How difficult is it "really" to do your own taxes using one of those online software programs?

Question

I don't really feel like paying $400 bucks again this year.

Isn't it essentially just inputting your data from your W-2 form and filling out the sections for your deductions?

They make the software "dummy proof" - don't they? Or as much as possible since the makers know that those doing their own returns are not tax professionals.

Thoughts?

Answer 1

It depends on how complex your return is and how well you follow directions. If you own your own business and have fairly complex finances for it, with lots of deductions, and also sold several stocks and options, it might be better for you to go to a CPA to get your taxes done. Otherwise, if you are reasonably decent at following directions, you should be fine with the software.

Answer 2

For $400 either you have a complex return or you were being ripped off.

The tax software is good but absolutely not "idiot proof" and chances of a big mistake are directly proportional to the complexity of the return.

On a different board a couple of years ago an accountant was telling a story of having to fix three years of returns for a new client. When finished, the client had to cut a check back to the feds for over $25,000 plus interest. Now, that is a pretty extreme case but it shows what can happen when some who really doesn't know what they are doing tries to do a complex return themselves.

Answer 3

it's not bad...I changed jobs, bought a house and got divorced...and was able to do my own taxes on TurboTax...it took me a total of about 2hrs and I paid $40 for the program which I downloaded from a link on my bank's webpage.

If you have your own business, it may be a little tougher or if you have multiple incomes. I had a few W-2's and 1099's and had no real problems with it. You just have to be patient and read the questions fully.

I guess it depends on you and your situation whether or not to go with a professional tax preparer. Are you good at following directions? Do you normally file the 1040 or 1040EZ? if so, then go with the software and save some cash.

Answer 4

The software easily handles relatively complex tax returns. It is easy enough to use. All you have to do is answer questions. Of course, you also have to have the right data for answering the questions, but you need that whether you do your own return or have someone else do it for a fat fee.

Answer 5

I have used H&R Block Tax Cut premium online every year now since 2000. It is really easy to use and tells you step by step on how to do your taxes and it only cost $19.95 to file, deducted from your return.