Who does their own taxes?

[mptfan]

I've always done my own taxes, until my 2017 returns when I paid someone to do them for me. It was a colossal fiasco, to the point where after much back-and-forth (me pointing out errors, him correcting them), he sent a "final draft" which he labeled version 1,000,001.

If it takes that many back and forths of you correcting his mistakes, it would just be easier for you to cut out the middle man and do it yourself the first time.

[Frisco Kid]

Continue to do our taxes the old fashioned way using a canary pad, pencil and calculator. Forms now online so print out but other than that no changes in doing them since 1970. Still mail certified return receipt requested. Tried software but found it actually took longer to type in all the information. Always itemized but like many higher standard deduction might soon make that a thing of the past so future returns may be even simpler.

[rh00p]

One thing about doing your own taxes is you become a bit savvier. Especially if you click the help topics as they come along. I've used various brands but recently came back to TurboTax as it navigates me through the dreaded box 14 the easiest. And it usually pops up at a discount on one of my accounts.

[CMD1]

Been using TaxAct for years and we have rental property.

[Bir48die]

Have done my own taxes since high school. Use TT and have IRA's, pensions, lots of CG's and about 20 K-1's. I have taken it as a challenge when I don't understand parts of the tax code to educate myself. My mom had about the same difficulty of taxes that I do when she was alive and we'd pay close to $2,000 for a CPA to prepare.

[Stormbringer]

I did my daughter's return on the H&R block website this year. It wasn't too bad at all (and was free). Her taxes are pretty simple, with just an education tax credit.

Mine -- no way. They are always an inch thick.

[joe8d]

I use and suggest FreeTaxUSA.....

https://www.freetaxusa.com

This was my 3rd year using it and I really like it.

Same here.

[joe8d]

I've always done my own taxes. Did them by hand until late 1990s. Typed out the IRS' PDF forms and printed and mailed until about 2004. Used Turbo Tax from then until maybe 2012, then switched to TaxAct because they were cheaper. Now that TaxAct has raised their prices, I'm planning to try FreeTaxUSA next year.

I have never understood why so many people who have relatively common tax situations with no unusual twists or turns hire someone to do their taxes. The most work in my opinion is getting all your forms and documentation together, and you have to do that no matter what path you're on, so why pay someone more to complete and file the return? To each their own.

AMEN !!!

[andypanda]

I did my own every spring from the 1960s to 2017. I also did my parents' returns for 10 years after they moved to the retirement home. I never used a program and seldom used a calculator, just pen and paper. For the past 4 years I did my girlfriend's taxes, too. I like numbers, I find them relaxing.

Last spring I gathered everything up in a folder when the taxable portfolio final reports & paperwork hit my mailbox and took it all to a tax preparer. Then I went fishing for a week. Best money I ever spent.

Now that I'm married again I'll be taking the folder to their office in a couple of days. The taxable portfolio final paperwork showed up today. Gee, I think I miss reading all of the small print and convoluted instructions.

[DrGoogle2017]

Almost 45 years now, I like Tirbotax better because it’s like a big adding machine, no mistake with calculations. In the past I have calculators too, but I always wondered if I miscarried something somehow.

[dodecahedron]

The process is so much more complex these days, I will have to start thinking now about how to deal with this task if I begin to experience cognitive issues.

With the current tax laws and some careful planning, my hope and plan is to organize my financial affairs in a manner that will greatly simplify filing my taxes going forward.

Once I hit 70 1/2, I do not plan to be itemizing thanks to QCDs.

I have begun gradually moving my international allocation from taxable to Roth so as to keep the foreign tax on dividends in my taxable account well under $300 to avoid need for Form 1116.

I have always done my own taxes myself, but I recognize that there may come a time (hopefully quite a while away but who knows) when I need to turn that tax over to someone else and I want to minimize the burden to the extent reasonably possible.

I help my daughters with their tax filings in a way that I hope will educate and prepare one of them to take over mine some day should that become necessary.

[Rus In Urbe]

Not I.

When it came time to do my first tax return by myself (age 21 and living in Manhattan), I had freelance income on top of a job and needed to file Schedule C for business deductions. I hired a tax advisor. When I set up a business, he became a valuable advisor on all sorts of financial issues for many years.

I've had a tax preparer/advisor ever since. When I moved upstate sixteen years ago, it took me some shopping to find just the right CPA to do my taxes, but I did and she's also become a valuable sounding-board as I have prepared for my imminent retirement. I see her in spring (yesterday in fact) to do taxes, and every fall to review tax strategies before the close of the fiscal year.

I track all our income and expenses using Banktivity (formerly IBANK), which I find easy to use and enormously simple to automatically download from my bank accounts and credit cards.

I have a good team assembled: another financial advisor over at TIAA, plus a lawyer and an insurance rep. Sometimes I know more than they do; more often they tell me about rules and regs that become helpful. I feel comfortable having a team of professionals, and am happy to pay for advice that adds value to my decision-making.

Could I do my own taxes? Probably. But I also have a house-keeper and am happy to pay her too. Happy Tax Season!

[MikeG62]

I can compute my taxes in Excel, but I use TT to make sure everything ends up in the right places on the right forms.

+1. I built a model in excel several years ago to project my taxes for the year and to ensure I make appropriate estimated tax payments.

I have used TT for decades. Output is reconciled to excel projection before filing.

[JW-Retired]

Almost always have done taxes myself. The single exception was a year in the 1970's where they were complicated by my father's estate, with me as the sole heir. Fathers business carried on for part of a year and then was sold. We had the CPA, who had long been doing father's business taxes, do both my income taxes & the estate taxes.

There was an issue of whose income tax return should the fairly modest business income be put on, mine or the estates? It was really a very easy call since my income was much greater. However, since I was young and tax clueless, the CPA just went ahead and did it the wrong way. Many months later after the estate was all settled and he was paid, he came to me and said he had "discovered" a way to save $1000 in tax!

That was quite a lot in those days so I agreed to have him amend both mine and the estate income tax returns. However, it only got me half of that $1000 in savings..... since he sent me a bill for another $500. My lawyer had told me he had advised the guy to do it the other way in the first place.

Never again though. The really fantastic outcome of this was it totally cured me of relying on such money helpers. Wife and I have been DIYing all our tax and investment issues ever since.
JW

[Nowizard]

We have done our taxes essentially forever, and they have included employment, a small business, stock/bond sales, interest, dividends, SS, pension, medical expenses, non-cash contributions, etc. Did not itemize for first time this year but there are still items such as transferring asset purchases/sales, small business, etc. that makes it simpler to use software. It also keeps data in case of further need, though, like you, we have no state income tax.

Tim

[taurabora]

I use Free Fillable Forms to do my taxes. After I am complete, I check it against TurboTax (without submitting).

[scrabbler1]

I wonder if those of us who do our own taxes saw our parents do their own when we were kids. My mom handled the finances in the house, and she did the taxes. Being good at math and already helping her with some of the simpler paperwork tasks when she paid the bills, I helped her out doing the taxes in the 1970s and early 1980s. So, by the time I began working in 1985 and tax time rolled around, it wasn't a big deal to do my own. I was already familiar with the process even though I had several items she didn't have that first year, such as moving expenses, New York City income taxes, student loan interest, and some miscellaneous expenses.

No spreadsheets or TurboTax back in the 1970s or early 1980s. It was pencil and paper and a calculator. Same for me until I got my first PC in 1995. When my mom became ill in the early 1990s, she stopped doing them herself before she passed away in 1995.

[Glockenspiel]

I've done my own taxes since at least 2008, through TurboTax. Capital gains, business income, oil royalties, childcare expenses, education credits, health savings account, mortgage, charitable contributions, itemized deductions, etc.

My mother-in-law is a CPA and we have her check it. She's never found anything significant that we've missed.

[NotWhoYouThink]

If "do my own" includes "with Turbo Tax" I do my own. Used to get the forms at the library or post office, but TT cuts way back on my math errors and typos, and keeps a good electronic history.

Never even considered thinking about contemplating doing taxes for my kids, any more than I would log into their accounts and set up bill payments for their utilities. Part of raising them was teaching them to do the things adults do. And doing their own taxes helps them see what gets taxed how and how much so they can make financial decisions accordingly.

[fru-gal]

I do (at least up until now,still waiting for my IRS 1040 sets I ordered
Mother and brother went to a 'Liberty Tax" for the last few years,she enjoyed the socialization with the proprietor but last year she was ill and unable to leave the "Rehab" unit easily,I did hers and my brother's.
Still hoping when and if the 1040's come they will have the new "Schedule 1",didn't see anyplace on the IRS website to order it. (them)(3)
Fear the 3rd party software leaking information and make too much for free filing.

Why not print the forms off the IRS website?

I gave up reading half way through this thread, since no one was actually doing their own taxes, rather they were using software. I actually do my own taxes.

[Carson]

I have to use my 6-figure accounting degree somehow, so yes, I file my own taxes.

I used HR Block online for many years, but they increased the price on me last year to a point I thought I should explore other options. I switched to FreeFileFillableForms - I keep a draft of it in Excel throughout the year and as a record when I file, so it's not too tedious. We have a pretty straightforward return.

[Youngblood]

I feel a compulsion to post this paradox:

I do the taxes for everyone in my family, except for those people who do their own taxes. Do I do my own taxes or not?

Excellent and funny too!

[Leesbro63]

I do my own.

I got 24k standard deductions (MFJ)

Actually $26,600 for MFJ seniors (both).

[Leesbro63]

Almost 45 years now, I like Tirbotax better because it’s like a big adding machine, no mistake with calculations. In the past I have calculators too, but I always wondered if I miscarried something somehow.

+1. They keep increasing the price and finding ways to get more fees, but I still consider it a bargain.

[kaneohe]

.......................................................
Still hoping when and if the 1040's come they will have the new "Schedule 1",didn't see anyplace on the IRS website to order it. (them)(3)
...........................................

"Order Form 1040 to receive the new Form 1040 and all six schedules." from IRS site.........sounds like a package deal.

[mbres60]

Hubby does our taxes on paper and then fills in the Free fillable forms. He is bogleheadish. Has done his own taxes since late 60's. Didn't want to pay for anyone or thing to do it for him. When he can't do it anymore... will give it to our son who is a CPA

[Lynette]

The process is so much more complex these days, I will have to start thinking now about how to deal with this task if I begin to experience cognitive issues.

With the current tax laws and some careful planning, my hope and plan is to organize my financial affairs in a manner that will greatly simplify filing my taxes going forward.

Once I hit 70 1/2, I do not plan to be itemizing thanks to QCDs.

I have just returned from my CPA and she complimented me on using QCDs and not planning to itemize. Thanks for assistance from Bogleheads I got it correct. I did not sell anything in Taxable as I discovered how it complicates my tax situation once I started to pay attention. Also I don't want additional income as it increases my Medicare IRMAA,

I used to do my own taxes but was stupid enough to buy some apartments in Johannesburg. I had to fill out two different sets of tax returns so I hired an accountant. The tax laws in the two countries are different. It was a real pain so I sold the apartments. We read on this site about US citizens buying apartments overseas. I wonder if they really understand what is involved in taxes - even if they live in the apartments themselves. What happens when they sell them if taxes on inheritance laws are different in the two countries? In my old age, I am all for simplicity.

[Sheepdog]

This is my 68th year filing taxes and never hiring anyone, including when I had tax shelters which required several other-than-normal schedules. (Tax shelters sold to me by a stock broker for their benefit, not mine..) (That is when I got rid of stockbrokers and went to no-load mutual funds, and later to Vanguard.). I did those returns by studying the tax codes which really helped me then and in the future....and, enjoying the challenges.....really. When tax software came into existence, I used those. In retirement, with much simpler tax arithmetic, I use free software. (I also do returns for others.)

[boomer_techie]

I feel a compulsion to post this paradox:

I do the taxes for everyone in my family, except for those people who do their own taxes. Do I do my own taxes or not?

I don't know, but you file MFJ!

[depressed]

This is my 68th year filing taxes and never hiring anyone, including when I had tax shelters which required several other-than-normal schedules. (Tax shelters sold to me by a stock broker for their benefit, not mine..) (That is when I got rid of stockbrokers and went to no-load mutual funds, and later to Vanguard.). I did those returns by studying the tax codes which really helped me then and in the future....and, enjoying the challenges.....really. When tax software came into existence, I used those. In retirement, with much simpler tax arithmetic, I use free software. (I also do returns for others.)

Woof, woof woof, woof! [Loose translation: Well done!]

[HoosierJim]

Luckily, I married up and my wife (the EA) does them. I get to do the fun work of the house like sewer rodding.

[AerialWombat]

I do my own tax returns for one C-corp, one S-corp, one partnership, and myself. My own return includes rental properties, the three business entities, taxable securities, royalties, stock options, foreign accounts, and more.

Of course, I work in tax law, so.... There's that.

[Artful Dodger]

I've done my personal forever. Used to do my friends when just out of college. Things were pretty simple then. I'm 64 now.

I've used turbo tax past 10 years and like it pretty well. I had to override my state tax last year since Illinois had a tax increase mid year, and TT defaulted to the simple average and i had unequal income that benefited from modifying the return.

I have a S Corp, and have a accountant do my 1120s and K-1.

Will be curious how TT handles the new 199A deduction. I did a ballpark estimate and looks like it will save me $4k, in addition to lower taxes overall due to the new law.

I would give TT or one of the other programs a try, and see how you like it. Most prompt you through all the required inputs, and print out the forms, or allow you to efile.

[billyo44]

This is my 68th year filing taxes and never hiring anyone, including when I had tax shelters which required several other-than-normal schedules. (Tax shelters sold to me by a stock broker for their benefit, not mine..) (That is when I got rid of stockbrokers and went to no-load mutual funds, and later to Vanguard.). I did those returns by studying the tax codes which really helped me then and in the future....and, enjoying the challenges.....really. When tax software came into existence, I used those. In retirement, with much simpler tax arithmetic, I use free software. (I also do returns for others.)

Me too...but for 'only' about 50 years. Still remember those all-nighters working on the tax shelter forms by hand. But the only two years I had a CPA do them mistakes were made and the IRS followed up with the not-so-pleasant notices. I use Turbo Tax Premier...and like the step-by-step guidance (babysitting)... @ $55 - $70 it's chump change to me. The added benefit of being able to run 'what-if' scenarios and suggestions on how much to make in estimated quarterly payments in also a plus.

Get a program that works for you...with cost for the software a secondary consideration...getting the correct tax computation that lets you sleep well is worth the money.

[Alan S.]

If anyone likes the new 1040 with the 6 schedules, please chime in.
I much prefer the old 1040.

If your favorite restaurant adopted this format, you'd get a Sch 1 for the main course, Sch 2 for appetizers, Sch 3 for desserts, Sch 4 for beverages, Sch 5 for coupons, and Sch 6 for gift certificates. Total them all on p 1, which would include the total bill and place for a tip.

[Thesaints]

Every year, on paper. Extremely useful in understanding how to minimize them.

[trueblueky]

I have prepared our taxes for the last 18 years. I had a tax person for the first couple of years after my accident, as $$$ were flying hither and yon, large amounts coming in, large amounts going out, and I was pretty fuzzy about what all was going on.

This year we have SS income, TIRA distributions, interest on US Savings Bonds, interest from MetLife for a mistake on my LTC claim around 10 years ago, W-2 earnings to account for life insurance over $50,000 provided by MegaCorp. We also received 48 cents in dividends for our taxable brokerage sweep account, and 4 cents dividend from my credit union account . I suppose my total dividends of 52 cents will be rounded up to 1 dollar! No state tax, just a federal return.

It is possible I will be able to itemize deductions and beat our standard deduction (MFJ both over 65) of $26,600. It looks promising.

I think I'll check into the Credit Karma tax filing to see if it will work for us. If it doesn't, I will use fillable forms at IRS
All in all looks like a pretty simple return for us.

Next year will be even simpler, I believe.

Broken Man 1999

The "dividend" from the credit union is interest if it's from a share account, checking account or similar and the amount is based on your deposits.

[exexpat]

Another vote for FreeTaxUSA...

They charge $13 for State.
Credit Karma does not.

Nothing is free. You're either charged transparently, or opaquely.

Think about it: Credit Karma has not only your credit profile, but your full financial picture via your tax return. Do you really want a third party advertiser to have that much information about you?

[letsgobobby]

Deleted

[Vulcan]

Another vote for FreeTaxUSA...

They charge $13 for State.
Credit Karma does not.

Nothing is free. You're either charged transparently, or opaquely.

Think about it: Credit Karma has not only your credit profile, but your full financial picture via your tax return. Do you really want a third party advertiser to have that much information about you?

Any company you use to file taxes has enough information about you to be able to get the rest.

Do you file paper returns?;)

[dodecahedron]

Off topic but I'm a long ways from 70.5 so hadn't thought about this before. Only five years left to go for me,
and it´s been on my radar screen since my late 50s.

If you make a $40k QCD and have no other itemizable deductions, but can still take the standard deduction... Why, that's like double counting to some extent! Neat trick.

Yes, it is quite a good deal. Especially since the standard deduction increases for senior citizens. Standard deduction for me as a single person over 65 is currently $13,600. For MFJ it is 26,600 if both are over 65. And those numbers are indexed for inflation.

I currently DO have other itemizable deductions (SALT) but they are now considerably less than I expected them to be due to the SALT cap. I do not believe the $10,000 SALT cap figure is indexed for inflation so standard deduction combined with QCDs for donations will likely become relatively more and more attractive over time.

[Broken Man 1999]

I have prepared our taxes for the last 18 years. I had a tax person for the first couple of years after my accident, as $$$ were flying hither and yon, large amounts coming in, large amounts going out, and I was pretty fuzzy about what all was going on.

This year we have SS income, TIRA distributions, interest on US Savings Bonds, interest from MetLife for a mistake on my LTC claim around 10 years ago, W-2 earnings to account for life insurance over $50,000 provided by MegaCorp. We also received 48 cents in dividends for our taxable brokerage sweep account, and 4 cents dividend from my credit union account . I suppose my total dividends of 52 cents will be rounded up to 1 dollar! No state tax, just a federal return.

It is possible I will be able to itemize deductions and beat our standard deduction (MFJ both over 65) of $26,600. It looks promising.

I think I'll check into the Credit Karma tax filing to see if it will work for us. If it doesn't, I will use fillable forms at IRS
All in all looks like a pretty simple return for us.

Next year will be even simpler, I believe.

Broken Man 1999

The "dividend" from the credit union is interest if it's from a share account, checking account or similar and the amount is based on your deposits.

Very true. The credit union considers them dividends, as members are "owners". Though, for tax purposes they are counted as interest.

Fortunately the massive amount of dividends that I will count as interest will not force me into another tax bracket.

Broken Man 1999

[Dottie57]

I do my own taxes. I have a fairly simple income life so no need for an accountant.

[Carol88888]

I am feeling pretty silly to be paying $2500-$2800/year. But my taxes are complicated (K-1s and two states) so I probably would screw it up. Still, I envy the people that do it themselves.

[sschoe2]

I use and suggest FreeTaxUSA.....

https://www.freetaxusa.com

This was my 3rd year using it and I really like it.

After several years using Taxact I'm trying Freetaxusa and so far it seems to be working well for me. It took me a bit to understand how to enter my inherited stocks from the 1099-b. I always just use the Illinois DOR site for state taxes. It is free and works sufficiently but is a bit of duplication in data entry.

[celia]

I've always done my/our own taxes and even for other relatives (using H&R Block). I had my kids do their own taxes starting with their first full-time job. The great thing about that is that they start seeing how different things are taxed BEFORE they start a business, buy a home, or contribute to an IRA. I can't imagine spending money and then being surprised at the end of the year on how much my taxes are because all the "rules" are known beforehand.

[celia]

If anyone likes the new 1040 with the 6 schedules, please chime in.
I much prefer the old 1040.

If your favorite restaurant adopted this format, you'd get a Sch 1 for the main course, Sch 2 for appetizers, Sch 3 for desserts, Sch 4 for beverages, Sch 5 for coupons, and Sch 6 for gift certificates. Total them all on p 1, which would include the total bill and place for a tip.

Haven't done our taxes yet, but our restaurant orders are a lot simpler than that: Main course and Beverages (sometimes).

[rexhat]

I used to do my taxes for several years on turbotax. Now I still do it for a rough idea of where I'm at and to double check my CPA. I now use a good CPA in town who does the data entry himself during our 1 hour meeting. We chat taxes and his software seems to be more thorough and saves me a few dollars over Turbotax. For example this year he's saving me 1.5% in tax payment over turbo tax so I'll take it. I find turbotax is hard to check your figures until you file when it gives you all the forms to review.

I appreciate his more detailed knowledge of the tax law over my hobbyist level knowledge.

[marti038]

I've always done them myself. My mom and dad made me file my first return when I was 15 or 16 and had taxable income for the first time. It was an initiation to taxation and interacting with the government. I vividly remember hating the process even though it was incredibly simple at the time (only a few thousand dollars of income for summer work and a standard deduction). In hindsight, I'm very thankful that my folks forced me to learn instead of doing it for me.

I'd go to the post office and pick up the forms every year until I got married when I was 24, then I started using turbotax and have used it every year since. The time I save by it automatically entering information based on previous year's returns is enough for me to happily pay for it each year.

There could come a day when things get complicated enough to hire a pro, but I kind of like digging into the details and mechanics of it all.

[lexie2000]

I've done my/our taxes for the last 45 years, with the exception of 2 years when I had some complex issues and wanted to make sure that I didn't get into trouble with Uncle Sam. I print the forms off the irs website, fill them out, make copies, and mail them in. This year I had (5) forms to fill out (1040, Schedules B, D, 1, and 5). It was a lot easier than I thought it was going to be.

The first time I paid a CPA, I thought it was well worth the fee. The second time was an absolute nightmare. Despite giving them detailed information, the "accountant" missed some pretty basic deductions. I don't know where they got her or what her workload was, but her "work" was unacceptable. If I had known nothing about taxes, I would have gotten a lot smaller refund that year. After a lot of back and forth, I made them cut their fee in half because other than the complex issue, I did most all of the work.