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I have been using Turbo tax since my accountant got sick and stopped working. This is the first time I used H&R Block software but I imagine it is the same. I will look through everything to see if I missed something. Hopefully the $14K bill goes down a bit. If not, I have the money to pay.
My wife and I both claim two dependents but I’m not sure why we are so grossly underpaid. Doesn’t the employer know what percentage to withhold?
Employers won't know what to withhold for you, that's what the w4 form is for. An individual can have outside income from interest from savings accounts, or capital gains/dividends from brokerage accounts or gig economy income.
I had H&R Block do my taxes the year after I sold my house. They had me owing $4000. I didn't think that was right, so I went to a CPA. The CPA not only had me NOT owing any money, but I also got a small refund as well.
So I hiked back to a different H&R Block office, the only one open in our area after tax time. I was going to see if I could get a refund for what I paid them. Remember, they just hire volunteers and those people only get a crash course on preparing taxes.
I actually spoke to someone who knew how the tax system worked this time, though, and I not only got a refund of my fee but the man also found another $800 I was qualified to get back.
So there you go. On one hand, H&R would have had me paying thousands that the CPA corrected. But then the second H&R found another error the CPA missed. It must have all come out right because that was 20 years ago and I got my refunds and I've never heard anything from the IRS about any penalties.
I have never used someone else to do my taxes. Also just an fyi, I usually manually go into the form and remove that penalty then wait to see if the IRS bills me. Sometimes they do, sometimes they don't but if I don't have to pay it all the better.
The irs cares about under withholding because they want your money during the year not four months offer the year ends.
Also the falling behind is basic, no company knows your tax situation so unless you properly fill out your w4 they aren’t going to withhold the correct amount unless you just get lucky
I love how that works in only one direction. By that same theory, the irs is as guilty for taking too much of our pay throughout the year and sending us a refund later. Same thing. We should charge them a penalty for allowing us to withhold too much money throughout the year.
You don’t. Just go to one of the free services online. You can, for example, plug in to FreeTax USA and TurboTax and see if you get the same answer. You don’t pay until you actually pull the trigger.
Last year, we had a one time windfall, with a few complicated issues that I had no clue about how to handle. We paid a CPA firm $450. and the piece of mind was worth it. Otherwise, not necessary.
I love how that works in only one direction. By that same theory, the irs is as guilty for taking too much of our pay throughout the year and sending us a refund later. Same thing. We should charge them a penalty for allowing us to withhold too much money throughout the year.
It’s not just one way. Also the IRS isn’t the one taking money out of your paycheck, maybe you don’t understand how this works
Go to the free file for the IRS and use the TurboTax software since you have used it in the past. Put in a low income for your wife only and see if you can deduct her expenses. No intention to file just see where the expense get deducted.
If the travel relates to her being an employee it may not go on Sch C as someone noted. That would mean it would be an itemized deduction on Sch A and you may not have enough itemized deduction to itemize.
I could see calling a few CPA's and telling them you problem and asking if they know how to deduct the expenses and reduce your taxes. If they do then you could consider hiring.
If you don;t feel comfortable doing it by yourself, there is nothing wrong with going to a professional. Just because many on here, do their own, doesn't mean you have to also. Like everything else, it is a personal choice. Peace of mind is worth paying for, IMO,
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