Is it worth taking your taxes somewhere to be done?

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bmilla35

Joined
Aug 29, 2007
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I'm 22 now, and have been earning a paycheck for 7 years. I've never done my taxes. My mom's been kind enough to do them for me throughout the years, but this year I was thinking about being a grown up and dealing with my taxes by myself.

My question is whether it's worth it to go somewhere like H and R Block or Jackson Hewitt to do your tax returns? Or how about a private firm?

I don't see how many deductions I could have that would really make it worth it.

Hopefully some of you will have more experience with this and can shed some light on the topic. I'm really a nooby as it gets when it comes to taxes.

Thanks for any help, fellas.
 
In your situation Turbotax would probably do just fine. If you can use 1040EZ, you don't even need software.

When I moved to AZ my taxes were very complicated and I had them done by a CPA. It cost me $250, but they saved me $3000. Since then I have used Turbotax Premium
and have had no problems.
 
It's gotten too easy to do online (Turbotax, Taxact, ect.) with the simple form to pay somebody to do your taxes.
 
I go to h & r block but only for the ease. I got a bunch of deductions and my return last year was 7750 and they took 250. For me its worth it. If you don't own a home, go to school, have kids and business expenses I'd say do em yourself
 
Honestly, the only time I would pay someone to do my taxes was if I:
A. ran a business
B. had rental property
C. was an independent contractor, technically the same as A
D. I itemized my taxes for some reason

Yes, you may lose a few bucks doing it yourself, but it's really simple to fill out a 1040 yourself.
 
Thanks guys. You're all confirming what i thought.

The only deduction i would qualify for that has been mentioned so far is being a student..
 
bmilla35 said:
Thanks guys. You're all confirming what i thought.

The only deduction i would qualify for that has been mentioned so far is being a student..
Click to expand...

The student one is gravy. You should get the form in the mail soon. I personally use hrblock just because I have used them for a few years now. Everything is simple, you just fill in the blanks with the appropriate information. Anyone in school should be able to handle that :D
 
It sound's like you can use the free Turbo Tax or H&R Block online. If you have any questions H&R Block is willing to answer simple questions in person too. I did that one year and they told me I was close to completing them but they'd be happy to file for me. Cost: about $500.

My taxes are complex but I still do them myself with Turbotax. I have to use the top tier TX though. I can't get away with the cheaper one. This is what happens when you get older and your life is more complex.

Everyone seems to have given you good advice. Just know, there is lot's of help out there because H&R Block for instance wants you as a customer when you get to my point and they can make money off of you. :)
 
Most people can do it themselves. I assume that you have copies of your pervious year's returns. This year's return is probably not that different and the rules and forms don't change that much year-to-year, so use the previous couple of years as a guide.

Nobody gives better tax advice than the IRS. Read the instructions and follow them.

The forms can look intimidating, but most of the lines will be just 0 for most people. Alimoney received? Zero. Profit or loss from farming? I don't think my tomato plant counts, so zero. S Corporations? I don't even know what it is, so zero. And so even the dreaded 1040 long form suddenly get's a lot simpler.

Try it for yourself. If you get overwhelmed, you can always go to a pro.

The first time through will be a bit daunting, but after that, you'll know what to do.








The
 
A few years ago I needed help from TurboTax software. I was a sole proprietor with business expenses, had to file within multiple states, and had to calculate self employment taxes as well as the usual income tax. Tried to do it myself but it was a nightmare.

Every other year I've done my own.
 
You're going to need to do both a Federal and a State tax return. You probably can file IRS form 1040 EZ for federal purposes if you have no kids and earn less than around $110K. As far as your state goes, they probably have a state form that's similar in nature to the IRS' EZ form. These can be done by hand fairly quickly because they are easy to fill out, that's why the IRS named the form EZ. Look at your last year's return and get a feel for it. This year's return will probably be very similar to it if no huge changes in your life took place.

Like others here recommended, I suggest you use Turbo Tax, but doing it by hand should be just as easy if you can use form 1040 EZ.

Also, because you're 22 AND a student, one overlooked thing that you'll need to ask your parents and know the answer to is whether or not your parents are claiming you as a dependant on their 2011 tax return. If they are, you'll just need to answer "YES" when TurboTax asks (or any other tax preparer does your return, including youself doing you're own return by hand) if you are being claimed as a dependant on someone else's tax return. If they are claiming you as their dependant, this will change your tax calculation and the amount you will owe or get refunded.
 
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Yet another vote for Turbotax. The two big things I found that really helps: It keeps a copy of each years taxes, including worksheets, in a PDF form. Very usefull when the post office loses your tax return in the mail.:mad: It also can import last years returns into this year's taxes to cut down on your paperwork.

I did my taxes by hand for years, and it's a whole lot less stress to use Turbotax.
 
I don't recommend H and R or Jackson Hewitt. My experience has been that they hire temps who don't know more about filling the forms than I do.

As far as whether to even take your taxes to someone to get done versus doing it yourself, my approach has been that when I was full-time employed with only one or two sources of income that automatically withdrew taxes, Soc Sec, etc, it was pretty easy for me to file myself. I never had enough deductions to warrant not doing the standard deduction.

Now, when I freelance and have paychecks coming from multiple sources with no taxes, etc withdrawn by the company, that's when I go to a private accountant. It is a huge help in picking the right forms, making the appropriate deductions for business expenses, etc. They handle everything. Well worth the $150 or so I usually pay them to do it. And that's here in NYC -- so PA might be cheaper.

Bottom line: If you're going to hire someone to do your taxes, I recommend going with a private accountant or small accounting firm, rather than H and R or Jackson Hewitt.
 
I do my personal through Turbo Tax and hire a CPA to complete my business taxes (S-corp). She completes the the taxes and gives me a K form. K form rolls into my personal taxes. sounds complicated but TT works for me.
 
If you're just doing 1040EZ, there's an app for that. Literally just take a picture of your W-2(s) and answer a few quick questions and it e-mails in your return.
 
Made just a little over $20,000 last year working security when not being the real popo. IRS wanted $2000.00+.

Found a CPA that only does police. Got a refund of $1500.00.

This years refund is even better. :D

Always try and maximize your return. IMO this is money that is owed to me.

* I didn't realize some states have a state income tax; that stinks. Texas does not have one (yet) .
 
Gollnick said:
If you're just doing 1040EZ, there's an app for that. Literally just take a picture of your W-2(s) and answer a few quick questions and it e-mails in your return.
Click to expand...

Now that's just ridiculous!

I gave in and just did it on TurboTax. I talked to a lady who said their free edition would be all that is needed, so I wasn't going to argue that!

The federal form was a breeze, but when now that I reached the state tax, I hit something that has me scratching my head. It's called the Untaxed out-of-state purchases or services? Apparently, PA wants me to pay tax on items that I bought online (say, Amazon or eBay) that are out of state but are used or stored in the state. Do I really have to list everything I bought that I would have on record?
 
UffDa said:
If you can use 1040EZ, you don't even need software.
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+1

OP, for someone in your situation (income from wages only), the 1040EZ is just fine. So you don't have to pay anything. I wouldn't even bother with TurboTax or any other software. Plus, it's good to know how the taxes work, and doing your own taxes will help with that. You have to get the free form and worksheet from the Post Office (or any government office, sometimes even libraries). Besides that, you'll need your W2 form (your employer will give it to you), a pencil, and a calculator. Pour yourself a cup of coffee, and follow the step-by-step instructions.

It shouldn't take more than an hour to do, and you don't have to pay anybody anything.

Now then, if you have your own dependents, investments, income from work overseas, own a home, etc... then you might want to get some professional tax advice.
 
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