Tax Software

[BOB W]

My how cynical! For years I have done the 18 free returns allowed by my company on their software and in addition I have used IRS fill in forms; IRS free e-file vendors; tele-file , before it was discontinued; bought additional software and paid filing fees out of my pocket. Why?- because it makes me feel good. But tax prepartion is not my primary source of income.

Just remember >> "No good deed goes unpunished".....

Any bartering, no matter how friendly, makes you a paid preparer. And, this will be your first year with "Out of Pocket" costs, so we will see how good natured this endevor goes.

Cynical? yes, because it doesn't make sense to spend $800, unless this is your way of not giving xmas, birthday, or gifts in exchange for not charging tax prep fees....???

[TJK]

Just remember >> "No good deed goes unpunished".....

Any bartering, no matter how friendly, makes you a paid preparer. And, this will be your first year with "Out of Pocket" costs, so we will see how good natured this endevor goes.

Cynical? yes, because it doesn't make sense to spend $800, unless this is your way of not giving xmas, birthday, or gifts in exchange for not charging tax prep fees....???

I showed your first reply to my wife and she agrees with you- I am nuts!! She wants me to charge a minimal fee to cover my expenses. Maybe you guys are right.

[taxmom34]

tax software

i didn't see anywhere on these answers the obvious tax software "taxcut" the cost is minimal depending on which version you buy and you can do unlimited returns, you are limited for the number of efiles, but this is still cheaper than the proseries or any other software mentioned here. turbotax has just gone up this year on their charges and added fees for additional returns.

[Lion]

TaxCut

Well, TaxCut's probably one of the cheapest out there. But, it isn't really like the TPS our poster used. And, if e-file is a deal-breaker, then it's not at the top of his list. He needs to get pay-per-return prices for his projected filings including e-file. He can always compute his costs, including e-file, and suggest his relatives pay him the resulting amount to cover his software expenses. Not to mention printer, toner, paper, other office supplies, IT issues, electricity, wear & tear on the family computer, tying up the family's access to the internet, etc., etc. He may discover that it's a LOT more time consuming to prepare taxes on his own, be his own IT guy, answer the constant telephone interruptions, order supplies, etc., and choose a more expensive software that flows more easily for him or has better &/or faster support or handles an issue he expects (multiple states, for instance) more smoothly or otherwise makes his life and his avocation more pleasant for him.

[BOB W]

I showed your first reply to my wife and she agrees with you- I am nuts!! She wants me to charge a minimal fee to cover my expenses. Maybe you guys are right.

Sorry for being so negative on you original post but it just didn't sit right with me--- not being a paid preparer and preparing so many returns. It could get you in trouble for not signing that many tax returns> Uncle Sam loves to assess penalties on situations like this.

[TJK]

Sorry for being so negative on you original post but it just didn't sit right with me--- not being a paid preparer and preparing so many returns. It could get you in trouble for not signing that many tax returns> Uncle Sam loves to assess penalties on situations like this.

I plan on signing them, that is why I got an EFIN. But you brought a good point- if I sign them will the IRS looking for a schedule C???

[ED SMITH]

TaxAct

I have all the years going back to 98, their first year. It has gotten better each year. They have a professional module for individual returns under $100 and a regular module, around $20 (It won't print the preparer's name and address on the 1040). The states can be ordered individually if you only have a few, but you can get them all for around $100. They also have modules for 1065's and 1120's.

I have used both ATX and Lacerte and they all have some features that I prefer over the others and some which I don't. With Taxact you have to do a lot of scrolling as with Lacerte. For instance, the format uses a modifed tax form, but without seprate pages for the 1040 or Sch C. So to get from page one to two you have to scroll all the way through from one page to another. Otherwise it beats the others handsdown.

[BOB W]

I plan on signing them, that is why I got an EFIN. But you brought a good point- if I sign them will the IRS looking for a schedule C???

Not really, it is a service that is a "Hobby", and should be reported as a hobby( no profit motive). If you do collect any fees it would be reported as other income (line 21 (I think)) and your expenses on Schedule A Misc. Of course, this is a tax losing situation since you mentioned that you have other income.

I suggest that you notify everyone that you will be charging $100 (or something like that) to do their tax return.
This will put you in a "for profit" business (Schedule C).

[Black Bart]

Aw,

(Re: "THAT COMPANY") I have been reading this message board for two years and have enjoyed the many humorous posts and my first attempt at humor bombs!!!!! Sorry

don't take it too hard (my jokes have occasionally fallen flatter). What happened is, when you titled your post "Tax Software" and followed it with "THAT COMPANY," I (and maybe Bees) thought you meant you were quittin' your software vendor instead of the "evil empire."**

The tech advice is good (these folks know their stuff), isn't it?

About the friends and relatives -- I admire your idealism and if I felt strongly about it, I'd just tell that woman to cut back on fur coats and go ahead on. But...as a practical matter, I'm with Bob (keep in mind, though, he's a New Yorker and I swear I've heard they have pay toilets up there) on charging them. This is a tough business and the continual struggle with cheapskates creates a somewhat calloused "take-no-prisoners" attitude. I predict that whatever you do this year -- you won't feel the need to ask anybody here for fee advice next year).

If you do charge something, that'll probably kill off 25 of those 50 right there (bring up money and "friends" fade fast). I once asked a three years' freebie for $10 supplies cost and he never came back (as a banker might say, "He moved his overdraft elsewhere"). Also, think seriously about your amount (if any) since it's hard to raise a relative's price and you may have to live with it a long time.

Which reminds me, my wife (who owns only a good, Republican cloth coat) wants to throw another durn reunion of her well-off relatives and if that 3rd cousin-removed of hers asks me to co-sign another note, I'm removin' him right out the door.

**Note to H&R Block fans: Be advised I consider them the finest folks on planet Earth (that oughta cover me!).

[veritas]

Is that coat

Which reminds me, my wife (who owns only a good, Republican cloth coat) wants to throw another durn reunion of her well-off relatives and if that 3rd cousin-removed of hers asks me to co-sign another note, I'm removin' him right out the door.

Checkered?


you kill me.

[Black Bart]

Yeah.

Checkered?

Nice catch.

[BOB W]

Bart> you continue to amaze me as well as amuse me>>>>great job.

[FEDUKE404]

A bit more on software

I plan on signing them, that is why I got an EFIN. But you brought a good point- if I sign them will the IRS looking for a schedule C???

I'm not quite sure I understand that logic, but anyway:

Assuming you are doing returns that are not disastrously complicated, you should find TaxAct a nice option for your free services. Their professional version is a nice step up, as it deals with client letters, billing, and some more bells & whistles. You can buy state software individually, or if you're enountering several states I recommend the multi-state package. Downloading the software is cheaper than getting something mailed to you.

There was an error in a previous post. E-filing starts at $11.45 for federal/state, and then drops to $7.45 for same after 25 or so returns. (You can also pay a flat fee for unlimited e-files, with a break-even point somewhere in the range of 75 total returns.)

The only real drawback I've found is that some PY/NR returns are not well-supported, but the "exclusion" list shrinks annually and, depending on your home state, may not even be an issue for you. My home state is fully supported with all (normal) forms.

For some very off-the-wall forms, they may not be included. It is a swap between paying a lot more for software that includes "everything" versus paying a quite reasonable amount that should take care of virtually all of your returns, especially those that a normal person would consider in the "freebie" category.

I also like the fact that I can get "real" customer support whenever problems arise.

While I applaud your largesse for preparing free returns, I do find the concept unusual at the level you referenced. One would think your "clients" should not expect such work to be free? Also, by signing the tax returns and/or e-file paperwork, you probably are exposing yourself to a certain amount of liability risk. You might want to think over that issue.

Good luck in your exit from the evil empire........

One afterthought: Most "non-professional" software has verbiage in the agreement that the software will not be used to prepare (whatever). Of course, I've known CPAs who buy the layman version of TurboTax, use it for their returns, and white out the "self-prepared" lines. That blocks them from e-filing, for obvious reasons. I've often wondered about the "professionalism" of such folks......

FE

[Burke]

If you are going to use any professional software, it is going to print your name and info on the return. Have you considered the cost of E&O insurance? Family might be no problem, but "friends" can become unfriendly.

[DaveO]

I do a handfull of returns for family and friends, but I charge at least a token amount maybe $20. I'm signing off as paid preparer so that has to be worth something. Call it rent in my file cabinet for their copy if nothing else.