Sunday, January 21, 2007

Tax help or not?

Okay, I signed up yet again to see a tax guy for help this year. Last year we moved and I felt frustrated reading over the new state tax laws. So we ended up paying someone to file for us. It was $575 last year but he did do our federal and two states. I'm not sure if this is a lot, it's the first time we've used someone. Until now our taxes have been pretty simple so we usually did Turbotax or some online E-file

This year, being stupid, I seriously overpaid our taxes. I think we're due a $5k refund if not more. I am really frustrated because it wasn't our tax guys fault. It was mine and DH's company. I paid taxes all year on his estimated bonus, but didn't realize they withhold extra from the bonus. So I shouldn't have even calculated the bonus at all. Yep, bit stupid tax.

This year I'm wondering if I should also perhaps I should try and save money by doing it ourselves? Do most people do it themselves? I guess we sort of have a lot of with company stock bonuses, home, our investments (DH's stupid stock trading hobby), school tuition, etc.

We have a Stafford subsidized loan, but I got in the mail a receipt saying we paid $128 in interest. So do we claim it though we didn't pay it? The government did. Also do we get to deduct our tuition reimburstment or just want we paid and wasn't reimburst? And how does it work if DH was reimburst after 2006, does it count for 2007?

I am feeling rather frustrated, plus no W-2 have come in and only piece meal of our other 1099s, etc have come in. Do you pay for tax help?

2 comments:

Anonymous said...

Yes, we do pay for taxes to be done.
Well, if you count the cost of Turbotax.
The only thing that I think might be a little difficult would be the stock trading. However, the company that holds your portfolio should still be sending you the information about when purchases/sales were made.
I seriously can't believe that you paid someone $575 to do your taxes.
I still do my own, but my only tax issues I have to worry about are: mortgage interest deduction, child tax credit, savings interest, stock purchases/sales.

Living Almost Large said...

Actually last year was the first time we paid someone to have it done. It was nice to not worry for once. It was a big year for us last year with moving, buying selling a place, school, etc.

We did it on our own previously, no one wanted to file international taxes, but now that we got married it also got easier.

How do you reconcile ESPP, stock bonuses and not paying taxes on it depending on how long you hold it? We're trying to work through all the loopholes of keeping stuff 2 years and then selling or not? Plus how do reconcile capital gains on bonuses given as company stock depending on vest date? Not options, which is another issue all together.