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Taxes...accountant or DIY software?
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Original Post
So I'm sorting through my mess of paperwork for taxes. Since this is my first year I was stupid and kept horrible records. I talked to an accountant, but I'm curious who uses an accountant and who uses diy software. Is there a good tax prep software that you think is better?
Posted at 2:09 pm Mar 12, 2012 EDT
Responses
I used Outright to deal with my business records (I kept crappy records last year too). Outright pulled all my Etsy and Paypal transactions together, thank goodness. I only had a few receipts to enter from cash purchases.
Then I used Turbotax to do my taxes. It was super easy!
Posted at 2:12 pm Mar 12, 2012 EDT
Did turbo tax let you deduct a portion of your morgage, electrical bills, and milage?
Posted at 2:16 pm Mar 12, 2012 EDT
I've used turbotax for small business and it was pretty easy, for the most part. It did keep me from getting some of the (child tax credits-I think that's what it was -- the deduction to paying for childcare) because the income from my business didn't show as income for some reason. I just found out recently that they offer phone support so I plan on calling when I do mine this year. It was a bit of a hefty price tag but less than if I'd gone to an accountant. My records took some time to sort out last year so hopefully I did better and this year's will be easier!
Posted at 2:16 pm Mar 12, 2012 EDT
Ann, yes, turbo tax has a spot for inputting all that info - I used the business one.
Posted at 2:17 pm Mar 12, 2012 EDT
Ok, one last question....do you do your business and personal taxes together? I work a regular job as well.
Posted at 2:22 pm Mar 12, 2012 EDT
Everything is together combined with my husband. This will be the first year with profit (I was able to write off a lot before) so I'm keeping my fingers crossed about the total.
Posted at 2:24 pm Mar 12, 2012 EDT
If you are sole propriertor, you will file a schedule C attached to your personal return for Business Income. That will then carry over as a loss of income on the 1040 portion of the form...
Posted at 2:25 pm Mar 12, 2012 EDT
Ann from PrettyVagrant says
Ok, one last question....do you do your business and personal taxes together? I work a regular job as well.
if you are a sole=proprietor, yes, all income is counted together as personal income. you would file a schedule C with your 1040, and SE if over $400 in profit
and whether you do it yourself, or have an accountant, you still need to keep good records to begin with
Posted at 2:25 pm Mar 12, 2012 EDT
I should said business loss or business income onto the 1040
Posted at 2:26 pm Mar 12, 2012 EDT