Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
BTW...I have used CPA's in the past....they are not infallible. <snip>I obviously switched from them and got a new CPA for a few years but then saw (and see especially now with the $24000 standard deduction) that I was mostly paying him , and now would definitely be paying him, just to punch my numbers in and charge me $300 to do so.
No thanks, I'll do it on my own.
My first husband used a CPA and when we married, I called him early in 1985 (we'd been married in 1984), introduced myself and told him that we'd married the previous year. Since I was far more comfortable with finances than my husband, I did all the information-gathering, including getting the bases of stocks we'd sold and gathering documentation for our deductions.
On APRIL 14 the #$$@! calls and tells me that we owe a bundle to NJ because, essentially, the entire income of one of us was taxed by the state at the highest marginal rate. (We had to file jointly in NJ because we'd filed jointly for Federal.) So he needs one very large check for the taxes due and another for the Q1 Estimated payment. After that he was toast. If he hadn't had the foresight when we first talked to tell me this would happen, he wasn't worth what we paid him. I did our taxes after that.
My first husband used a CPA and when we married, I called him early in 1985 (we'd been married in 1984), introduced myself and told him that we'd married the previous year. Since I was far more comfortable with finances than my husband, I did all the information-gathering, including getting the bases of stocks we'd sold and gathering documentation for our deductions.
On APRIL 14 the #$$@! calls and tells me that we owe a bundle to NJ because, essentially, the entire income of one of us was taxed by the state at the highest marginal rate. (We had to file jointly in NJ because we'd filed jointly for Federal.) So he needs one very large check for the taxes due and another for the Q1 Estimated payment. After that he was toast. If he hadn't had the foresight when we first talked to tell me this would happen, he wasn't worth what we paid him. I did our taxes after that.
Exactly....I see no reason for any "standard" filer (meaning a single or married filer with a few W2's, 1099's, 401k/IRA, mortgage, etc) to pay the expense of a CPA as number puncher other than laziness or being unwilling to sit for an hour or two at most to do it themselves. Especially now with the tax changes and the fact that many (by some estimates up to 94% of filers) will not itemize and take the standard deduction. Some people panic at the very thought of tax returns but with the litany of online tax prep sites (some free) it has become very easy to do and they walk you through it. Turbo Tax now even has an option (Turbo Tax Live) for on demand live CPA chat and a final CPA review of your submitted 1040 if one is more comfortable with that for only $50 - $100 total.
I can see if someone has rental properties, a business or side business, stock losses/gains, alimony/child support, etc. but for just the basics there is absolutely no reason to hire a CPA.
Mine is much lower too- about $1600 federal compared to the $2600 I received last year (my state return is only $40 lower than it was last year). I'm not sure what's different. I entered the information from my W-2 and 1098 into Turbo Tax the way that I always have. But I don't want to pay a professional just to have them tell me that the lower amount is correct. I'm a single homeowner with no dependents.
That sucks but at least you are still getting a refund
Mine is much lower too- about $1600 federal compared to the $2600 I received last year (my state return is only $40 lower than it was last year). I'm not sure what's different. I entered the information from my W-2 and 1098 into Turbo Tax the way that I always have. But I don't want to pay a professional just to have them tell me that the lower amount is correct. I'm a single homeowner with no dependents.
Most likely your withholding was different year over year
I haven't filed yet but at 99% using Turbo Tax. I'm still waiting on an HSA form but it won't change my return as I didn't add anything to it, and I didn't deduct anything from it since I no longer have a HDHP plan. I keep my HSA as a emergency healthcare fund.
$327 Federal return and owe Virginia $393. I count that as a win!
I had redone my W4 last February/March timeframe using the IRS's latest calculator. I don't like big returns so I told the wife I'd want a bigger paycheck instead. I went from claiming 2 on Federal to claiming 5 instead. According to TT, we withheld $3066 less than 2017.
We made more money than last year. Instead of itemizing, we took the standard deduction even though combined, we own 2.5 houses (.5 is one I co-own with brother).
TCJA helped us because we got the full child credit for my 1st child, and we had another bundle of joy last year equaling $4k The larger standard deduction was nice for us since we don't live in a high tax area, and our mortgage balances/interest rates are low.
I'm going to run through the W4 calculator again this year. I think I may need to claim 4 instead otherwise I'll be owing next year.
I haven't filed yet but at 99% using Turbo Tax. I'm still waiting on an HSA form but it won't change my return as I didn't add anything to it, and I didn't deduct anything from it since I no longer have a HDHP plan. I keep my HSA as a emergency healthcare fund.
$327 Federal return and owe Virginia $393. I count that as a win!
I had redone my W4 last February/March timeframe using the IRS's latest calculator. I don't like big returns so I told the wife I'd want a bigger paycheck instead. I went from claiming 2 on Federal to claiming 5 instead. According to TT, we withheld $3066 less than 2017.
We made more money than last year. Instead of itemizing, we took the standard deduction even though combined, we own 2.5 houses (.5 is one I co-own with brother).
TCJA helped us because we got the full child credit for my 1st child, and we had another bundle of joy last year equaling $4k The larger standard deduction was nice for us since we don't live in a high tax area, and our mortgage balances/interest rates are low.
I'm going to run through the W4 calculator again this year. I think I may need to claim 4 instead otherwise I'll be owing next year.
Since I'll be "owing" I won't file till April...
You should file as quickly as possible if you owe. The payment isn’t due until 4/15 and waiting to file only increases the chances someone will attempt to file a fraudulent return on your behalf
You should file as quickly as possible if you owe. The payment isn’t due until 4/15 and waiting to file only increases the chances someone will attempt to file a fraudulent return on your behalf
Yeah, I keep reading that. It's going to be another 2 weeks before I can download forms form my brokerage accounts and they're blaming it on the mutual fund companies. I can input everything else but not much I can do without those forms.
Just did my taxes. We had a refund around $2700 last year. I owe $1400 this year. Lost around $20,000 in deductions and exemptions due to tax deductions cap. I will not file until April, this sucks big time.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The larger standard deduction was nice for us since we don't live in a high tax area, and our mortgage balances/interest rates are low.
