Last year I did my taxes with H&R Block. I own my house, but I rent out two rooms inside. I have done the math with the square footage, and I rent 41% of the home out. When I did my taxes last year with the H&R Block gentleman, we established that I am renting 41% and then we took 41% of every expense that we could claim and entered it into the system.
For example I paid something like $4k in interest, but on the schedule E it only states about $1,900.
When I went to go do my taxes on my own with their software. I was asked what percentage I rented the home, I entered 41% then I entered in all my expenses in full. I was told I was getting back more than double what I got back last year, when not much has changed other than my taxes going up a little and same with my homeowners insurance. Last year I remodeled a bathroom for $16k, so that isn't on my taxes this year, do I need to take all my expenses and deduct the 41% from them then enter or should the software automatically be doing it? Did the H&R Block guy screw me over last year?
Thanks in advance!
I don't have actual advice, just a "shared experience". We've used a CPA for the last 3 years. Every year I still throw my numbers in to Turbo Tax to see what the difference is, and every year he saves us more money than Turbo. This year, it went opposite, and the numbers looked better on Turbo by $1500...
I stopped comparing them, because it was driving me nuts always having different numbers. I'm going with the "he's a well respected CPA in the area, I need to just trust him" mindset.
That being said, you can have another H&R Block person look at last years return, and they can get you money if in fact the last guy made an error. A friend of mine did that a couple years ago.
And, i'm not saying I wouldn't necessarily distrust H&R Block or not, but maybe look into getting a dedicated CPA? I ask mine questions all year long, and only pay him at tax time... It's nice to have someone I can bounce tax questions off of all year long.
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