Turbo Tax and Booth Fees

Replies

mea rhee April 9, 2012 at 10:49am

I can see both sides of this, in defense of CPAs and those who can do it themselves. I have been self-employed for 15 years now, mostly as a graphic designer, until recently when my pottery business became my full-time work. I can't imagine having done this without my accountant. Not only was he a good teacher about everything tax-related, he gave me the peace of mind to not worry about tax codes. (for example, I never had to ask internet strangers on an online forum for tax advice.) This year, he told me that I could probably handle TurboTax by myself. My pottery business is a lot simpler than my design business, and I keep very organized records, and I have an honest attitude abouut paying taxes. I'm not sure I feel ready to go accountant-free, but I'm thinking about it. If I can do it, it's because my accountant taught me what I need to know, and I could not have figured out everything nearly as well by myself. There are those in this discussion, like Jim and David, who clearly are very experienced businessfolk, and can do it themselves. But that's not good advice for everyone. My advice is, if you are brand-new to small businessdom, work with a CPA for at least a few years. You can even say "I'm hoping to do this by myself in a few years. Can you teach me?" Their expertise is worth every penny.
- Jim Parker > mea rhee April 9, 2012 at 11:09am
  
  Very good advice, Mea. I started doing my taxes in 1976, when I first started freelancing, and it was two pages. Easy. When I was working full time, I just had to do a standard 1040 with maybe a Schedule A thrown in. Then along came some more freelance work, and a Schedule C again. Then the art business, some investments, and every year a new form, a new set of state tax forms, sales taxes...
  
  My point is that the knowledge comes over time, incrementally. The basic forms are pretty straightforward, and an accountant can help a lot if you feel uncomfortable with it. Doesn't even need to be a CPA. Many times an experience bookkeeper can be just as effective. Trusting the individual is the key to success.
  - john gulyas and maryann posch > Jim Parker April 9, 2012 at 11:32am
    
    Just to clear up my situation-been in business 30+ yrs. ,keep good records,have a decent understanding of taxes as they pertain to my business-I have been going to H&R Block for 15+ yrs, the cost has been rising steadily so that it now costs $800+ to have my taxes prepared. I was considering doing my taxes myself since I watch my H&R guy put my figures into a software program.I figure out and understand every expense that is relevant.I was simply checking in with other artists who do their taxes with Turbo Tax about their experiences using the software-I guess some people need to call this "asking for tax advice from strangers on the internet" I'm also interested in contact info. for this mythical $250 CPA- P.S. (this is the maryann posch half of the posch&gulyas partnership)
    - Jim Parker > john gulyas and maryann posch April 9, 2012 at 11:46am
      
      I get that... lots of newbies read these posts, too, so my advice is usually tempered to include those with a lot less experience than you or I or David. These darn threads take on a life of their own, don't they?
      
      I like Turbo Tax. It's not perfect, but I know how it works. I've been using it since since it was MacInTax in the 80's. And it's way easier than calculating your own and writing the numbers on a paper form.
      
      I remember creating a depreciation worksheet in Excel when I started acquiring computer gear in the mid-eighties. It was WAY complicated. And every year, the rates changed, so you had to rewrite the depreciation tables. Turbo Tax does that heavy lifting for you. You don't even really need to know anything about MACRS, Straight Line or Half Year conventions any more. Just pick the asset type and it does the rest. And that's just one example of how well the product works. There are very few situations that an artist might encounter that can't be handled easily by the software.
      - john gulyas and maryann posch > Jim Parker April 9, 2012 at 11:51am
        
        Thank You Jim-this info. is helpful- Even before the cost got so high ,I was really feeling like I could enter the data into the tax prep software as capably as H&R. Block- just wanted to hear from some others about their experiences.
        
        mea rhee > john gulyas and maryann posch April 9, 2012 at 12:32pm
        
        Maryann, I apologize for offending you. My comment was really about the original question of this thread, and not about your question. I think your question does make an important point, that new business people should not go to H+R Block, or places like that. Like Jim said, having a person you trust is what really matters, whether it's a CPA or yourself. You clearly did not have a trust relationship with the H+R guy to ask him about TurboTax, or discuss your concerns about his rising fees. FWIW, my accountant, the one who knows me and my business and was honest enough to tell me I might not need him anymore, charges me $500 for my tax returns, and that price has remained pretty steady over the years.
john gulyas and maryann posch April 7, 2012 at 3:12pm

I would like to know if anybody who is married, filing jointly with kids etc. etc. has used turbo tax? We have been usingH&R Block to the tune of $800 and really need to find a cheaper alternative.
- Melanie Rolfes > john gulyas and maryann posch April 7, 2012 at 4:21pm
  
  I use to use Turbo Tax for years, but changed to Tax Cut a few years ago because it was cheaper. Now Tax Cut is HR Block software. It helps to stay with one software each year because info is transfered for you. We paid around $35 for HR Delux downloaded on line. This included a free state, efile for Fed and $19.95 to efile state. This has more then enough info and forms for us and we have somewhat complicated taxes. Just doing a Schedule C is not that difficult so probably any software will work for you if you have some basic understanding on how to do your taxes. Like Jim said getting all the paper work together is the hard part. After I have all that done then inputting to the program is fun, fast and easy.
  - john gulyas and maryann posch > Melanie Rolfes April 7, 2012 at 4:32pm
    
    Thanks everyone-this is all very helpful,I'm still nervous about doing it myself, our H&R Block guy would split the income and expenses so we would both get credit for the social security, do you think I will be able to find a place to do that? I have all the income, fees, supplies etc. gathered-I also forgot to mention we use fully 25% of our home for our jewelry making and use that deduction.
    - Willie McTell > john gulyas and maryann posch April 7, 2012 at 4:57pm
      
      Yes, both of those things you asked about and plenty more are supported. Its not all that complicated. People are just afraid and have bought into the hype. For comparison purposes, its way easier than growing vegetables. And takes a lot less time.

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