Apr 1, 2008

Talking Taxes

My taxes for 2007 are going to be a total nightmare. I tried to figure them out on TurboTax a few months ago before getting my official W2s, but I'm afraid I'm missing major deductions that I should be taking (or taking deductions I shouldn't be taking).

That has led me to seek out a CPA. So far the one who has written back to me charges $155 an hour with a two hour minimum. Eeks. And I thought $80 for TurboTax was pricey.

While $310 for an accountant to do my taxes won't be the end of the world, it still sucks. I feel like I should be able to figure out taxes for myself given that my overall earnings for the year was less than $35k. Unfortunately that $35k came from a bunch of different places.

Meanwhile, my uncle - who I do some small amounts of freelance work for - told me that while he's not sending me a 1099 form I have to report the earnings. Of course I have to report the income, but I thought that he also had to report the earnings. So I'm a bit confused about this - if he doesn't report the earnings will I get him in trouble if I report them?

Do you guys think it's worth $310+ to have someone prepare my tax returns? Or should I just do TurboTax and hope that I don't majorly mess anything up?



4 comments:

Anonymous said...

$155 an hour and 2 minimum, that's a lie. My accountant did this years for only $130 flat and I never even met with him.

Just go to HR block or any flat rate accountant, if necessary, file an extension but there is no reason to give into that $155 an hour. Unless you are a business with 20 employees, there is no reason to pay by the hour.

As for 1099, as far as I understand, the IRS only requires you to recieve a 1099 if you make $XXX or more in a year. Your uncle would have to report what he paid you. If you didn't make more than $XXX a year, he is not required to give you a 1099. You would still be responsible for reporting what you made though.

(Note that $XXX is because I am not sure if it's 400 or 600 but its a couple hundred for sure).

Sarah said...

I used TurboTax and I had very good luck with it. It's very self-explanatory and it takes you through every possible income source and deduction source. My dad's been doing my taxes for years on TurboTax. I always have 1099s for dividends and stocks too. So a vote for Turbo Tax but if you want peace of mind, go with the pro this year and they maybe do it yourself next year.

FB @ FabulouslyBroke.com said...

Agree with Mark

and TurboTax seems to be a pretty good option if you're careful. Go with that... and read up on anything you're not sure about

Once you're done, sit on the taxes for a day, go back with a fresh head and review them to check the numbers and figures again and second guess yourself on things you're not sure about

I think that software also prompts you about extra deductions etc

Ellen said...

I got mine done at H&R block and it was more than $155, but less than an hour.

I tend to err on the side of caution so I was willing to pay someone to make sure that I'm in compliance completely... like you my financial situation is complicated (I believe I had 5 W-2s to hand in) and while I'd like to learn to do my taxes myself someday, this wasn't the year. If you feel up to the task though, why not?

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