Should I switch my NY tax preparer for an NJ tax preparer?

Question

I am having a bit of an issue, my NY tax preparer has been doing my taxes since 2000, I live in another state as of 4 years ago. What happened was that I got my taxes looked at by a NJ account he came up with a larger number of return than my NY preparer, I feel the NJ IRS laws are so different that a NJ tax preparer would know more and get me a better deduction from NY, now what would you do? and how should I tell him?

I live in NJ and work in NJ, when I lived and worked in NY he used to do my taxes. So all states have the same IRS laws, it doesn't matter?

Answer 1

When you lived and worked in NY, you filed a federal return with the IRS, and a State of New York return. When you live and work in NJ, you still file two separate returns, a federal return, and a State of New Jersey return.

It's also possible, in both states, you were required to file a local city, or borough income tax return, as well.

You are right that the laws for NY State income tax are different than those for the State of New Jersey. You were also right to show your return for a second opinion. Now, you need to find out exactly what the NJ accountant found, that your regular tax preparer missed, or didn't include. Someone is making a mistake, and you need to find out who is right.

If the change in your past year return is valid, you are allowed to amend your 2006 return and claim the additional refund. You are allowed to amend 3 prior years, so if the situation was the same in 2005, and 2004, you should amend those years as well, and receive the additional refund from those years.

You should contact your NY tax preparer, or the company. Show them the results of the second opinion, and get their explanation. Some tax preparation companies stand by their past returns. They guarantee the return is correct, or the amendment is free. Some companies make further promises, or sell further "Peace of Mind" warranties.

If you want to complete the form yourself, use IRS form 1040x, for federal, and NJ 1040x for the state.

Otherwise, you need to decide which tax professional you want to do the amendments for you. If the NY tax preparer made a mistake, and still wants to charge you for the amendments, then I'd say it's time to say goodbye and take your business to the NJ accountant. You may want to do that anyways if you prefer working with someone from your own state.

Answer 2

the Federal tax return is the same no matter what state you live in - you may have just found a more experienced preparer in NJ - You would think a preparer from NY would know more about the NY state tax return - Do you live in NJ and work in NY? If you're close to NY, then the NJ guy might have a lot of experience doing NY tax returns - go with the one you feel more comfortable with -

Answer 3

IRS laws are the same in both states, so if the NJ preparer came up with a different figure than the NY preparer, one of them made a mistake. If you'll post more info here on what specifically the difference was, someone might be able to give you a little more info.