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KristineS
08-22-2008, 04:38 PM
My taxes have always been amazingly simple, so I usually use tax software or something like H&R Block online to do my taxes. I'm sure some of you have far more complicated tax situations than I do.

How do you handle your taxes? Do you trust only an accountant or would you use software to prepare your taxes?

Evan
08-22-2008, 05:13 PM
You'd be surprised at how many errors people make using tax programs such as TaxACT or TurboTax. If your tax return requires you to file 1040, and not the shorter 1040A or 1040EZ, your situation may not be as easy as you think. You must file 1040 if:

- Your taxable income is over $100,000
- You itemize your deductions (Schedule A)
- You operated your own [sole proprietorship, or disregarded LLC] business (Schedule C) or farm (Schedule F)
- You have income to report as a partner in a partnership (which should be filing 1065.) Note: husband-wife partnerships can report their distribute share of income now on two Schedule C's.
- You are a shareholder in an S-Corporation, a beneficiary to a trust or estate, or rent real estate. (Schedule E).

Schedule A can be tricky. Schedule C and F also make your chances of an audit higher than if you weren't a sole proprietor.

vangogh
08-22-2008, 06:27 PM
I do my own taxes and do fill out many of the forms you mentioned Evan. I think I've filled out 5 forms in total each of the last few years. And I agree they can be confusing. I'm fortunate in that I have a brother who's an account so I can get advice and answers when I need it, but I can see how many people would want to hire an accountant to take care of things for them.

My pet peeve about tax forms. Why do the forms have instructions for things like how to fill out your name, but always seem to skip the one or two things I actually need? Why isn't there instructions for every field you need to fill out? The ones missing are always the ones where you can't possibly apply common sense.

Evan
08-22-2008, 09:47 PM
My pet peeve about tax forms. Why do the forms have instructions for things like how to fill out your name, but always seem to skip the one or two things I actually need? Why isn't there instructions for every field you need to fill out? The ones missing are always the ones where you can't possibly apply common sense.

You expect far too much from the IRS.

vangogh
08-22-2008, 10:02 PM
I guess so. I've always wondered though, why just a few items are missing instructions.

orion_joel
08-23-2008, 04:22 AM
Maybe they are the trick questions, Vangogh, and if they gave you a hint then you might get it right.

I make use of software through out the year to track everything for my business then i just take a copy of the profit and loss with me to the accountant. i prefer to file with an account because i have had some less then straightforward issues in the last few years and they can make it all seem a lot easier.

KristineS
08-24-2008, 09:29 AM
I know our CFO spends a lot of time doing taxes but then we have branches in 5 states. I'm thinking I might use an accountant to do my personal taxes this year, just because of the house.

vangogh
08-24-2008, 12:07 PM
You might be right Joel. Maybe I've been looking at it all wrong and need to realize it's just a game and if I can get the questions right I win a nice prize.

KristineS
08-24-2008, 12:19 PM
I'm not sure that I want to know what the IRS would consider a "nice prize"

vangogh
08-24-2008, 12:43 PM
I'll take no taxes for life. Somehow I think the prize is really staying audit free.

Evan
08-24-2008, 09:49 PM
I'm not sure that I want to know what the IRS would consider a "nice prize"

An Audi.

I mean an audit.

KristineS
08-24-2008, 10:01 PM
Apparently we have different definitions of "nice", Evan.

I wouldn't call an audit nice.

Now an Audi on the other hand. That might do.

Evan
08-24-2008, 11:24 PM
Apparently we have different definitions of "nice", Evan.

I found it funny though :D

KristineS
08-25-2008, 08:05 AM
It was funny. A little goofy even.