought a house
3. Gifted about $14,000
4. She had a child when we got married.
5. Lots of medical bills, which were paid for from the gifted amount.

I normally do my own taxes, and probably will in later years, but I want to make sure I have it right. My big concern was the gift of money from various people in the community to cover my medical costs. But it sounds like, according to the CPA, that I won't have to worry about that, however I want to cover my butt on this one. The cost will be $85.
clevername
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Re: How much to get your taxes done?

Post by clevername »

A lot of people pay us to have their taxes done when they could do it themselves without software, or by shelling out $50 for turbotax. For some it's because they want the peace of mind that comes with having a CPA sign their return, for others it's laziness or fear of missing something or messing it up. A lot of our clients are extremely busy and wealthy people though and their time is essentially worth $300+ per hour. If it takes them a few hours to do their own return it would cost upwards of $1000 anyway so they might as well pay someone to do it. Most people most of the time have relatively easy returns, but if you work 2500 hours a year on your business and have to file a corporate return, payroll, tangible, personal federal, plus state returns, then all of a sudden professional help starts sounding really good.

I don't hesitate to pay someone else to change my car oil even though I've been told it's relatively easy to do it myself. I'd probably screw it up, or break something, or scald myself with burning oil, or something. We laugh at people here for blowing $300 on a CPA but that's about what I pay every year on oil and basic car maintenance.
vveat
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Re: How much to get your taxes done?

Post by vveat »

I pay $575 to a CPA, have been with him for 4 years ever since IRS collected interest on a DIY error.
Taxes take me 1.5 hours a year with him. Last year I decided to check his results against TurboTax, spent at least 1 hour more and estimated refund was less - the main reason being I probably did something wrong with the Roth conversions.
Time and piece of mind are worth more, I'll stay with him.
Ignis
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Re: How much to get your taxes done?

Post by Ignis »

I pay $150+/- each year to a local CPA. I have been working with her since she first went into business for herself, so I think that is why it's fairly cheap for me still. For what it currently costs, I think it is easier to send the paperwork to her and have her do it. My taxes are fairly straight forward:

W-2, Foreign Earned Income Exclusion, a couple of 1099's and 1098's. Standard Exemption. No kids/spouse/property.
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frugaltype
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Re: How much to get your taxes done?

Post by frugaltype »

clevername wrote:A lot of our clients are extremely busy and wealthy people though and their time is essentially worth $300+ per hour. If it takes them a few hours to do their own return it would cost upwards of $1000 anyway so they might as well pay someone to do it.
On the other hand, before I retired, although my time was worth $X at work, no one was paying me anything for my spare time. Now, being retired, no one is paying me anything for any of my time :)
cheesepep
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Re: How much to get your taxes done?

Post by cheesepep »

I'm curious, but how long from the time you drop off your paperwork until finish does your CPA take?
S&L1940
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Re: How much to get your taxes done?

Post by S&L1940 »

cheesepep wrote:I'm curious, but how long from the time you drop off your paperwork until finish does your CPA take?
done within a week or two for me; I do believe that my CPA (like the one I used previously) sends the paper work off shore to be crunched.
Don't it always seem to go * That you don't know what you've got * Till it's gone
jobst
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Re: How much to get your taxes done?

Post by jobst »

I have paid $500 each year for the last two years to do ours: MFJ with W2 income, 1099-DIV, 1099-INT, foreign sourced interest, foreign sourced dividends, foreign salary. This is on top of our home country taxes, thankfully cheaper at about $80 a year.

I've considered this money well spent so far, if only as a guarantee that we'll at least be in the right ballpark. And our CPA did inform us about the FBAR.

This year I've tried to do it myself, both by hand and the various online services (as far as they'll let you go before paying). Everything goes smoothly until I hit the foreign stuff: form 1116 is a nightmare! Apparently I now need to back date some of this year's foreign tax credit to last year, re-file that, and will still have excess credit to carry over for next year, thus almost guaranteeing that I'll have to re-file 2013's return in 2014. I'm almost tempted to just claim we paid zero foreign tax to get rid of the complication...
likegarden
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Re: How much to get your taxes done?

Post by likegarden »

In 1988 I paid a CPA $700 for 1987 taxes. It included determining taxes on having partially lived in 2 states and selling a house in one state and buying one in the other state. I had a large profit from selling the one house and did not know what that meant in respect to taxes. But before that and since then I always did my own taxes.
Nowizard
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Re: How much to get your taxes done?

Post by Nowizard »

Have dividends, RMD, business income for each, salary for one, mortgage, second home, state taxes, etc. TuboTax handles all very easily for about $50 that is deductible. Typically, we purchase the latest edition as soon as it comes out, choosing not to use the offer from Vanguard, and enter information as it becomes available rather than waiting until after Jan. 31. This results in numerous, short times spent, though no long sessions. After becoming familiar with the program, the forms view is sufficient and the longer, interview style can be ditched. Works for us, though having a reasonable pattern of filing expenses during the year helps.

Tim
downshiftme
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Re: How much to get your taxes done?

Post by downshiftme »

TaxAct or TurboTax, usually free or under $15 depending on sales and promotions each year.

I did spend $400 one year on a CPA for a move between states, 2 state income taxes, rental house in old state until I could sell it, complicated employer reimbursement for move and living expenses, first year as a landlord and some investment changes. Turned out my work on the tax software got it all right and we were within a few dollars of each other. I guess the $400 was a one time investment in confidence that I can do an adequate job with a software program to help. The software just asked all the questions and I collected the records and answered each one. I had to give the same records to the CPA, so that didn't really save any work.
technovelist
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Re: How much to get your taxes done?

Post by technovelist »

I almost always do it myself unless I have something particularly complex or involving an unusually large amount of money.
In theory, theory and practice are identical. In practice, they often differ.
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mickeyd
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Re: How much to get your taxes done?

Post by mickeyd »

Been using TT thru VG at no cost for many years and it could not have been easier. My taxes are done and have been accepted by IRS. Just waiting for my refund.
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chw
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Re: How much to get your taxes done?

Post by chw »

$39.99 for turbo tax deluxe on ebay. I have many of the same tax line items you have. Turbo tax does a great job of walking you thru the steps do DIY.
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