Would you use TurboTax in this scenerio?

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spartanap
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Would you use TurboTax in this scenerio?

Post by spartanap »

I've done my own taxes for several years using TurboTax. My returns have been pretty straight forward; itemized deductions, cap gains/dividends, tax loss harvesting, etc. In the past year my wife and I have: retired (with pension/lump sum combo), sold our house, took a new job and moved to another state and purchased a new home. Considering all of this, will TurboTax handle all these issues or should I consider using a tax professional?
livesoft
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Re: Would you use TurboTax in this scenerio?

Post by livesoft »

I see no problems nor complications from such a simple scenario for TurboTax. I would use TT.
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Toons
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Re: Would you use TurboTax in this scenerio?

Post by Toons »

Turbo Tax ,or any other Tax Preparation Program can handle all of the situations you mentioned.Personally I would use TaxAct,but yes Turbo Tax is fine. :happy
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grabiner
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Re: Would you use TurboTax in this scenerio?

Post by grabiner »

Yes, use your tax software, but check the calculations yourself before filing.

In particular, since you moved between states, you'll have to figure out how much you earned in each state. If you have an international fund, you can't even copy the dividends from Quicken by date, because of the foreign tax credit. For example, if you received dividends of $100,$200,$200 in State A and $300 in State B, and $80 was withheld as foreign tax, your 1099 will show $880, and you should split that as $550 in State A and $330 in State B.
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livesoft
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Re: Would you use TurboTax in this scenerio?

Post by livesoft »

^The foreign tax withheld on each dividend payment should be available, so that pro-rating is not necessary. Just use the actual taxes paid while a resident of that state.
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stan1
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Re: Would you use TurboTax in this scenerio?

Post by stan1 »

Turbo Tax will work fine -- as long as you enter the data correctly. As others have said print out the return and review it at least twice before you send it in to make sure you haven't entered something incorrectly. Math errors in TT software are very rare; data entry errors are very common.
LeeMKE
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Re: Would you use TurboTax in this scenerio?

Post by LeeMKE »

Yup. I had one year much more complicated than yours, thought for sure the software would not be up to it, but was wrong.
Just take your time and look up the IRS instructions before over-riding the software. I over road the software on one complicated return, got audited and the agent got a good chuckle over my having over-ridden the software only to find out the software correctly parsed some data and I was wrong to have changed it.
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ejvyas
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Re: Would you use TurboTax in this scenerio?

Post by ejvyas »

Beware - TT (onine version) has a bug in change of address - 2013 version. So many people faced it and they were unable to fix it.

I was not able to change my address in TT online version. The reps kept saying they see my new address but online and print version show the old address
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Epsilon Delta
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Re: Would you use TurboTax in this scenerio?

Post by Epsilon Delta »

While the tax software is up to it, you also want to ask are "you up to it?"

To use tax software you have to have both a conceptual understanding of the tax law and an understanding of how to enter your information into the software. If I had enough one time issues in a single year I might find it less effort to find a good tax advisor than to learn what I need to do it myself.

Some of the most confusing tax situations I've faced are partial year state taxes. I'd start there, either by looking at that part of the software or by looking for a tax pro who routinely deals with clients from your pair of states.
Timon0201
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Re: Would you use TurboTax in this scenerio?

Post by Timon0201 »

don't depend 100% on turbo tax. i have seen too many returns done in turbo tax where the individual does things wrong or misses big deductions because they didn't know the tax law.

if you do plan on doing your own return, read the first few pages of the part-year resident tax forms for each state to make sure you understand how the state taxes income for part year residents. Most states are pretty cut and dry, but some want things allocated differently, etc.
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grabiner
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Re: Would you use TurboTax in this scenerio?

Post by grabiner »

Epsilon Delta wrote:Some of the most confusing tax situations I've faced are partial year state taxes. I'd start there, either by looking at that part of the software or by looking for a tax pro who routinely deals with clients from your pair of states.
These are also the most confusing to the software writers, because there are more special cases and fewer people to check them. In 2010, when I moved to NJ, I encountered two bugs in TaxAct which applied only to a small number of part-year NJ residents. In 2013, when I moved to MD, I didn't encounter any part-year-specific bugs, but I had to do more calculations on my own than usual.
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kazper
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Re: Would you use TurboTax in this scenerio?

Post by kazper »

When we moved from va to md, I tried turbo tax, tax act, and taxslayer. Taxslayer was by far the most difficult in filling out part year forms. It didn't understand the split. There were several times where I felt alone while using the software.

Turbo tax seemed to work ok but there were a few logistical questions I had at the time. Plus I didn't want to pay for another state return file, which was around $35 at the time. I ended up with tax act because it was easiest, most cost efficient, and walked me through the various steps involved.
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