Filing income tax

noir_blood

Yep, so it's getting to be that time of the year. Usually I end up going to HR or paying someone around 40-60 to do it for me. This year I'm kinda thinking of getting turbotax or one of those computer programs, and was wondering if they are worth it and what people's experiences with them have been.

My filing is pretty basic, I think the only "extra" things that I add to it is my school tuition. I would like to be able to put in my schools books and gas expenses, but I don't know if that's feasable or not.

Robert Khoo

I think the biggest advantage of doing it yourself is it gives you a better idea of how tax law works. Throughout the year you'll begin to use this knowledge to make more informed fiscal decisions as well as starting to see why other people make the decisions they do.

Of course, once you get the basics down, I would also recommend you going to a solid accountant, especially if your finances become more complicated.

browneyedsquirrel

An Individual Form 1040 isn't so complicated if you don't have a lot of deductions or itemizations.

My guess is if you are still in college, you're going to be taking the standard deduction so that simplifies it a great deal right there.

As far as the tuition,there is an "above-the-line" tax deduction as well as credits (these are deducted after you figure out your tax liability) for tuition expenses.(NOTE: you can only use one or the other, not both!!) However, by my understanding of the law, you will not be able to deduct the books/gas expenses (I'm a Graduate student in the tax focus of my Masters of Accounting Science program, just so you know I'm not just pulling crap out of nowhere).

I'd also recommend that you look into programs like VITA (they have free tax assistance for low income individuals and families). Also check with your university, I know my campus has services to help students prepare their tax returns.

Fats

I use Turbotax's free online filing, and haven't had any problems. My returns are usually very simple, though.

Not to derail the thread, but quick question: I've done no paid work this year, just volunteer stuff -- no income, dividends or investments, or anything. There's nothing I know of that I can get money back from. Should I still file?

browneyedsquirrel

From the sounds of it, no. What about bank accounts? Anything you could have earned interest income from? (You would get a 1099 in the mail from your bank for this sort of thing, which means that they reported the interest to the fed. gov.)

More detailed answers to your questions are here: http://www.irs.gov/faqs/faq2-1.html

These are filing requirements as posted on the IRS website.

Better safe than sorry so check them out and if you are unsure, file.

Ruckus

From Canada:

The first time I had to file was when I was 16/17 and working at a gas station. The next 2 returns my parents had their accountanting firm do (because we were all paying for part of my education and living expenses while at college).

After I finished college, on my first year without any education expenses I did three draft returns, one on paper myself, one using a tax software program (quicktax I think), and I had my parents' accounting firm prepare one. The extra money they found more than payed for their services, and I've been using them ever since.

stumbleshoe

Software suggestion:

http://www.taxslayer.com/

I've used the online version of this for a few years now without problems, and I have a somewhat complex tax return (Schedule C and rental income to claim).

As suggested above, if you have a really simple tax return, the paper forms are not too bad - the IRS phone support is actually pretty good too. I was shocked a few years ago when I had to call to ask some questions at how helpful they are (e.g. they suggested deductions I might have missed).

fightinfilipino

do you continually have to purchase a new version of TurboTax each year?

embrik

fightinfilipino wrote:

do you continually have to purchase a new version of TurboTax each year?

Technically, yes. I was going to say, no, if you file with their online service, but they charge you every year to file online. You just don't have to go out and buy a new version and install it.

I filed with them last year, and it was very easy and painless.