Is Tax Preparation for Direct Sales Really That Expensive?

[legacypc46]

In terms of taxes, my life has gone from super simple do-it-yourself to way too complicated for me. The estimate for preparing our taxes is over $400. Have I been leading a sheltered financial life or is this really expensive?
leggy

 

[rennea]

Leggy my hubby and I own a business and I have PC and it doesn't cost me that much for taxes!!!!!!

 

[wadesgirl]

Please don't tell me that is standard!

 

[rennea]

I just did our taxes and it cost me $29.95 for the program. So that's it folks $29.95 and I'm done!

 

[sarahlegare]

My husband is self employed & so am I (duh!) We don't pay 1/2 that! We pay around $125 total....but we have this cute little old french guy who does it at his house, so I don't know the norm....

 

[janetupnorth]

I use Turbo Tax Online and it cost me about $100 this year to electronically file. Then you declare the tax preparation fees the next year as an expense.

 

[rennea]

I use Turbo Tax Online and it cost me about $100 this year to electronically file. Then you declare the tax preparation fees the next year as an expense.

Oh yes don't forget to declare it the next year

 

[ltkacz]

To have mine professional done by a CPAis $300. Well worth it for the piece of mind

 

[lkprescott]

Around here depends on the CPA... the one I have costs about $100/hr the ones on the Main Line down toward Philly cost nearly twice that. My CPA I think charged us about $400 for the whole kit-n-kaboodle... that's a partnership return (for another co. DH and I own), Schedule Cs for my myriad self-employment gigs and our 1040. For us, it's worth the piece of mind and it's a write off next year... I hear ya bout going from simple to not so simple... I used to just be a 1040ez... now we've got alimony, a house, kids, child care, businesses we run out of the home... yeah, those schedules stack up pretty easily. LOL... If you're curious, go to the IRS.gov website. Thanks to the 'less paper' act or some such, most forms have a time thingy on them that tell you how much time it'll take someone to read the instructions and fill out the form. Then ask the CPA what he charges per hour and you'll quickly see how they tend to not take as long as someone unfamiliar with the forms (saving you time and that time you spend you can be selling your business and making money) and they keep up with the laws, deductions and such that can change from year to year. I get a bookkeeping monthly newsletter and it's amazing how quickly things come up and the average person just wouldn't know. I personally find that letting a CPA do our taxes takes the headache off our plate and we know it's being done right. Just choose a good CPA... they're not all created equal (as a bookkeeper I've had experience from A+ top notch CPAs to scum of the earth, disappear in the dead of night CPAs that then try to charge you thousands of dollars for years past of "unbilled time"... yeah right)... get recommendations from happy friends and other satisfied customers. As for a list of his customers that you can verify their recommendation and get their feedback. Good CPAs are like good mechanics... hard to find and when you do, keep 'em!

 

[Intrepid_Chef]

My CPA charged me $90 to e-file my federal and state taxes and prepare my state return. (I owe them money so I have to send it by mail.) I'm sending more money to the city so I guess this is a good deal!When I was stressed about getting a car, I had SOOO many people tell me to go to Turbo Tax. All I can say, after having it done, is that I'm glad I didn't. I had some unusual stuff in the mix this year. For instance ... my roomate is a dependent, but that doesn't make me head of household. And I had THREE schedule C's ... my accountant combined two of them because you can't e-file more than 2 of those. I wouldn't have known to do that.

 

[nikki70563]

I use Turbo Tax Online and it cost me about $100 this year to electronically file. Then you declare the tax preparation fees the next year as an expense.

Janet which turbo tax did you use for it to cost $100

 

[wadesgirl]

Around here depends on the CPA... the one I have costs about $100/hr the ones on the Main Line down toward Philly cost nearly twice that. My CPA I think charged us about $400 for the whole kit-n-kaboodle... that's a partnership return (for another co. DH and I own), Schedule Chef Success for my myriad self-employment gigs and our 1040. For us, it's worth the piece of mind and it's a write off next year...

I hear ya bout going from simple to not so simple... I used to just be a 1040ez... now we've got alimony, a house, kids, child care, businesses we run out of the home... yeah, those schedules stack up pretty easily. LOL...

If you're curious, go to the IRS.gov website. Thanks to the 'less paper' act or some such, most forms have a time thingy on them that tell you how much time it'll take someone to read the instructions and fill out the form. Then ask the CPA what he charges per hour and you'll quickly see how they tend to not take as long as someone unfamiliar with the forms (saving you time and that time you spend you can be selling your business and making money) and they keep up with the laws, deductions and such that can change from year to year. I get a bookkeeping monthly newsletter and it's amazing how quickly things come up and the average person just wouldn't know. I personally find that letting a CPA do our taxes takes the headache off our plate and we know it's being done right.

Just choose a good CPA... they're not all created equal (as a bookkeeper I've had experience from A+ top notch CPAs to scum of the earth, disappear in the dead of night CPAs that then try to charge you thousands of dollars for years past of "unbilled time"... yeah right)... get recommendations from happy friends and other satisfied customers. As for a list of his customers that you can verify their recommendation and get their feedback. Good CPAs are like good mechanics... hard to find and when you do, keep 'em!

How do you find a good CPA though? I know no one, my dad always did mine on Turbo Tax but I want to take them to someone this year and not just to H&R Block (no offense to anyone!)

 

[lkprescott]

How do you find a good CPA though? I know no one, my dad always did mine on Turbo Tax but I want to take them to someone this year and not just to H&R Block (no offense to anyone!)

Ask others in your area. Check with your clustermates, family, anyone you feel comfortable asking and whose word you'd trust. Interview them, ask questions, if you get any uncomfortable vibes, leave... if you were local, I'd give you a recommendation. Also, I'm sure you could check with the BBB and the local Chamber of Commerce to see about complaints filed with any CPAs in the area and such.

 

[legacypc46]

My tax preparation estimate was from H&R block. We're new to the area and still looking for a good CPA....with that estimate, I'll look a little harder.:grumpy:

 

[wadesgirl]

Ask others in your area. Check with your clustermates, family, anyone you feel comfortable asking and whose word you'd trust. Interview them, ask questions, if you get any uncomfortable vibes, leave... if you were local, I'd give you a recommendation. Also, I'm sure you could check with the BBB and the local Chamber of Commerce to see about complaints filed with any CPAs in the area and such.

I feel like I'm running out of time this year. I've procrastined alot and need to find someone to do my taxes this year still!

 

[janetupnorth]

Janet which turbo tax did you use for it to cost $100

I used the one that includes schedule C and business...the extra cost is to e-file the state taxes for WI. That was $30 I believe so it may be cheaper for your state.

 

[vwpamperedchef]

I went to a tax preparer last year and when they said ok that will be $450, I NEARLY DIED! I prepped my DH all year saying we are not going to H&R Block EVER AGAIN..........

This year, I took the advice of my fellow cheffers on here...I got the H&R Block Tax Cut program. Now, I havent had a chance to actually do it yet, but I will let you know I am a little scared, since I think its complex.

One, I do not like math. Two, my DH had two incomes, and so did I . Plus....we just bought ahome this year.

I am told, that the tax cut program is very simple to follow, and I bought that one specifically because since I have my tax paperwork from last year if I get stuck I can refer to the old one.

I hope that helps.

**I just saw your post above about H&R block. I think it is RIDICULOUS they charge so much!**

 

[janetupnorth]

Just looked it up...I used:TurboTax Home & Business - $74.95 - (State is additional - $29.95) - That would be grand total of $104.90.http://turbotax.intuit.com/personal-taxes/online/home-and-business.jhtml

 

[vwpamperedchef]

The tax cut I got at Staples (no office depot close here) for home w/efile, federal and state... and section C for business, was just $49.95. I do have to go online and pay extra since DH worked in another state...but I feel lucky to have saved $400!

 

[nikki70563]

Just looked it up...I used:

TurboTax Home & Business - $74.95 - (State is additional - $29.95) - That would be grand total of $104.90.

http://turbotax.intuit.com/personal-taxes/online/home-and-business.jhtml

thanks for info

 

[sklay723]

My DH works in law enforcement, and there are a lot of rules and policies about what he can use for deductions, so we let someone else prepare our taxes last year...it cost us $200, but he found a lot of deductions we never knew we were eligible for. If you aren't comfy with the computer software you can buy to do it yourself, I agree that the best thing to do is find a pro who other people recommend, because that way you'll feel more comfortable. Good luck, everyone!

 

[lacychef]

Leggy, that sounds extremely high! It costs us around $100 from an accountant here. The first year I did PC, we went to H&R block; thinking since it's a chain it would be cheaper. Cost us about $250, plus they figured us owing about $300. We've gone to an accountant ever since & it's been cheaper, plus he always figures us getting a refund.
I'd get a second opinion!

 

[jenm42]

I use TaxAct online. Cost me $12.95 to e-file both federal and state; I did it yesterday. No software fees, and no software to install and have to keep for later. I hate that. I think it is normally $16.95, but I have been using it for several years so I think they sent a coupon earlier this year and I took advantage of that, knowing I would use it again since it is so easy.

It's super simple - it's like a wizard, you just go through and answer all the questions. There are instructions and tax tips you can click on the bottom if you have questions along the way. Plus it imports all my info from year to year (securely, of course), so I don't have to retype SS numbers, employer ID numbers, addresses of banks and employers, etc.

I love doing it this way; I can't imagine paying $100 or more to do my taxes. Plus, I feel so much more comfortable knowing exactly what deductions I am taking and why, instead of someone doing it all for me. I feel like if I were to get audited I would be comfortable defending and explaining every deduction if I needed to. Complete peace of mind.... =)

Hope this helps someone. The link is File Taxes Online - Do Taxes FREE - File Taxes With TaxACT.

=) Jen

 

[legacypc46]

Thanks guys. I thought it was pretty high (I about fell out of my chair when the rep gave me her estimate). I've met a couple other direct sales reps in this area, so I'll ask them who they use. I'll check the chamber as well (I'm a member). Whew! Glad to know I wasn't being naive!

 

[legacypc46]

I use TaxAct online.

Our taxes are way complicated this year. Do you recommend this site if there are multiple forms to be filed?

 

[jenm42]

Sure! Multiple forms are not complicated using TaxAct online. It goes through the wizards and it creates whatever forms you need based on your answers. Super simple. You could always try it, and then if you think it gets too complicated, just stop. They don't ask you for payment until you're ready to actually file.

 

[GeorgiaPeach]

In terms of taxes, my life has gone from super simple do-it-yourself to way too complicated for me. The estimate for preparing our taxes is over $400. Have I been leading a sheltered financial life or is this really expensive?
leggy

Last year we paid $450 with Jackson-Hewitt. My husband is a pastor, considered self-employed. I worked 3 jobs last year (PC, computer training, and substitute teacher). With all the deductions we can take through ministry and PC plus 4 w-2's, I paid to have a professional do it so we didn't miss anything or take anything that can could back to bite us later.

I want so desperately to just "use a box". With all the changes that come from year to year, I don't want to miss a deduction and am afraid the box won't ask me questions like the J-H people do. Last year the computer wouldn't give us the child credit even though we should have received it. The girl kept working it and went to a supervisor until they got it worked out. If I used a box and it didn't let me have a deduction that I was entitled to, I'd never know I was missing it.

Paying the $450 got me a MUCH larger refund. Worth it to me for the peace of mind. (Plus they take the cost out of my refund so I just look at the bottom line of the refund and don't dwell on what it cost to get it! )

 

[crystalscookingnow]

We paid $180 for our taxes. We have self employment (my DH farms), plus my PC, plus a partnership. I thought it was rather high, but the farm usually pays it. My MIL told me that the total bill is usally $1,000 for the farm, ours & theirs!

 

[PamperedTammy]

My DH and I paid $125 for a CPA to do our taxes this year. It really helps cut down on stress and time to have someone else do it. Hope you can get someone to do it cheaper for you!

 

[PamperChefCarol]

In terms of taxes, my life has gone from super simple do-it-yourself to way too complicated for me. The estimate for preparing our taxes is over $400. Have I been leading a sheltered financial life or is this really expensive?
leggy

My husband and I have 2 other corporations , along with my PC stuff and our taxes cost us $350 to prepare. That included updating our corporate books and all.

 

[katiemoser]

shocked me too!I can confirm that it does indeed cost $400 to go to H&R Block. I nearly fell out of my chair when he totaled it up! I said "that can't possibly be correct, please check it again" but it was right, they charge you for every schedule and deduction!

I normally do my own taxes on turbotax.com, but wanted to make sure this year was kosher since I just started PC in Sept.

Next year I will definitely be doing my own on turbotax, I'll take my chances of doing it wrong for the extra money! (I just sat there and watched him enter the same way I did on turbotax, so I don't think I got any particularly stellar advice by going there!)

Good Luck!
:yuck:
Katie

 

[KellyTheChef]

We just paid $85 for our CPA to come to our house and do our taxes. Granted, all of our receipts are paperclipped together in different piles (medical, charity, school expenses, household deductable, etc.) I also have all of my PC expenses entered into P3 and I print off the itemized list for the year. So...he isn't doing a lot of "busiwork" so I know he doens't charge us extra. He has some customers that hand him a box of stuff (none in any order...) and he must go through all of it and sort/figure out what it is. Those people, he charges additional for his time!

 

[floccies]

Last year we paid an accountant $461. This includes Federal and State tax preparation.
(Maybe the difference in prices could be if it is Fed only or Fed & State?)

I have all of my receipts broken into categories. I use excel to summarize everything and add up the totals.

It seems like alot of money to us too. I just want to make sure I am doing everything "right". This is my first full year with PC. (I was with another direct sales company last year.). I am amazed at the $ amount of mileage this year. If I bought PC practice or show food on a trip to the grocery store, or deposited PC show checks at the bank I put down the mileage.