should i tried to do it myself to go to one of those tax preparer site like h&r block?

Question

i alway did my tax w/o any tax software by using the 1040 ez form.

now the scenerio has changed for this tax year. here are the new changes:

1. earn about $4400 in interest.
2. have a 401k plan with my employer. also open up a ROTH IRA and contributed $1000 to this tax year..

a couple of questions:

1. what tax forms should i be using to file this year?
2. are there any deduction for me? i never have any things itemize or deducted since i was using a 1040 ez form in the past.
3. is it worth to still do it myself or go with H&R block? how much would they charrge me for it?

thx in advance.

what is a 1099?

i though u only have a choice between 1040, 1040a or 1040 ez?

can someone for the love of god answer how much would it cost for somone to do my tax return? just a rough guess would be fine.

and how much would it cost for me to go a tax advisor who will be preparing my tax return? that's what im trying to find out.

one last question:

can i deduct or itemize anything? i never did any of these before since i was using the 1040 ez form in the past. like i said i have a 401k and a ROTH IRA. i was told by someone i cant deduct it since i can't touch those money when im 59 1/2 unlike traditional IRA.

Answer 1

Ok - calm down and relax. You are scaring yourself. I work for H&R Block. I'm here to help. A 1099 is a form to report income of various types. Like a 1099INT tells you interest income you made. A 1099DIV is used to report dividends on stocks you made. You will need Schedule B to report these.

A 1099MISC is used to report income you made working for someone who didn't take out taxes (that's reported on the W2). If you get one of those, you have to file Schedule C. You can write off most expenses because you are considered self employed.

Now, before you get more upset, go online and use the Tax Cut program on our website. It's inexpensive and if you have problems, you can click to request live help from a tax preparer and someone from the closest office will contact you within 24 hours. Once you talk to them, you can either complete it yourself or print it and ask them to look it over. We do this for free.

The good thing with the program is that you answer the questions and it will do the math and populate the forms you need. You eliminate the guess work. Also, if you go through the website below, you may be able to efile for free depending on your income. (If it won't take you there directly, go to www.irs.gov and click on free efile at the top of the page. Then follow the links to the list and select H&R Block. It will take you to this website where you can file for free if your adjusted gross income is under $52,000.)

Or, why not call the nearest H&R Block office and ask to speak with a tax preparer. They will be happy to answer any questions you have.

Answer 2

This isn't really the place for me to advertise, but I do taxes for others as my occupation and I am much cheaper than any of the national firms. If you have a basic understanding of what you are doing you could still do your own, but using a pro to make sure is certainly no crime... You cannot use the EZ form because your interest income is too high, but is sounds as though you can still use the 1040A which is a shorter simpler version of the 1040. Just not as short and simple as the EZ. I would charge you $65 for this return (including state if your state has an income tax)based on what you have said so far. I doubt that H&R would be less than $100. As far as deductions go, if you are single you would need at least $5,150 before it would pay you to itemize and even more for Head of household or married Joint. These would include home mortgage interest, charitable contributions, state taxes paid and Medical above 7.5% of your adjusted income. (gross minus your IRA) There are other possible deductions but this covers the basics.

Answer 3

If you have a basic tax situation, W-2, 1099's, a house you should be able to use turbo tax and a copy of Publication 17 from the IRS and do a great job preparing your own return. If your situation is more complicated, self-employed, partnership investments etc. you would be better off using a good CPA rather than one of the tax prep services. You could also use a CPA this year and then do your own return until either your situation changes drastically or there is a significant change in the law.

Answer 4

With your slightly more complicated return (Schedule B for interest and the 401k and Roth) you're probably looking at around $100 - $150 for a storefront tax prep firm to do yours.

It's not too complex to do yourself by hand, just pick up a 1040 package at the Post Office or you can download everything you need from the IRS website -- forms, instructions, etc.

The fastest and probaby cheapest way would be to get one of the commercial tax prep packages like Tax Cut or Turbo Tax. It will walk you through the process step-by-step. You can also file electronically with either of those for about $30 for both your federal and state returns. Filing electronically will get you a much faster refund especially if you have it sent directly to your bank account. With direct deposit, you could have your refund in 2 weeks or even less. I got my federal refund in 5 days last year and my state in 8 days.

Answer 5

Bostonian is pretty close on the fees thing. If you are organized, you may find that a CPA is just as cheap - depends where you live. Ask around and get some quotes, then go with who you feel most comfortable with.

You seem to be stressing out a bit so maybe efiling without the help of a tax pro is not a good option, at least not for this year.

Answer 6

If you have a Form 1099 (like a W-2, but for something other than wages), you have a tax return that ust be done on long form 1040.

If you don't know how everything goes together, I strongly recommend seeing a competent tax advisor.

Enrolled Agent / Tax Advisor

Answer 7

Turbo tax is good - on sale at Costco for $16 if you have one of those near you and this is the last day of the deal - but still worth the $30. It goes through the whole interview process just like H&R.

Answer 8

I still do all of my tax returns myself. I use TurboTax and walks me through it step by step. There are different options available. I am using the Premier option for $49.95 this year because it walks you through investment stuff like you are needing. I hope this helps you out.

Answer 9

1099