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You're Nuts If You Do Your Own Taxes
Business Insider ^ | 04/15/2013 | Michael, Bankers Anonymous

Posted on 04/15/2013 7:20:19 AM PDT by SeekAndFind

You prepare your own taxes?!?

Are you insane?

I ran into a friend at the local coffee place recently. She made the mistake of mentioning that her husband prepares their household taxes, by himself. “What? Is he insane?”

“I know, seriously, I keep telling him not to.” Dear friend, don’t do this to yourself.

I would no more do my own personal taxes than I would hand-sew my wife’s wedding dress, do her hair and makeup just before the ceremony, and then administer the vows for the both of us. Because I might, just might, make a mistake along the way.

I would rather rebuild the household toilet, sewage and drainage system and connect it to the city system, while everyone was living there, than do my own personal taxes. I mean, what could go wrong?

I would no more prepare the infamous fugu sashimi for my friends and relatives than attempt my own taxes.

Who writes the tax code?

The income tax code consists of hundreds of specialty provisions written by and for relatively narrow interests who know how to maximize their advantages.[1] Trying to navigate this even half-way intelligently makes no sense for a non-specialist.

Now, I’m no Steve Forbes, but I too long for the day when taxes are so simple we can all prepare them ourselves, for free, in a couple of minutes.

I don’t expect comprehensive overhaul of the tax code, however, will be Obama’s legacy – it doesn’t seem his style, and he’s got nobody on the other side of the aisle who would risk giving him that legacy opportunity – but, boy do we need it.

Until that tax simplification and overhaul however, I’m not doing my own taxes.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Society
KEYWORDS: incometax; taxes; taxreturns
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To: SeekAndFind
Michael, Bankers Anonymous

I wonder if he hires someone to dress him in the morning, balance his checkbook, buy his groceries, etc. I wouldn't try to do taxes without the current software products, but they seem to hit all of the necessary forms.

You don't do your own taxes? How insane!

21 posted on 04/15/2013 7:44:47 AM PDT by from occupied ga (Your government is your most dangerous enemy)
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To: SeekAndFind; ml/nj; ExTexasRedhead; rarestia; All
The question of whether or not one should prepare his or her own taxes is different for each taxpayer, depending largely upon the specifics of the income sources and the deductions and credits one intends to claim.

For those who do their own taxes, I've found J. K. Lasser's "Your Income Tax" a helpful guide for answers to most of the more common issues. But it would be wise a new edition every year to keep up with changes in the tax code, etc.

22 posted on 04/15/2013 7:45:05 AM PDT by justiceseeker93
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To: rarestia

I agree, done mine for years even when I had a rental and a small business. It is a pain, but I save a bunch of money. When I did make mistakes it has always been in my favor and they sent me more money.


23 posted on 04/15/2013 7:45:36 AM PDT by refermech
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To: SeekAndFind
It all depends on how much money you make and how complex your tax returns are, as to if you do it yourself, use a computer program, or use a professional tax preparer.

In 2003 I was audited for my 2001 return, which was done by H&R Block. That convinced me I made enough, and my taxes were complicated enough, I was a target for the IRS.

I started taking my taxes to H&R Block in the late 1990s, not because I could not do my own taxes, but essentially for the protection. For the most part, I was telling the H&R Block employee how to prepare my return. IRS agents back off when taxes are professionally done by a reputable party. They know there is likely to be little provable tax cheating.

But that ordeal also taught me if you make enough money, and your taxes are complicated enough to make you a target for the IRS, you make too much money, and your taxes are too complicated for H&R Block.

I now use a local tax and accounting business to do my taxes.

24 posted on 04/15/2013 7:47:24 AM PDT by magellan
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To: sportutegrl

Here is the IRS FAQ on RMD’s.

http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Required-Minimum-Distributions


25 posted on 04/15/2013 7:47:31 AM PDT by abb
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To: jboot

“...I noticed that all the “expert” was dong was keying our info into the standard H&R Block tax prep software and reading back the screen prompts.”
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

For the money they pay for their “experts” they could not hire someone who is an actual expert at reading the computer prompts.


26 posted on 04/15/2013 7:47:38 AM PDT by RipSawyer (I was born on Earth, what planet is this?)
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To: Jack Hydrazine
About 17,000. It will soon be simplified when the Obama era becomes the law of the Land.

Give me all of your money and I decides where my wife and kids vacation. Crass closed!

27 posted on 04/15/2013 7:48:48 AM PDT by Young Werther (Julius Caesar said "Quae cum ita sunt. Since these things are so.".)
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To: muawiyah

RE: your income less your deductions less your tax credits plus your taxes

Define Income....

Define allowable deductions....

Define Tax credits....

Simple huh?


28 posted on 04/15/2013 7:49:38 AM PDT by SeekAndFind
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To: SeekAndFind

If someone has a simple 1040-ez with one source of income, its no big deal. You would be stupid to PAY someone to do it.

I bet this is the type guy that has to call a MAN everytime something brings round the house.


29 posted on 04/15/2013 7:50:42 AM PDT by envisio (Its on like Donkey Kong!!)
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To: RadiationRomeo

Same here. i did mine thru TaxAct on my lunchbreak. Simple 1040ez.


30 posted on 04/15/2013 7:52:43 AM PDT by envisio (Its on like Donkey Kong!!)
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To: rarestia

You forgot that in this day everyone is a stupid moron, a victim, and a drama queen.


31 posted on 04/15/2013 7:52:50 AM PDT by CodeToad (Liberals are bloodsucking ticks. We need to light the matchstick to burn them off.)
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To: SeekAndFind

Yes, I understand that. I took two semesters of tax law in law school.

As other poster point out, though, I don’t have to understand it. Turbo Tax does. As long as you know what to look for, and keep your records and receipts straight during the year, you just plug & chug. I wouldn’t advise drinking while doing the taxes, but otherwise it’s more time consuming than difficult.


32 posted on 04/15/2013 7:53:03 AM PDT by henkster (I have one more cow than my neighbor. I am a kulak.)
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To: sportutegrl

What you are asking is really not that hard, millions of people figure it out every day.

She has to make a mandatory withdrawal in the year she turns 70 1/2. You take the total amount in all IRAS at the close of business of the year prior to that year. You look up her official life expectancy in Appendix C of Pub 590, which turns out to be 27.4 years. You therefore take 1/27.4 and multiply by the closing value of the IRAs the prior year.

Your brokerage house will often provide this for you, but it you have multiple IRAs at different places you have to figure it out yourself.


33 posted on 04/15/2013 7:53:54 AM PDT by proxy_user
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To: muawiyah

Actually, the IRS life expectancy tables are heavily rigged in favor or the IRA holder. Your IRS life expectancy at age 70 is 27.4 years, which is much higher than the real expectancy, so you get to draw your money out more slowly than you should.

Beneficiaries have to use more realistic life expectancy tables.


34 posted on 04/15/2013 7:55:54 AM PDT by proxy_user
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To: SeekAndFind

income is easily defined ~ it’s anything and everything you receive from others in a tax year. Send it in and they’ll leave you alone.


35 posted on 04/15/2013 7:57:28 AM PDT by muawiyah
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To: SeekAndFind
Does using TurboTax, TaxAct, TaxCut, etc. count as "doing your own taxes?"

Seems to me those programs do a pretty good job of taking into account most things.

36 posted on 04/15/2013 7:58:03 AM PDT by E. Pluribus Unum ("Deficit spending is simply a scheme for the confiscation of wealth." --Alan Greenspan)
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To: rarestia

“”””If you’re just a standard work-a-day citizen with a 401(k), a mortgage, and some investments, doing your own taxes is simple and cheap.””””””

Someone like that would be out of ‘normal’. Most people wouldn’t have 401k or investments. Most people are get-a-paycheck/pay-the-rent/its-gone types of household finances. hey I did it for years...

People like that that still pay $75 for someone to do a 1040 for them are the type people that can’t set a clock on a microwave or hang a picture.

Some people pay “pros” to do their taxes because they are just plain too stupid to do them.


37 posted on 04/15/2013 7:58:59 AM PDT by envisio (Its on like Donkey Kong!!)
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To: SeekAndFind

For years I have advocated the following:

1) Everyone should be required to submit their own estimated “withholding” taxes themselves, monthly (just as the Self-Employed do now on a quarterly basis). No more employer-based withholding.
2) Everyone should be required to prepare and file their tax returns themselves.

Within two to three months, the gubmint would be broke, the Congress lynched by an angry mob, and ... the entire tax system comprehensively reformed.


38 posted on 04/15/2013 8:00:52 AM PDT by Chewbarkah
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To: Tax-chick

I didn’t even look to see if you were here but PING anyway...


39 posted on 04/15/2013 8:01:49 AM PDT by envisio (Its on like Donkey Kong!!)
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To: SeekAndFind

Depends on how complicated your financial life is. I get mine done in under an hour, that’s including software install time. Software helps a lot. I’ve got a friend whose an accountant, he does his own, and many other people’s.


40 posted on 04/15/2013 8:04:39 AM PDT by discostu (Not just another moon faced assassin of joy.)
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