Get more $ back using a tax profesional vs turbo tax?

JEDI

Lifer
Sep 25, 2001
29,391
2,737
126
serveral friends of mine say they get more $ back vs doing it themselves with turbo tax.

their returns are not that complicated. just w-2 income. no stocks or business.

they used various tax pros from h&r block to a cpa.

i ask them how did they get more $ and they say their tax pros got them more deductions.

its like $175 for h&r block vs $40 for turbo tax.
 

kranky

Elite Member
Oct 9, 1999
21,019
156
106
I think the test would be if they took their tax pro created return and entered the same data into the tax software. I would be quite surprised if the software didn't come up with the same results.

If that is true, then it's not because a tax pro "got them more deductions" - it's because they didn't put the right information into the software.
 

Doppel

Lifer
Feb 5, 2011
13,306
3
0
I believe it if your friends are inept with using computers or breeze through all the turbo questions! You should be able to go to all the software packages and get the exact same deductions and credits and money back on all of them.

Those pros are just data entry monkeys anyway, the kinds you're seeing at Walmart or an H&R office. I cannot imagine they aren't using Turbotax or some mildly changed variant of it anyway.
 

Kroze

Diamond Member
Apr 9, 2001
4,052
1
0
It's true, they're nothing more than data entry monkies. I took h&r block tax course and you won't believe the people in there. Their tax software is just another version of turbo tax.
 

velillen

Platinum Member
Jul 12, 2006
2,120
1
81
I tried it out this year for my taxes. Did it both online on hr block and turbo tax software. Didnt submit but got pretty much the same return. Then i did go to a actual CPA and had her do it and she ended up getting 200 more back. So obviously she new something to deduct that i didnt.

But for me it was pretty much the same price wise. Would have been 50 bucks online or 100 to go to a hr block to do it. I paid the cpa 100.

Will say it was nice having the cpa do it. Just drop off w-2 and house stuff and come back in a week to sign for them to submit it.
 

Kroze

Diamond Member
Apr 9, 2001
4,052
1
0
You don't know how fine of a line the CPA walk when he/she does your return.
 

ichy

Diamond Member
Oct 5, 2006
6,940
8
81
People should try doing their returns by hand a few times just to understand how the system works. You'll quickly realize that for simple returns there's little or nothing a place like H&R Block can do for you compared to TurboTax. Obviously if you have complicated taxes a good CPA is worth it though.
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,589
5
0
I tried it out this year for my taxes. Did it both online on hr block and turbo tax software. Didnt submit but got pretty much the same return. Then i did go to a actual CPA and had her do it and she ended up getting 200 more back. So obviously she knew something to deduct that i didnt.

Did you bother trying to figure out what she "knew". Do you understand what it was? You sign the return - you accept that responsibility. A CPA will throw you under the bus if the IRS asks.

You don't know how fine of a line the CPA walk when he/she does your return.

For the average person that can not itemize; there are only two places that can easily be fudged.

Tuition/interest and moving expenses. Moving expenses usually require a couple of W2s with different addresses that are distant.

Tuition can be cross checked.

When you itemize, the charity and misc open up to be fudged. Taxes paid can be cross referenced. Medical expenses can be used, but they have a small impact and again can easily be check on. Same goes with catastrophic losses.

Anyone that has a CPA/Tax pro doing your taxes needs to look very closely at line items to ensure that everything is legit and able to be backed up.

Look at the results that you get for yourself, see what the differences are line by line and ask why?

The CPA can not add in anything that you do not provide to them; they can ask you questions to help your memory but that it all.

The CPA can help with the Schedule B,C,D,E by combing through the information you provide.


At that point you are paying for their time vs yours.

business returns are an entirely different story.
 
Last edited:

amdhunter

Lifer
May 19, 2003
23,332
249
106
I think the test would be if they took their tax pro created return and entered the same data into the tax software. I would be quite surprised if the software didn't come up with the same results.

If that is true, then it's not because a tax pro "got them more deductions" - it's because they didn't put the right information into the software.

This. When I had a "professional" do my taxes, they add on stuff like laundry and clothing expenses, expenses used to find work, and all kinds of other bullshit.

Yeah, I got a few dollars more, but I've seen my fair share of people get burned by cheating this way.

Not worth the extra couple hundred of dollars.
 

Xcobra

Diamond Member
Oct 19, 2004
3,675
423
126
Did you bother trying to figure out what she "knew". Do you understand what it was? You sign the return - you accept that responsibility. A CPA will throw you under the bus if the IRS asks.



For the average person that can not itemize; there are only two places that can easily be fudged.

Tuition/interest and moving expenses. Moving expenses usually require a couple of W2s with different addresses that are distant.

Tuition can be cross checked.

When you itemize, the charity and misc open up to be fudged. Taxes paid can be cross referenced. Medical expenses can be used, but they have a small impact and again can easily be check on. Same goes with catastrophic losses.

Anyone that has a CPA/Tax pro doing your taxes needs to look very closely at line items to ensure that everything is legit and able to be backed up.

Look at the results that you get for yourself, see what the differences are line by line and ask why?

The CPA can not add in anything that you do not provide to them; they can ask you questions to help your memory but that it all.

The CPA can help with the Schedule B,C,D,E by combing through the information you provide.


At that point you are paying for their time vs yours.

business returns are an entirely different story.
Good post Eagle :thumbsup:
 

ImpulsE69

Lifer
Jan 8, 2010
14,946
1,077
126
I have an aunt that used to work for H&R Block for a number of years. Turns out she was taking people's info and getting credit cards and money from their bank accounts. I really am not sure of the details on how she did this or how much or how long, but after that I never trusted taking my taxes to one of those places again.
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,589
5
0
This. When I had a "professional" do my taxes, they add on stuff like laundry and clothing expenses, expenses used to find work, and all kinds of other bullshit.

Yeah, I got a few dollars more, but I've seen my fair share of people get burned by cheating this way.

Not worth the extra couple hundred of dollars.

Back when; the 2106 used to be attached to the 1040 directly.
Now it is attached to the Schedule A; makes it more difficult.

And the IRS has strict guidelines on those things.
Laundry & clothing expenses is for clothing that is not usable out in public but only required for work.

The looking for work is more lax - but they added the 2% overhead which tosses out the weekly Sunday comics :p
 

Drekce

Golden Member
Sep 29, 2000
1,398
0
76
I have a friend who is a firefighter. His preparer had him deduct all food expenses for days he works, plus a bunch of other similar things that added up to thousands in additional deductions. Seems shady to me.
 

lothar

Diamond Member
Jan 5, 2000
6,674
7
76
Back when; the 2106 used to be attached to the 1040 directly.
Now it is attached to the Schedule A; makes it more difficult.

And the IRS has strict guidelines on those things.
Laundry & clothing expenses is for clothing that is not usable out in public but only required for work.

The looking for work is more lax - but they added the 2% overhead which tosses out the weekly Sunday comics :p

How do they determine "not usable out in public"?
What if you're a corporate exec that has to wear only suits to work?
Unless there are IRS auditors monitoring your whereabouts 24/7(which they certainly don't have the manpower to do), those same $2,000 suits can also be used to weddings, church, etc...

Of course things like lab coats, scrubs, and such are easily not usable in public.
But those expensive suits that corporate execs wear?

My employer provides me with free lab coats, so there is nothing for me to deduct. :\
 

sactoking

Diamond Member
Sep 24, 2007
7,612
2,861
136
How do they determine "not usable out in public"?
What if you're a corporate exec that has to wear only suits to work?
Unless there are IRS auditors monitoring your whereabouts 24/7(which they certainly don't have the manpower to do), those same $2,000 suits can also be used to weddings, church, etc...

Of course things like lab coats, scrubs, and such are easily not usable in public.
But those expensive suits that corporate execs wear?

My employer provides me with free lab coats, so there is nothing for me to deduct. :\

The reasonable person test: would a reasonable person figure that an exec could wear a suit out in public? Yes, so it's not deductible. Would a reasonable person figure that a GM Goodwrench mechanic would want to change out of his dirty jumpsuit before hitting the town for drinks and dancing? Yes, so it is deductible.
 

Ns1

No Lifer
Jun 17, 2001
55,419
1,599
126
How do they determine "not usable out in public"?
What if you're a corporate exec that has to wear only suits to work?
Unless there are IRS auditors monitoring your whereabouts 24/7(which they certainly don't have the manpower to do), those same $2,000 suits can also be used to weddings, church, etc...

Of course things like lab coats, scrubs, and such are easily not usable in public.
But those expensive suits that corporate execs wear?

My employer provides me with free lab coats, so there is nothing for me to deduct. :\

This has been argued 38945789345789345 times before, executive dry cleaning and suits do not count unless the suit has company logos all over the place and the executive looks like a walking billboard.

There is no way it will ever stand up in audit. Now, whether or not the individual has the balls to put that shit on a tax return as a business expense, and if the individual will ever get audited, that's an entirely different story.
 

PatrickBateman

Senior member
Oct 14, 2004
368
0
0
I always did simple return by hand before bought a house.Being a homeowning noob, we used to drive, sit and wait, and pay a tax guy $100 to do our taxes (basically sit and watch him type and answer some questions). About 5 years ago I leaned over the desk and saw.....tada! Turbo Tax. Since then, I've been doing it myself. ONly con is now my family thinks I am sort sort of CPA because I know how to use a compooterz

I also let them know they are 100% responsible for what they tell me to enter.
 

alkemyst

No Lifer
Feb 13, 2001
83,769
19
81
for most people paying a pro will result in less net vs turbotax.

H&R Block are not pros.

If you have a complex situation and you don't understand it (multiple businesses, expenses, etc), a CPA can be a great value.
 

Sixguns

Platinum Member
May 22, 2011
2,258
2
81
My dad worked at H&R block for years and I still ask him question to this day about my taxes. He now uses turbo tax since its cheaper than going to someone else to do it. As long as you know how to read Turbotax is the way to go IMO.
 

JEDI

Lifer
Sep 25, 2001
29,391
2,737
126
Did you bother trying to figure out what she "knew". Do you understand what it was? You sign the return - you accept that responsibility. A CPA will throw you under the bus if the IRS asks.



For the average person that can not itemize; there are only two places that can easily be fudged.

Tuition/interest and moving expenses. Moving expenses usually require a couple of W2s with different addresses that are distant.

Tuition can be cross checked.

When you itemize, the charity and misc open up to be fudged. Taxes paid can be cross referenced. Medical expenses can be used, but they have a small impact and again can easily be check on. Same goes with catastrophic losses.

Anyone that has a CPA/Tax pro doing your taxes needs to look very closely at line items to ensure that everything is legit and able to be backed up.

Look at the results that you get for yourself, see what the differences are line by line and ask why?

The CPA can not add in anything that you do not provide to them; they can ask you questions to help your memory but that it all.

The CPA can help with the Schedule B,C,D,E by combing through the information you provide.


At that point you are paying for their time vs yours.

business returns are an entirely different story.

what is misc? what form #? or line #?
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,589
5
0
Miscellaneous...like self-employment / home office / vehicle expenses.

That requires declaring some income and/or business intent using the Schedule C.
The average Joe is not going to try to do such and no decent CPA is going to stick their neck into a noose suggesting such.

A Homeowner might get away with renting out a room in the house. That allows proportionally writing off repairs, utilities and insurance that normally can not be.
 

Ns1

No Lifer
Jun 17, 2001
55,419
1,599
126
That requires declaring some income and/or business intent using the Schedule C.
The average Joe is not going to try to do such and no decent CPA is going to stick their neck into a noose suggesting such.

A Homeowner might get away with renting out a room in the house. That allows proportionally writing off repairs, utilities and insurance that normally can not be.

Dude, EagleKeeper, you're talkin about Alky here. His 160 IQ means he basically WROTE the tax code.

Don't try to educate Alky: HE educates YOU.
 

Leymenaide

Senior member
Feb 16, 2010
751
368
136
Good post Eagle :thumbsup:


Turbo tax is great for most returns. My issues are a lot murkier. When the IRS started taking my bank accounts (4 of them) I was glad I had price h20house on my side. I pay from 1-3 k for my returns and am glad to have them. I filed in 7 jurisdictions last yearIRS has returned all accounts and issued a refund with interest.