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So I Did a Return Through Turbo Tax Online


Chowdahead

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So for the heck of it I offered to help a cousin of mine and his wife file their return though turbo tax because I was curious as to what the experience was like and what I am up against.  It's pretty simple return, MFJ, one income, education expenses, one dependent.  Getting EIC and Child Tax Credit. The experience was pretty shocking.

 

First of all, it was not fast.  It took me almost just over an hour to get it done.  I probably could have done it 50% faster because I know all of the forms and rules like the back of my hand, but I read through pretty much all of the material presented because that's more than likely what the average taxpayer would do.  I will admit that I skimmed some areas that I am already very familiar with so it would probably take the average person even longer.

 

Here were my findings:

 

  1. It was absurd how little evidence is required to claim dependents or the EIC or child tax credits.  Underneath the dependents name is basically several bullets that ask you of this dependent lived with you for more than 6 months, etc. I almost overlooked it.  So while we have to detail with the 8867 and all the ramifications of that, Turbo Tax s allowed to simply put up a few bullet points.
     
  2. Claiming education credits didn't require a 1098-T or even the educational institution EIN.  Turbo Tax just said the TP should receive it by Feb 15.  He had one but it didn't require one because initially it let me go on without entering any info on the school other than the name, and it gave him the American Opportunity Credit.
     
  3. I am an experience preparer and I found it complex, as it should be because taxes are complex by their nature.  But I cannot understand how an average person cold understand half of the material and make an informed decision.  There are so many links and popup windows to sift through.  There is dumbed-down language but even still, I can't see the average person just skimming through.
     
  4. The questions on the ACA were absurdly simple.  It asked did you pay for health coverage?  No.  Did you apply for health insurance through a state or federal marketplace or receive Medicaid?  Yes.  That's it.  No more questions on that.
     
  5. It wasn't cheap.  The total cost of the return, including the state, was $119, and that was with a 30% "discount".  To have the fees deducted from the refund, the total cost was $154.00.  Total time for preparation, about 70 minutes.  I'm pretty sure it would have taken a non-tax person about 90-100 minutes minimum.  And this was for a simple return.  The TP has to print the return themselves.  I cannot understand why people bother.

What I did like was how Turbo Tax offered options to track the refund by email or text message alerts.  There is an estimated refund date.  There is also a status bar showing the status of the return (i.e. transmitted, received by IRS, Refunded, etc).  

 

I like these options.  I'd like to know why ATX hasn't incorporated some of this in the program.  I'd probably be willing to pay for such a service because I think clients would like them.

 

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Chowdahead - thanks for a detail and very informative dialog of your TT experience. I guess the only thing I would question is that your attempt to be an average taxpayer is tainted. You are too much of a professional to think like the average taxpayer. I imagine the average taxpayer is looking at the refund amount and clicking a bullet and saying "that increased my refund so I will leave that one clicked". Or, "that decreased my refund, I think I will unclick that bullet". You are, in my opinion, giving the average taxpayer too much credit. Just sayin'.....

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...I imagine the average taxpayer is looking at the refund amount and clicking a bullet and saying "that increased my refund so I will leave that one clicked". Or, "that decreased my refund, I think I will unclick that bullet". You are, in my opinion, giving the average taxpayer too much credit. Just sayin'.....

 

I would consider myself an average taxpayer, but I am WAY too paranoid to take that route.  The closest I get is "it's unfortunate that I have to check that box, my return just took a nosedive" You're right though, they shouldn't show the average person their dollar figure in real time--it's probably irrelevant and just acts as a temptation to be dishonest.

 

I've never used their online service, which at the price mentioned seems awfully expensive considering their home and business software for doing a Sch C costs less than that, even if you include federal and state efile.  I find that it's pretty thorough, but it takes me FOREVER to get through my return.  I read and re-read every stupid box that pops up to make sure I'm getting everything correct, and then i leave my desk because reading that much gibberish makes my head hurt after a while.

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    I would consider myself an average taxpayer, but I am WAY too paranoid to take that route.  The closest I get is "it's unfortunate that I have to check that box, my return just took a nosedive" You're right though, they shouldn't show the average person their dollar figure in real time--it's probably irrelevant and just acts as a temptation to be dishonest.

     

    I've never used their online service, which at the price mentioned seems awfully expensive considering their home and business software for doing a Sch C costs less than that, even if you include federal and state efile.  I find that it's pretty thorough, but it takes me FOREVER to get through my return.  I read and re-read every stupid box that pops up to make sure I'm getting everything correct, and then i leave my desk because reading that much gibberish makes my head hurt after a while.

    You should allow one of the members here to do your returns.  I would prepare them for you at a VERY REDUCED rate, just because you do so much for us on this board.  Things you struggle with, are normal things we deal with every day.

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"It was absurd how little evidence is required to claim dependents or the EIC or child tax credits.  Underneath the dependents name is basically several bullets that ask you of this dependent lived with you for more than 6 months, etc. I almost overlooked it.  So while we have to detail with the 8867 and all the ramifications of that, Turbo Tax s allowed to simply put up a few bullet points."

 

+1 for Turbo Tax on this, if I am doing my own return which pretty much that is what Turbo Tax is design for (self-prepared) who best to know my kids. 

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    You should allow one of the members here to do your returns.  I would prepare them for you at a VERY REDUCED rate, just because you do so much for us on this board.  Things you struggle with, are normal things we deal with every day.

 

 

We have offered to do his return for free.  I would do it, but I don't have the state expertise for where Eric lives.  But I would learn his state rules if he asked me to.  I think I am not the only one on the board that has made the FREE offer to Eric, and it is a standing offer.

 

Tom

Newark, CA

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I don't have anyone prepare my return because I keep terrible track of my expenses (doing my taxes involves an extensive and careful search through my email over the past year for receipts).  3/4 the reason I don't claim OIH is because I'd have to dig through EVEN MORE records.

 

I'll do the simplified OIH method this year though.  With the amount of money we spend renovating our home, and the size of my office, I know I could get more, but I don't care.  I can't be bothered. 

 

And I'm sure that's the worst kind of client to have, so I'll save you all the trouble--seriously.  The shameful disorganization of my finances should be my burden to deal with. :P

 

The level of discomfort that I feel when dealing with these things is so high, that there is no tax refund amount that could get me to file before April 10.  I could win 100 million dollars in the lottery, and I would put off receiving it as long as possible due to the paperwork that would be involved. 

 

Nice of you folks to offer though, thanks anyway :)

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The offer stands -- and I can pretty much guarantee that you would NOT be the most disorganized client I have, by a substantial margin.

 

The worst?  Therapists.  Universally horrible/clueless/utterly disorganized with money.  I have never had a therapist client who has *not* been through bankruptcy AT LEAST once.

 

(edited for spelling error)

Edited by Catherine
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I think Eric knows a lot about taxes based on his last post. So he doesn't need help but he is very diplomat by saying that it is due to his "disorganization".

 

But hey, he has 100% access to this forum so he should know a lot about taxes, right?

Edited by Pacun
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The offer stands -- and I can pretty much guarantee that you would NOT be the most disorganized client I have, by a substantial margin.

 

The worst?  Therapists.  Universally horrible/clueless/utterly disorganized with money.  I have never had a therapist client who has *not* been through bankruptcy AT LEAST once.

 

(edited for spelling error)

 

Had an attorney in my office yesterday with a mutual client.  I do not work with this attorney much but he was sharing with the client and me about his recordkeeping system.  He keeps everything in a desk draw until it gets too full (and in his car console) then he transfers that to a big box in a closet and repeats that exercise until the end of the year when he goes through it paper by paper to get it organized for his tax return.  And he went on to share what his wife does for a career.  Are you ready for it?  She is a CPA.  Some people just can not be helped.

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I don't have anyone prepare my return because I keep terrible track of my expenses (doing my taxes involves an extensive and careful search through my email over the past year for receipts).  3/4 the reason I don't claim OIH is because I'd have to dig through EVEN MORE records.

 

I'll do the simplified OIH method this year though.  With the amount of money we spend renovating our home, and the size of my office, I know I could get more, but I don't care.  I can't be bothered. 

 

And I'm sure that's the worst kind of client to have, so I'll save you all the trouble--seriously.  The shameful disorganization of my finances should be my burden to deal with. :P

 

The level of discomfort that I feel when dealing with these things is so high, that there is no tax refund amount that could get me to file before April 10.  I could win 100 million dollars in the lottery, and I would put off receiving it as long as possible due to the paperwork that would be involved. 

 

Nice of you folks to offer though, thanks anyway :)

My response to all your reasons is:  So?  I have stories that make  your comments pale in comparison.  My offer still stands.  Your situation will just be another tax client.

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Eric,

 

I am going to confess in front of everybody.  I do my taxes early, but I keep a drawer of receipts that I hand to my wife to organize at the end of the year.  Then I put them and all the other pieces of paper in an expandable file and hand it to my wife.  She is good at this stuff.  You should have seen her go through 10 years of records for a non filer client we had.

 

I would have no problem giving her your paperwork and getting it all organized for your tax return.

 

My offer, probably the worst one you could pick, will always stand.  It is all I have to offer.

 

Tom

Newark, CA

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It wasn't cheap.  The total cost of the return, including the state, was $119, and that was with a 30% "discount".  To have the fees deducted from the refund, the total cost was $154.00.  Total time for preparation, about 70 minutes.  I'm pretty sure it would have taken a non-tax person about 90-100 minutes minimum.  And this was for a simple return.  The TP has to print the return themselves.  I cannot understand why people bother.

 

$119 is expensive? Am I missing something here? $350-500 is the lowest I will take to touch a simple return.

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$119 is expensive? Am I missing something here? $350-500 is the lowest I will take to touch a simple return.

 

 

Yeah, I had the same thought. A lot of pricing discrepancies are the result of location and culture.  You are somewhat higher than my minimum but I live in Podunk USA where the cost of living is less.  My minimum get out of bed fee this year is $200, higher for business returns.  I had an email from a multi year client (a PITA client I might add) stating that he did not have much activity in his S-Corp last year so he is wondering how much I am going to charge him and "oh, I need it done by the end of January".  I email him back a quote of $500 because in PA, S-Corps are never that easy, even with minimal activity and the end of January is problematic because the forms may not be available and I may not be doing returns yet by then.  He emails me back saying he is going to have to shop around - for his own peace of mind.  Well, if and when he gets back to me, the price just went up a $100.  And if he balks one iota I will tell him to not let the door hit him in the back side.  He is one that does not really fit my client profile so if this is a parting of the ways, no big deal.  The vast majority of my clients would never treat my firms services as a commodity and do appreciate our work and will pay what I bill them without hesitation.

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Eric,

 

I am going to confess in front of everybody.  I do my taxes early, but I keep a drawer of receipts that I hand to my wife to organize at the end of the year.  Then I put them and all the other pieces of paper in an expandable file and hand it to my wife.  She is good at this stuff.  You should have seen her go through 10 years of records for a non filer client we had.

 

I would have no problem giving her your paperwork and getting it all organized for your tax return.

 

My offer, probably the worst one you could pick, will always stand.  It is all I have to offer.

 

Tom

Newark, CA

Tom:

 

All I would say, is that your Wife has to slow down on the sorting of the info on those returns, you could bill more! 

 

I keep all my receipts in a box, but I use Qbooks to run the biz, and all my info is in there.  I also run it for my personal account, and that makes it easy.

 

To the original poster, $154 isn't cheap.  And I would not do a return, simple or not, for that, but... It gets more expensive, if you add other schedules to the return, (I believe).  And yes, it is designed for a lack of documentation, and to encourage you to check the box and increase the refund.  If $1,000 in charity gets me a refund that is larger, than $2,000 or $3k is only going to look better.

 

However, I believe that TT and TaxCut and most of the sold to taxpayers software actually results in a net gain to the IRS.  Sure, folks overstate some of the deductions, credits, etc, but the real problem is that they do not get all the credits, deductions and other things that us pro's know about.

 

Rich

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What I did like was how Turbo Tax offered options to track the refund by email or text message alerts.  There is an estimated refund date.  There is also a status bar showing the status of the return (i.e. transmitted, received by IRS, Refunded, etc).  

 

I like these options.  I'd like to know why ATX hasn't incorporated some of this in the program.  I'd probably be willing to pay for such a service because I think clients would like them.

 

I recently found out ATX does do the the email and text message alerts. Check out this site http://atxinc.com/products/tfti.aspx

Apparently they offered it for several years (wish some of the marketing material had pointed this out, being a new customer and all)

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PLEASE NOTE, to try to get this topic back to its subject of using Turbo Tax Online without a hijack of it going into a discussion about a totally different product, and to give the ATX-partnered product a full discussion its own, I've started a new topic and moved a post with questions about it.  Thanks.

 

Here's a direct link to that topic:

 

ATX with Toll-Free Tax Infoline Plus (TFTI+)

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