Any accountants here???

[dataz722]

I just got married last year and I am going to be doing my taxes. The biggest question I have is whats the difference between filing seperatly or together? Does it make a difference? Do we typically get more one way or another? We would prefer to file seperatly if it makes no difference.

 

[srm775]

filling jointly gives your, supposedly, a great deduction

 

[DuckAssassin]

I am an accountant (a CPA), but as a disclaimer, I do not do taxes as a part of my job and am not a tax expert. The only thing I know is what I need to do my own taxes and what little I remember from memorizing for the exam and from school. That said, there are some specific circumstances when it is advantageous to file seperately. I could not answer your question though, without a lot of specific information that you probably would not want to share over the internet.

I am assuming that your income situation is fairly simple (i.e. w-2 income, retirement savings, home mortgage interest). If that is the case, go buy Turbo Tax or something equivalent. Most people's taxes are fairly simple and can be done in a few minutes, but Turbo Tax will catch little things that most people will never think about. It will also prepare the most advantagous filing based on the informaiton you give it. It is definitely worth it, and will save you time each year as it keeps the details from previous filings to help you. And no, I don't work for Turbo Tax.

If you have multiple or complex sources of income, or you are jointly making more than $150K, it may be worth it to see a tax professional. Not only can they help you prepare your taxes to maximize your refund (or minimize your payment), but they may be able to give you additional advice that can save you money.

NOTE: whatever method you select to file for Federal (joint or seperate) you will need to follow for your state. So in order to determine which is best, you need to do both returns each way and compare them together.

 

[Bobby_M]

In my experience, there are very few reasons to file separately.

If one spouse earns a LOT less and has a LOT of medical expenses. This means that person would make the minimum on medical expense deductions whereby the joint AGI wouldn't allow that to happen.

If one spouse is self employed.

For the most part, joint filing puts you into a lower bracket and you may qualify for additional credits depending on the situation.

I'm not an accountant but I've been doing my own taxes for 15 years and I'm also married. My 2 cents.

Edit: +1 to turbotax. You can basically construct three hypothetical returns and see which method provides the least tax liability. You don't need to file any of them until you're convinced one way or the other.

 

[dataz722]

Ok, well it is fairly simple. Just 2 incomes (not over 150k) and a house. No investments or anything like that so it sound like it would probably be better to file together.

Another question though. I used taxact last year and will probably use that again this year. Is there any reason that would make turbotax better enough to make up for the price difference?

 

[McKBrew]

Another plug for turbo tax. The free version works great, and even if you pay for a premier version to get a little more help, it's still cheaper than a tax provider charges for even the basics. For years, I always had someone else do my taxes until I realized how insanely easy it was.

 

[DuckAssassin]

I have never used Taxact before, but I am guessing that it is just as good. Turbo Tax has the name recognition now and can probably charge a bit of a premium for the same thing. It is nice to use the same software year after year if you like it as it keeps your information to make filing quicker each time.

The $150K was a bit of an arbitrary number, and maybe a little low or a little high based on each person's situation. I was just throwing something out there to suggest at some point tax and financial planning can be beneficial. I agree with the everyone else though, with a little time most people can do a pretty good job of taking care of their own taxes. Some people just feel overwhelmed by the amount of information though or are too concerned about missing something.

 

[dataz722]

Well I think I would be looking at $65 for turbotax and like $17 for taxact. With turbotax do I have to pay before I do anything or just when I file?

 

[McKBrew]

Well I think I would be looking at $65 for turbotax and like $17 for taxact. With turbotax do I have to pay before I do anything or just when I file?

With turbotax online you can actually start out with the free version. If at anytime you realize that it isn't doing everything you need, you can upgrade on the spot. They will not bill you until you file, and you have the option of paying with a credit card or having the amount deducted from your return (this incurs a $30 service charge, so I wouldn't recommend it.)

 

[Homercidal]

We used several of those softwares for a few years and recently went to using HR Block for our taxes. We finally got complicated enough that we ended up with bigger returns by having an expert do it all. YMMV.

 

[bernerbrau]

TurboTax will deposit your refund into their own account, take out their cut ($45 for me), and then deposit into your account.

If you opt for a refund via a mailed check, I assume you have to pay right before you e-file. They will still let you see your refund amount before you pay.

 

[brewt00l]

We used several of those softwares for a few years and recently went to using HR Block for our taxes. We finally got complicated enough that we ended up with bigger returns by having an expert do it all. YMMV.

'Course every H&RB preparer is different (and not to say that CPAs always get it right either) but as a former CPA actively engaged in tax preparation, I've amended numerous H&RB returns where they have missed some really basic stuff by churning folks through their system and not asking some simple questions about the taxpayer and their activities....as a result missing a good number of deductions in the process.

Seeing the typical H&RB return that I run across, I'd almost wager that the turbo tax interview process is more thorough.

 

[dataz722]

With turbotax online you can actually start out with the free version. If at anytime you realize that it isn't doing everything you need, you can upgrade on the spot. They will not bill you until you file, and you have the option of paying with a credit card or having the amount deducted from your return (this incurs a $30 service charge, so I wouldn't recommend it.)

So I could go through it and it will give me a final number and I can compare that to what taxact told me and I will not have spent a dime?

 

[Bobby_M]

That's true of the online version. I've been buying the physical disk of TT premier but only because I do my parent's and sister's returns also so I only pay once.

 

[dataz722]

That's true of the online version. I've been buying the physical disk of TT premier but only because I do my parent's and sister's returns also so I only pay once.

So you can do as many as you want when you buy the disk?

 

[slimer]

Yes. I'm having a problem with it though.

My wife has a 403B and a 401A instead of Social Security. I may need to seek professional help. If I do, I'm bringing her 2004-2007 returns with me because all of them have a similar issue.

 

[dataz722]

yeeeeeea you just already confused me

 

[slimer]

I've been doing my taxes for over 10 years now.

I actually messed up last night by carrying over my 2007 Turbo Tax File instead of hers. She has more work deductions and I was depreciating them over a 3-5 year period and still have balances.

Don't worry about what I just said. Turbo Tax walked me through everything step-by-step so I didn't mess up anything.

 

[MA_Brewer]

Another thumbs up for TurboTax. I like how everytihng is carried over from last year, and you can compare what you entered for last years return for each section as you go- makes it easy to see if you missed something you previously utilized.

I used to buy the delxue version of TT at a store (CD in a box). This year, I decied to download the software from Amazon.com. It cost about $10 cheaper than purchasing in the store, about $47 I think, E-File for federal included. State E-file is an additional $20. For both, the Gov't direct deposits right into your account.

I started looking at the online TurboTax version, as it seems cheaper, however they whack you for both e-files (at least they did when I looked at it.) It was still about $5-$7 cheaper to use the online product and pay for both E-files, but it wouldn't have carried over all of my info from last year- and that was worth the $5-$7 to me, so I bought the download at Amazon.

 

[zman]

Tax cut premium + state gives you 5 free Federal E files

 

[Flyin' Lion]

I must be the only one that still files paper returns. I tried the turbo tax one year after I had already figured up my taxes on the paper forms and the results were within a few dollars of each other. I just don't feel the need to pay for turbo tax if I get the same results without it.

Not knocking those that use it though...

 

[Homercidal]

'Course every H&RB preparer is different (and not to say that CPAs always get it right either) but as a former CPA actively engaged in tax preparation, I've amended numerous H&RB returns where they have missed some really basic stuff by churning folks through their system and not asking some simple questions about the taxpayer and their activities....as a result missing a good number of deductions in the process.

Seeing the typical H&RB return that I run across, I'd almost wager that the turbo tax interview process is more thorough.

Yes, my point with the Your Mileage May Vary disclaimer. I was very pleased with the HRB that we've had the past two years. When I was a kid, my uncle (cousin, really) did our taxes for the family. Nothing like getting personal attention.