Who Does Their Taxes: DIY or Accountant?

[ChefChris]

Just wondering who does their own taxes vs having an accountant? Just wondering since this is my first year with PC. Thanks,

 

[hperschnick]

This is my first year with PC too. We have 2 rental properties and then our personal stuff and now PC... I just feel better having someone who knows what they are doing filing them!

 

[missyciccolella]

Our taxes are confusing enough just between dh and myself...toss in PC and I don't have the time or the complete know-how...we use H & R Block and love it!

 

[ChefBeckyD]

I use Turbo-Tax - but we just have our personal taxes and my PC business. I LOVE it though - TT walks me through everything step by step, and then I send it electronically, and it is usually accepted within a day or 2, and we get our refund a couple weeks later.

 

[redsoxgirl]

We've used Turbo-Tax for the past few years and it's been great.
This is our first PC year though, so who knows how I'll do with it... *sigh*

 

[janetupnorth]

I use Turbo-Tax - but we just have our personal taxes and my PC business. I LOVE it though - TT walks me through everything step by step, and then I send it electronically, and it is usually accepted within a day or 2, and we get our refund a couple weeks later.

Ditto on Turbo Tax - glad to hear it works with PC business too...do you choose the better options now with a business?

 

[ChefBeckyD]

With TT, as long as you have kept records of expenses, it is very easy. I use the one - I think it is Premiere - that is made for those with a small and/or home business. I don't think it could be any easier!

 

[baychef]

Same here, Becky! I keep everything organized (the ONLY thing I have organized in my house!!) I try to input the information either as I go along or every few months. I am going to be starting input soon because the tax deadline will fall during the cruise so I can't wait until the last minute like I usually do!

 

[wadesgirl]

Taxes are one thing I don't understand, even Turbo Tax confuses me! If I go to someone, should I look for an independent company or someone like H&R Block? How much does it usually cost to go to someone?

 

[ltkacz]

Without hesitation - CPAWhen the IRS sends a letter saying your taxes are wrong - I'd much rather have the CPA handle it rather than myself - because the IRS will FREEZE everything before they ask any questions, and it's up to you to prove them wrong. I wouldn't want to be in that position.

 

[wadesgirl]

When the IRS sends a letter saying your taxes are wrong - I'd much rather have the CPA handle it rather than myself - because the IRS will FREEZE everything before they ask any questions, and it's up to you to prove them wrong. I wouldn't want to be in that position.

See, that's my thought! I don't want to screw anything up or take deductions that they don't consider deductions!

 

[Shawnna]

I used to do our taxes myself. We have always had a farm and some other business going. But, when I started using a real tax person, we got money back and I feel a lot better about the taxes because she really knows what she is doing.

 

[chefdiana2007]

:cry: : We always used the same lady and she did a great job, now she is gone. So sad, My Dh and I both work, he farms on the side and now I do PC, we used Turbo tax with just our stuff, and then had to refile and pay back taxes, yuck:cry: so we are looking for a good CPA, had one last year and he was AWFUL, So I need a good one in Oklahoma, anybody know of one?

 

[PCSarahjm]

We have a CPA do ours. My Husband has his own business, plus we have cattle/farm,and then my w-2 and now PC. I am like everyone else I feel more comfortable having it done professionally. Then that way if there are any questions then I know I can go to my CPA to find the answers.

 

[cmdtrgd]

I go to H&R Block - love the person I have been working with for a few years now. I do pay for the extra protection and have done so since I started PC - just in case we do get audited.

 

[ChefBeckyD]

We don't have alot of extra stuff - when my Dh had his own construction business, we had a CPA - charged so much that any money we got back had to go directly to him.

It is almost impossible (unless you aren't being truthful) to take a deduction that isn't a valid deduction with TT Premiere. So much so that from what I understand from reading up on it - there is actually much more of a chance you will get audited using a CPA than when using TT.

 

[Bren706]

This is my first year with PC as well. In the past I had done our taxes, except for last year when we had moved from MA to NC during the year, and wanted a professional to do ours since we would have to deal with part-year residency. We went to H&R Block, and unfortunately, I think I knew how to fill out the forms better than they did. In fact, we did get an adjusted amount (less than we expected) because they had filled the taxes incorrectly! UGH! I do want our taxes done by a professional this year, but I am hesitant about uisng H&R Block.

 

[letscook04]

I have my accountant do my taxes

 

[LibrarianChef]

We do them ourselves, but we did use a CPA in the past when hubby was self-employed for several years. We learned a lot back then and we discovered, for us, that it was an extra few hundred dollars to pay our CPA to do something we could do on our own if we invested a few hours. We've used TurboTax and another big one that I can't remember, now. We also used H&R Block's software to do it ourselves and it's my understanding that if the IRA audits you, H&R Block commits to defending your case just as if you came in and used a CPA. A couple years back we were audited, but it was a piece of cake. It looks like it's just a random thing.

Unfortunately I didn't save ALL of my PC receipts this year. Since I'm only deducting what I can PROVE I did this year, I'll not worry about the rest. My deduction are already WAY over what I made this year since I'm a newbie. So I wouldn't need everything, anyway. We've always gotten everything back at the end of the year, regardless. Oh, and I just learned from another self-employed person why it's best not to deduct 15% of my house like many self-employed will do. That would have KILLED us when it came time to sell our home because we definitely consider our home an investment and not a loss of money.

I had to do a lot of reading to learn about this stuff even though we use the software to walk us through each step. I just want to make sure I understand it all before I do the point n' click stuff. If we're ever audited again, I'll know exactly which pieces of paper to copy and send in for each claim.

When the IRS sends a letter saying your taxes are wrong - I'd much rather have the CPA handle it rather than myself - because the IRS will FREEZE everything before they ask any questions, and it's up to you to prove them wrong. I wouldn't want to be in that position.

Have you had this happen? If I'm not mistaken, I think they would freeze things whether you used a professional CPA or not and it just depends on how long it takes you or your CPA to find the documentation to prove what expenses you had for each deduction. Maybe someone on here who had a recent audit can share their experiences. It's been several years since ours. I honestly can't remember if our audit happened when we had our CPA, but I also believe she would charged her regular hourly charge for the time it would take to sort out an audit if we couldn't do it all ourselves. It wouldn't hurt to plan for that expense, just in case.

For us, I'm just making sure I have ALL of my receipts and documentation in order this year so that I can fax it right in if called upon to submit any proof.

 

[Admin Greg]

I used to use TurboTax, but I have an accountant now.

 

[hperschnick]

:cry: : We always used the same lady and she did a great job, now she is gone. So sad, My Dh and I both work, he farms on the side and now I do PC, we used Turbo tax with just our stuff, and then had to refile and pay back taxes, yuck:cry: so we are looking for a good CPA, had one last year and he was AWFUL, So I need a good one in Oklahoma, anybody know of one?

I just PMd you the info for the guy we use in Tulsa.

 

[pamperedgirl3]

We have used a CPA since my husband got out of school. He's a dentist & owns his own business, has student loans & such & I do PC. Luckily, though, his best friend is our CPA, so I don't think we get charged as much!

 

[wadesgirl]

Let me ask this since we are talking about it... Can I deduct my cell phone bill and internet bill since they are primarily used for business purposes??

 

[RebelChef]

I was audited earlier this year from our 2004 return. They didn't freeze anything. We received a letter in the mail telling us what they were questioning and what proof they needed to back up the claim. Ours was mileage and miscellaneous expenses for my husband's job. Some of the proof I no longer had because it was lost in Hurricane Rita. When I sent in a letter of explanation and what I did have, I received a letter back telling me they were disallowing the claim and what we owed. I called and spoke to a rep and she told me that was a form letter that was automatically generated and to wait for the real decision letter. I made sure I didn't need to do anything else and a couple of weeks later the letter came saying the audit had been dismissed. Makes me wonder if that form letter gets many people to pay before the actual decision is made?

My best friend was audited several years ago and it was a nightmare so I guess we were very lucky. I agree that TurboTax is an excellent program. I've never had any problems with it. Other than this instance. lol

FYI..Never, ever send in anything other than what they ask for because they are required to tell you what, specifically, they are questioning. If you send in anything other than what they request you leave yourself open to them auditing another part of the return.

 

[katie0128]

Let me ask this since we are talking about it... Can I deduct my cell phone bill and internet bill since they are primarily used for business purposes??

My FIL does our taxes and since he is a CPA, CFA and VP of Finance for his company, so technically we have a CPA doing our taxes.

The rule-of-thumb that he goes by is that he will let me deduct as a business expense the portion of any bill/expense that is specifically for PC. So if 90% of your cell phone and internet usage is for your business, then deduct 90%.

HOWEVER, while cheffers wouldn't purposely tell you something incorrect, before you take advice from anyone on CS, check with a local tax expert in your area. Some rules and allowances can vary by state and it is always best to ask someone in your area.

 

[wadesgirl]

My FIL does our taxes and since he is a CPA, CFA and VP of Finance for his company, so technically we have a CPA doing our taxes.

The rule-of-thumb that he goes by is that he will let me deduct as a business expense the portion of any bill/expense that is specifically for PC. So if 90% of your cell phone and internet usage is for your business, then deduct 90%.

HOWEVER, while cheffers wouldn't purposely tell you something incorrect, before you take advice from anyone on Chef Success, check with a local tax expert in your area. Some rules and allowances can vary by state and it is always best to ask someone in your area.

I had one consultant in my cluster say that she deducts every kind of home expense: water, gas, etc. That seemed like too much to me, but I do use my cell phone and internet primarily for business purposes.

 

[chefdiana2007]

Thanks hperschnick, got your message, I am new and couldn't figure out how to do a pvt post. I'm, at work and my job is keeping me doing the fun stuff LOL. thanks for the info. Will share with my DH. We have some really good friends that live in your area.

 

[katie0128]

I had one consultant in my cluster say that she deducts every kind of home expense: water, gas, etc. That seemed like too much to me, but I do use my cell phone and internet primarily for business purposes.

Depends on if her office space is a seperate space in the house or not... may be possible to do some of those bills... after all we can deduct for groceries to make new receipes, why not for the water bill to wash the dishes, etc. But I agree with you, even if it is technically legal to do so, that sounds like too much work for me to prove what was PC and what was not.

 

[chefjeanine]

Ditto on Turbo Tax - glad to hear it works with PC business too...do you choose the better options now with a business?

You'll need the one with "Schedule C".

 

[mombird4]

Lucky for me!I was lucky enough to find a friend, who is a CPA for a company, who's wife use to sell Pampered Chef do mine. He knew things about the business that I would have forgotten had he not asked me. Did rather well on my taxes last year:love:

 

[Gina M]

I'm lucky to have a dad who is a CPA - he retired a couple of years ago and now we submit through Turbo Tax - but he takes all my information - plugs it into the computer and prints out my returns. I'll be compiling all my data soon to give to him - we always get a refund so we like to file our taxes late Jan/early Feb. to get that money back!

 

[genburk]

Once the IRS sits at your table and tells you that you owe 'thousands' and I do mean MANY thousands... and he wants you to pay today, you start to use a GOOD CPA.

We had one that didn't let my husband deduct anything (like a 5,000 dumptruck for a trucking company... they will audit you, he said), and it cost us over 15,000 (Not counting penalties, which at least doubles your fees !!) we now use a CPA that will let us deduct many things, but keeps it all legal so we don't have them at our house again.

They didn't freeze anything, but showed up unannounced on a Snowy February Day. They will tell you that you don't need any extra money for school fees, clothes for growing boys, emergency and sick or doctor money, ANY entertainment (like $3 for a movie rental), no Gift money, no cost of living increase, tell you how much you can spend on groceries, and you are supposed to live like this for 6 years on his plan.

Thank goodness my husband found a much better paying job, and we did pay them off in 6 years (counting our nice refund each year!!).

We now use the same person who helped us out with our taxes then to help us now, and we have NEVER recommended the guy who got us there.

 

[lkprescott]

We hire a CPA. We have two businesses (partnership and my PC business... actually 3 for this last year since I also had some residual bookkeeping too), alimony woes and need a professional to keep up with all the deductions (he's good with that too) we take... to us it's worth it plus the cost is deductible the next year so it pays for itself, so to speak. LOL...

I keep the cost down though by preparing great reports and keeping good records so he doesn't have to spend a lot of time other than filling in the right numbers and keeping all the right schedules and forms straight. Of course, good CPAs are like good docs and good mechanics... not all are but when you find a gem, keep 'em! It's sad but in my near decade as a bookkeeper I knew of two CPAs that were just... well, unprofessional and not at all helpful in any respect. I also met and worked with some that were worth their weight in gold.

 

[Intrepid_Chef]

I used to have a friend do my taxes.

The next year, I did my taxes via Turbo Tax and discovered a major error ... I had refinanced my house, volunteer preparer only used one of my tax statements ... I had to file an amended return!

The next year, I had started in direct sales. I rounded up a ton of receipts and thought that was the end of it.

She flagged lots of potential deductions such as:

* How many miles from your house to Wal-Mart (where I bought some supplies.) It didn't matter that I stopped there just because I was on my way home from work ... because my business is based out of my house!
• Medical expenses ... not enough to count for federal return, but it sure counts at the state level.

This year, i had basically no income from my previous product line and business losses I'm not sure I can claim, because I think this was "hobby year" for me. I have a new direct sales business (PC) also with losses. And I have a new dependent. All in all ... I'd feel better if I had an accountant do it for me.

 

[jrstephens]

I use TaxACT Online taxes: FREE online tax filing, IRS efile & income tax preparation and have for years. I do have a friend that is a CPA that I will ask the occasional questions of - I try not to wear my "free" advice out, ha!

I only deduct things I am sure of. I figure better safe than sorry in the long if I do not deduct something I could have.

 

[ahammons]

This is my first year with PC, but I think we'll be using Turbo Tax again. We've used it for the past couple of years and love it. Plus, with DH away right now, it's better if I can do them at home while the kids are sleeping.

 

[Kitchen Diva]

Our Cluster is lucky enough to have an accountant that does our personal and business taxes for under $150.00 total!

We send him enough business throughout the year through referrals that he thanks us by offering us low costs! I'll let you know how it goes- our appt is on the 23rd of February...

 

[DMB75]

My DH does the taxes every year, but this is my first year with PC so I'm not sure how it's going to turn out.