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Showing content with the highest reputation on 05/26/2025 in Posts

  1. I prepared taxes with pen and paper in the 60's and 70's. When the first computerized returns came out, I worked for another accountant and continued my pen and paper returns at home. When E-filing came out, I invested in a computer and printer. I filed everyone efile and ate the cost because nobody wanted to pay $15 to efile their return and I didn't want to lose my Efin. My first computerized program with efile cost $89 and was a wonderful program, Parsons Technology, which was soon gobbled up and spit out by Intuit. I have never used an Intuit product since. I then discovered Saber, which did me well for several years until it became ATX, which I am still using. My prices have not increased in relation to the cost of the program. I have kept careful track of all income and the first year as a business, I grossed $709. I felt like a Pro. As I approach the end of my career (who knows when); things are much different, but I still feel like a Pro.
    3 points
  2. OK, since we're reminiscing, let's talk about the calculator-only period. A desktop calculator, lookup tables, and rolls of calculator tape - especially the "check tapes" stapled to my office copy of the return. I don't think anyone has mentioned the days of putting a tiny staple at the top of 3 pages with carbon paper inserted between them. Make a mistake and then it was a decision between starting all over or dabbing a tiny bit of White Out on each page, then blowing on it to dry before starting to write again. Then along came the NCR (No Carbon Required) paper sets. It was pricey, but a a real time saver. You just had to be sure not to lick your fingers when handling/sorting/collating the sheets or you'd get a sore throat. (I still wonder what that chemical in the NCR paper might have done to my airways and digestive system) My first copier used rolls of chemically coated paper & liquid toner. You could almost always guarantee a spill when you refilled the reservoir. It also had a really weird smell. (Again, wonder if there were any problematic chemicals in all that stuff.) Or maybe the above-mentioned volatile organic compounds (including formaldehyde, benzene and toluene) acted as a preservative - I'm still here.
    2 points
  3. Someone calculated that only 15% of the Social Security collect is the dollars that you paid in, with another 15% from your employers and the rest is earnings. Hopefully they adjusted for inflation, but that's how we got to 85% taxable. And the tax on Social Security helps keep the fund solvent, which means that the IRS must forward the tax paid on Social Security to the Social Security fund.
    2 points
  4. This was the reason for the $4,000 increase in the standard deduction for seniors.
    2 points
  5. Remember when your IRS tax book would come in the mail. And it had your Social Security numbers on the "Return Sticker" Oh how times have changed.
    2 points
  6. I prepared returns with pen in the late 80s while volunteering on the VITA program. Those days people were claiming dependents that didn't exist or that were in other countries because the rules didn't require SS numbers. I remember that I prepared taxes when full credit card interest was deductible if you itemized deductions. The next year only 2/3 were allowed and the last year only 1/3 of interest was allowed before it was eliminated as itemizable. A couple of years later, SS number were required but you could right something like 205(c) in the social security. The following year, you could write "applied for" and the next year you were required SS number without any excuses. Those were years when Papa Bush was president. I remember one time that I pen prepared a return and when ready to sign, the tax payer pulled out credit card statements and qualified to itemize. You guessed it, I had to start from scratch. I stopped preparing taxes for some years because I knew too many people were lying on their returns. I only did my own return and about 5 returns from my friends who wanted to report correctly and I know their situation. When I came back everything was computer prepared. When the IRS open the gates to efiling, I was the first one to embrace it and I efiled all returns except the ones that cannot be efiled. Even though, everything was printed from a computer program, the IRS was giving paper EA exams. You had to pass 4 exams which were administered once a year. On day one you took two exams, and the next day you took the other two. If you missed any of the them, you had to wait a whole year to retake. Luckily for me, I passed them, but I didn't pay the "$35" for the form and I didn't become enrolled agent. two years later, I took the exams on computers which is much easy because you can take one at a time and your convenience. I was about to retire when the current standard deduction was going to revert back and personals exemptions were going to kick in but luckily for me, the current tax credits and standard deduction will stay. A lot of things have changed and I don't miss most of the things that are gone. The only one I don't like coming down the pipe is "deductibility of interest paid on American cars". I also don't like "no tax on overtime" because people will not understand that the only portion not taxable the .5 of the 1.5 received on overtime hours worked. I wonder if the fact that tips will not be taxable will make the server position more attractive... that will be perfect since ICE will hit that position the most.
    2 points
  7. "Before 1987, taxpayers could claim dependents by simply listing their names. The Tax Reform Act of 1986 changed that, requiring taxpayers to include the SSNs of dependents over the age of five when filing their taxes. The following year, seven million FEWER dependents were claimed on individual federal income tax returns, resulting in a $2.8 billion increase in tax revenue."
    1 point
  8. If my memory is correct, when I started with Parsons I would have to mail, yes, mail a 3.5" disk to Parsons and they would efile the return on the disk.
    1 point
  9. There should be no tax on Soc. Sec. at all. Hopefully they will amend it in the senate. But I doubt it.
    1 point
  10. I too started with Parsons Technology then switched to Saber
    1 point
  11. I understand that and it would help many of my clients; buy personally, with both of us in our 80s and both still working, with meager SS, taxable income is not much of a problem.
    1 point
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