How do you pay your taxes?
Commercial service like H&R Block, software, paper and pen? I'd love to know.
Answers
951 points
Grudun answered 8 months ago …
I use Turbo Tax software, but my return is fairly simple with just my wife's job, my job and a few investments. If you have any significant bussiness holdings I would recommend working with an accountant year round and having them help plan and complete your taxes.
As for paying I just use a check because of the avoidable fees and interest involeved in other payment methods.
2547 points
Oldman answered 8 months ago …
I've also used TurboTax, for at least the last 10 years, and once tried TaxCut, just to compare. Being retired, most of the time I don't have sufficient business-related expenses (except for financial advisory subscriptions and the cost of TurboTax) to make a list of itemized deductions.
One year, we had significant (>$20K) lossses from a hurricane, and due to the lifting of the "personal losses aren't deductible except those above 10% of your AGI - Limitation), I actually totalled up all the allowable expenses, and the loss from the hurricane, and took a deduction for the property taxes, etc...but usually we just take the standard deduction and personal exemptions for a married couple, filing jointly and over 65 yrs. old. approx a $12000 reduction of AGI.
Because we take a "foreign Tax Credit" for taxes paid on dividends from those companies in countries tht have Tax Treaties with the U.S., we must file a paper form, and I send it certified mail with the return receipt card (costs ca. $5,25 {also deductible if I were to itemize for 2008}), approx Apr. 10th, to make sure I don't have any "Corrected 1099's" coming from the brokerage, or a slow K-1 from a MLP. We usually have a pretty good handle on the dividends and short-term gains, and exact amounts for Long-term gains and losses ... better even than the stupid brokerage,,, and send quarterly estimated tax payments in June, Sept, and Dec. The refund we're scheduled for in this Spring's filings is being split with the IRS to pay the 1st quarterly Estimated tax payment.
If I were able to get one wish magically fulfilled ... it would be that the "FarTax" would suddenly be enacted, and I'd never have to keep those receipts and paperwork for 7 years, and wade through 67,000 pages of Treasury regulations, ever again. i wouldn't pay more or less taxes, but they would be paid at the retail level, just as if they were a local sales tax.
583 points
jillybeansisme answered 8 months ago …
I totally believe in delegation of duties you don't want to do and taxes are one of them . . . so I pay a CPA. All year long I throw everything into a file marked "Income Tax" and then dump the file on her desk. If I buy stock in my "cash" portfolio, I make a copy of the trade and throw it in the "Income Tax" file; do a charitable deed -- in goes the receipt; buy an investment magazine -- in goes the receipt; renew the registration on my car -- in goes a copy, etc. This way everything is together.
I have my CPA electronically file them . . . although this year we have to do amended taxes, which I should sign off on Sunday, and they have to be mailed in.
Remember, if you owe money you must pay it by April 15th.
117 points
driver answered 8 months ago …
I do like jillybeansisme, I've got an envelope that I put any and everything that's related to doing my taxes at the end of the year. I'll dump the stuff on the table and sort it to the appropriate pile after I've gotten my w-2, 1099s etc. But, unlike her I do my own taxes using Turbo Tax. I just finished mine yesterday and still needd to mail them. I'd rather buy stamps then pay the electronic filing fees.
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