[Haggar]

Originally Posted by Andyb

Capital gains is the killer. Not to mention tax on Social Security, which has already been taxed. Seems if your middle class, you get screwed the worst.
The tax system and the IRS need a major overhaul.

One of the most misunderstood concepts is that you have been taxed on social security already,

I looked up my account on SSA.gov and found I had paid in slightly over $100,000 through last year in social security tax (non-deductible) over the last 65 years . That's including the fact that I have paid in social security on wages I paid myself since age 70.

I've gotten no return on the social security I've paid in since age 70 since it hasn't increased my benefit.

In return I've gotten back over $400,000 in social security, And every year I get back more. It's like a non-deductible IRA. I get taxed on the earnings - not what I put in. The longer I live the better the return.

[Haggar]

Originally Posted by Dr.Butler

You don't. You can literally do it all yourself, for free. The issue is they can be very complicated so we pay so we don't get in trouble.

Yes- you can do yourself for free.
You might be missing something. The code is 30,000 pages long - plus the rulings, procedures, letters, interpretations, etc .

BUT - I talked to a client who has done it himself for many years. He gave $40,000 to charity and wasn't aware of QCDs. His IRA distributions exceeded $100,000 a year. Nothing in the tax software alerted him it existed,

Some schedule C businesses should be LLC's taxed as S corps. Your tax software wouldn't tell you that.

If you are well read - keep up not only with tax law changes - but read articles from financial institutions and publications - you may be aware of all the "loopholes".

Continue doing your returns yourself but do yourself a favor every few years. Pay a Doctor in Accounting - also known as a tax professional - to go over your returns. It may be worth it!

[nn0wheremann]

Originally Posted by CoachKandSportsguy

I do 1 LLC return, 1 estate return and 2 regular returns every year. ..
Using turbo tax, its pretty straight forward, the improvements made in the last 10 years have been extremely helpful.

K1s are the worst, as most times, they will not impact your tax return from publicly traded partnerships. From estates etc, they may appear strange and weird. . .

I was ready to file, and realized that I forget capital gains from a Fidelity schedule. So I had to chat with the turbo tax peeps to figure out how to reopen the file to continue entering in data. Didn't do it correctly the first time, but the second time, it worked. It didn't change any numbers due to tax loss carry forwards, but the process is very detailed and requires some level of numerical organization as well. I love the large standard deduction, as we don't have enough for itemized entry any more.

But, if you are not a finance nor accountant type, and are unfamiliar with accounting concepts, or have certain types of financial transactions, then tax returns may be extremely difficult as there are lots of little pieces which need to be identified, added/summed together, and then entered. I personally hate doing it anymore, as it's just a waste of several days of adding and subtracting, and data entry, rinse the excel data and repeat the next deductible account. . . of course the banking statements don't help when they just say check number 4567 is $7,000 and I am supposed to remember to whom I asked bank bill pay to send a check back, 1 year ago? tedious
process.

hopefully, everyone got theirs filed on time. . . and we can all return in about a year to whine and complain again!

Most of the tax returns I have prepared over eight years with Villages Tax Aide have been fairly simple. I am surprised that so many intelligent, educated retired professionals have not learned to file their returns. With the available and inexpensive tax software now on the market, filing income tax returns is not difficult. If the standard deduction reverts to prior levels next year, though, itemizing will reintroduce a host of pitfalls. So keep track of those expenses.

[Nancy@Pinellas]

There are AARP tax volunteers in TV who will prepare them for you.

[Stu from NYC]

Originally Posted by Haggar

Yes- you can do yourself for free.
You might be missing something. The code is 30,000 pages long - plus the rulings, procedures, letters, interpretations, etc .

BUT - I talked to a client who has done it himself for many years. He gave $40,000 to charity and wasn't aware of QCDs. His IRA distributions exceeded $100,000 a year. Nothing in the tax software alerted him it existed,

Some schedule C businesses should be LLC's taxed as S corps. Your tax software wouldn't tell you that.

If you are well read - keep up not only with tax law changes - but read articles from financial institutions and publications - you may be aware of all the "loopholes".

Continue doing your returns yourself but do yourself a favor every few years. Pay a Doctor in Accounting - also known as a tax professional - to go over your returns. It may be worth it!

Good advise

[CoachKandSportsguy]

Originally Posted by Haggar

Yes- you can do yourself for free.
You might be missing something. The code is 30,000 pages long - plus the rulings, procedures, letters, interpretations, etc .

BUT - I talked to a client who has done it himself for many years. He gave $40,000 to charity and wasn't aware of QCDs. His IRA distributions exceeded $100,000 a year. Nothing in the tax software alerted him it existed,

Some schedule C businesses should be LLC's taxed as S corps. Your tax software wouldn't tell you that.

If you are well read - keep up not only with tax law changes - but read articles from financial institutions and publications - you may be aware of all the "loopholes".

Continue doing your returns yourself but do yourself a favor every few years. Pay a Doctor in Accounting - also known as a tax professional - to go over your returns. It may be worth it!

So glad he is a regular on TOTV. . he makes such good tax sense.. .
Remember, tax strategy is about minimizing taxes. . tax strategy is not about how to make money, though there are times when how you structure legal entities when making money is tax strategy.

good luck to all. .

[Rainger99]

Originally Posted by rsmurano

I’ve used turbo tax for almost 30 years now.

We started doing our own taxes when we got married. It was a nightmare! A friend recommended a lawyer/CPA. We sent him all of our tax information and about three weeks later we got the returns back. Back then, he charged about $300.

It would have taken us hours and I don’t think we would have done them correctly.
We have been using him ever since.

We are still married and have never been audited. A small price to pay.

[kkingston57]

Originally Posted by asianthree

We have never paid a penalty, interest, with the family CPA firm used since I was 14, always free for me until I graduated.
He retired his daughter took over the firm, but tweaked our quarterly’s so we get a refund just under $200.

Her fee is well worthwhile will continue, even once all the LLCs, and other residential homes are deeded to our kids and grandchildren.

Me 99% of the time till this year. Capital gains were 50% more this year and we paid plus a <$100 penalty

[cafesalsa1@yahoo.com]

All our taxes should be paid by tariffs on everything that is a semi luxury to a luxury and no tariffs on food or clothing items. That way, no one would have to file anything in the most inefficient method of collecting taxes would be eliminated forever.

[Pugchief]

Originally Posted by HORNET

Retirees shouldn’t have to pay School Tax ! You have them , you pay for them !

When your kids were in school, did you let the people in your county who didn't have kids in school anymore pay school taxes? Or did you pick up that cost for them? Asking for a friend.

[CoachKandSportsguy]

Originally Posted by Pugchief

When your kids were in school, did you let the people in your county who didn't have kids in school anymore pay school taxes? Or did you pick up that cost for them? Asking for a friend.

Totally agree. .. school tax is about it takes a community to raise the children. If you are part of the community, you want to support the children in the community so that they are productive members of society, not ending up as illiterate, innumerate degeneratives. . . . and sharing the cost amongst the community is the best answer. Otherwise, you are just privatizing the education system. . .