Talk to me about hiring a tax professional

blabla89 · January 2015

I know next to nothing about taxes and I'm hoping you ladies can share some insight with me. I've been doing my own taxes online (turbotax, HR block, etc.) for years but this year I'm considering the costs and benefits of hiring a professional to do my taxes. Do any of you ladies use a professional? What was your experience like? How much can I expect to pay, and what kind of documentation do they need?

I don't make a lot of money, but in addition to my salary, I have a small amount of income (from my late mother's retirement plan) that is taxable in a different state. So I pay taxes to two different states, and all of the online tax services use my entire total income to populate the forms for both states, so I end up paying double state taxes on all my income. This didn't bother me as much when it meant that I was getting less of a refund than I otherwise could have - but now I'm going to owe taxes, actually paying more out of pocket. I assume someone who is familiar with all the forms would know how to handle this and work around it, but I'm clueless and afraid of doing it wrong.

Jells2dot0 · January 2015

We use an accountant that my DH has used for 20 years. We pay taxes in two different state, have rental income, multiple homes, secondary independent contractor income, child deductions (including tuition stuff) every other year, and other investment income. We pay A LOT- like $700-$800 for everything- but the accountant also sends us personalized packet that makes providing our data very easy.

labro · January 2015

Ummm yikes! When I used TurboTax to file my taxes for two different states I definitely didn't have that problem...but it was regular income so maybe it worked out differently?

Anyway, I'm stalking this thread. H and I are considering hiring an accountant as well. We're borderline in one bracket and I want to see what's possible (or if it's worth it for us) to even try and get into the next lower bracket.

Maggie0829 · January 2015

H and I have always just made an appointment at our local H&R Block when it is time to do our taxes. Before that my Dad did mine via TurboTax but that was when it was simple (part-time job, college student living at home). I think it costs us about $150-200 to get it done. As far as what they need well that will depend from person to person in regards to what you have to declare. So when all the tax forms start rolling in in January I just collect them all. H has to print out his school loan form since they won't mail that and I always take in the year end bank statements though I am not sure they use them. It is best to bring anything and everything you think is important then not.

But if you have questions you can always call up and ask questions and such. Even when they are doing your taxes ask questions and if you have forgotten something I am sure they are used to that and will hold off on submitting your return until you bring it in.

For me, paying a hundred bucks or so is so worth it because tax stuff is like me trying to read something upside down, backwards, and in code...confusing as fuck.

theartistformerlyknownas · January 2015

Bla. Can't @jenna8984 do my taxes? ;-)

I'm thinking about it too, cuz of the stupid wedding fucking up my nice easy taxes. :-p

NYCMercedes · January 2015

Last year was the first time we had a professional and paid $700 and ours is complicated. Best $700 I ever spent. Totally worth it.

blabla89 · January 2015

lolo883 said:

Bla. Can't @jenna8984 do my taxes? ;-)

I'm thinking about it too, cuz of the stupid wedding fucking up my nice easy taxes. :-p

That's where I'll be at next year (and possibly in a similar situation as @LaPeanut1018) so we'll probably hire someone then. I'm just wondering if I should bite the bullet and start this year.

cupcait927 · January 2015

H and I always did ours on our own using TurboTax but this year I think we're going to have someone do them for us. We bought a house and got married in 2014, plus we both got raises and I don't really understand the whole tax bracket thing in regards to income. My mom's husband had a part time gig for years doing taxes at H&R Block so I'll be able to talk to someone I know personally and he won't charge us as much as a professional. I do know from other people that the cost can be between $100-$200 (on average) - totally worth it in my opinion.

jenna8984 · January 2015

lolo883 said:

Bla. Can't @jenna8984 do my taxes? ;-)

I'm thinking about it too, cuz of the stupid wedding fucking up my nice easy taxes. :-p

@lolo883 I would too! I do all my friends' who are single/ no kids for $20! Unless your situation is like @Jells2dot0, basic taxes are so easy. House deductions, student loan deductions, no problem. But once you get into that stuff she was saying like multilple homes and contractor income I'm not well versed enough in that so I send people to the pros. I'm a real accountant, but I do corporate journal entries not personal taxes for a living.

But anyways, it might benefit you to see someone this year just to straighten out the two states thing. But I would ask a million questions and take notes, so that you understand it and can then do it on your own going forward. You absolutely are missing something on a form because I have worked in two states and there's a VERY obscure line on a separate schedule that says "taxes paid to another jurisdiction" in which you record the other state and they deduct it from your bill. So like when I lived in MA and worked in CT, MA would say "you owe us $2,000" and I'd put on the schedule that I already paid CT $1500 and then it would drop my MA bill to $500. The MA bill would not double tax me. So definitely see someone, get that straightened out. It shouldn't be more than $150 but again, I think it's silly to pay that every single year. I think you should learn all you can from them so you don't have to go back (until things maybe get more complicated down the road).

Inkdancer · January 2015

I use the accountant who used to do my mom's. It's around $125, but it only takes him about 20 minutes to do everything and then we get a beautiful check in the mail. I love it, and it is 1000% worth it to me.

JennyColada · January 2015

I always went to H&R Block and it was typically around $180 for just me. My taxes aren't that complicated though (just regular income, some mutual funds, sometimes a 401K rollover, and a few years that I had tuition credit). Mainly I was just lazy and new that they'd do it and keep a record for me.

DH has done his own taxes via Turbo Tax for years. He started because one year he went to H&R and they didn't know how to process his long-term investments. Like, they seriously looked at him and said "we don't know how to do this."

So he'll be doing our married taxes as well.

JoanE2012 · January 2015

I always used Turbo Tax until DH and I got married. Found an accountant a few towns over (in a lower COL county) that did them for $125 last year! Geez, between the turbo tax and filing fees and time to fill in the data, paying someone is almost cheaper and definitely less annoying! We don't have anything too complicated though. We just throw everything in a folder as we get it in the mail and then take it to her.

huskypuppy14 · January 2015

I've done my own taxes every year. My husband always has someone do his, though. This year it's a little more complicated because we're married, we bought a house, I sold some stock. But I think using the tax software I can figure it out. It shouldn't be too difficult, it's just answering the questions and filling in the appropriate amounts. I paid estimated taxes, due to my stocks so that's an additional thing to add. I think we'll still owe money though, we'll see.

If I get too confused, than I'll go to a tax professional.

Sugargirl1019 · January 2015

I'm hiring @jenna8984‌ because ain't nobody got time for taxes.

My parents use an accountant and my mom works alongside her to make sure she gets the most accurate tax return (we are a HUGE medical bills family). My mom loves it. I've only ever used the free turbo tax for myself. This year will be the first time I am doing it with DH, and I'm nervous about tracking down all of his papers as well as mine and plus house papers.. Student loans.. We are probably "easy" according to Jenna, which is why I'm volunteering her to accept my 20 bucks and do it for me.

Or I can try it on my own. Whatever.

If I didn't have someone knowledgeable like my mom to ask for help, then I would probably hire someone.

FiancB · January 2015

I used to use H&R but I have a similar situation and felt they probably didn't really know what they were doing. I've gone to an accountant the last couple years and it hasn't cost much more than H&R did, maybe $50, $100 tops. It's worth the peace of mind for a complicated situation, especially throwing a new marriage into the mix.

huskypuppy14 · January 2015

OMG I forgot @jenna8984 lives near me. I can actually bring my taxes to her if I need help.

lurkergirl · January 2015

And in today's featured story on CC:

"Personal Accounting Tips: When to DIY and When to.Hore a Professional" with guest speaker @jenna8984

On tomorrow's agenda: legal advice with @‌jcbride2015

And join us next week when our sexy scientists present a forum to answer that burning question: Just what IS going on down there?!

Edit: omg I said hore a professional haha hahaha I'm just gonna leave it!

jenna8984 · January 2015

hahaha you guys are awesome! @hukypuppy14 I think you're actually really close to my office where the Pike meets 495!

I will say that I would recommend anyone who does prefer professional help to go to an actual C.P.A. The people who work for H&R block and Jackson Hewitt are NOT accountants and don't have an accounting degree. They take a course for a few weeks and pass an exam and that's it. They are basically trained how to enter someone's info into turbo tax. They make $8 an hour and sometimes commission. So if you have complicated stuff, be like Jells and go to a real CPA.

labro · January 2015

@jenna8984 I do have to say the training for H&R Block is ridiculously insane though. My dad lost his job last fall and thought about picking up something like H&R Block as a temp. job. He studied like mad and showed us all of his program materials. I couldn't believe that they only pay $8 an hour after the level of detail I saw he went in to. They seem to take the training and testing VERY seriously for such a low wage position.

huskypuppy14 · January 2015

jenna8984 said:

hahaha you guys are awesome! @hukypuppy14 I think you're actually really close to my office where the Pike meets 495!
I will say that I would recommend anyone who does prefer professional help to go to an actual C.P.A. The people who work for H&R block and Jackson Hewitt are NOT accountants and don't have an accounting degree. They take a course for a few weeks and pass an exam and that's it. They are basically trained how to enter someone's info into turbo tax. They make $8 an hour and sometimes commission. So if you have complicated stuff, be like Jells and go to a real CPA.

That's like 10 or 15 minutes from my house.

jenna8984 · January 2015

LaPeanut1018 said:

@jenna8984 I do have to say the training for H&R Block is ridiculously insane though. My dad lost his job last fall and thought about picking up something like H&R Block as a temp. job. He studied like mad and showed us all of his program materials. I couldn't believe that they only pay $8 an hour after the level of detail I saw he went in to. They seem to take the training and testing VERY seriously for such a low wage position.

I know, I was shocked too! I wanted to do it after work from like 5-10pm just to make extra money and when I found out the rate I was like nevermind, not worth my time!

princessofgenovia · January 2015

My taxes are super easy, I own nothing, I'm not married, I have no kids, I could totally do my own on turbo tax. But my friend just got her CPA (license? Degree? both? she's a CPA now) and she's doing mine this year because I hate doing my taxes and usually put it off to the last minute. She told me I could just take her out to dinner afterwards, which sounded good to me. The H&R people never wanna go get dinner with me.

jenna8984 · January 2015

@princessofenovia That's awesome! I do that too, I'm like come to my house Saturday morning with eiher $20 or some bomb ass food. hahah

Jen4948 · January 2015

If you only have a few things to report such as W-2s, interest on a bank account, mortgage, property taxes, and charitable contributions, H&R Block, Jackson Hewitt, Liberty Tax Service, etc. are fine. If you have to file in lots of states or cities, own any businesses or have lots of investments, it probably makes sense to get a CPA to do your tax returns.

arrippa · January 2015

jenna8984 said:

hahaha you guys are awesome! @hukypuppy14 I think you're actually really close to my office where the Pike meets 495!
I will say that I would recommend anyone who does prefer professional help to go to an actual C.P.A. The people who work for H&R block and Jackson Hewitt are NOT accountants and don't have an accounting degree. They take a course for a few weeks and pass an exam and that's it. They are basically trained how to enter someone's info into turbo tax. They make $8 an hour and sometimes commission. So if you have complicated stuff, be like Jells and go to a real CPA.

Not to tthreadjack, but I lived in Westboro when I first moved to MA. Very close to the Pike and 495.

I always use Tax Act for my taxes. I always seem to get more back then when I take it to H&R Block so I file with Tax Act.

VulgarGirl · January 2015

I take all my taxes to my CPA buddy. She does the taxes, I play with her cute kid. She also does taxes for my business. We pay her $100, she says we don't have to, but it's a lot of work so we do.

Her text to me when gay marriage was legalized in our state was "I'm so fucking happy your taxes aren't going to be fucking complicated!!!" because before we would be married per the feds and could file jointly on our federal taxes. But we wouldn't be married per the state, so we had to file separately on the state side. She was reading up on the laws to figure out how she'd do our taxes.

jenna8984 · January 2015

@arrippa That's awesome. My bestie is from Westboro, very close to my work

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