Tax advice?

I visited local H&R Block and Jackson Hewitt branches today.

H&R Block estimated it would cost me around $175 to prepare my taxes.

Jackson Hewitt said they would charge around $250.

Ouch.

So my plan now is to hit the TaxCut web site and try to figure out which version to purchase.

The only good news is that I still have my TaxCut files from last year backed up.

...Somewhere. >_<
 
HALP!

I visit the TaxCut web site and I can't find any way to determine which software package I'll need.

The kind people at H&R Block and Jackson Hewitt told me I would need a Schedule-C form because one of the companies I worked for last year classified me as an independent contractor. That arrangement, it turns out, makes preparing taxes very complicated.

My wife is a student in her last year of graduate college. She was in school all last year and did not work.

In 2007, I only worked in the state of Missouri (though I did work for employment agencies with out-of-state home offices).

I think I'll need the Business version of TaxCut...but I'm not sure. Can one of our tax experts tell me, with certainty, which version I need to buy?
 
If you're going with TaxCut, you'll need TaxCut Premium. And make sure it's the one that can file your federal AND state forms. I think it's the one that's like $40.

And yeah, it's that Schedule C that's bumping the price way up at JH and H&R. Cause it's not just itemizing stuff for your "self-employment," it's also filling out forms for your self-employment taxes (schedule SE) (which by the way can be several hundred dollars extra that CAN'T be deducted or credited out cause it counts as business income). If I've learned anything working here, it's that it sucks in the end to be hired as an independant contracter instead of just a regular employee.
 
TheChad1215 said:
If you're going with TaxCut, you'll need TaxCut Premium. And make sure it's the one that can file your federal AND state forms. I think it's the one that's like $40.
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Is this the one I need then?

EDIT: Holy price gouging, Batman! It costs another $30 to e-file!

Weaksauce.
 
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Yeah, that looks about right. And I wonder, do those programs get updates every year or do you have to buy a whole new one? If it's a one-time purchase, you could look at as an investment. Instead of paying $200 to hire an accountant every year, you're paying $70 once.

Then again, you wouldn't get a dashing guy like me to work everything out for you. ;) To each his own, I suppose...

-Chadley
 
TheChad1215 said:
Yeah, that looks about right. And I wonder, do those programs get updates every year or do you have to buy a whole new one?
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Gotta buy a new program every year. It's like the Madden 07 of the business world: You can't see the difference, but the company swears that it's worth the price.

I've been told that tax codes change every year (for the purpose of keeping the tax preparation in business, I'm assuming).

TheChad1215 said:
Then again, you wouldn't get a dashing guy like me to work everything out for you. ;)
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I was ready and willing to pay an H&R Block employee up to $100 to prepare my taxes, if only to save the hassle of filling out the forms.

But $175 is $100 more than the Premium software plus e-File and I can't justify spending the extra cash while I'm unemployed and my wife's a student.
 
Okay, I went ahead and bought TaxCut Premium Federal + State + e-file for $65 at Wal-Mart.

I just finished installing the update for Federal and am getting ready to download the State module for Missouri.

I figured paying $65 for software and taking a few hours to do it myself beats paying someone else $175 or $250.
 
Wow, that's lame... So I guess in the end it's not all THAT much more to get it done at Jackson Hewitt. I mean, it is, but you can go in with your paper work and absolutely NO knowledge of how the system works and get everything done, and if something goes wrong, you have zero liability unless you lied or something... That's worth an extra $100, right?

-Chadley
 
TheChad1215 said:
Wow, that's lame... So I guess in the end it's not all THAT much more to get it done at Jackson Hewitt. I mean, it is, but you can go in with your paper work and absolutely NO knowledge of how the system works and get everything done, and if something goes wrong, you have zero liability unless you lied or something... That's worth an extra $100, right?
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Well, the TaxCut software I purchased comes with a "Worry-Free Audit Support," so, like you said, as long as I don't lie, I'm in the clear.
 
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Recommendation to everyone for next year. I don't know how many of you regular woot.com, but every year they sell a cheap version of TaxCut Premium in Early February-ish.

I got a full version of TaxCut Premium plus One State for 25 dollars + 5 dollars shipping. It doesn't come with e-file which is an additional 40 dollars (20 for fed, 20 for state), but it made preparing my taxes take only about an hour and a half so I thought it was well worth it.

It also came on a 1GB jump drive which is now reusable since I finished my taxes so that's another plus for it.
 
Do they ever offer TurboTax? Interesting site.

I have a complicated Schedule C and a few investments, so I've been quoted a few hundred dollars for a "professional" to do it. I have a CPA friend I can bounce questions off of when I'm in a bind.

I have a friend of mine that hasn't paid income tax since 1999. Huge risk, imo.
 
Okay, I sat down for an hour or two yesterday late afternoon and finished entering my tax information.

I did have one more question, though:

Will entering additional expenses (gas, car maintenance, rent, etc.) associated with 1099-MISC (self-employment as independent contractor) help increase my refund or does my standard deduction cover that?

I can probably dig up gas receipts for the time I was working as an independent contractor, but I want to make sure it's worth the hassle first.
 
Did you track your miles? I usually enter mileage vs gas, maint, etc.

But yes, you can enter those expenses associated with generating that 1099 income on your Schedule C since it will reduce your taxable income AND reduce the amount you'll owe in self-employment taxes.
 
Aleron said:
But yes, you can enter those expenses associated with generating that 1099 income on your Schedule C since it will reduce your taxable income AND reduce the amount you'll owe in self-employment taxes.
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Roger that.

I'll see if I can dig up my gas and oil change receipts from that range of dates.

EDIT: If I filed electronically last year, received my refund via direct deposit, and don't have records dating back that far in my online banking accounts, how can I check the amount of my 2006 tax refund? I need to enter that value to finish preparing 2007 taxes.
 
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Banks will have that info for you, but they may charge for it (such as a copy of your April 2006 statement, for instance). Who did your taxes last year? They should have a copy of your tax return if you don't have it.
 
Aleron said:
Who did your taxes last year? They should have a copy of your tax return if you don't have it.
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I did. I prepared my return with TaxCut 2006.

I'll try contacting my bank tomorrow morning and see if they can give me that information over the phone.
 
w00t!

I filed my federal and states taxes electronically yesterday morning. All that's left to do is wait for the state and federal governments to deposit my tax refunds in my bank account.

While the H&R Block may be enough to make graphic design students want to club baby seals (seriously, someone got paid to come up with a green block?!), I can honestly say that their software works.

I'll probably end up buying a copy of TaxCut next year, too.
 
I simply use Taxact.com. It only cost me less then 20 bucks and I paid so they are keeping all my previous tax info for next year. I've done this for 3 years now and each time I've been done in less then 30 mins. Though, I don't itemize as of yet.
 
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