It seems that readers get pretty passionate when it comes to discussing tax prep method, and it looks like TurboTax wins hands down. Community member PureGrace recently asked our How Do You Save group whether she should should use an accountant or do her own taxes via TurboTax, and a lot of you chimed in. Read what readers are saying, and chime in with your tips below:
- No offense to anyone out there who is an accountant, but I always use Turbo Tax. It is very thorough and detailed for what I need- mortgage, savings, and student loan deductions. I have known quite a few people who paid accountants and ended up having errors. I don't know that the program is infallible, but you can purchase additional protection, which would be less than paying for an accountant. Plus, most good accountants have a lot of clients and your turn around time might be longer than if you just did it yourself. Turbo Tax and Tax Cut are both super easy if you have all the documents you need. — corbinia
- I am a tax preparer with my own business. We charge $60 to e-file both Federal and State returns, about the same as off-the-shelf software. Some of the [in]famous major tax preparation outfits will charge up to $200 for the same service, depending on the time of year you file. Once you talk to a "tax accountant" or "tax lawyer" the fee generally goes up. Every one charges what they see fit. To find a preparer near you visit http://www.ctec.org/Preparerverify.aspx. — magbowo
To hear more of what others had to say, read on.
- The first time I filed I went to H&R Block and had to pay almost $200 bucks to file and got like $900 back. I decided to try TurboTax and I get more back, My taxes are very basic and haven't changed much and I find TurboTax very helpful. — WeTheLiving
- I've always used TurboTax since my taxes are very basic as well, and have never had any issues.On a side note, Savvy, I think you should talk about how tax returns function. Generally speaking, if you're getting a lot of money back, it's not necessarily a good thing. In fact, it would be better to get only a few hundred back or even owe money. Why? Because basically if you're paying too much in taxes upfront, it's like you're giving the government an interest-free loan. That tax return money could have been gaining interest in your bank account. Just my two cents! — tarabara1229
- One year I had what I thought would be a very complicated tax return. In an attempt to save thousands (first year of a side business) I hired a great tax person for about $350. The biggest thing I learned was even if you hire someone to do your taxes, YOU still have to pull all the relevant information. After I shipped off file folders containing receipts, information, business deductions to someone, it dawned on me all I need to know was what qualified. Since then, I've used TurboTax. My returns aren't super complicated and if I'm going to have to comb through my bank account, I'd rather keep the $300 to myself. — Anonymous
To read about or spill similar savvy revelations, post in my How Do You Save group.