Which tax software do you use and why?

[Dan J 277]

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.

Generally that's true. A tax credit can only be given on what you paid in. The $8000 new home buyer credit is the exception however. You can get that reguardless of how much you paid in taxes.

[I AM NOT THAT GUY 5,715]

Talked with my son yesterday morning about taxes, just suggested he download the long form 1040 and go down line

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.

At my last audit, having everything listed in spreadsheet form saved time, and the auditor did appreciate the ease in which he could see how the supporting documents (receipts, invoices, etc.) were used.

One of my fellow business owners has a different method. Everything goes into a big box each year. He makes no effort to keep any books, and just makes a best estimate as to what to put on the forms each year. So far, each time he has been audited, he just gives them the requested years' box, and says, "Have to it!"

Seems to work, as the frustrated auditor generally made minor, if any, adjustments to his tax liability.

[NickD 203]

At my last audit, having everything listed in spreadsheet form saved time, and the auditor did appreciate the ease in which he could see how the supporting documents (receipts, invoices, etc.) were used.

One of my fellow business owners has a different method. Everything goes into a big box each year. He makes no effort to keep any books, and just makes a best estimate as to what to put on the forms each year. So far, each time he has been audited, he just gives them the requested years' box, and says, "Have to it!"

Seems to work, as the frustrated auditor generally made minor, if any, adjustments to his tax liability.

Must have had a nice auditor, why am I so unlucky with anything to do with the government. Did meet a close friends sister that use to work for the IRS. She told me she was not to go to any corporation for an audit, they have way too many tax attorneys and would be too much of a battle for them. Just limit yourself to the individual, those are very easy to intimidate.

Another big racket is charitable deductions where the organized ones only give a dime of your buck to someone that needs it, but that okay with the IRS. But if you see someone really in need and give them a couple of bucks, non-deductible. Joe Louis and Willy Nelson are prime examples of that, but also the little guys.

If you like, can always make a check out to the US Treasury with a stipulation to use that to reduce the national debt. Fat chance of that ever happening, but will cash your check.

[Mononoke28 135]

Tax Act baby! Federal is free and I only have to pay like $14 or something like that for my state taxes. It's very thorough, asks all kinds of questions, and it's easy!

Diana