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My Husband owns stock in 5 different companies, we own our own home(with a mortgage), we have a 2 year old son, and my husband works fulltime and has a part time job, and I work part time.

Last year we paid over $ 300 to get our taxes done with H&R block, how easy/hard will it be to do it on our own if we choose to do so??

3 Thoughts on How difficult will my taxes be to do with Turbotax etc?
  1. Reply
    dawgdays
    January 2, 2013 at 12:33 pm

    This should be pretty easy. Here’s what you have, in the basic order that you work through a Form 1040:

    – Income from two jobs. I assume this is reported on a W-2.
    – You might have some interest (from the bank) or dividends (from the stock). You would have a 1099-INT for the interest and a 1099-DIV for the dividends if you need to include these.
    – The stock might not be relevant. Owning stock doesn’t affect your taxes. SELLING stock is a tax-significant event. So if he didn’t sell any stock, no problem.
    – Three personal exemptions (one for each of you and your husband, and one for your dependent son) That’s $ 10950.
    – Your standard deduction will be $ 11400. TurboTax will ask about deductions, the biggest one being your mortgage interest. You may also be able to include state income or sales taxes. If the itemized deductions total more than that $ 11400, you’ll get to subtract that larger amount.
    – Now you calculate your total tax liability
    – If those were W-2 jobs, you’re probably eligible for the Making Work Pay tax credit. Depending on how much you made, it could be an $ 800 credit. You subtract that amount from your tax liability.
    – Then you subtract the the taxes withheld from the remaining tax liability. If the net is positive, then you owe. If it’s negative, you get a refund.

    So, what you should do is to get out last year’s return and review it to see if you can gain some understanding of what is on the 1040, and the other supporting forms. Once you get a handle on that, then the questions that TurboTax asks will make a lot more sense.

    And remember, many people did paper forms, by themselves, for years.

  2. Reply
    tro
    January 2, 2013 at 1:11 pm

    you are looking at being able to prepare two Sch C’s and possibly two Sch SE’s,
    stock investment might mean dividends or possibly interest as well from those companies unless he sold the stock and that would be reported on Sch D,(the dividends and interest on the appropriate lines on the 1040
    your mortgage interest will be reported on sch A as well as the other subjects you can claim in itemized deductions
    you might have child care credit on #2441 you need to prepare
    you need to know you have a child tax credit of $ 1000 to apply to your income tax liability, you might be eligible for EIC(there is a schedule for that as well) depending on your total gross, there might be additional child credit, and very likely you will have Make Work Pay credit, Sch M

  3. Reply
    Wolf Harper
    January 2, 2013 at 1:34 pm

    Do your own taxes. Sure, it’s hard, but you get paid a fortune to do it. If it takes you 6 hours and you save $ 600, you just paid yourself $ 100/hour tax-free.

    Yes, it’ll be a lot of work, but the best part is KNOWING your finances and KNOWING the tax job was done right.

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