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Thread: Filing myself this year....should be a go!??

  1. #1
    Pamela
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    Default Filing myself this year....should be a go!??

    My accountant charges $500 when i need to file taxes. fair enough. But, should be alot easier now (i hope) because i don't dance anymore! Tax papers are all done and sent for the last dance!!!

    All i do as an IC is phone work...which has to be turned in.

    What i hope to hear is that i can now do this tax stuff without the help of my accountant. I am not so sure his price would go down with alot less work for him to do.

    Is there anyway i can do my own taxes (with help of my roomie, he does his,, but is not an IC) by myself?

    I am giving up on my accountant...He's too into my business it seems anyway.


    Any programs, or anything online that i can use/download?

    When i was dancing i was SOOO against me doing this online....but the funds are not as high now, so i am willing to do this myself, save $500 and do it right...legal!

    Thanks.

    Pamela

  2. #2
    God/dess montythegeek's Avatar
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    Default Re: Filing myself this year....should be a go!??

    Pamela,
    Doing your own taxes is not hard and does not require that much effort. What it takes is time, patience, and attention to detail. It is not something you can do in 2 hours onthe 14th of April and say I think that is right, what the hell. I knew less than you do about what qualified as a deduction and did my own taxes and my sisters when I was a Junior in high school--pre computer days.

    I would propose a simple suitability test to see if you should do your taxes. There is a publication-"Publication 17--Your income tax"
    http://www.irs.gov/pub/irs-pdf/p17.pdf
    available on the web for free. The pdf is 296 pages long and it is 95% of what you get buying a book by JK LAsser or others about taxes. pull the pdf and spend an hour and a half reading it and if you have the patience to either get through it or last that long sorting through the text and saying-"That does not matter-I can skip that section", and "that is important-I need to remember that" you have all the requirements to do your taxes. Some people should not do their own taxes anymore than change the oil on their cars. It is all in knowing the group where you fall.

  3. #3
    buffie06
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    Default Re: Filing myself this year....should be a go!??

    is awesome too. Fast and eaisly understandable.

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    Banned Melonie's Avatar
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    Default Re: Filing myself this year....should be a go!??

    agreed ... TurboTax for home and business makes it super-easy to file your own taxes as long as you have some very very basic tax knowledge to start with (which you certainly do).

  5. #5
    Pamela
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    Default Re: Filing myself this year....should be a go!??

    Thanks a million! This is the way i am going to go! My roomate will help me along as well with Turbo Tax! Do i need to buy it, or is there a site to download it?

    Pamela

  6. #6
    buffie06
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    Default Re: Filing myself this year....should be a go!??

    you can do either

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    Default Re: Filing myself this year....should be a go!??

    buy it..and the state version too...dont risk an audit going with an older version available at a free download site...

  8. #8
    buffie06
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    Default Re: Filing myself this year....should be a go!??

    at the website you pay to download it and they save it online for you for a year, you can save it too.

  9. #9
    Banned Melonie's Avatar
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    Default Re: Filing myself this year....should be a go!??

    for the $80 bucks or whatever I always buy my own copy. After all, if you are ever audited and need to make 'adjustments' (i.e. disallowed deductions, carryovers) it helps to be able to re-run the TurboTax program you used to prepare those previous years' tax returns.

  10. #10
    Pamela
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    Default Re: Filing myself this year....should be a go!??

    Quote Originally Posted by Melonie
    for the $80 bucks or whatever I always buy my own copy. After all, if you are ever audited and need to make 'adjustments' (i.e. disallowed deductions, carryovers) it helps to be able to re-run the TurboTax program you used to prepare those previous years' tax returns.
    One time buy Melonie? Or do i need to up-date the Turbo Tax kit yearly with a new one?

    And where to buy it?

    Thanks

  11. #11
    God/dess VenusGoddess's Avatar
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    Default Re: Filing myself this year....should be a go!??

    ^ You need to update each year with a new version. The nice thing about Turbo Tax, though, is it will read your previous year's file (if you save it on your computer) and tell you if you can do certain deductions if you did them the year before (usually goes for depreciative write-offs).

    You can buy from Costco, Sam's Club, Office Max, Best Buy, Circuit City...and I believe it's the most inexpensive to purchase it from the Turbo Tax website.

  12. #12
    Pamela
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    Default Re: Filing myself this year....should be a go!??

    Great i have a Best Buy right near me!!!!! Will be saving a bundle even to buy newer version each year! Sure beats $500 for 15 minutes with my accountant who i feel i just don't need now more than once a year to do my taxes that i am not dancing anymore!

    Pamela

  13. #13
    Banned Melonie's Avatar
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    Default Re: Filing myself this year....should be a go!??

    yes it's necessary to get a new copy each year because our lawmakers continually change the tax rates and rules. But it's also important to keep the CD of previous years' TurboTax programs as well as a CD/floppy of your previous years' tax return data just in case you are audited and you need to consult/modify previous years' tax filings.

    Venus is right that the first time you use the TurboTax program the data entry is a bit tedious, since the program has to ask you yes/no questions about every type of potential income source and deduction. However, once you've gone through one year's filing with TurboTax, in future years the new programs will 'analyze' your previous years' data and greatly simplify data entry in future years.

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    Banned Katrine's Avatar
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    Default Re: Filing myself this year....should be a go!??

    I dunno, sounds like your CPA is taking advantage of you because he knows how much income you bring in. $500 is a bit excessive, although everyone's situation is different. My CPA is a female, knows EXACTLY what I did for a living, thinks its badass, and worked through my returns appropriately to minimize red flags often associated with self-employment income.

    I still recommend using a CPA. Personally, before I send anything off to CPA, I just use the free HR Block software to get the basics down and put into a PDF I can send off to Uncle Sam and a template I created myself in Excel for various calculations.

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  15. #15
    Pamela
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    Default Re: Filing myself this year....should be a go!??

    Ok Melonie got it! And buying Turbo Tax tomorrow.

    Katrine, he was once a dancer himself, and knows what women make compared to most male dancers, especially when it's south Fl. and the private parties, and the escorting i had done as well. I did not mind the pay out when it seemed like handing pennies, but now i work very hard at phone work and really don't want to pay out that much for 1 job i do as an IC...and yes his price will stay the same. He's a jerk for that shit.

    I have had a few people tell me he charges way too much. Now i don't need him, as it wont be that complicated with much less record keeping!!!

    Pamela

  16. #16
    God/dess montythegeek's Avatar
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    Default Re: Filing myself this year....should be a go!??

    While I agree that tax software is great. (I use h&r Block's taxcut software personally) I would prefer if you understood what you are foing before you do it. The software checks your math and won't let you do anything awful-all sotware will let you put things in the wrong place if it sound plauisble. Be prepared to make minor mistakes--they happen to everyone with a new piece of software.

  17. #17
    Pamela
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    Default Re: Filing myself this year....should be a go!??

    I do understand some, but admit i have never done my ow taxes..ever. I bought the Turbo Tax today, and my roomie and i are kinda checking it out. He knows alot more, as he does his own taxes every year, but is not an IC. I see as an IC it's more involved....

    Thanks i will keep checking it out, until i file.

    Pamela

  18. #18
    Senior Member DanMorris95156's Avatar
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    Default Re: Filing myself this year....should be a go!??

    The choice to use a professional advisor or not isn't as simple as whether you can place values into a software program or what the intial investment/price is. And, although I earn money from assisting people with their taxes, this isn't feather-bedding, meaning, I am not merely looking to help my fellow professionals make money from you.

    Additionally, I think that programs like TurboTax (and Block's Tax Cut) are fine products (in fact Intuit, the maker of TurboTax now owns my firm's professional level tax software product line). There are some tings to consider.

    First, I suggest that you wait to complete your filing until at least version/update number 3 or 4 (3 if you are in a federal only state {you low tax people know who you are} and version 4 {or at least until your state's 2nd version} for the rest of you. This is because the first iterations don't catch all the little glitches that are there, and they are there. Also, with e-filing; you can't retreive it and if you have to correct it requires an amendment.

    Second, a recent (like about a year ago) GAO study found that a significant number of self-prepared/software-based returns include technical and clerical/user errors. These errors aren't evil/criminal - meaning that if you have one, and they find it, you'll only have to pay interest on any unde-funded tax.

    Third, the actual clerical nature of preparing a tax return isn't where the value is found. The value is in gathering a better understanding of not only how to lower your current tax costs (please remember that deductions today may or may not be worth more than say next year); the value is learning methods to make better/improved business & finacial decisions.

    Although the "knowledge" may be learned from groups like this, textbooks, workbooks, friends (careful with friend's advice), family (more careful with most family advice), and other sources, the knowledge alone may not be enough. The application of that knowledge with experience provides judgement that may be invaluable to you. It is the Art of knowing when to take deductions or where/how best to take them.

    I think that all taxpayers should be active in their tax/business planning. One should never just hand over their decisions to an advisor. Additionally, one should be cautious of always doing it alone. As a hybrid alternative, you might self-prepare and organize your materials and then have a qualified professional review/check them - just for some safety. Again, their review should help you make better future decisions. If they can't then, you should find another one that can help you achieve your goals.

    One last thing (at least for the moment) - your tax software/business advisor is tax deductible so Uncle Sam is subsidizing your cost by almost 50% - so think of these products/services as "on-sale".

    Have a great day everyone.

    Regards,

    Dan
    Daniel D. Morris, CPA
    [email protected]

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    Default Re: Filing myself this year....should be a go!??

    Get an accountant.
    You can't love something you think is flawless - me


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    God/dess Bunny's Avatar
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    Default Re: Filing myself this year....should be a go!??

    I used to do my own taxes before I was an IC. Now I have a CPA. She has never charged me more than around $225 and if I'm not mistaken I get a discount for having all of my information very well organized. I use Microsoft Money to categorize all my expenses and then for things I get to deduct a percentage of I calculate out the percentage and put everything neatly on a spreadsheet as far as income and expenses. All she really has to do is put things in the right place on the forms but I feel more safe knowing that she is doing it and that if I ever get audited I'll have someone to give me advice. I'm sure I could do it myself but I feel better having a CPA. And I can deduct her fees so that is good too.

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    Member EroticAngel's Avatar
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    Default Re: Filing myself this year....should be a go!??

    OK, maybe this is a really dumb and naive question, but how can the IRS know how much you make in tips when its all cash? I always report all my income quite faithfully, of course, because, you know, its important that the government can pay for war, covert domestic surveillance, and that $237,437 grant to help the town of Blue Springs, Missouri combat teenage "goth culture" (true story, BTW), but I can't help wondering. I mean, how can anyone know if I made $500.00 or $50.00 last Thursday?

  22. #22
    Banned Melonie's Avatar
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    Default Re: Filing myself this year....should be a go!??

    I mean, how can anyone know if I made $500.00 or $50.00 last Thursday?
    Well, the truth is that the IRS can't know anything specific about your earnings last Thursday. However, over the course of an entire year, the IRS computers can put together a simulation of how much money you probably must be earning in order to afford your 'lifestyle'. The IRS has a database of costs of living for every US zip code area. The IRS also receives automatic reports of the type of house and car you own, how much you paid for them, how much your payments are to the title holding financial institutions that financed the purchases, how much money you have parked in bank accounts, investment accounts etc. If given a reason to make further inquiries (i.e. you reported $300 a week in taxable earnings on last year's tax return, but your monthly car and mortgage payments and cost of living vastly exceed the after tax income associated with $300 a week gross), the IRS can then readily check deposits and withdrawls on you bank and credit card accounts and establish an 'estimated' cash flow.

    If the amount of actual cash flow is significantly out of line with the amount of after tax income you reported on your tax return, the IRS can then elect to start a full-blown audit. If that audit begins to show clear signs of 'underreporting', the IRS can then request club records i.e. how many nights a dancer's name appears on the club schedule, how many priivate dance percentages the club paid out etc. The IRS can also elect to send an agent into the club as a customer to 'observe' and 'estimate' how much money the dancers appear to be earning. The IRS can then dispute the accuracy of your tax return, can assert that your 'estimated' income is much higher than the amount you reported, and can send you a whopping big bill for additional taxes.

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    God/dess VenusGoddess's Avatar
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    Default Re: Filing myself this year....should be a go!??

    The chances are, that the IRS won't ever audit your taxes. The BIG thing, though, is that if for any reason, you are flagged for an audit the IRS can, and most likely will, get your credit card receipts, bank statements, etc. If you live like you make $100,000 a year and you are only reporting that you make $50,000 a year. You are in for a shitload of money payouts. However, if you mistakenly report that you made $95,000 as opposed to $100,000...eh...probably nothing would happen.

    With the new super computers and the programs to go with them, it's easier to compare "like returns" and see who's coming up extremely short. Chances are, they'll start digging to see why one dancer reports (who live in the same area, work similar hours, etc) making $100,000 while another dancer reports making $30,000. With all of the stories about dancers making $1,000+ per night of dancing...they may increase their scrutiny on dancers who submit 1099s and W2s from known clubs.

    The more honest you are about your taxes, the more chances you have of surviving an audit.

  24. #24
    God/dess Bunny's Avatar
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    Default Re: Filing myself this year....should be a go!??

    I've personally known only one person who went through an audit. She's an older lady and she does clerical work as a contractor. She said it was awful and they made her literally dump her purse out and they looked through it. Another person I knew years ago had a dad who was a contractor who didn't report his income. He was doing work for some organized crime dude who got busted and when they went through his books they discovered her dad had been paid a lot of money that he hadn't paid taxes on. She had a brand new sports car her dad had bought her. It was in his name. The IRS took the car. When I knew this girl (which was a few years after the IRS audited her dad) the whole family was living in a trailer and they were sharing a Hyundai. I'm scared to fuck with the IRS.

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    Member EroticAngel's Avatar
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    Default Re: Filing myself this year....should be a go!??

    Quote Originally Posted by Melonie
    The IRS has a database of costs of living for every US zip code area. The IRS also receives automatic reports of the type of house and car you own, how much you paid for them, how much your payments are to the title holding financial institutions that financed the purchases, how much money you have parked in bank accounts, investment accounts etc. ...The IRS can then dispute the accuracy of your tax return, can assert that your 'estimated' income is much higher than the amount you reported, and can send you a whopping big bill for additional taxes.
    Wow. This kind of gives a whole new meaning to the term "covert domestic surveillance."

    Quote Originally Posted by Melonie
    If that audit begins to show clear signs of 'underreporting', the IRS can then request club records i.e. how many nights a dancer's name appears on the club schedule, how many priivate dance percentages the club paid out etc. The IRS can also elect to send an agent into the club as a customer to 'observe' and 'estimate' how much money the dancers appear to be earning.
    Yikes! So much for my excuse that I make a lot less because the other dancers are prettier and dance better, huh?

    Quote Originally Posted by Bunny
    I've personally known only one person who went through an audit... She said it was awful and they made her literally dump her purse out and they looked through it. Another person I knew years ago had a dad who was a contractor who didn't report his income... She had a brand new sports car her dad had bought her. It was in his name. The IRS took the car. When I knew this girl (which was a few years after the IRS audited her dad) the whole family was living in a trailer and they were sharing a Hyundai.
    This is very scary. How come they never did an episode of Buffy the Vampire Slayer where Buffy kills the IRS? At least that would have given me fair warning of what I was dealing with...

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