Submitted by one-eye-owl t3_1263ycv in personalfinance
dodexahedron t1_je8dxq4 wrote
Stop using them. You don't earn enough to be paying someone to do your taxes, and there are some yellow/red flags from what you've shared.
Go to www.freetaxusa.com (yes it is legit and IRS-endorsed), spend about 20 minutes putting in the info it asks for (W2s and any 1099s youve gotten, basically), and have your lowest cost or best refund calculated and your federal return filed for free and your state return ready to file for like $8.
TheBeesSteeze t1_je8g9oo wrote
They are about to pay $25,000 in taxes and you are suggesting they use Free Tax USA? To save a couple hundred?? They need a good accountant, maybe even an attorney to sort this out. There are tens of thousands of dollars on the line.
dodexahedron t1_je8gxg4 wrote
The suggestion is because they're quite possibly getting bad advice and, at minimum, need a second opinion. The situation sounds shady for at least the reason of this person preparing but not filing for them, which suggests either they're unqualified to do so or potentially trying to scam them, even if just for billable hours.
And it's free. So literally no skin off their noses. If the result jives with what the accountant said, they have confirmation. If the result doesn't match up at least in the same ballpark, they can either accept it or get a new accountant or tax law attorney.
TheBeesSteeze t1_je8hebr wrote
> The suggestion is because they're quite possibly getting bad advice and, at minimum, need a second opinion. The situation sounds shady for at least the reason of this person preparing but not filing for them, which suggests either they're unqualified to do so or potentially trying to scam them, even if just for billable hours.
Totally agree
> If the result jives with what the accountant said, they have confirmation.
Disagree. In this scenario, just because a bad accountant and basic free tax software both say you owe a bunch of money do not validate one another. In fact that's probably all this "accountant" is doing for them and I would be surprised if the numbers weren't pretty similar.
A good tax accountant should easily make back their fee and thousands more. Considering there is $25,000 at stake, I think they can afford a little more than $8 to verify there is no way to pay a smaller amount.
dodexahedron t1_je8icak wrote
I make a couple times their combined income and have several non-work income sources, and various things which require me to itemize deductions. My taxes are "complex" compared to most people's. I have NEVER needed to pay someone to do my taxes. And I've had a similar insurance situation to what OP describes.
Taxes aren't rocket science, any anyone required to report anything is also required to send you a w2 or 1099, so you legally WILL receive everything you need to do it. Even if you do it on paper, by hand, it's comically easy, with step-by-step, very explicit instructions for every single item. You don't even have to do any math beyond simple addition and subtraction. Everything else is pre-calculated to way beyond their income in tables the IRS publishes for free, and the instructions tell you exactly what forms/tables to look at.
Don't be scared of tax preparation.
And you seem to be assuming this service is somehow sub-par. It's not. It's been around at least 20 years and is vetted by the IRS. And it doesn't play tricks with you like H&R Block does, to try to get you to pay for things. Simple, no-nonsense, and thorough tax preparation.
Why would you not just do it to at least compare? Come on...
TheBeesSteeze t1_je8kgwv wrote
Yes, I also do my own taxes. I'm well aware of it's advantages.
Maybe you're right. They should just use the online software and if it says $25,000 as well, they should just pay this incredibly life changing amount without a second thought.
Silly me thinking they might want to consult at least ONE independent tax accountant who might be able to help out this person who obviously isn't very financially literate and could be making a huge mistake in some assumption or input.
dodexahedron t1_je8kqwi wrote
You're putting words in my mouth, and making some assumptions that aren't valid. I didn't say any of that. Agreed that an attorney or a well-reputed tax accountant is a good idea, if it looks like they will be on the hook for this massive sum. But, a no-cost option for initial comparison is a wise minimum before proceeding, and there definitely are red flags about the current preparer, at least from what OP has shared.
Have a nice night.
TheBeesSteeze t1_je8kx74 wrote
> And it's free. So literally no skin off their noses. If the result jives with what the accountant said, they have confirmation. If the result doesn't match up at least in the same ballpark, they can either accept it or get a new accountant or tax law attorney.
You literally said the opposite earlier. My point was that they should get a second professional consult if they are about to pay the $25,000.
Anyways, glad we agree now. Cheers.
techsuppr0t t1_je8guom wrote
If u make a large salary it's worth paying a professional to do ur taxes. Tho I definitely recommend freetaxusa. It's like identical technology to turbo tax etc just free. Every time I do my taxes with turbo they make me either redo my return or pay $100 or some shit and it's hard to actually do it free. But free tax usa is legit af. If you just work a normal w2 job or 1099 too in lower brackets it's perfect and everybody should use it.
Tho somebody else was saying to plug their info into TurboTax and just see what it comes up with to compare to the accountant. If they are doing something big wrong it would be noticeable.
dodexahedron t1_je8hgy6 wrote
They don't. Combined they make 75k. That's not much, especially combined. People (myself included) who make multiple times that don't pay accountants to do our taxes, because it's just not necessary. And that's with various investments, itemized deductions, and non-job sources of income that generate 1099s.
H&R Block and its ilk have done a fantastic job of convincing everyone that taxes are hard or complex or that you're going to get in trouble if you make one little mistake. Even if you get audited and are found to owe something you didn't pay, you're just given the chance to pay up (potentially with interest) and everything is fine. Then you file an amended return, pay the difference, and go on with your life.
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