Who Does Their Taxes: DIY or Accountant?

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Discussion Overview

This thread explores the experiences of participants regarding tax preparation, specifically whether to handle taxes independently or seek professional assistance. Participants share their personal approaches and preferences, reflecting on their experiences with various tax preparation methods and services.

Discussion Character

  • Anecdotal
  • Opinion-based

Main Points Raised

  • One participant, identifying as a consultant, mentions this is their first year with Pampered Chef and is curious about others' experiences with tax preparation.
  • Another participant shares their experience of using an accountant due to the complexity of their financial situation, which includes rental properties and a new Pampered Chef business.
  • Several users mention using TurboTax for their personal and Pampered Chef taxes, expressing satisfaction with its step-by-step guidance.
  • One participant notes that keeping organized records makes using TurboTax easier, while another mentions the importance of inputting information regularly to avoid last-minute stress.
  • Some participants express confusion about taxes, with one stating that TurboTax can be overwhelming and questioning whether to hire a professional or use software.
  • One participant emphasizes the value of having a CPA handle tax issues, particularly in the event of an IRS audit, citing peace of mind.
  • Another participant recounts a negative experience with H&R Block, feeling that they could have filled out the forms more accurately themselves.
  • One participant reflects on their past experience with a CPA, noting that they learned a lot and found it beneficial, while others discuss the costs associated with hiring professionals.
  • Several participants mention the importance of keeping receipts and documentation organized for tax purposes, especially for deductions related to their Pampered Chef business.

Areas of Agreement / Disagreement

Views differ on whether to use professional services or handle taxes independently, with some participants favoring accountants for peace of mind and others preferring software like TurboTax for its ease of use.

Contextual Notes

Participants' experiences vary widely based on their individual financial situations, prior knowledge of tax preparation, and the complexity of their tax filings, particularly with the addition of a Pampered Chef business.

Who May Find This Useful

This discussion may be of interest to new Pampered Chef consultants navigating tax preparation for the first time, as well as those considering their options between DIY methods and professional assistance.

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!
 
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.
 
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.
 
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.
 
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. :)
 
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...
 
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.
 
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