Does anyone use tax software to do there taxes?

Question

I was wondering if anyone is having luck using online tax software to do their taxes? I tried doing my taxes online but just can’t figure it out.  What tax program do you guys use?

Pat L. · Answer

I did for years until I got audited. The audit was not generated by the tax prep s/w but because I had acquired a LOT of properties over those two adjoining years & they wanted to know where it all came from. I did learn a lot from the audit & now take more deductions that I once considered borderline.

I then went through a few CPA's, but after them filing extensions, making obvious mistakes etc I finally found one I can sit across from & review the returns for each corp etc.

Basit Siddiqi · Answer

@Tj M.There are tax softwares that are capable of preparing most tax returns. You just have to get the correct version. For example having a business/rental may not be able to be prepared by the basic version but an advanced version.With that said - finding a software that is capable of preparing your taxes shouldn't mean that you should go with the software.You have to take time answering all the questions. If you answer a question incorrectly, your tax return will come out incorrect. You also complete the return not knowing if it was done accurately and if you over-paid on taxes.I think tax softwares are good for simple returns for those with W-2's.However, once you have a rental property, you should look to hiring a professional. Obviously, my opinion is a little biased since I am a professional.

Amy Kendall · Answer

I did my taxes with an online software for two years and really thought I had entered my depreciation on my rentals appropriately, only to find out later that I had not.  I missed out on enough saving to justify amending those tax returns.  Since then, my taxes and investments have only become more complicated.  I happily pay someone else to prepare them for me each year.  My brother and father-in-law both have one rental property each and prepare their own taxes using tax software.  I asked them if they are able to claim the depreciation, and neither of them knew about or cared about the  depreciation.  So, you can save some money of doing it yourself, but you also might be losing out on some deductions you don't know about.  It just goes to show, you don't know what you don't know.