Tax preparation

[spaz]

Well, my husband did tons of research and we had about 20 years of IRA in regular IRA. We converted them to Roth so we could only pay the lower tax rate on the capital gains since we are pretty positive that the taxes were much lower last year than they will EVER be... Taxes are already starting to go up ( a lot of our deductions are going away next year). So I think we paid 15 percent on it last year but I'm guessing the rates will be much, much higher when we want to use our IRAs in 20 years or so. So it was better for us to pay our taxes now rather than in 20 years. In 20 years we won't owe any taxes on the money in those accounts.

And we didn't do it until a couple of years ago because we couldn't. You couldn't do a ROTH with high income. So we didn't do it until we were able to.. ( And after dh did tons of research)

[spotty_dog]

But if they were traditional IRAs then you just paid tax on the basis at your current marginal rate? And while capital gains tax might increase some day, on the flip side you might be able to wiggle your way into a post-retirement bracket that pays 0% on LTCG. I dunno, just curious. Ive been thinking of adding backdoor Roth contributions to our tax deferred investment lineup, but I would have to do a pro rated conversion on DH's current tIRA holdings and although they are just in the five figures I'm still not clamoring to pay 28% on them! We can do the conversion post retirement instead, hopefully.

[scarlett09]

Accountant did our taxes already. Getting a $5K refund. Have no idea how or why. Most I can figure is that we overpaid (at least I know I did, estimated our tax bracket for next year instead of this year) and a particular city was applying a wage tax to DH's paychecks even though his physical work locale is not in said city. Oh, and we OWED our residency state taxes. Even though salary increases did not take affect until we moved out of the state. But we lived there for more than half the year? So confused. Was not expecting huge federal return and owing one of 3 states a couple hundred bucks. We never had that much ever, even when we were living on 1 salary. Is it the house purchase?

Oh, and the accountant's fee was $475. A little steep IMHO, but I need to remember we live in the NE and that he did 4 sets of returns for us plus fixed DH's city wage tax problem.

[weeniegeniewife]

Oh, and the accountant's fee was $475. A little steep IMHO

Wow, I'd love to only pay our accountant $475! That's a steal. We paid ours almost $1000; our taxes are very complicated.

[Pollyanna]

$475 is reasonable

[SuzySunshine]

Ours would have been closer to 7 if we had had them done - instead I did them myself, spent about $250 to file and get audit protection and we're getting a refund. Probably the last one we'll ever get so we better enjoy it! Hah!

[alison]

$475 is reasonable for even the simplest of taxes! Ours is super simple and we pay $700.

[scarlett09]

OK, it is good to know that while the fee seems high compared to our days of using H&R Block, it can get higher as our taxes get more complex. Hurray for perspective!

HoW - PA is requesting these documents from us. I also heard that the some are receiving this request in our state. I really thought is was a scam at first, but too many people in different states are experiencing it for that to be true. Wonder what is causing this to happen?

[Alacrity]

They have an ad on TV where they say they will double check your taxes for free.
I'd drop by with the 148 pages (includes worksheets) plus about 100 pages of supporting documentation just for the giggle factor if I was either a little more evil or a little more bored.

Harumph; This years federal return is 178 pages.

[HouseofWool]

HoW - PA is requesting these documents from us. I also heard that the some are receiving this request in our state. I really thought is was a scam at first, but too many people in different states are experiencing it for that to be true. Wonder what is causing this to happen?

Honestly? I think it because I found a loophole which allows me to get back money when I didn't pay anything in to my state. My paychecks from from Florida, which doesn't have income tax. I always plan on paying into the state, but have not had to yet. I think the audit is because the state doesn't want to have to pay any money out.

I got back the notification that they received my stuff (and I got back DD's birth certificate). The letter states that they are taking up to 8 weeks to review the material. Yep, I filed in February and won't get my money until this summer. And I sincerely doubt I will get interest on it. Now, if I didn't pay them in a timely fashion, I would be charged penalties and interest. It kinda pisses me off.

[Maligan]

It is not so much complicated. we have a very good experince with them. Turbo Tax is really great.