Taxes online...

[diyguy]

What is the name of your state? NY

I want to be ahead this year and have already started thinkin about taxes. Sure would be nice if the flat tax idea actually caught on. But until then it's forms and complications.
I see there a lot of new ways to do your taxes online. Taxbrain online is one i see a lot about. Has anyone used them or any of the online tax services?

[fairisfair]

what is your legal question?

[LdiJ]

Originally Posted by diyguy

What is the name of your state? NY

I want to be ahead this year and have already started thinkin about taxes. Sure would be nice if the flat tax idea actually caught on. But until then it's forms and complications.
I see there a lot of new ways to do your taxes online. Taxbrain online is one i see a lot about. Has anyone used them or any of the online tax services?

Most online programs are very good as long as you have a fairly basic return. Online programs are often problematic if your returns starts to go beyond a basic one. Its not that the software isn't good, its that most of them use a question and answer format, and often taxpayers think that they are answering questions properly, when they really are not.

I have been a tax professional for more than 20 years. I can do a return by hand, and do a return with our firm's software, and get the exact same result. However, I can take that same information and try to do the return on an online program that uses the question and answer format, and come up with a different result....sometimes a significantly difference result.

I have helped and will continue to help friends who are using online software....but not until I have manually done the return first, and KNOW what the result is supposed to be.

There are also online programs that don't use the question and answer format, which require the taxpayer to actually read the instructions and understand what they are doing....those are really the best ones in my opinion.

taxesanytime.com is a good one. They don't use the question and answer format and they have free live support.

[LdiJ]

Originally Posted by fairisfair

what is your legal question?

This forum tends to operate a little differently than the rest of the forums. We tend to answer any valid question that involves tax. Even if its not a technically "legal" question.

[mtpockets]

The Free File Alliance is a group of vendors who make their online software available free to users who meet their criteria. Each vendor can set its own criteria, subject to IRS approval.

The free programs usually do not allow the user to carry any information forward, such as name, address, social security number, depreciation, etc.

[diyguy]

Originally Posted by LdiJ

Most online programs are very good as long as you have a fairly basic return. Online programs are often problematic if your returns starts to go beyond a basic one. Its not that the software isn't good, its that most of them use a question and answer format, and often taxpayers think that they are answering questions properly, when they really are not.

I have been a tax professional for more than 20 years. I can do a return by hand, and do a return with our firm's software, and get the exact same result. However, I can take that same information and try to do the return on an online program that uses the question and answer format, and come up with a different result....sometimes a significantly difference result.

I have helped and will continue to help friends who are using online software....but not until I have manually done the return first, and KNOW what the result is supposed to be.

There are also online programs that don't use the question and answer format, which require the taxpayer to actually read the instructions and understand what they are doing....those are really the best ones in my opinion.

taxesanytime.com is a good one. They don't use the question and answer format and they have free live support.

Thanks for the advice.
So do you think a layman would be better off without the online q&a format, or is that a professional preference? I don't have much experience doing taxes on my own.

Originally Posted by mtpockets

The Free File Alliance is a group of vendors who make their online software available free to users who meet their criteria. Each vendor can set its own criteria, subject to IRS approval.

The free programs usually do not allow the user to carry any information forward, such as name, address, social security number, depreciation, etc.

I like the idea of free, but I also like the idea of all my info being saved for next year. I checked them out at: [url]http://www.irs.gov/app/freeFile/jsp/index.jsp?ck[/url] looks like they have to many constraints for me.


Thanks again!

[LdiJ]

I think that a layman would do himself or herself more good if they didn't use the question and answer format, because they would need to read the instructions to understand what needs to go where. I don't think that enough laymen read the instructions any more, so they are operating blindly when they do their taxes.

[diyguy]

Originally Posted by LdiJ

I think that a layman would do himself or herself more good if they didn't use the question and answer format, because they would need to read the instructions to understand what needs to go where. I don't think that enough laymen read the instructions any more, so they are operating blindly when they do their taxes.

I see. You probably right. I don't understand most of it. I guess I get intimidated by all the forms and jargon of taxes. I like the ease of the online programs such as taxbrain that take me through everything step by step, and tells me what forms i need.

Bottom line, I think what we really need is a complete revamp of our tax system, but that is sadly decades away at least.

[tranquility]

Obviously there are many complexities in the law based on nothing more than contributions to the right congressmen. But, for the vast majority of people, taxes are not that hard. The progressive percentage table is not the problem and a flat tax will not simplify things much. Here's why:

First is that it is not going to happen. The public won't go for it and the representatives don't want it. There is power in taxation and the congress will no longer get their campaign contributions to anywhere near the same extent if they can't manipulate the tax system. The public won't want it as most have some favorite portion which should be kept. (Home mortgage deduction? Capital gains? Inheritance issues? Gift issues?)

Second, and more importantly, is What is Income? For many, it's what is on the W-2 they get from the employer. However, for investments and for people with money to manipulate things, income is not so simple. I won't go into an article as to why, but trust me, income can be subtle and highly manipulated. That's where much of the complexity of the law comes in. The government defines income. The smart people adjust to not have income but gain benefits in some way. The government adapts. The people adapt. And so on, and so forth until we get the mess we have today.

[fairisfair]

Originally Posted by LdiJ

This forum tends to operate a little differently than the rest of the forums. We tend to answer any valid question that involves tax. Even if its not a technically "legal" question.

gee, thanks, cause I just got here I am not sure why you find the need to try to talk down to everyone but I can assure you it is what irritates a good many of them. Other than that, I find you to be quite compassionate and informative.

actually my question was more to determine if he actually had a question, or was in a round about way trying to endorse taxbrain.com

[diyguy]

Originally Posted by tranquility

Obviously there are many complexities in the law based on nothing more than contributions to the right congressmen. But, for the vast majority of people, taxes are not that hard. The progressive percentage table is not the problem and a flat tax will not simplify things much. Here's why:

First is that it is not going to happen. The public won't go for it and the representatives don't want it. There is power in taxation and the congress will no longer get their campaign contributions to anywhere near the same extent if they can't manipulate the tax system. The public won't want it as most have some favorite portion which should be kept. (Home mortgage deduction? Capital gains? Inheritance issues? Gift issues?)

Second, and more importantly, is What is Income? For many, it's what is on the W-2 they get from the employer. However, for investments and for people with money to manipulate things, income is not so simple. I won't go into an article as to why, but trust me, income can be subtle and highly manipulated. That's where much of the complexity of the law comes in. The government defines income. The smart people adjust to not have income but gain benefits in some way. The government adapts. The people adapt. And so on, and so forth until we get the mess we have today.

Interesting view, but the flat tax idea proposes no taxing of income at all. No state taxes. Just a large sales tax. So when you spend you pay your taxes. Simple. Of course there a possible fall back. I'd bet you are right though. Even if it's better than what we have now, that doesn't mean people would accept it.

Originally Posted by fairisfair

...actually my question was more to determine if he actually had a question, or was in a round about way trying to endorse taxbrain.com

I'm not here to endorse anything I'm just talking about taxes and taxbrain just happens to be what i'm using this year.

[fairisfair]

Originally Posted by diyguy

Interesting view, but the flat tax idea proposes no taxing of income at all. No state taxes. Just a large sales tax. So when you spend you pay your taxes. Simple. Of course there a possible fall back. I'd bet you are right though. Even if it's better than what we have now, that doesn't mean people would accept it.



I'm not here to endorse anything I'm just talking about taxes and taxbrain just happens to be what i'm using this year.

Yes, that is obvious now, lots of posters use the forum to insert their own websites as a way of free advertising.

PS. Personally, I took Ldij's advice and used "that" site. My experience with them was good. fast, easy to use, one set fee included the state filing as well. Overall good experience, I would definitely use them again.

PSS oh, and I had to use the technical support as well, they were fast, got back to me in less than an hour and responded back and forth quickly, solved the issue in less than one day and completed the filing.

[LdiJ]

Originally Posted by fairisfair

gee, thanks, cause I just got here I am not sure why you find the need to try to talk down to everyone but I can assure you it is what irritates a good many of them. Other than that, I find you to be quite compassionate and informative.

actually my question was more to determine if he actually had a question, or was in a round about way trying to endorse taxbrain.com

I didn't mean to sound condescending and I am sorry if I came off that way. Its just that none of the regulars on this particular forum ever ask anyone "what is your legal question". That is a common question asked on the family law forums (and maybe some of the others but I don't participate on those) but we don't ask it here. We respond to pretty much everyone whether they have a legal question or not.