Turbotax?

[fire&ice]

It''s THAT time of the year. Anyone use Turbotax and if so, what limitations or mistakes have you found. Or, can it be relied upon. It''s treating the information from hubby''s schedule K differently than we had in the past.

It has been quicker assigning things on the correct lines, asking the correct questions & calculating the less and excepts. Just trying to know whether we can trust it.

Or do most of you send yours to a preparer? We don''t like doing our own taxes. But, it sure does make you know more about taxes, etc.

 

[Regular Guy]

For knowing your taxes...nothing like doing them yourself. But..I''ve not done that since having become a homeowner of one sort or another...it''s been awhile. The last several years have used Turbo Tax on the web, with satisfaction. But, if your question is...have I cross checked with anything for accuracy....no. It''s largely still a black box...however...you can see live the impact changes will have as you make them...which is interesting, at least.

A friend has suggested you can now pick up turbo tax via IRS.gov, and for no cost. Was going to check this out, and don''t know. Anyone here?

 

[bar01]

Have been using Mac version of TurboTax for years. Love it. Would never use any other method. I like that it updates every year, brings in all my old data and then asks for updates. It also goes out to my financial and employer payroll to retrieve data. Also electronic filling is a breeze.

My fiancé went to H&R Block and ran out of there frustrated with their knowledge and support. She tried my TurboTax and was done in an hour and it handled all her issues and questions.

 

[hoorray]

We''ve used TurboTax for years to get the records organized, and then turned them over to an accountant. This year we are debating on whether it is enough to just use TT and leave it at that. I think it is accurate. Whether or not it includes all the options on dealing with some of the not so obvious things, is what I don''t know.

 

[fire&ice]

Thanks all. It just seems like it''s too easy to be true. Funny, we''ve been frustrated using hubby''s companies accountant. We like to understand why we pay what. Accountants don''t seem to want to explain it.

One thing it keeps asking us is to pay a penalty for underestimation. We don''t want to pay uncle sam any sooner than we have to - so we hold off till the end of the year (yeah, IRS have been asking about estimated taxes - but we don''t have to because of circumstance). Because of accounting switches, this year we will owe quite a bit more

than last year. BUT, we paid 10% over our last year''s tax liability. I thought that you could avoid a penalty that way. It (turbotax) keeps asking me to fork over the penalty. Do I just ignore it?

 

[sjz]

We just use an accountant. Our taxes are too complicated for us (scientifically brilliant people, financially not so much...lol).

 

[fire&ice]

Date: 3/29/2005 10:45:24 AM
Author: crankydave

Date: 3/29/2005 10:23:53 AM
Author: fire&ice
Thanks all. It just seems like it''s too easy to be true. Funny, we''ve been frustrated using hubby''s companies accountant. We like to understand why we pay what. Accountants don''t seem to want to explain it.

One thing it keeps asking us is to pay a penalty for underestimation. We don''t want to pay uncle sam any sooner than we have to - so we hold off till the end of the year (yeah, IRS have been asking about estimated taxes - but we don''t have to because of circumstance). Because of accounting switches, this year we will owe quite a bit more

than last year. BUT, we paid 10% over our last year''s tax liability. I thought that you could avoid a penalty that way. It (turbotax) keeps asking me to fork over the penalty. Do I just ignore it?

I''m not an accountant...

My understanding is based upon your AGI and whether or not you''re filing jointly or separately, you can avoid penalty as long as you have paid 110% of your 2003 liability. If this is the first year you''re using the program, it likely does not have the previous years return to compare it to.

Edit: Ooops...2003 liability

Dave

Well DUH! I didn''t even think of that. Yes, that makes sense. The program has no information from last year. I will have to see if I can tell it that. Thanks. Mystery solved.

 

[youngster]

Hi fire&ice,
I''ve used TurboTax for many years with great satisfaction.

Generally, you will owe a penalty if, for 2004, you did not pay at least the smaller of 90% of your tax liability for 2004, or 100% of your tax liability for 2003, or 110% of your tax liability for 2003 if your 2003 AGI was more than $150,000 ($75,000 if married filing separately this year). You do not have to pay a penalty if the total tax liability on your 2004 return, minus the amount of tax paid through withholding, is less than $1,000 .

CrankyDave is most likely correct that the reason the penalty is being imposed by TurboTax may have to do with the fact that you didn''t use TurboTax for 2003 so the software doesn''t have the correct data for 2003 to make all the proper calculations. To check this out, go to the top tool bar on TurboTax, click on "Forms". Then click on "Open a Form". Then search for "Form 2210-Underpayment of Estimated Tax by Individuals". Open that form. That will show you the detailed calculation TurboTax made and what data they used. I believe you can enter data right on this form (but I''ve not personally tried yet). (You can also click on any of the boxes to highlight it, then go to "help" for detailed information.) That may allow you to enter your data from 2003 so that the proper calculations can be made.

Hope this helps. I''ll try to do a bit more research on this later today by going back through the interview forms, when I am going to be working on finishing up my own taxes!

 

[fire&ice]

Wow. Thanks. Boy this is a helpful & SMART group of folk. I think my brain is fried on taxes today. I spent yesterday learning my way around turbotax, compliling all the dedects, income, and typing them into the form. Of all the tasks, learning my way around turbotax has been quite painless.

Now, I have a question of Sch. E. At first it was telling me that an error existing because I needed to download the update. I did. I filled out the form Schedule E - BUT ONLY the second page. The first page is blank - in other words - no information. Is that normal?

Youngster, I went straight to the form you told me about. Entered in 110% of our 2003 liability & poof - penalty gone! This thing is great!

Thanks all. What is usually a very painful time of the year - has been MUCH more of a breeze & I''ve learned something. Next year it will even remember my inventory & mileage history!

Feelin the love for my Turbotax!

 

[youngster]

Yes, having a blank page 1 for Schedule E can happen. Schedule E page 1 is for income received from rents/royalties. Schedule E page 2 is for partnerships, S Corporations, Estates, Trusts and REMICS. It will only print the page you need. In my case, I also don''t have a page 1 but do have a page 2. So, its normal!

 

[gingerBcookie]

my mom loves it.

 

[Mara]

Normally in the past we use Turbo Tax (except for years when I consulted when it was just easier to have acctant do it!), but this last year our taxes were a mess what with getting married, buying a house, selling stock at a loss, changing jobs, etc. So we just had our accountant do them and we got back much more than I would have estimated on my own using their little online Quicken Tax Estimator. Plus no headaches! Our accountant is very conservative, my parents have used him for 15 years, and I love how up to date they are on all the new laws etc, stuff we have no idea about..I guess that''s why he is there!

 

[lmurden]

Knock on wood, I''ve haven''t had any problems and have been using Turbo Tax for about 3 years.

 

[Rank Amateur]

I always do my own but made a math error of some sort this year.

The kind and generous Uncle Sam fixed the error and sent me an extra $1500. To celebrate, my wife is dropping two grand on wallpaper.

 

[hoorray]

Date: 3/29/2005 5:33

8 PM
Author: Rank Amateur
I always do my own but made a math error of some sort this year.

The kind and generous Uncle Sam fixed the error and sent me an extra $1500. To celebrate, my wife is dropping two grand on wallpaper.

LOL...and I bet she can even justify that she is SAVING $$ somehow. That''s my favorite trick!

 

[fire&ice]

Date: 3/29/2005 5:33

8 PM
Author: Rank Amateur
I always do my own but made a math error of some sort this year.

The kind and generous Uncle Sam fixed the error and sent me an extra $1500. To celebrate, my wife is dropping two grand on wallpaper.

I have to say that after following some of your tax stories in the past years - you are the luckiest sun of a gun when it comes to income tax! I need to use your tax program!