I have been doing my taxes myself, and using standard deductions. I really didn't have many expenses so it was pretty easy doing it myself.
This year I purchased a house. The only expense I have now are the mortgage payments, and the other necessary basic expenses.
Should I hire an Accountant this year?
Anonymous
Favorite Answer
Get some tax software. Share with a friend and save your sanity. Turbo Tax or Tax Cut asks you all the right questions, does the math and prints out a clean copy. If you want to add something before filing, you can do that and don't have to go back to square one. Most state returns are pretty simple after the federal one is done so don't pay extra for that.
Anonymous
Too much info is missing! Generally, it depends on the type of business the partnership is in as it could determine if the bus. records are complicated or not and whether or not you feel comfortable with preparing tax forms! How do you know that all "figures are zero"? Are you an LLC or a general partnership? If LLC, did you register with your state? Did you apply for an EIN? Capital assets can be depreciated or expensed (if you elect Sec. 179 on those items). Any M/E are subject to the 50% deduction. Any M-1 items, if any, to reconcile? Not all start-up costs, if any, are expensed but capitalized. What 2 schedules are you referring to? Form K-1? What about the state? Does the state requirement any annual reports to be filed and paid? Many do! Does your state following the fed tax laws or does it have some differences? How's your bookkeeping? Have you classified the income and expense items "properly"? Have you classified the balance sheet items, if any besides cash, "properly"? Can you track both you and your partner's basis (i.e. contributions and distributions)? So.... how comfortable are you in accounting and in taxes? If you can honestly answer yes to most, if all, these questions, then you should be fine in preparing your own returns! It's not as easy as many people think it is when preparing their own returns. It gets more complicated with a corporate entity (which a partnership is). You could try and hire an accountant for the 1st year to help set up the accounting properly and look how the return is done. If you feel comfortable with how the 1st year was done, then you could try to do the 2nd year yourself! Good luck!!
Judy
If you've been doing your taxes yourself, itemizing shouldn't be much of a problem. Read the instructions for schedule A so you know what else you might be able to deduct, and ask questions here if you get stuck. You'll get a form from your lender with the interest on it, and the taxes also if you pay your re tax through an escrow account.
acmeraven
Go to IRS.GOV and get a free Pub 17 and read up on your subject. I have done them for 38 years and now I read, study and test for three months to get up to speed on what is changed and new for the upcoming tax year. I charge seventy five bucks for a federal and state return electronically filed with your refunds going to your account in about a weeks time. If you bought a house in 2009 then you may have a credit of $ 8,000 coming to you; plus up to an $ 800 work credit; mortgage interest and points from your buy/sell, property taxes, vehicle licensing, oop medical, the list goes on. The inteligent aplication of knowledge and experience is power; and with taxes it is money in your pocket. Read the Pub 17 and go from there. Good luck.
Sharon T
If you want some free help and don't want the cost of buying a software program, go to an AARP Tax-Aide site in your community. They will prepare and electronically file your tax return at no charge (but they love a smile).