Taxes - Doing it yourself
 

Hi there

It's almost that time again when we need to think about doing out taxes. We had ours done by a tax accountant last year (our first year here) and if I'm honest I think the price we paid was a rip off for what was done for us.

I was wondering if any expats in the USA do it themselves and if so what software you use?

Thanks in advance and have a great weekend.

Re: Taxes - Doing it yourself
 

I've yet to file my first and am also using an accountant, and though being self employed seems to make it a little trickier, I've looked at the forms and it doesn't seem too difficult to do myself... famous last words.

I played around with TurboTax and that seems to make it really easy for you as it's completely wizard-driven (though can be done manually too I think). Simple questions that even I understand.

Re: Taxes - Doing it yourself
 

I've always had an accountant do ours but that's mainly because we have relatively complex returns with home offices, LLCs etc etc etc.

My understanding is that if you have a simple straightforward life. Go to an office for a regular job, no kids, no mortgage and have little else to declare then things like Turbotax will be sufficient. Beyond that you can never be quite sure you are getting all your deductions right.

As an aside, I've never used firms like H&R Block either but my understanding of them is that they are NOT accountants or any other sort of certified professional.

All that said you can probably go to three different CPAs and get three different totals for a refund.

Now, if I knew the accountant Mitt used...

Re: Taxes - Doing it yourself
 

All depends on what kind of finances you've got. If you've got loads of pensions and investments, it might be worth getting someone to do all the chasing around.

If nothing has changed from last years filing, you could just copy it, just updating the sums as needed though.

We do it the old fashioned way with a pencil and then pen...or I should say, the missus does :)

Re: Taxes - Doing it yourself
 

We've lived in the US for twenty two years. Like Bob, I do it the old fashioned way with paper and pencil. Every year you have to learn a couple of new things, that is a time consuming process.. But in general I know the ropes. But if you are new to it, that would be too much of an arduous learning curve in your first year. I'd say use TurboTax, but after you get a return you are happy with, go critically though the return and all schedules line by line and read the instructions and explanatory pages you find online until you understand the entire linear thread of YOUR return (everyone's is different.). Then do it by hand the next year..

Re: Taxes - Doing it yourself
 

I'm surprised to see that I'll be the 1st to recommend Turbo Tax.
And recommend it pretty highly:thumbup:
Even for someone completely math challenged and forms averse like me - it's totally comprehensible and so very specific that I feel fairly confident in using and trusting it.
Unless I'm mistaken - you can actually take Turbo Tax for a "test run"...what I mean by that is that you're given the option of either paying up front and downloading the software to your computer - so that you need not even be online when you're using it (I think they refer to this as the "Desktop Version") or - you can use the "Online Version" which saves "in the cloud" what you complete as you work your way thru it. Each time you want to return to continue working on your return - you log in/ go online and resume where you had left off.
With that online version of Turbo Tax - you don't pay for the software until and unless you are finally ready to actually file your return.
Since you question whether you should use an accountant again - why not give "Turbo Tax" a try ahead of time. If you don't like it after trying it out - it won't have cost you anything. Also - it will have given you the opportunity to compare the calculations they make (based on your answers to their questions, and the forms they include / lines on which they enter the info you provide) - with the forms filed by your accountant last year.

By the way - "Desktop Version" and "Online Version" are my own descriptions - but if you Google it - you should be able to find what I'm referring to.

Re: Taxes - Doing it yourself
 

I've been debating whether to do mine myself this year or use an online system. I've used a few online calculators as a preliminary check (4 in fact) and got 4 vastly different refund amounts...! Not confidence inspiring! My CPA is expensive but I have got very good refunds every year and feel like he is actually doing a good job and asks me "do you pay this, do you pay that - oh you do, that can be written off etc?" This is the first year for me that my return is simpler (up until this year I had assets including a house in the UK which I have now sold) so I think I may use him one more year and compare it against something like turbo tax but my concern is how the deductions get applied as I appear to be much better off taking itemized deductions.

Re: Taxes - Doing it yourself
 

I use Turbotax, the downloaded version is far better than the online one as you can actually see the forms.

Unless you have assets in the UK or particularly complex US taxes it's easy to do them yourself.

Re: Taxes - Doing it yourself
 

This has given me confidence to try myself :) lol going to have a wee play around with turbo tax tomorrow :)

Cx

Re: Taxes - Doing it yourself
 

I guess not actually the first...

Re: Taxes - Doing it yourself
 

I used Turbo Tax every year and if your return is simple, it is easier and cheaper than paying H&R Block.

But if it is your very first tax return, using a reasonably priced accountant might be good for your first year, especially if you have a split tax year situation (arrived in the US mid-tax year and also earned and paid taxes in the UK until the middle of the UK tax year).

Having one done by a professional does mean you have something of a template to refer to when you do it yourself in subsequent years.

Re: Taxes - Doing it yourself
 

Thanks everyone for your comments so far. It is most helpful. I think we will go down the route of doing it via Turbo Tax this year as our income is not complex in the US.

Re: Taxes - Doing it yourself
 

I guess it depends what you consider to be a rip-off - we have a moderately complex return with income from the UK and even though I do some of the prep work, our CPA does the majority of the work and charges around $200 for our return. I consider that money well spent.

As my house in the UK should be sold in about 13 days, our return is going to get a lot less complex and probably well within the reach of a tax preparer like H&R Block (which my wife used in the past). I might consider doing it myself again (maybe using Turbo Tax).

TT is good but beware.
 

Another vote for TT.

However be aware that it does make mistakes. A few years ago there was a bug that prevented it reporting IRA information in the online filing, form 8086.

Nearly had a heart attack recently when the IRS sent a demand for $15k.

I did some digging, explained the situation to the IRS, then the IRS sent a letter closing the case.

Re: Taxes - Doing it yourself
 

We have always used Turbo Tax. We have investments here and in the UK, together with bank accounts in the UK - so not altogether a simple return.

Turbo Tax has always worked perfectly for us.