Filing together for the first time...

Knottie92576442 · February 2016

My husband and I were married last year, so we are filing our taxes together for the first time this year. I have always used TurboTax and loved it, but he likes to use a CPA who is more expensive, be we can call him if there are ever any issues. I'm just not sure about giving it to someone else (whom I've never met) to do. Anyone have negative experiences with either TurboTax or using a CPA to file?

als1982 · February 2016

We use Turbo Tax and have had no problems with it. Our return is fairly straightforward, but we itemize, file in multiple states and in some years H has some side income to report. The only time I used a CPA is when I was getting the $8,000 first time home buyer incentive in 2009. Otherwise, unless your situation is particularly complex, I think going to a CPA is a waste. (And I'm the daughter of a CPA...)

jessica490 · February 2016

My dad has always done our tax return. I actually watched him use the HR Block program this time and it looks very easy to follow. I can't imagine paying someone to do it for us as our situation is pretty simple and straight forward. God forbid something ever happened to my father, I would attempt it on my own.

Xstatic3333 · February 2016

How much does your CPA charge? We do pay one because we are complex; we each work in different states, one of which doesn't have a good online interface, and H's state retirement gets a weird code (Z) that TurboTax doesn't like. He charges $300. I did get audited once on my college tuition credit (if that's the wrong term I apologize) and it was very nice to just have him deal with it, no extra fees required. If we weren't complicated, however, I'd use TurboTax. I had good experiences with it when I was single and not filing in RI (bad online interface state).

LillibetteV · February 2016

My dad has always done mine (he's owned a tax prep business my entire life, also works as an accountant, and took the RTRP exam a few years ago) and in past years when my return was really simple I felt like I could have done it myself - but it makes him feel needed so I let him do it. This year....I tried to get an estimate myself and realized I messed something up big time - we have more income streams and more deductions and I called him in a panic the other day because my math has us owing a fair amount. I'm hoping he can work some magic or that I somehow did it completely wrong (although I don't think so). My point is though that the more complicated your return is the more hiring a professional becomes worth it.

hoffse · February 2016

It depends on how complex your H's taxes are. If you guys are both W2 employees with no (or few) 1099's and you guys work in the same state, I don't really see the point in using an accountant.

Now if you own a small business or one of you is a partner in a partnership and gets a K-1, etc. then I guess I can kind of see the point.

I have used HR block the last two years. For 2015 our tax return included: two W2's, your typical itemized deductions for mortgage interest, charitable contributions, etc., employer-funded HSA accounts, income and expenses from a sole proprietorship that my H runs, 529 contributions, and a Roth IRA conversion. The computer program handled all this stuff just fine, and when I reviewed the tax returns before e-filing, everything appeared correct to me and all the schedules were attached.

For the sake of argument I have to admit that my perspective on this is really skewed because of what I do for a living. I'm personally really gunshy about using an accountant simply because my job is to help people when their accountants screw up. For that reason, I encounter a disproportionately large number of really bad ones. By bad I mean the "forgot to include $1M of income on the tax return" bad (yes, that happened). Anyway for that reason, our taxes would need to be seriously complex before I would pay somebody else to do them.

I think that most people who use accountants really like them and find the fees well worth the money so they don't have to deal with the tax stuff themselves. I just can't bring myself to relinquish that control to somebody else, lol.

jessica490 · February 2016

My co-worker pays $275 to get hers done since she got married (her father used to do it prior). That's a lot of money! but maybe it's a normal amount?

short+sassy · February 2016

I have a fairly complicated return (W-2, 1099, plus side income that isn't 1099'ed, plus rental income) and I use Turbo Tax Premier. There is also a slightly less expensive version called Turbo Tax Home and Business that looks to be primarily for people who have some/all 1099 income.

My H and I just bought our first non-owner occupied rental home (though no rent in 2015 for it) and he was freaking out that I need to start using an accountant for our taxes. Then I showed him exactly what Turbo Tax Premier does, specifically in regards to rental properties. He was blown away and totally changed his tune. Chalk up a win, and huge savings for not using an accountant, for short+sassy.

Although that's a specific example, I have just found Turbo Tax to be really easy to use for all my income streams and expenses related to, both my side jobs and rental income.

julieanne912 · February 2016

Agreed w/ it depending on how complicated it is. I use a CPA because my situation is always a bit complicated with 1099s etc., and I like having the CPA's guidance on how far I can push my write offs.

We're in the same boat as you... our first year filing as a married couple. We're using a CPA again because we'd rather have him look at it to see if we should file separate or together based on our situation.

@jessica490, that's about average I think. Our guy, who is a friend, is charging us $400 for both of us ($200/each). In the past I've paid in the $250-275 range for myself. I think it's worth it because of my situation... I wanted some back up in case there were issues with my write offs.

In the one year I just had one W2 and nothing really complicated, I did just use Turbo Tax.

jessica490 · February 2016

Wow! That's crazy! I've never looked into it but I swore I saw a sign in Walmart 1 time where H&R Block is there and can do you tax return for $50...maybe there was more to it lol.

als1982 · February 2016

jessica490 said:

Wow! That's crazy! I've never looked into it but I swore I saw a sign in Walmart 1 time where H&R Block is there and can do you tax return for $50...maybe there was more to it lol.

But those aren't CPAs (Certified Public Accountants). Storefronts like that just hire people off the street and provide them with a short training (weeks, not years). With no degree or previous knowledge required, you're better off doing them yourself online.

LillibetteV · February 2016

als1982 said: jessica490 said: Wow! That's crazy! I've never looked into it but I swore I saw a sign in Walmart 1 time where H&R Block is there and can do you tax return for $50...maybe there was more to it lol.
But those aren't CPAs (Certified Public Accountants). Storefronts like that just hire people off the street and provide them with a short training (weeks, not years). With no degree or previous knowledge required, you're better off doing them yourself online.

Agreed! My dad is a pro that's been doing taxes for some 30 years and he goes to continuing education seminars every year because the tax code changes all the time. I wouldn't pay anyone except a CPA (that specializes in taxes since not all do) or a RTRP.

jtmh2012 · February 2016

We use TurboTax to file our taxes and they're what I'd call semi-complicated (two jobs, 401ks, taxable investment accts, etc). My neighbor is a CPA, uses TurboTax to do his.

I personally don't think an accountant is worth it unless you've got something really weird/complicated going on.

You can even change your filing options in the software to see if joint/separate is better for you and if you're worried about an audit, you can even pay extra for audit defense or to have your return checked.

jessica490 · February 2016

als1982 said:

jessica490 said:

Wow! That's crazy! I've never looked into it but I swore I saw a sign in Walmart 1 time where H&R Block is there and can do you tax return for $50...maybe there was more to it lol.

But those aren't CPAs (Certified Public Accountants). Storefronts like that just hire people off the street and provide them with a short training (weeks, not years). With no degree or previous knowledge required, you're better off doing them yourself online.

oh ok! Never knew

short+sassy · February 2016

jtmh2012 said:

We use TurboTax to file our taxes and they're what I'd call semi-complicated (two jobs, 401ks, taxable investment accts, etc). My neighbor is a CPA, uses TurboTax to do his.
I personally don't think an accountant is worth it unless you've got something really weird/complicated going on.
You can even change your filing options in the software to see if joint/separate is better for you and if you're worried about an audit, you can even pay extra for audit defense or to have your return checked.

Now that you mention it, my ex b/f's friend is an accountant and he makes side income during tax time preparing people's returns. He literally just uses Turbo Tax for his own return and for most of his clients. Though he does look over them and has that kind of knowledge, if there are questions or something out of whack.

JoanE2012 · February 2016

We use an accountant about 20 min away who is in a LCOL area than we live - I think we pay her around $140. I think when I was single I was paying around $70 or $80 with turbotax (including filing for state) - so I don't mind the extra to not have to touch it at all.

emily1004 · February 2016

I would use the CPA. Especially if your return is even the tiniest bit complex and if you are taking any itemized deductions. If anything happens make sure he or she will stand with you in case of an audit. Our uncle is our CPA, 40 years experience and he used to work for the IRS. We're lucky, he never charges us. We do get him a nice gift card to Capital Grill or Ocean Prime as a thank you.

Avoid H&R Block or any other so-called "tax places". It will be a shitty job and they will overcharge you. Every tax return I've ever seen by those places are a complete mess.

Mustard76 · February 2016

We always have ours done. Our return is complicated. Although we're both W2 wage earners, every time we move, H's company buys our home and moves us to our new location. We have filed in two states all but one year that we have been married. Also RR returns are different ( from what I understand) and tier 1 and tier 2 something or other is unique to RR employees. It's easier for me to not mess with it. I'd rather pay someone $250 than screw it up. It's a lot of money, but to me, it's worth it.

hoffse · February 2016

emily1004 said:

I would use the CPA. Especially if your return is even the tiniest bit complex and if you are taking any itemized deductions. If anything happens make sure he or she will stand with you in case of an audit. Our uncle is our CPA, 40 years experience and he used to work for the IRS. We're lucky, he never charges us. We do get him a nice gift card to Capital Grill or Ocean Prime as a thank you.
Avoid H&R Block or any other so-called "tax places". It will be a shitty job and they will overcharge you. Every tax return I've ever seen by those places are a complete mess.

Are you talking about the stand-alone shops where a human is preparing the tax return? Because the software that HR Block puts out is excellent. And every year millions of people use it to fill out their tax returns correctly.

I posted above what our tax return included this year, but the HR Block software managed to handle the expenses for a sole proprietorship and a Roth IRA conversion (which involves reporting early distributions from a retirement account). That's WAY more complicated than itemized deductions.

I paid $83 to file both my federal and state taxes online, and it took me about an hour to prepare it myself with their software. We got our refund 7 days later, because I didn't have to wait for somebody else to do it for me.

Look, I'm not knocking CPAs at all, and for some people they make sense. The software is a great option for most people though.

Erikan73 · February 2016

Last year we tried a CPA for the first time since getting married. We both had been doing it ourselves for years online. The refund the CPA was around the same amount we had been getting doing it ourselves. So we ended up with less money because of having to pay the CPA. I know CPA's are great and if we had a more complicated tax return, I would keep going to a CPA. But our returns are simple, we each have one w-2, we have no dependents, the only credits we get are for real estate taxes and mortgage interest. Due to how Ohio state laws are, we are better off filing separate, we get more money back that way. So I qualify to do my Federal for free thru the IRS website (income less then $62,000) using the H&R Block software and then for my State return, I can file straight through the state of ohio for free, I just have to re-enter my w-2 info & then pull some info from my federal return (they tell me what lines to look at) and I'm done.

emily1004 · February 2016

hoffse said:

emily1004 said:

I would use the CPA. Especially if your return is even the tiniest bit complex and if you are taking any itemized deductions. If anything happens make sure he or she will stand with you in case of an audit. Our uncle is our CPA, 40 years experience and he used to work for the IRS. We're lucky, he never charges us. We do get him a nice gift card to Capital Grill or Ocean Prime as a thank you.
Avoid H&R Block or any other so-called "tax places". It will be a shitty job and they will overcharge you. Every tax return I've ever seen by those places are a complete mess.

Are you talking about the stand-alone shops where a human is preparing the tax return? Because the software that HR Block puts out is excellent. And every year millions of people use it to fill out their tax returns correctly.

I posted above what our tax return included this year, but the HR Block software managed to handle the expenses for a sole proprietorship and a Roth IRA conversion (which involves reporting early distributions from a retirement account). That's WAY more complicated than itemized deductions.

I paid $83 to file both my federal and state taxes online, and it took me about an hour to prepare it myself with their software. We got our refund 7 days later, because I didn't have to wait for somebody else to do it for me.

Look, I'm not knocking CPAs at all, and for some people they make sense. The software is a great option for most people though.

Yes, I don't know much about the software. I assume it's standard, like TurboTax software and TaxAct Software.

I'm talking about the people that have little to no training that work in the shops, and are franchises. I saw one tax return where the tax prep person (from H&R block) put everything in the wrong column. They person filing the return was low income, hadn't filed in several years, and had no idea what to do. H&R block still made the person pay their fee, even thought the filing had to be amended. He ended up taking it to another place, like H&R block, but they had a CPA on staff that could make the corrections. I feel they sometimes prey on low income people that don't know anything about filing taxes. They take the option of wanting their money back faster, so they pay more. I think the same of Jackson Hewitt, they might even be worse.

Edit: We use a CPA because H has to file in every state he works in thought out the year. Our tax return last year was the size of the third Harry Potter book.

hoffse · February 2016

emily1004 said:

hoffse said:

emily1004 said:

I would use the CPA. Especially if your return is even the tiniest bit complex and if you are taking any itemized deductions. If anything happens make sure he or she will stand with you in case of an audit. Our uncle is our CPA, 40 years experience and he used to work for the IRS. We're lucky, he never charges us. We do get him a nice gift card to Capital Grill or Ocean Prime as a thank you.
Avoid H&R Block or any other so-called "tax places". It will be a shitty job and they will overcharge you. Every tax return I've ever seen by those places are a complete mess.

Are you talking about the stand-alone shops where a human is preparing the tax return? Because the software that HR Block puts out is excellent. And every year millions of people use it to fill out their tax returns correctly.

I posted above what our tax return included this year, but the HR Block software managed to handle the expenses for a sole proprietorship and a Roth IRA conversion (which involves reporting early distributions from a retirement account). That's WAY more complicated than itemized deductions.

I paid $83 to file both my federal and state taxes online, and it took me about an hour to prepare it myself with their software. We got our refund 7 days later, because I didn't have to wait for somebody else to do it for me.

Look, I'm not knocking CPAs at all, and for some people they make sense. The software is a great option for most people though.

Yes, I don't know much about the software. I assume it's standard, like TurboTax software and TaxAct Software.
I'm talking about the people that have little to no training that work in the shops, and are franchises. I saw one tax return where the tax prep person (from H&R block) put everything in the wrong column. They person filing the return was low income, hadn't filed in several years, and had no idea what to do. H&R block still made the person pay their fee, even thought the filing had to be amended. He ended up taking it to another place, like H&R block, but they had a CPA on staff that could make the corrections. I feel they sometimes prey on low income people that don't know anything about filing taxes. They take the option of wanting their money back faster, so they pay more. I think the same of Jackson Hewitt, they might even be worse.
Edit: We use a CPA because H has to file in every state he works in thought out the year. Our tax return last year was the size of the third Harry Potter book.

************************STUCK IN BOX********************
OK that makes more sense. Honestly, that's why I recommend the software for most people. It's computerized, and it's not going to screw that sort of thing up. It can handle pretty complex stuff.
Filing in multiple states or situations like @Mustard described are times when I would consider an accountant.

blondie42107 · February 2016

We use a CPA and pay $70. He's out of town but has always done my in-laws (complicated) farm taxes.

vlagrl29 · February 2016

We use a CPA because we are both self employed. I pay him $150 for my business taxes. Not sure what dh pays because our CPA also manages his books.

Knottie92576442 · February 2016

Thanks to all for your advice. We went with the CPA this year and will go with TurboTax next year. Whichever experience is less stressful, that is the one we will go with until our taxes are more complicated.

brij2006 · February 2016

We pay our CPA $85 and that includes her filing my business as well. Worth every penny.

short+sassy · February 2016

brij2006 said:

We pay our CPA $85 and that includes her filing my business as well. Worth every penny.

That sounds like a bargain! If you don't mind my asking, is she a family friend or is that about the going rate where you live?

brij2006 · February 2016

short+sassy said:

brij2006 said:

We pay our CPA $85 and that includes her filing my business as well. Worth every penny.

That sounds like a bargain! If you don't mind my asking, is she a family friend or is that about the going rate where you live?

You step into an H&R Block around here and you'll pay $500+.

Individual CPA's are significantly cheaper around here, but most of them do not take on new clients. So once you're in, you stay.

Lawyers offices around here do the bulk of the farmers' tax returns, so that's another option as well. The lawyer we used for my brothers' estate told me it would cost $125 to file our taxes. So still not horrible.

Worth it when TurboTax was $45 between state and federal, once I do the extra stuff for my business. I would rather pay someone and know I didn't miss something.

Filing together for the first time...

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