Tax time.

[mapguy]

The wife and I make about $90k combined. We have been using TurboTax for the last 5 years and, with the exception of the year we owned a house, we have got dinged every year. So, would it be best to go to an accountant, (If so, what is the cost) to HR Block or continue with TurboTax. THoughts?

[cameraman]

TurboTax finds just as many deductions as an accountant will for a hell of a lot less money. If you are getting dinged every year just adjust your withholding to make the problem go away. Generic withholding numbers are rarely correct with more than one income.

[milwfan]

What cameraman said. If you consistently owe, and no major changes are made in other deductions, the only way to avoid owing is to change your withholding. By how much depends on your philosophy: do you want to use the feds as an interest-free savings account? If so, increase your withholding until you anticipate a large enough refund. Do you just want to come out closer to zero? Divide your usual shortfall over the number of pay periods for either you or your wife, and have PR add that amount to withholding every paycheck.

[Insomniac]

The wife and I make about $90k combined. We have been using TurboTax for the last 5 years and, with the exception of the year we owned a house, we have got dinged every year. So, would it be best to go to an accountant, (If so, what is the cost) to HR Block or continue with TurboTax. THoughts?

If you're not getting hit with a penalty, and you simply just owe, then that's extra money you had over the course of the past year. Always good, that is, unless you spent it all and now you're in trouble. ;)

[Ankf00]

my housemate withholds nothing, instead takes what would be withheld weekly and deposits the amount in an ING savings account to be paid off at the end of the year.

[cameraman]

If you make too much you will get penalized for that unless you file quarterly.


In general, you may owe the penalty for 2006 if you did not pay at least the smaller of 90% of the tax shown on your 2006 tax return or the tax shown on your 2005 tax return.

[Andrew Longman]

Using a tax guy has a few advantages. He/she can suggest just how aggressive you want to be on certain deductions, he/she can help intermediate between you and your spouse on money matters, and finally you don't have to do it.

I've had a guy come to my house every February, sit at my dining room table and file everything electronically. After growing up watching my mom and dad go at it every tax season, I see it as invaluable.

More importantly, I suggest a good certified financial planner. For the same reasons as above it is great to have a third party handle such stuff. He has also found all sorts of ways to save/make money for me and found ways to get me properly insured. All of which frees me and my wife to enjoy life and marriage.;)

[cameraman]

If you have a computer and you use it right you can knock off your taxes in an hour or two. TurboTax cost me about $20 at Costco, $40 if you have a ton of stock sales to track. It is cut & paste from a spreadsheet, print, sign and mail. I'll be damned if I am going to pay to file online especially when I'll end up owing the feds ~$200-.

[Insomniac]

If you make too much you will get penalized for that unless you file quarterly.

Couldn't you cut a check before year end? IIRC, how much you gave them quarterly only matters if you get hit with a penalty.

[cameraman]

I'm not sure. 28 years ago I had had to fill out form 2210 and pay the penality, I have made damned sure that the withholding has been correct ever since. What ever interest I might make pales in comparision to the IRS penalities.

[TrueBrit]

Stick with TurboTax. Ease of use, price, and just as effective.

[ChampcarShark]

I preffer Tax cut over turbotax.

From H&R block Tax cut makes a little more sence to me. Been using it for 10 years with o problems, used turbotax once, did not like the interface.

Anyways, I got advice from reading the help files, do not know if it still is listed in tax cut. To avoid owing money, if you file jointly, have one person list all dependents in his/her w4 form and the spouse list 0 dependents. more money is deducted out of one paycheck but then at the end of the year you will not owe any monies to the irs.

[nrc]

Back during the TurboTax spyware/copyprotection debacle I switched to Tax Cut and liked it pretty well until all the special offers and ads got annoying. At that point I decided to switch to something I could use from my Linux desktop and found TaxAct (http://www.taxact.com/). It's cheap and pretty complete, but not as friendly as some of the others.