| Posted By |
Message |
| Pages: [1] 2 |
baghag
:P
Member since 5/05 10278 total posts
Name:
|
Accountant vs. HR Block vs. Do it Yourself
Which one do you do, and why?
Is there a "best" way to do it?
|
Posted 2/16/06 12:37 PM  |
| |
|
Redhead
You Live, You Learn
Member since 5/05 31871 total posts
Name:
Jennifer
|
Re: Accountant vs. HR Block vs. Do it Yourself
IMO..an accountant
I went to HR Block for 2 years and got barely anything...
Went to an accountant and $$$$$
|
| Posted 2/16/06 12:39 PM |
| |
|
Shelly
She's 7!!!
Member since 8/05 14624 total posts
Name:
|
Re: Accountant vs. HR Block vs. Do it Yourself
I always go to an accountant. Too many people I know got screwwed with H&R Block. I only DIY when I was a student, a dependent, and had no deductions.
|
| Posted 2/16/06 12:46 PM |
| |
|
wilandnet
LIF Infant
Member since 9/05 224 total posts
Name:
|
Re: Accountant vs. HR Block vs. Do it Yourself
Posted by Redhead
IMO..an accountant
I went to HR Block for 2 years and got barely anything...
Went to an accountant and $$$$$
ditto
|
| Posted 2/16/06 12:46 PM |
| |
|
DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
|
Re: Accountant vs. HR Block vs. Do it Yourself
It seems like most people say accountants get you more back because they can "deduct more".
Which leads me to the question.... what in god's name can they be deducting that will get you more back compared to using TurboTax? Makes me wonder if what these accountants are doing is actually legal or not.
Think about it. The average homeowners. What can they deduct? Their state taxes paid. Their property taxes. Their mortgage interest. What else is there really? Charitable contributions?
You can't deduct home improvements because home improvements now calculate into your "cost basis" which is part of the new gains law.
You can't deduct moving expenses unless you were forced to move by your job.
What else is there? I am VERY skeptical when people say they got back way more $$$$ using an accountant.
|
| Posted 2/16/06 12:50 PM |
| |
|
Redhead
You Live, You Learn
Member since 5/05 31871 total posts
Name:
Jennifer
|
Re: Accountant vs. HR Block vs. Do it Yourself
I really don't care what they do...as long as i get some $$$$$
|
| Posted 2/16/06 12:59 PM |
| |
|
dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
|
Re: Accountant vs. HR Block vs. Do it Yourself
We use a accountant because I am on a 1099 and DH is on a W-2. I essentially have my own small business. Plus, with the tax detections for the house now, I don't want to pay out one penny more then I have to.
My brother used Turbo tax and loved it! He owns a home and my SIL and my brother work full time, and do not have children. So for them, it works. He did it himself online.
|
| Posted 2/16/06 1:02 PM |
| |
|
DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
|
Re: Accountant vs. HR Block vs. Do it Yourself
Posted by dandr10199
We use a accountant because I am on a 1099 and DH is on a W-2. I essentially have my own small business.
Oh yeah. If you are 1099... using an accountant always works. I definitely would NOT want to do my own taxes if I was a contracted employee or if I owned a business.
|
| Posted 2/16/06 1:03 PM |
| |
|
dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
|
Re: Accountant vs. HR Block vs. Do it Yourself
Posted by DjPiLL
Which leads me to the question.... what in god's name can they be deducting that will get you more back compared to using TurboTax? Makes me wonder if what these accountants are doing is actually legal or not.
What else is there? I am VERY skeptical when people say they got back way more $$$$ using an accountant.
If you own your own business Turbo Tax does not pick up a lot of deductions you are entitled to legally. I think Turbo tax is great if you do not own a business.
ETA: Sorry DJPill, I did not see what you wrote before I posted this.
Message edited 2/16/2006 1:06:13 PM.
|
| Posted 2/16/06 1:03 PM |
| |
|
DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
|
Re: Accountant vs. HR Block vs. Do it Yourself
Posted by Redhead
I really don't care what they do...as long as i get some $$$$$
Did you ever try to use turbotax on your own to see if you would have come up with the same $$$$$$ back?
|
| Posted 2/16/06 1:04 PM |
| |
|
ODonnell
.
Member since 9/05 5983 total posts
Name:
|
Re: Accountant vs. HR Block vs. Do it Yourself
Posted by DjPiLL
You can't deduct home improvements because home improvements now calculate into your "cost basis" which is part of the new gains law.
That's true. Friends have said "well, we bought a house, we can write off the closing costs, and the new roof, etc." and you can't - only when you sell can you apply it against the profits. We have a tax attorney at work and he guided me. The only closing costs I could write-off were the pre-paid interest and taxes.
|
| Posted 2/16/06 1:06 PM |
| |
|
dooodles
When you wish upon a star
Member since 5/05 11997 total posts
Name:
Because 2 people fell in love
|
Re: Accountant vs. HR Block vs. Do it Yourself
Due to circumstances last year, we had to file last minute with a new accountant and got $crewed. This year we're using a new acct who was recommended (last one I used moved away).
I prefer accountants and generally do get more $$$$ back
|
| Posted 2/16/06 1:07 PM |
| |
|
dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
|
Re: Accountant vs. HR Block vs. Do it Yourself
Posted by ODonnell
That's true. Friends have said "well, we bought a house, we can write off the closing costs, and the new roof, etc." and you can't - only when you sell can you apply it against the profits.
Make sure you file and hold onto ALL of your home improvement receipts.
Message edited 2/16/2006 1:08:18 PM.
|
| Posted 2/16/06 1:07 PM |
| |
|
DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
|
Re: Accountant vs. HR Block vs. Do it Yourself
Posted by ODonnell
Posted by DjPiLL
You can't deduct home improvements because home improvements now calculate into your "cost basis" which is part of the new gains law.
That's true. Friends have said "well, we bought a house, we can write off the closing costs, and the new roof, etc." and you can't - only when you sell can you apply it against the profits. We have a tax attorney at work and he guided me. The only closing costs I could write-off were the pre-paid interest and taxes.
Exactly.
Now I will be the first to say I am no accounting expert.
But there are a LOT of people out there that are just not educated in this area. They think you can deduct EVERYTHING... and frankly you can't. Yeah you can write off stuff like mortgage points and some closing costs. But if you install a new roof, or add an extention to your house, you can't deduct this. Thats called "double dipping" your taxes and its no longer allowed with the new gains law.
The people that deduct these home improvement items are lucky they don't get flagged by Uncle Sam.
|
| Posted 2/16/06 1:09 PM |
| |
|
ODonnell
.
Member since 9/05 5983 total posts
Name:
|
Re: Accountant vs. HR Block vs. Do it Yourself
Posted by dandr10199
Posted by ODonnell
That's true. Friends have said "well, we bought a house, we can write off the closing costs, and the new roof, etc." and you can't - only when you sell can you apply it against the profits.
Make sure you file and hold onto ALL of your home improvement receipts.
I always do I used all my receipts against the sale of my co-op - but the profit wasn't even close to $250k, so it didn't matter ($500k if you own jointly).
|
| Posted 2/16/06 1:12 PM |
| |
|
CathyB
Member since 5/05 19403 total posts
Name:
|
Re: Accountant vs. HR Block vs. Do it Yourself
Accountants can catch some of the work related deductions that Turbo Tax glosses over. Like if you are in the military, police, etc. and required to keep your hair short you can deduct hair cuts, you can deduct uniform and equipment expenses, etc. Turbo Tax does not allow you to enter those, even if you tell it that your profession is one of these.
|
| Posted 2/16/06 1:12 PM |
| |
|
DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
|
Re: Accountant vs. HR Block vs. Do it Yourself
Posted by dandr10199
If you own your own business Turbo Tax does not pick up a lot of deductions you are entitled to legally. I think Turbo tax is great if you do not own a business.
ETA: Sorry DJPill, I did not see what you wrote before I posted this.
Well I never knew TurboTax did a crappy job with their business product. Thats good to know. But I do know if i owned a business... i would pay to have my taxes done for me anyways. 
|
| Posted 2/16/06 1:13 PM |
| |
|
oneday
<3
Member since 5/05 4319 total posts
Name:
Pam
|
Re: Accountant vs. HR Block vs. Do it Yourself
I would think it's not so much that they do things that are illegal, but just that they find little extras that the program might not pick up on (like was said, esp if you are self employed.) Just things that maybe you wouldn't think of, an accountant can ask more specifics.
I work for an accountant and last year one guy helped me out - I had used the online programs for years, with no real problem, except something that we must have misunderstood b/c we would get a letter later on in the year that we owed a small amount back. When I had the guy here look at it for me, he found what the problem was so no letter last year. Now that we have the house and more investments and whatnot, I find it better to have someone to actually speak to, to help me understand better.
|
| Posted 2/16/06 1:14 PM |
| |
|
Redhead
You Live, You Learn
Member since 5/05 31871 total posts
Name:
Jennifer
|
Re: Accountant vs. HR Block vs. Do it Yourself
Posted by DjPiLL
Posted by Redhead
I really don't care what they do...as long as i get some $$$$$
Did you ever try to use turbotax on your own to see if you would have come up with the same $$$$$$ back?
nope...never tried it
|
| Posted 2/16/06 1:14 PM |
| |
|
Janice
Sweet Jessie Quinn
Member since 5/05 27567 total posts
Name:
Janice
|
Re: Accountant vs. HR Block vs. Do it Yourself
I am the H&R block vote. The two times that I strayed and went private did not work at all. One guy got audited and the other totally messed up on my husband's tuition receipts. I feel safe with H&R block.
|
| Posted 2/16/06 1:15 PM |
| |
|
DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
|
Re: Accountant vs. HR Block vs. Do it Yourself
Posted by oneday
I find it better to have someone to actually speak to, to help me understand better.
Well if you are the type of person that prefers to speak to a live person so you can learn more about the process... then thats worth the cost of the accountant.
I did a lot of reading online... looked at a lot of different tax sites... finance forums... read about other people's issues. Reading this allowed me to interpret what TurboTax is saying in their questionaire a lot better.
Thats how I learned what I know.
Like I said though in a different thread... i will probably use an accountant for this year only. I had a residency change... and its my first year being married. So there are a lot more areas on the tax form that I can theoretically "screw up".
I'll do the taxes on my own... print them for my own records. Then i'll have the accountant do them and I will look them both over to see how accurate I was. 
|
| Posted 2/16/06 1:17 PM |
| |
|
Eva Luna
Be kind...life's hard!
Member since 8/05 4750 total posts
Name:
God, bless & heal my DH, JenG's DH Rob & DebG
|
Re: Accountant vs. HR Block vs. Do it Yourself
I used to use an accountant...and then DH was audited due to his negligence. Of course, thank God, nothing on our part was illegal but it was a hassle having to go through the steps to prove that we were right (which is what an audit is...proving what is claimed). Now we use Turbo Tax and it works fine. We actually got more money back last year than in previous years with an accountant.
|
| Posted 2/16/06 1:18 PM |
| |
|
pmpkn087
Life is good...
Member since 9/05 18504 total posts
Name:
Stephanie
|
Re: Accountant vs. HR Block vs. Do it Yourself
I use an accountant. My dad, who owns his own business always used him, so when I was in school, he would do mine for free. Then, I just stuck with him.
|
| Posted 2/16/06 1:18 PM |
| |
|
tourist
Member since 5/05 10425 total posts
Name:
|
Re: Accountant vs. HR Block vs. Do it Yourself
I voted DIY, but I have never used TurboTAx or anything like it. I just read the book carefully, but I know we don't anythng to deduct.
I saw someone's taxes once when she got them back from her tax guy & he deduction unform expenses & I know for a fact she never bougth any type fo clothing item specifically for work.
ETA-keep in mind you are responsible for your taxes, even if you have a professional prepare them.
Message edited 2/16/2006 1:25:14 PM.
|
| Posted 2/16/06 1:23 PM |
| |
|
DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
|
Re: Accountant vs. HR Block vs. Do it Yourself
Oh... i just did some more reading online. There is one scenario where I would definitely use the accountant.
If I had to pay a significant amount of MEDICAL BILLS for the tax year... out of pocket.
If you have insurance... then its not an issue. But if you had to pay for a lot of medical care on your own... then its worth talking to an accountant.
|
| Posted 2/16/06 1:25 PM |
| |
|
| Pages: [1] 2 |
