It never fails – I’m riding the high of a great freelancing year and a nice holiday season when WHAMO! there’s that damned 1040 tome weighing down my mailbox. Each year I vow to get an accountant. Each year I don’t. Each year I do my own taxes. Each year I get a letter from the IRS in May correcting my carefully prepared forms.
Tax season, for me, is like deer season for deer. There’s nowhere to hide. No matter what I do, I’m right in the crosshairs and no matter what electronic program I’ve tried (and I’ve tried plenty), the IRS is going to hunt me down and tell me where I went wrong.
Last year I used TurboTax, which rechecked my numbers and informed me I was in great shape. For the first time in years, I was elated. Finally, I thought, I’ve done it right. Imagine my suprise when my now annual IRS “Here’s where you screwed up, Lori” letter arrived a few months later, along with a bill (including late fees) for what I hadn’t done right. But TurboTax promised! Damn it! Damn it all to hell.
This year I’m starting now. I’m compiling all my forms, papers, 1099s and the like and locating an accountant. Every year I let my better half talk me out of it, but it’s pretty clear I’m not exactly cut out for filling in those blanks alone. I need a skilled hand to hold.
Do you have an accountant? How has that saved you money? And do you hate the ides of April (more or less) as much as I do?
I am precise, detail oriented, follow instructions to the letter, and a have been told I have a legal mind. I did not believe people for years who told me a tax accountant would save me money. Finally, a few years ago, I gave in. It’s true. My accountant saved me 3X what it cost to hire him. And the aggravation factor – priceless. Do it. Find a good accountant, I beg you. You deserve it.
What is your hourly rate? If you are spending 8 hours wrestling with taxes, instead of earning $100/hour, you are much better off paying an accountant $400 to do your taxes.
We have a CPA who’s a friend. Best of both worlds.
The four years I used an accountant — who supposedly was well-versed in the theatre/freelance life — were such enormous messes that I’m still cleaning them up.
I do my own taxes. The IRS has been great about working with me, showing me where I missed taking as much as I should, etc., etc., answering questions, and all that. I know, who’d ever think I’d say something good about the IRS?
The State Tax people here are vile, but the feds have been helpful.
I do my taxes myself and am in much better shape.
I am NOT paying $500 or more to have a so-called “professional” screw it up.
Turbo Tax doesn’t work for our lifestyle. I took a look at them and decided to pass. Our lives don’t fit into traditional forms, which is why taxes are such a nightmare for us.
Eileen, I’m totally convinced this is a job for a professional. I’m also convinced (and have been for years) that I’m not cut out for forms and more forms. I’m searching now for a good accountant candidate.
Angie, if my BIL lived closer, he’d do my taxes. Alas, he does not know PA tax law. :((
Lori, I need a professional to help with my taxes. I’m great at being organized and keeping up with the littlest details, but that’s pretty much where it ends for me. I could pretty much count on a lovely letter from the IRS if I tried tackling it all myself.
As if any branch of our government is in a position to be telling us that we’ve screwed something up . . .
We first hired an accountant when my husband had to deal with his father’s estate from another state and inheritance issues. We returned to the accountant the next year for more inheritance issues. Then we got a “you’re getting audited” letter from the IRS because of the kids’ one-year income. We called the accountant, and he handled everything as part of the fee we paid him to do our taxes initially. The following year we added my freelance work to the mix, and we’ll never do our own taxes again. I couldn’t say how much money we saved, but the aggrivation we save is priceless.
Like right now, for example. We have to do the self-employment estimated tax dance. I estimated slightly higher than last year. I made considerably more (yay!). However, the math genius in me cannot figure out what the devil I should be sending to the IRS next week. Honest to God, I freeze like a possum caught in headlights.
Devon, Turbo Tax was easier, but it really didn’t guarantee accuracy, which I found out all too well. No, I can’t be trusted to do my taxes. I’ve tried. Five years in a row I embarrassed myself to the government and in one case they sent me a chastising “had you used an electronic preparation software application, you could have avoided errors.” I did, you fools. And you don’t know me very well – I could screw up the tax version of a soup sandwich!
Just a quick word of advice: check your return very carefully before sending – even WITH an accountant.
You may have a great one: hope so. I’ve tried two CPAs with no luck and now do my own taxes. My first CPA cost me years of potential retirement deductions by giving me wrong info: didn’t find out till years later: too late to refile.
2nd acct also a CPA, recommended to me by a 20-year business owner. I dropped off everything organized by March 1st. This guy waited till a week before April 15th to start my return – then made careless mistakes…forgetting to deduct SEP to determine taxable income; switching spouse’s SS number with mine, and more. If I hadn’t proofed my own return line by line, I’d be getting an IRS letter too. Very scary, as I’m not a tax expert. He caused me major last-minute panic plus had attitude when I had to contact him several times to fix.
Now I do my own: I’d prefer not to, but am starting to trust myself more than the “experts”.
I’m with Eileen: Hire a professional! My accountant has saved my business (i.e. me) hundreds of dollars and lots o’ aggravation.
Think about it this way: You’d recommend that an organization lacking in writing skills hire a professional copywriter like yourself, right? Well, the same goes for taxes. 🙂
i’ve really been holding out getting an accountant because they are so darn expensive. but figuring out your tax is like roasting in slow motion in hell!
huhuhu. i can never get things right by myself
"…figuring out your tax is like roasting in slow motion in hell!"
Grace, thank you for the belly laugh! If only it wasn't true. Wcsfun, that's just awful! I'll check out several and choose one who specializes, but even then. I mean, we've all heard the horror stories about H&R Block, right?
Taxes make me break out into a sweat.
If only they were that innocuous for me, Dont Forget. ;))