topic Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store? in Community Chat

What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

cuddlesmama — Sun, 03 Mar 2019 00:02:53 GMT

I don't understand why the stores sell the software because you can do them online. Is it different than the one online? Which would be better to use? Thanks

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

Mz iMac — Sun, 03 Mar 2019 00:15:39 GMT

I have always done my own taxes the old fashion way. I pick up the forms from the local library.

After I am done, I go to the IRS website & file online w/o submitting. If the online website figure is the same as mine, I know I did mine correctly.

I see no reason to "pay." The instructions that come w/the forms are very easy, detailed & takes you step by step.

Can you still do your taxes over the phone? I believe I tried it once. Received my refund in 2 weeks!

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

Annabellethecat66 — Sun, 03 Mar 2019 00:24:49 GMT

I hand everything to my oldest daughter (she does her own). Then she goes over them and tells me all of the things I have missing that I need.

Then I search and find what she's given me the list I need.

Then I give her THOSE papers and she goes over them.

Then she calls me up and says (this is a quote), "Mom! You need to come over and pick up this envelope and take it to the accountants so they have time to do YOUR taxes".

If i don't respond by end of day, I get another phone call!

My taxes are a bit complicated because of my late husband's companies and investments.

The accountants have always managed to get refunds from Federal and State so it all works for me.

I was told places if they aren't complicated (and that means really not complicated) it's OK to do them yourself or on line.

However, my daughter told me there are a lot of changes this year. When I went over for a visit a few weeks ago, she was very upset because there are things she could previously do and can no longer do.

Sometimes it's simply a manner of interpretation. However, I was told by the guy who does the investing that the IRS is more of a stickler than ever.

My late husband used to do ours. He said as long as you stay withing a certain range (whatever that means) you don't cause any red flags. I guess red flags aren't good??? Ha!

My youngest daughter goes bonkers this time of year. She's single, no children, rents her townhouse so she says she pays through the nose in taxes.

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

jannabelle1 — Sun, 03 Mar 2019 01:19:10 GMT

We buy the TT software every year. The software compares the previous filing with the current filing; walks us through everything, questions anything we've left out, and points out changes in the tax code when something different is asked for. We're retired and can buy the basic software for $49 and feel comfortable that we have a tax form that we've done correctly without a lot of angst! We don't have complicated taxes that would require an accountant or CPA, so we like the simple instructions and guidance we get from TT at a reasonable price. I like the support we have with TT...not sure what kind of support we'd get if we just used the online government form.

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

Carmie — Sun, 03 Mar 2019 01:28:00 GMT

I have filed my taxes both ways. The best answer I can give you is the price. Both methods are pretty much the same.

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

Mz iMac — Sun, 03 Mar 2019 01:30:03 GMT

@jannabelle1 wrote:
not sure what kind of support we'd get if we just used the online government form.

@jannabelle1 Toll free # to talk to a "live" IRS agent who will walk/talk you through your problem/issue(s).

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

Financialgrl — Sun, 03 Mar 2019 02:41:52 GMT

@jannabelle1 wrote:
We buy the TT software every year. The software compares the previous filing with the current filing; walks us through everything, questions anything we've left out, and points out changes in the tax code when something different is asked for. We're retired and can buy the basic software for $49 and feel comfortable that we have a tax form that we've done correctly without a lot of angst! We don't have complicated taxes that would require an accountant or CPA, so we like the simple instructions and guidance we get from TT at a reasonable price. I like the support we have with TT...not sure what kind of support we'd get if we just used the online government form.

For the last 12 years I've been buying H&R Block for the very same reasons. I took tax law years ago and my father always did other family members' taxes and once he died I ended up doing them for my younger nieces/nephew and brother/SIL. Years ago I tried to do them using online program and it only allowed me to do 2 returns. I got an email saying that it looked like I was a business trying to use free software and it bounced the third return - wouldn't allow me to do more than the 2 returns.

I have four returns I prepare each year; however, if I buy H&R BLock or Turbo Tax software I can e-file 5 returns free. Like jannabelle said, if you have prepared your taxes using the software the year before it asks questions and autofills your personal info from the year before.

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

Nuttmeg — Sun, 03 Mar 2019 13:08:21 GMT

It depends on your income, deductions etc. I use TT software. Sometimes you pay more for online taxes from one of the named companies.

You have more choices when you are able to file early.

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

songbird — Sun, 03 Mar 2019 13:46:07 GMT

We do none of the above. We go to a CPA. Our taxes are way too complicated to be tried anyewhere else.

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

VaBelle35 — Sun, 03 Mar 2019 13:55:12 GMT

I never understood buying the CD because I think the CD software allows all the same features as the online version. If there's an update, you still have to download it if you have the CD.

I know that i get a discount on the online version from every financial service I have an account with.

And don't forget Mr. Rebates. That one is tricky because you have to make sure you log in through Mr. Rebates when you submit.

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

Mz iMac — Sun, 03 Mar 2019 16:36:16 GMT

@VaBelle35 wrote:

I know that i get a discount on the online version from every financial service I have an account with.

You were getting ripped off. The IRS online website has always been free as well as their walk-ins.

AARP will also file your taxes for FREE! You do NOT have to be a member either.

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

cuddlesmama — Sun, 03 Mar 2019 21:05:19 GMT

@Mz iMac wrote:
@VaBelle35 wrote:

I know that i get a discount on the online version from every financial service I have an account with.

You were getting ripped off. The IRS online website has always been free as well as their walk-ins.

AARP will also file your taxes for FREE! You do NOT have to be a member either.

The IRS website is free but you have to make a certain amount of money. I don't know about AARP but if they are doing it for free I bet it is for very easy ones. I remember years ago you could do it on the phone if you had an easy one to do.

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

VaBelle35 — Sun, 03 Mar 2019 22:03:58 GMT

Turbotax is free if you are filing 1040EZ or whatever.

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

bonappetit — Sun, 03 Mar 2019 22:14:34 GMT

Cost is more to do taxes online vs. buying the software & downloading to your computer.

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

Lipstickdiva — Mon, 04 Mar 2019 17:09:59 GMT

Be very careful about any place that will do your taxes for free. Many times they have no idea what they are doing. Even walking into H&R Block or Liberty Tax Service is a carap shoot. Many of those preparers do nothing more than take a class and all of a sudden they are doing returns that are far beyond what they are capable of doing.

I do my taxes on-line and I couldn't use a free version because free versions are for basic taxes. Mine haven't been basic since we purchased our rental property. We had to get the next step up wich is considered premium.

I have done taxes using the CD and I've gone on-line. Both are identical to me. Both allow you to pull up your return from last year and transfer over the information so you don't have to re-enter everything and both versions walk you through step by step if need be.

There are no more 1040EZ or 1040A forms. Everything is now a 1040. However, there are still various versions of programs out there, depending on your situation.

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

Financialgrl — Wed, 06 Mar 2019 16:05:47 GMT

@Lipstickdiva wrote:
Be very careful about any place that will do your taxes for free. Many times they have no idea what they are doing. Even walking into H&R Block or Liberty Tax Service is a carap shoot. Many of those preparers do nothing more than take a class and all of a sudden they are doing returns that are far beyond what they are capable of doing.

I do my taxes on-line and I couldn't use a free version because free versions are for basic taxes. Mine haven't been basic since we purchased our rental property. We had to get the next step up wich is considered premium.

I have done taxes using the CD and I've gone on-line. Both are identical to me. Both allow you to pull up your return from last year and transfer over the information so you don't have to re-enter everything and both versions walk you through step by step if need be.

There are no more 1040EZ or 1040A forms. Everything is now a 1040. However, there are still various versions of programs out there, depending on your situation.

@Lipstickdiva I agree but those AARP folks are trained better than most paid preparers. I know bc I was one from 2005 through 2010 and know the training we were required to take. We prepared 1040s, Schedules A, B, C-EZ and D and Virginia state taxes. Before we could prepare a return, we had to attend 56 hours of tax law as it applies to those schedules. At the end of training (and each year thereafter) we had to take/pass an IRS exam. Every year we'd have to go back for one day to go over any new tax law changes for that year and that's when we'd take the IRS exam for that year.

We had two ppl in the class that were also paid preparers in another community and both said they'd never had that level of training. The first year that requires the extensive training, we had a class of 15. Three (3) ppl dropped out after the first day bc they thought it was doing simple taxes and by the last day of training, 2 others dropped out - so an initial class of 15 turned out 10 volunteers. This is one volunteer job that, once ppl see what's involved, often decide it's more time and effort than they wish to invest into a volunteer job. At our location our site leader was a CPA and he would do a once over of all returns with Schedules C-EZ and D before he would send, figuring those would have more errors which turned out to be not true. DId we have returns with errors, yes, we did but at our site, I'd guess 85% of bounced returns was bc of divorced parents - both trying to claim their kids as dependents. There were specific guidelines for that and we'd ask questions before we filed but we often got "wrong" answers - I guess bc they figured it wouldn't get caught. Once they were bounced they were turned over to the taxpayer who needed to fix and that meant interfacing with the IRS.

Re: What Is The Difference Between Doing Online Taxes VS Buying The Software At The Store?

Shorty2U — Thu, 07 Mar 2019 05:02:36 GMT

I hand do our taxes every year. (I can do long and short but we do short the past few years since we don't have enough deductions) My adult kids kind of laugh, but don't care. I love Math always have, as in love working with numbers, reading the tax book and keeping my mind busy. lol. And the local and state are so easy a grade school child could do them.Takes me 3 minutes each to do the local and state. A bit longer to do federal and then I go over them all with a fine tooth comb to double check before mailing. Anyone could do them if theyd take the time to read the book. Really..