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who_tf_is_dis_guy t1_j619efq wrote

This is good advice for those with simple tax situations.

However, for those with investments, stocks, retirement accounts, etc.: From my personal experience, going to a licensed tax professional has resulted in more favorable tax returns in comparison to when I was doing my own taxes with free tax software.

Just some food for thought.

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CN2498T OP t1_j619iiu wrote

For sure, i clarified in the description.

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who_tf_is_dis_guy t1_j61ay57 wrote

100%, I agree with the premise of your LPT. Stay away from the big box names.

Visit IRS.gov (For US taxes, obviously) for truly free tax solutions for simple tax returns. If you have a complex tax situation, then maybe look into finding a reputable independent CPA, but stay away from the big box names. They just sell your info to everyone.

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nicksgirl88 t1_j63jad8 wrote

Not true. My husband and I have all of the above. Plus there's been years when we've had multiple jobs in different states. Last year we even had the solar panel credit. Plus our hsa is on the side (not directly out of our paycheck at the source) and we also have a dependent care fsa. We've been doing our taxes by hand every year for 5 years now. It requires a little more thinking and rechecking the work but fairly straightforward. We've never had an issue with our return.

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AlmostDeadPlants t1_j63ozwh wrote

Not having an issue isn’t the same as getting all the money you could get

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nicksgirl88 t1_j63pls2 wrote

I'm not sure what you mean by that. The info from the forms that we get from our investments go into specific irs forms. We take standard deduction since we don't have enough things to itemize and get more (we have looked into it). I'm sure for people who have their own business or donate loads, it is very different from our situation. But I would be grateful to you if you're able to tell me how to get more money back from the irs when you have investment accounts with fidelity or vanguard and employer sponsored retirement accounts that adjust at the source.

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AlmostDeadPlants t1_j63rvh8 wrote

I was just explaining the comment above! They suggested that their return has been more favorable since using a tax professional

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Efficient_Sector_870 t1_j61b695 wrote

LPT do everything yourself to save money

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ChiggaOG t1_j62pj9g wrote

Unless you trade Option and manage to rack up over 300 trades for a $30 profit in stock options. Investments get tax preparer always for average person. Taking no chance with the IRS.

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PokeFanForLife t1_j63n2ql wrote

Same here my friend, this vague advice from OP is definitely for the average Joe's that basically only have, "normal" / job-income.

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lsnwtn t1_j61lu24 wrote

I just used freetaxusa for the first time. Seems just as good as TurboTax. Yes, they charge $15 to file state but that’s much cheaper than the big guys.

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outerspaceNH t1_j63bwqb wrote

Hell yes, and if your state doesn't require State (good ol NH) then it's all free!

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modernchic1977 t1_j64h0pf wrote

I have been using them for many years, and have never had an issue. I e-file for my state taxes through the comptroller portal, so my taxes do not cost me anything. I like that all my prior year info ports into the new year, which is such a time saver!

US taxes are so complicated and stupid.

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karrenl t1_j61aesl wrote

I'd rather support a local CPA who knows what they're doing and keeps me from using turbotax or the like

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TheAgreeableCow t1_j61zmsx wrote

And claim the expense on the next year's tax return

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PoochusMaximus t1_j62051k wrote

Ayyup. Been using the same tax lady for years. Always writes off her previous years services.

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ChipLong7984 t1_j62vawe wrote

Is this a USA thing? In Aus you 'do it yourself' but it is essentially all automated for you

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BashfulBlanket t1_j636kxb wrote

Yes very much a US/Canada thing. As OP said himself. Essentially Tax Agents have lobbied to keep it the way it is instead of changing to a system like ours (aus)

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Biillypilgrim t1_j61wwzb wrote

Or find a tax person you can trust...ours is a long time family friend. As soon as we started using them we were getting much better returns because they take the time and know what we are eligible for.

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Eas_Mackenzie t1_j64kya4 wrote

I know most people are in the States, but if you are in canada, my grandmother and her friends that all retired from the CRA wrote a tax program called StudioTax. It's free to download and easy to use. It only charges you if your income is above $20,000 and if they do charge you, it's $16 and you can file up to 20 returns. The money goes to retired software developers, not a corporation.

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keepthetips t1_j61607y wrote

Hello and welcome to r/LifeProTips!

Please help us decide if this post is a good fit for the subreddit by up or downvoting this comment.

If you think that this is great advice to improve your life, please upvote. If you think this doesn't help you in any way, please downvote. If you don't care, leave it for the others to decide.

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canonballin t1_j61pd0f wrote

I feel like i would have to take a class, I don't know what half of the boxes mean...

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tacticalpotatopeeler t1_j61wktp wrote

I support a local CPA. We also have a good chat while I’m there

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freckledreddishbrown t1_j623rpx wrote

Income tax is your single biggest expense. What you don’t know will cost you.

There’s a reason rich people hire tax professionals to do their taxes.

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LadyMageCOH t1_j63rl7z wrote

Rich people often have very complicated returns due to complicated financial dealings. If your situation is relatively simple, there's no reason you can't do it yourself.

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Euphoric-March-8159 t1_j635ncc wrote

Same thing with AAA lobbying against public transportation so we can all sit like idiots in cars on high ways

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Colors08 t1_j6397en wrote

Cash app is free federal and state filing

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bberin t1_j63cfzr wrote

Not anymore; they were bought by TurboTax.

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Colors08 t1_j63te6w wrote

I just filed my federal and state returns last night, still free.

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bberin t1_j63vn8o wrote

Oh rad! I thought they were still connected to Credit Karma; that’s where I’d done my taxes for years and I was so bummed when I logged in this year.

I’ll give this a try!

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BreakfastBeerz t1_j63o2i0 wrote

I wish I had the option to do a basic/not too complicated return.

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CTBthanatos t1_j63qa6i wrote

No thanks, too poor to care, saving $100-$150 and getting agitated with paperwork doesn't get me out of poverty.

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SloWi-Fi t1_j63x65p wrote

The big names? Do you want to be charged $50 for a form that is required ? A lot of the preparers at the chains are actually doing data entry, the software is doing the work. Plus the charge/fee is at times ridiculous and not transparent. The software cannot for example 100% determine if tyour eligible to claim the dependent your trying to claim. In some states you have to be certified trained licensed. Other states go to WalMart buy software and magically you're a tax preparer.

LPT learn how to do basic income taxes and file them yourself as OP mentioned. The Big lobbyists killed the IRS efile many many many years ago.

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CN2498T OP t1_j66v4sl wrote

That is the sad part, I hope every country gets to file online directly soon.

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mousepatrol t1_j64279e wrote

I’ve tried hiring tax people but they’re just so dang expensive.

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SatanLifeProTips t1_j64btlw wrote

If you own a small business, for the love of god pay someone else to do your taxes. It isn’t worth it and it is probably ‘free’ when you factor in the tax money, time and/or headaches they will save you. Plus there is a far less chance you’ll have an audit when the government sees that you are hiring a certified independent organization to deal with that crap.

I made this mistake for a few years before I wised up. Once I went fully paperless and outsourced it was easy.

If you work for someone else, taxes are easy. Do it yourself unless you have complex investments.

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Toby_The_Tumor t1_j61qqku wrote

So, is H&R block good? Cause my brother got 8k with an infant with them

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Specialist-Put6367 t1_j61wibr wrote

The topic at issue in this LPT less the quality of their tax filings and more the underhanded tactics that make their services feel necessary to so many people. When I was renting out part of my house to friends I went with them and they did fine, but now I have a simpler situation and use FreeTaxUSA to avoid supporting their lobbyist budget

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Doortofreeside t1_j62fl7a wrote

The dollar amount isn't really relevant. Did they do anything to increase his refund that your brother wouldn't have done anyway?

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Toby_The_Tumor t1_j62fuyq wrote

Both me and him have no idea with this stuff, I saw someone say he could've gotten 2k more, but 8k is still insane. So I couldn't say, he doesn't like to talk about his money unless he's complaining or asking for it. Is there anything they could've done to get him more?

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Doortofreeside t1_j636sdr wrote

Depends how well you do your taxes. I take the standard deduction and as such I don't see anything that they could do that would couldn't do myself with freetaxusa ($15). Sure having a kid opens up stuff like the child tax credit, the dependent care credit, and stuff like opening a dependent care FSA but that's stuff you'll get prompted on by a tax software once you say you have a kid

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CN2498T OP t1_j61ysdj wrote

It would of been 10K without them

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[deleted] t1_j61c6hc wrote

[deleted]

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BrotherGreed t1_j622irg wrote

>do you guys not have an accountant that does everything for you..? I thought most people did this, honestly..

Lol what? Is this satire? Plenty of people dont have money to pay someone to do their taxes for them.

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BudsandBowls t1_j63nhl4 wrote

It's really not that expensive? I work for a CPA, we're charging $150 this year for a return, h&r block is a bit cheaper but they hire people basically off the street and give them basic training, so taking your taxes to h&r is the equivalent of taking it to a high school student who just finished a business course and learned the basics of filing

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Specialist-Put6367 t1_j61vdvk wrote

Not giving the big box companies your tax information means they have to buy it to aggregate it, and not paying them to file your taxes means there’s even less money for them to bribe senators—I mean, lobby for keeping the tax code so convoluted that you need to pay an expert to file your taxes.

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