Which tax software do you use and why?

[NickD 203]

Who says unearned income is not taxed?

they still are

Let's start off with the increased deductions, even mileage, expensive vacation type business trips, private jets, etc., and end up with no FICA taxes to pay. Daughter did work briefly for a large investment firm, they owned these boxes in just about every football stadium, was her job to be the guide. But quit when this tax deductible entertainment service gave the misconception that some of their key customers could get in her pants.

In my own corporate days when sitting in a very expensive country club restaurant with the board spending money like crazy, all tax deductible, I know that, was responsible for the P&L statement and overlooked my own accounting department. Made unpopular statements when told to beat the hell out of my employees and cheapen up the product to save money, said we can start here by eating a Macs instead.

Don't ever tell me with have a fair taxation system, a poor slob worker cannot even deduct his transportation expenses to and from work!

[Ali G. 37]

Always have used Turbo Tax. My brother used to manage all my different things I had going on and he used it. I use it as it remembers my past data and it is simple to use. I always efile and get my huge refund pretty quick.

Interesting..

[thongd4me 69]

I use "MassimoTaximo" - my Italian-American friend is an excellent accountant.

[Ali G. 37]

The problem with the system here is that a business gets to deduct anything and everything, while a worker gets to deduct jack. Hence, if two people are earning $150k and one owns a business, they will pay a total different effective tax rate on the identical $150k they are pocketing.

However, I will say this, we barely pay any tax here anyway. Even though the federal tax rate is actually lower in Aus, I pay much less tax here, due to a range of deductions. I honestly feel I am short-changing the people and should be paying more. As without tax, a country is finished and becomes the next Haiti.

I use "MassimoTaximo" - my Italian-American friend is an excellent accountant.

In other words dodgy.

Edited January 26, 2010 by Booyah

[raymaga 25]

Turbo Tax for years now.

[payxibka 10,047]

Let's start off with the increased deductions, even mileage, expensive vacation type business trips, private jets, etc., and end up with no FICA taxes to pay. Daughter did work briefly for a large investment firm, they owned these boxes in just about every football stadium, was her job to be the guide. But quit when this tax deductible entertainment service gave the misconception that some of their key customers could get in her pants.

In my own corporate days when sitting in a very expensive country club restaurant with the board spending money like crazy, all tax deductible, I know that, was responsible for the P&L statement and overlooked my own accounting department. Made unpopular statements when told to beat the hell out of my employees and cheapen up the product to save money, said we can start here by eating a Macs instead.

Don't ever tell me with have a fair taxation system, a poor slob worker cannot even deduct his transportation expenses to and from work!

Taxable income for a business is gross receipts minus "deductible" expenses... (I hope you realize that while in the past the "luxury" boxes were deductible 100% but that ain't necessarily the case anymore as not every expenditure for corporations is deductible....)

For an individual it is similar... Taxable income = Gross Income minus deductible expenses (IRA, Itemized deductions, personal exemptions, etc..)

I would never say the tax system is fair...

Edited January 26, 2010 by payxibka

[SMR 368]

Taxable income for a business is gross receipts minus "deductible" expenses... (I hope you realize that while in the past the "luxury" boxes were deductible 100% but that ain't necessarily the case anymore as not every expenditure for corporations is deductible....)

For an individual it is similar... Taxable income = Gross Income minus deductible expenses (IRA, Itemized deductions, personal exemptions, etc..)

I would never say the tax system is fair...

The problem with the tax system is that the more complicated it gets, the more it will be tilted towards the rich. The rich can always afford to hire accountants and lawyers to get them an extra couple percent savings since that savings is easily tens of thousands. Not only is it harder to find deductions if you only make 5 figures, it doesn't really make sense to pay someone to look for them.

[Ali G. 37]

The problem with the tax system is that the more complicated it gets, the more it will be tilted towards the rich. The rich can always afford to hire accountants and lawyers to get them an extra couple percent savings since that savings is easily tens of thousands. Not only is it harder to find deductions if you only make 5 figures, it doesn't really make sense to pay someone to look for them.

Bingo!

The wealthy always weasel their way out of taxes. It's the middle class that is left to bare the brunt of it. It's also the middle class who can least afford it, since they are paid peanuts. For example, while walmart pays their workers peanuts, shareholders receive hefty dividends. Then we hear that is capitalism. Wrong! That is what happens when you allow the private sector to exploit and abuse the market.

Companies need to start paying people a fair (livable) wage and deliver value to the consumer. After doing so, they can make all of the money they like. Any companies that tries to short-change Americans and move abroad or ripoff the consumer, should be penalized using any means possible. It's time we the people yield the power, rather than a corporation.

Edited January 26, 2010 by Booyah

[SMR 368]

Bingo!

The wealthy always weasel their way out of taxes. It's the middle class that is left to bare the brunt of it. It's also the middle class who can least afford it, since they are paid peanuts. For example, while walmart pays their workers peanuts, shareholders receive hefty dividends. Then we hear that is capitalism. Wrong! That is what happens when you allow the private sector to exploit and abuse the market.

Companies need to start paying people a fair (livable) wage and deliver value to the consumer. After doing so, they can make all of the money they like. Any companies that tries to short-change Americans and move abroad or ripoff the consumer, should be penalized using any means possible. It's time we the people yield the power, rather than a corporation.

You make some good points but I disagree with your last point about penalizing using any means possible. We've been trying to penalize companies for years and the result is simply more and more companies moving overseas. It's actually Pavlovian. Hitting people isn't really an effective way to get people to do things. They usually just avoid you. The same goes for companies.

The real issue isn't government vs. the market. The market will always win because it includes the government. The government is simply a force that affects the market. You can tax whatever you want and penalize whatever you want. That tax just becomes a market force that goes into the final price. If someone else can figure out how to do it cheaper, they will. That means if they have to pay to ship stuff all around the world but it comes up cheaper than paying high labor costs and spiraling energy taxes, they will.

[Ali G. 37]

I understand the reason that companies move overseas. As a country, we should not be turning a blind eye let alone promoting this. I don't buy the seeking the lowest cost is a normal course of business; rather, this is how US companies have been allowed to operate. This attitude has allowed company after company to leave the United States, for a greater profit, all while the standard of living for Americans has fallen to record lows; and that was before the 2008 financial crisis. There are thousands of successful companies that operate in countries where the law mandates they take care of the worker and actually provide a service of value to the customer. This is the part of government that many fail to comprehend in the US. Furthermore, laughably want even less of this and prefer the company dictate what is best for Americans.

People make similar arguments about small business failing if minimum wage is increased or people are given an extra day paid leave. However, as pike of all people put it, these same types of businesses, that provide even more paid holidays, are doing quite well overseas. Australia is a great example since not only do they have a high tax rate but also an extremely high average salary for all. Based on the beliefs of many in the US, companies should have left Australia years ago. Quiet the contrary actually, their unemployment rate just fell again to 5.5%. The thing about Australians is that they don't cheer on the loss of jobs, in the name of cheaper products at walmart. Certainly not if these jobs went to countries that are communist, which we hated on for years.

Big businesses naturally looks at for themselves, not a country. Therefore, its a government's imperative to ensure a company factors in all stakeholders, like the citizens of a country, rather than just the shareholders and executives. Companies now exploit and sell out the US and the people by claiming 'this is capitalism'; which is utter BS. I just don't comprehend how anyone, even someone wealthy, would sell out their country in the name of a profit.

Edited January 26, 2010 by Booyah

[Joseph & Ana 0]

H&R Block

[DanielParul 50]

Daniel & I go to the base and get it done. Get the best tax refund and its free

[NickD 203]

Daniel & I go to the base and get it done. Get the best tax refund and its free

Yeah, I had to pay taxes also when serving in the military. Would have paid a lot more if we got paid for overtime, but they don't have overtime pay in the military. Did have to pay a little extra for combat pay, buy was more concerned at that time about staying alive than paying taxes.

[I AM NOT THAT GUY 5,715]

I file Schedule C and a few other complications, so I just keep everything in a spreadsheet. The IRS has fillable forms these days, so it doesn't take much to transfer the entries from the spreadsheet to the forms. I like filing a physical return, especially dealing with immigration. California returns are even more complicated, and it is nice to be able to refer to the Federal forms easily.

I do my own books, so is just another task to keep me busy in late winter and early spring. Using the tax software would not really save me that much time, since all that information is already in spreadsheet form.

[NickD 203]

Talked with my son yesterday morning about taxes, just suggested he download the long form 1040 and go down line my line nothing any additional taxes he may have and especially deductions. With his mortgage, he was far better off to use the Schedule A as as opposed to using the standard deduction.

Also pointed out to him, since all of his income was on a W-2, he like the rest of us, are automatically screwed, the deductions are extremely limited. While he was either paying to have his taxes done or screwing around with various tax software, he called me back in a couple of hours and said it was much easier for him to do it the old fashion way. With these programs, have to put in a ton of information even before you see the results and wonder if it's correct or not. Now he is wondering if he takes that to any tax place, if they really could get him an additional four five hundred bucks back. If your income is greater than $32K filing jointly forget about any credits period.

With all this BS on buying a new home, energy stuff, or a new car, quickly learned that you can only take these deductions if you owe at least that amount of taxes. Say if you only owe a hundred bucks in taxes but have $6,000.00 worth of these so called tax credits, you will only get a hundred bucks back. Talk about false advertising. We didn't have that problem as our tax bill is stiff.

I also run a business, use to use a spreadsheet, that is really time consuming to have to type all that stuff in. And worthless if you have an audit, they want to see your actual receipts and invoices. So I just organize all that stuff and use an old fashion adding machine stapling the adding machine to that particular stack. If I am called in, completely organized with positive proof for all my deductions, but do use a spreadsheet for my mileage backed up with credit card statements.

This is very time consuming and has to be done in my off time, so have to earn a living. And it's no mercy with the IRS. But I did learn how to deal with the IRS in my audit, really quite an experience and if you believe we live in a free country, you are drastically misinformed. But we still have the right to b!tch, until they take that away from us too.