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Almost tax time!...... 8-(

Date: Sat, 01/05/2008 - 10:51

Submitted by unclewulf
on Sat, 01/05/2008 - 10:51

Posts: 3172 Credits: [Donate]

Total Replies: 12


Well, kiddies, it's about that time again. Time to dig deep for the greater good, or something like that.

There's another thread here in the Pub from a poster who was thinking of taking a job doing taxes at a place that does a lot of refund anticipation loans [RALs]. That got me to thinking.........

[size=2][Run for your lives, folks! He's thinking again!!!][/size] :)

Anyway, there's a lot of hoopla about fast refund service in the media this time of year, and a lot of competition among tax preparers. Seems like a lot of folks want their refund money as quickly as they can get it. There is an alternative to a RAL through Block or one of the others.

The IRS is promoting electronic filing hard these days. And e-filing your own taxes is becoming more accessible than ever. You don't need to pay somebody else to prepare your return. There are several companies that will let you e-file, and some of them are free if you qualify. Statetaxfreedom.com is one that I recommend to a lot of people. There are others, Google or the IRS website will help you find them.

If you e-file your return and use direct deposit, IRS says you should get your refund in as little as three weeks. In my experience, if you file early it's a lot faster than that.

Local-interest story here: There's a family that lives down the road from me. Mom, dad, and three kids, one income, about $18.5 K per year. For their 2005 taxes, they went to Block here in town. Had a real simple state/federal return prepared, and got a RAL for the money. It took about 3 days to get the money in their hands, and cost them in excess of $400 total. Last year, I talked them into doing their own taxes online. I did have to let them use one of my computers, but oh well... So the mom comes over one evening, and we sit down and do their taxes together, e-filing online and using direct deposit. Took about half an hour. They had their state refund in four days, and their federal in 8. She left here with a printed copy of her return for her records and another copy on CD. And the only costs were the $20 I charged her for use of my computer and printer.


I agree...I have been doing my own taxes for years and my kids, and several friends...efile is quick and simple. And if you file early there is hardly any wait...why pay more of your hard earned money ???

Personally I take the largest % of deductions I can during the year...more in my paycheck now vs letting the government use it free....so I don't get a lot back at the end of the year...I use it during the year.


lrhall41

Submitted by Morningstarr430 on Sat, 01/05/2008 - 15:29

( Posts: 2329 | Credits: )


I've been doing my taxes through Turbo Tax for as long as I can remember. I just do the standard forms.

Some people like the comfort of having someone do it for them. I can understand the lure of money now. I think I filed my taxes twice this way and all of the pro's and con's were explained to me. My sister in law gets the Quick Refund every year despite me begging to do her taxes with Turbo Tax. She likes having her money quickly.


lrhall41

Submitted by FYI on Sat, 01/05/2008 - 17:47

( Posts: 1950 | Credits: )


I agree...
I file my oldest sons and his girlfriends taxes myself

yet..my husband and I have write-offs etc..that I want tax preparer expert to be in charge of..it's a different story when you aren't getting a refund and have to pay and need all deductions possible...
instead of getting refund..

people still look for reputable tax preparers out there who can get them the most deductions and can back it up in court if challenged..

the rapid refunds only take advantage of people who need and can use every penny they might be receiving...

people who still use tax preparers do so..because it saves them a ton of money

I am probably prejudiced because I have relative who has been in this business for 30 years ...but she is one who taught me not to fear the I.R.S. and does not do R.A.L.'s!


lrhall41

Submitted by socksfullofrocks on Sun, 01/06/2008 - 04:27

( Posts: 488 | Credits: )


Mornin' Socks -

Always nice to have an accountantr in the family, huh? :)

Fear the Internal Revenue Sadists? Not I, but I unserstand that lots of people do. Way back in the day, when I was just a little Wulf in 6th grade, I had a math teacher who had us do a 1040 as a project. Sorta de-mystified the whole thing for us, right there. I've done my own taxes, both personal and for several businesses, for thirty years or so now. It's simple enough, just takes a little time.


lrhall41

Submitted by unclewulf on Sun, 01/06/2008 - 06:11

( Posts: 3172 | Credits: )


unc I so totally agree with you

I know my sister-in-law in this business attends numerous seminars for new law updates throughout the year..(I now for last ten years work for her husband my brother)..yet when I get a letter from IRS ..I'm still to this day all panicky saying...."the letter says this" etc.

my mom/dad and several aunts and uncles still do their own taxes even though service would now be free (refuse this handout crap)...typical story about character of my mom..have ya ever heard about the Mears gang? Rick Mears who won the Indy 500 many yrs ago had a nephew yrs later .. Rog Mears JR...who tried to sign up for a go-kart race in my town in the late 80's...I had been secretary of non-profit club for past 8 yrs. ....my mom volunteered for this race in sign-up booth..Rog Mears Junior wanted a free pass because of name....mom told him quote.."I don't care if you are the freaking Pres of the United States of America...you have to pay for a pit pass /driver's pass..or get your ass out of here!"
My mom and dad taught me very well to never pay for anything that you can do for yourself...which is why I almost do everything myself because if I can do it..I am not gonna pay someone else to mess it up!
The fact that I am finally at a point in my life where I owe the IRS on a long form not a 1040 might be the difference?

I am still your number uno fan dude!!!!!!

I used to do my own taxes and did them all my life when I qualified for refunds..only when I had to start paying did I need help...do you get money back? or end up paying more than what has already been taken out of your earnings wulf? It is simple if you are getting money back instead of paying...
you are a great friend on this sight..thank you for being here!


lrhall41

Submitted by socksfullofrocks on Sun, 01/06/2008 - 07:14

( Posts: 488 | Credits: )


I have been using Tax Cuts for years and file on line. It is truly fast, and I????????ve never had a problem.
I am expecting to receive a large 1099 from a CC that I settled on. Should I seek a professional for that or keep on going with Taxes Cut? The program is pretty good as asking the right questions.


lrhall41

Submitted by mommontoya on Sun, 01/06/2008 - 10:14

( Posts: 501 | Credits: )


[quote=socksfullofrocks]I know my sister-in-law in this business attends numerous seminars for new law updates throughout the year..[/quote]

I don't waste any time going to seminars on tax law changes. I don't need them... I'm an IT consultant, not an accountant. I do keep up with changes, though, through the IRS Newswire email newsletter. It's free, available to anybody from the IRS website, and reasonably complete and concise. A few minutes a day, and I'm all right.

[quote=socksfullofrocks](I now for last ten years work for her husband my brother)..yet when I get a letter from IRS ..I'm still to this day all panicky saying...."the letter says this" etc.[/quote]

Ain't nothing but a thing, Socks. Nothin' to get all wigged out over. I've been audited by the IRS three times over the last twenty years. Probably because I was an officer of a 501[c]s corporation for much of that time. Twice, they just wanted to clear up some minor arithmetic questions with my source documents. The other time, they found an error where I'd overpaid to the tune of about $800 bucks. They were cool about it, just took a few weeks and some paperwork [that they helped me do], and they cut me a check for it. Be organized, be honest, and pay attention to detail, and you'll have no problems.

[quote=socksfullofrocks]do you get money back?[/quote]

Next question?.....

[quote=socksfullofrocks]you are a great friend on this sight..thank you for being here![/quote]

Gosh.... Thanx for puttin' up with me. :oops:


lrhall41

Submitted by unclewulf on Sun, 01/06/2008 - 12:15

( Posts: 3172 | Credits: )


Just an FYI to everyone regarding filing your taxes this year...straight from the IRS website:

[quote]Alternative Minimum Tax (AMT) ???????? How It Affects Filing Season 2008



Updated Dec. 28, 2007

The upcoming tax season is expected to start on time for everyone except for certain taxpayers potentially affected by late enactment of the Alternative Minimum Tax ???????patch.??????? Following extensive work in recent weeks, the IRS expects to be able to begin processing returns for the vast majority of taxpayers in mid-January. However, as many as 13.5 million taxpayers using five forms related to the Alternative Minimum Tax (AMT) legislation will have to wait to file tax returns until the IRS completes the reprogramming of its systems for the new law.

IRS has targeted Feb. 11, as the potential starting date for taxpayers to begin submitting the five-related returns affected by the legislation. The February date allows the IRS enough time to update and test its systems to accommodate the changes without major disruptions to other operations related to the tax season. See IRS News Release 2007-209 and these questions and answers for more information.

Returns that include the following forms cannot be filed until Feb. 11, 2008:

Form 8863, Education Credits
Form 5695, Residential Energy CreditsSchedule 2, Form 1040A, Child and Dependent Care Expenses for Form 1040A Filers
Form 8396, Mortgage Interest Credit
Form 8859, District of Columbia First-Time Homebuyer CreditCheck this page for further AMT-related updates.

Additional Information on the Alternative Minimum Tax

What is the AMT? The AMT came into being with the Tax Reform Act of 1969. Its purpose was to target a small number of high-income taxpayers who could claim so many deductions they owed little or no income tax. A growing number of middle-income taxpayers are discovering they are subject to the AMT.[/quote]

So, once again, the IRS has screwed up by not getting their computers updated in time for tax season. I'd say 13.5 million people is not a small amount - not by anyone's guess. This happened last year too - there was a delay in returns being filed or refunds being issued due to the IRS not having their computers up to date. :evil:


lrhall41

Submitted by SUEBEEHONEY70 on Sun, 01/06/2008 - 12:44

( Posts: 4583 | Credits: )


thanks wulf!!! for puttin up with me as well !!!! I consider you to be my bud here and respect all your opinions even if I might disagree once in a while!
However Sue Bee
I heard congress dropped the ball on this deal with the alternative minimum tax delayed the vote and I.R.S. passed blame on them..

5 years ago our business kicked in big time end February when refunds started rolling...

past two years...3rd week in January was time to be geared up and ready..

this year I think end Feb will once again be a reasonable expectation for whatever" income tax return windfall" a business will receive begins..

Sue Bee didn't the government and our elected individuals screw up? I am only going by what I have read in several local and state newspapers..

I heard the vetos on this subject are the real problem


lrhall41

Submitted by socksfullofrocks on Mon, 01/07/2008 - 23:04

( Posts: 488 | Credits: )