Best Tax Software for 2016 Returns?

[BWillie]

I'm ready to stop giving a tax service $1500+ to do my taxes. It's too much of a racket, they're not always done right anyway. I'd like to attempt to do them with software this time. Other than it just being a pain in the ass, what other advantage is there to use a tax service? The shitty ones don't even use certified accountants anyway.

The software I've heard most about is obviously Turbo Tax. I'm not looking at the most basic tax software like Tax Slayer or Tax Act or whatever. I would probably need at least the Turbo Tax Home & Business. I have rental properties, lots of home interest to deduct, gambling income but I file as a pro (which seems to confuse everybody & nobody has ever done it the same), technically small business income w/ probably very few deductions (do not have an LLC even though live in KS so I'm probably a dumbass), used an HSA. Hopefully using a tax software will easily help me find deductions etc.

So, what do you guys believe to be the best tax software to use?

Turbo tax?
H&R Block?
Tax Act premium?
Jackson Hewitt online?
Any others etc

[Buehler445]

I work for an accountant during tax season, so my advice is limited.

My buddy uses Turbo Tax. He tried to take deductions on a listed vehicle and threw in the towel (He's a CPA). Probably works OK, but don't try to deduct vehicle usage.

Honest answer, get a better accountant. I don't think my accountant charges 1500 to anyone but a few giant customers she has to spend a shitton of time reconciling junk books or complicated notes and intercompany bullshit.

I'd bet I could knock yours out in a couple hours with a half hour of setup and an hour of review, and I'd bet she'd charge you <$500. Obviously that would depend on what all you have and what you have for records, but if it were me (me being some version of me not working for an accountant), I'd just find a better accountant.

[mikeyis4dcats.]

Originally Posted by Jewish Rabbi

Credit Karma Tax service sucks. They don't have all the kinks worked out being their first year. Turbo Tax found me over $500 more in returns.

I ran both, having used turbo tax for years. Credit karma actually came back with $32 more, and I had zero problems.

[Sorce]

HR block here, nothing fancy about my taxes, I just wait for it to go on sale on amazon and get the software for like $25-30 and then another 25 or so to file state online.

If I had a business or anything I'd probably go the CPA route but for basic stuff it works for me. I like that it imports previous years and that's what I started with so I stick with it.

[DRU]

If you're being cautiously aggressive with your deductions (as you should be) then you'll want a CPA or EA to sign your tax docs for you as opposed to yourself through some software.

$1500+ is definitely way too much. I have a business, a rental property, lots of itemized expenses, etc. and mine is roughly $600 with The Tax Preparers Group (www.taxtheirs.com). I highly recommend them to maximize your deductions and have your back in the slim chance you ever get audited.

[DRU]

Originally Posted by Sorce

If I had a business or anything I'd probably go the CPA route but for basic stuff it works for me. I like that it imports previous years and that's what I started with so I stick with it.

If you don't have a business, you should create one. The tax benefits / savings will put thousands back into your pocket each year.

Seriously, it can be anything. Make it official and start tracking your expenses. Turn your after tax expenses into before tax expenses, and you'll save a bunch. If you have kids it's even better. Instead of paying taxes and then spending money on your kids, pay them through your business (which gives you the deduction) and then let them pay for their own stuff using their own bank account / debit cards. School supplies, lunches, clothing, sports stuff...all the stuff you spend on the kids anyway.

The first $6k you pay a kid under 18 is completely tax free. You get the deduction, so for example, if you're in the 25% tax bracket, that's $1500 your putting back into your pocket. You don't even have to pay FICA on that money, and the kid doesn't pay any income tax on that first $6k either.

What's cool, too, is that since they have a job you could open an IRA for them and get them started at a very young age with retirement savings. An early start on compounding is never a bad thing. So then, if you have the cash anyway or if the business is doing well enough to generate it, you can pay the kid another $5500 and get the deduction, and then that can go directly into the IRA tax deferred. So now you're getting a $11,500 deduction ($2,875 back in your pocket), and the kid has a solid foundation to build from as they grow up and are ready to become financially free.

Another example is your cell phone. Not uncommon for people to have $100/mo ($1200/year) phone bill. Again, assuming you're in the 25% tax bracket, that's another $300 you'd be putting back into your pocket.

You do this with auto expenses, home office, dining and entertainment, travel, etc. and you can save thousands. Then you can put those thousands towards debt, or if you're out of debt, back into the business, or towards buying other assets that generate more positive cash flow.

Owning a business is a fantastic way to "get ahead" because of the tax savings. So worst case you're pocketing the tax savings, and best case it takes off for you and becomes a solid secondary source of income or even a primary source.

Start a business!!!

[tx4chiefs]

I've used TaxAct for the last several years. It had some forms in it that the others did not. If you have specific needs, make sure your form numbers are in teh one you are looking at.

[Lzen]

I used Turbotax (the online version) last year. This year, I used it but never filed with it. I then tried Tax Act and the refund amounts were exactly the same so I knew I had filled the Tax Act one correctly. It was cheaper.

[mr. tegu]

Originally Posted by ChiliConCarnage

If you want to efile to KS that'll be another 30 or 35 on TurboTax. You can print and send it but I'm lazy.

Filing in KS is free if you just do it through their site after you use the program for your federal taxes.

[Rain Man]

I'm surprised that you're doing your taxes yourself if you have rental properties. I prided myself on doing my own taxes, but learned pretty quickly that having an accountant was worth the time once I got my rental and started my business. It's way too complicated for a tax peasant like me to do.

[MahiMike]

Get an accountant. He will get more back than the software companies.

[Buehler445]

Originally Posted by DRU

If you don't have a business, you should create one. The tax benefits / savings will put thousands back into your pocket each year.

Seriously, it can be anything. Make it official and start tracking your expenses. Turn your after tax expenses into before tax expenses, and you'll save a bunch. If you have kids it's even better. Instead of paying taxes and then spending money on your kids, pay them through your business (which gives you the deduction) and then let them pay for their own stuff using their own bank account / debit cards. School supplies, lunches, clothing, sports stuff...all the stuff you spend on the kids anyway.

The first $6k you pay a kid under 18 is completely tax free. You get the deduction, so for example, if you're in the 25% tax bracket, that's $1500 your putting back into your pocket. You don't even have to pay FICA on that money, and the kid doesn't pay any income tax on that first $6k either.

What's cool, too, is that since they have a job you could open an IRA for them and get them started at a very young age with retirement savings. An early start on compounding is never a bad thing. So then, if you have the cash anyway or if the business is doing well enough to generate it, you can pay the kid another $5500 and get the deduction, and then that can go directly into the IRA tax deferred. So now you're getting a $11,500 deduction ($2,875 back in your pocket), and the kid has a solid foundation to build from as they grow up and are ready to become financially free.

Another example is your cell phone. Not uncommon for people to have $100/mo ($1200/year) phone bill. Again, assuming you're in the 25% tax bracket, that's another $300 you'd be putting back into your pocket.

You do this with auto expenses, home office, dining and entertainment, travel, etc. and you can save thousands. Then you can put those thousands towards debt, or if you're out of debt, back into the business, or towards buying other assets that generate more positive cash flow.

Owning a business is a fantastic way to "get ahead" because of the tax savings. So worst case you're pocketing the tax savings, and best case it takes off for you and becomes a solid secondary source of income or even a primary source.

Start a business!!!

Lots of good information here.

Definitely some things to be weary of.

1. If you incorporate or start an LLC, it will indemnify you from business risk - biggest thing there is if you are sued for a billion dollars they fold up the business but can't touch you. If you dig too deep in deducting stuff it will pierce the corporate veil and you are personally liable.

2. Be careful on some of the small business deductions. Lots of asshats (not pointing fingers at DRU here) use a business to commit as much tax fraud as they can cram into one 1040. Accordingly, the IRS is a bastard on some of this stuff. IRS shows up, and they find something, they are going to go to looking.

If you pay the kids through the business, make them do some work. If you can't, they get cranky.

I wouldn't do meals. Like at all. Unless you are taking non-relative employees out to eat too. Travel expenses are just asking for trouble. I wouldn't do it. And besides, I think you can only take half.

Cars are a tough ask. You are going to have to assess a business use percentage for each listed vehicle. And (at least for farmers anyway) you can't deduct more than 75%. And then, you have to deduct a proportionate amount of fuel, repairs, insurance, taxes, and all that jazz. And if you **** up, they ding you on it. Moreover, if you deduct it, then trade it off, if the trade in value is more than the book value, it is gain. More tax.

If it were me, I'd keep a mileage log, and pay myself mileage out of the business account. It isn't too bad to keep a mileage log. I did it because I was using a personal vehicle for a bunch of farm stuff, and I wasn't about to go **** around depreciating the asshole, and splitting all that other noise out. Plus, if there is gain, it doesn't matter on a personal vehicle. Sure, you don't get to depreciate it, but I wouldn't go down that road.

The home office thing is a must do. Now, they have a rate per square foot that's really easy. As long as the space is ONLY an office (no treadmill or whatever).

Yeah, the correct answer is find a GOOD accountant (There are shit ones) and get to work. Even if it is a schedule C or E or whatever, keep track of legit stuff, keep the documents, take the deductions, be happy.

Don't take stuff that isn't there, keep the documentation, take what you can get, but only what's there.

[DaFace]

Originally Posted by MahiMike

Get an accountant. He will get more back than the software companies.

I'll take "Didn't read the OP for $400," Alex.

(You're probably not wrong, but it's highly unlikely an accountant is going to make up the $1500 difference in deductions that tax software won't find.

[ChiliConCarnage]

Originally Posted by mr. tegu

Filing in KS is free if you just do it through their site after you use the program for your federal taxes.

Thanks, I'll have to take a look.

[Demonpenz]

HR block is going to be in the thousands as well

[BlackHelicopters]

$1500? You are getting raped. Look elsewhere.