Last year I decided to use an accountant for my taxes due to a confusing Roth 401k rollover. I was pretty sure I knew what I was doing but since the Roth 401k is relatively new, few people have rolled it over. Plus, I had some freelance income so I thought I’d be better off safe than sorry.
Afterward, I regretted paying an accountant because TurboTax had calculated my return exactly the same way. That made using TurboTax this year a no-brainer as it was a much cheaper option.
I was really pleased with my experience. I found the 2010 TurboTax easy to navigate and I was able to fill in my info as I received it, easily stopping and starting my return on my own schedule.
TurboTax Community
I knew I needed to use a Schedule C for my self-employment income but when I had questions about deductions I could take, it was very handy to have the TurboTax Community of questions and answers.
A quick search found that I could deduct Paypal fees and told me where in TurboTax I could go to directly enter the information, avoiding the TurboTax deductions “Guide Me” tool when I didn’t need it.
Last Year’s Taxes
I also liked how TurboTax showed me info from my 2009 tax return. It made it easy to compare how things had changed year over year and if something was different in 2010, it was immediately obvious.
For example, my income from 2009 included my 401k rollover whereas 2010 did not but that was easily identifiable.
TurboTax Filing
Filing my taxes with TurboTax was also very straightforward. They ran a quick review for any missed deductions, credits or incomplete information and told me that I had forgotten to input some info on a few stocks I had sold in 2010. Once I went back and fixed that section, I ran the review again and TurboTax gave me the green light to proceed with filing, but first warned me that individuals with self-employment income are more likely to be audited.
Once I filed using TurboTax for my state taxes, I immediately received an e-mail confirmation that my tax return had been accepted and the money I owed was deducted from my bank account just 3 days later! My Federal return took only slightly longer. My tax refund was deposited into my account 10 days after I e-filed. I also was able to easily save my entire return as a PDF so that I have a paper copy if I ever need it.
Summary
I was fortunate enough to have a pretty straightforward tax situation this year. In the past, I’ve used TurboTax for more complicated situations (multiple state returns, amending a return, education credits) and I’ve never had any major complaints.
Sometimes I’ve been a little unsure how to answer the questions it poses and have had to go outside the program for help but overall, I’ve felt 100% comfortable with TurboTax‘s services and it has allowed me to file my taxes very quickly with great record-keeping. I would definitely recommend it, especially for simpler returns.
I would not bother waiting to hear from TorboTax with answers to your tax questions. Call the IRS at 1/800-829-1040, Monday through Friday from 7 AM until 10 PM. You will be directed to a staffer who specializes in the topic you are calling about. I call twice, to be sure I get the same answer from two different people. And always get the name and ID number of the employee to whom you speak. You can also access IRS publications from the IRS website at http://www.irs.gov. (No, I am not an IRS employee ! But I do work as a volunteer tax preparer with their VITA program, and have found most IRS employees to be helpful and accurate.)
Sorry, “TurboTax”, spelled wrong.
Hello Molly! Thank you for your suggestion and comment.
When your tax situation changes dramatically, especially when you start a business, it is a good idea to see a qualified tax professional. I know that as a CPA I am biased, but it is worth a try for at least one season. A good professional will usually save you more than their fees and save you time. If you don’t think it is worth it, then you can always do it yourself the following year.
We’ve used a CPA for three years while deducting a big business loss. Next year, I believe we will be using TaxAct or Turbo Tax since we’ve gotten much more organized and won’t need to worry about the business loss deduction anymore.
Thanks for the review.
i end up paying unnecessary penalties for filing late taxes