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Taxes
Feb 20, 2017 7:01:09 GMT -6
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Post by 90rocket on Feb 20, 2017 7:01:09 GMT -6
I went through some old posts about tax season. I assume many of you are in the same boat as me in that you don't have the time to keep receipts for all of your potential deductions. Are there any tricks to the trade or suggestions so that I do not owe money again this year? I know previous posters have said to go to an accountant but I'm a single, non home owner and make south of 60,000 so I don't see that as completely necessary.
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Post by Chris Clement on Feb 20, 2017 8:02:08 GMT -6
Keep an envelope in the car and stow any potentially useful receipts in there, and you can sort out which ones are actually useful after.
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Post by coachd5085 on Feb 20, 2017 11:09:06 GMT -6
I went through some old posts about tax season. I assume many of you are in the same boat as me in that you don't have the time to keep receipts for all of your potential deductions. Are there any tricks to the trade or suggestions so that I do not owe money again this year? I know previous posters have said to go to an accountant but I'm a single, non home owner and make south of 60,000 so I don't see that as completely necessary. . Without mortgage interest rate deduction, I don't know if you are going to really accumulate enough to exceed the standard deduction allowance.
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Taxes
Feb 20, 2017 11:40:47 GMT -6
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Post by 44dlcoach on Feb 20, 2017 11:40:47 GMT -6
I went through some old posts about tax season. I assume many of you are in the same boat as me in that you don't have the time to keep receipts for all of your potential deductions. Are there any tricks to the trade or suggestions so that I do not owe money again this year? I know previous posters have said to go to an accountant but I'm a single, non home owner and make south of 60,000 so I don't see that as completely necessary. . Without mortgage interest rate deduction, I don't know if you are going to really accumulate enough to exceed the standard deduction allowance. Bingo. Even if you itemize deductions there is a pretty high threshold of expenses you need to have against your W-2 income before you start to gain any benefit from them. As a non home owner there is almost no chance that you won't be better off taking the standard dedction.
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Taxes
Feb 20, 2017 12:12:08 GMT -6
Post by spreadattack on Feb 20, 2017 12:12:08 GMT -6
If you make a point to use your credit card for all purchases (and always pay it off each month) you can use your visa or american express or whatever account to search and sort purchases at the end of the year.
You can also look into a budgeting tool/app like mint.com (there are lots of them) that can keep track of a lot of these things and you can search them on the back end for things like medical expenses, etc.
Even if you take the standard deduction I find it useful to categorize, or at least keep the records.
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Post by seabass on Feb 20, 2017 13:41:29 GMT -6
I went through some old posts about tax season. I assume many of you are in the same boat as me in that you don't have the time to keep receipts for all of your potential deductions. Are there any tricks to the trade or suggestions so that I do not owe money again this year? I know previous posters have said to go to an accountant but I'm a single, non home owner and make south of 60,000 so I don't see that as completely necessary. . Without mortgage interest rate deduction, I don't know if you are going to really accumulate enough to exceed the standard deduction allowance. That's the part most people don't realize. The standard deduction for a single person is $6,300. You would have to itemize more than that to be worth your time. I'm not a CPA but I did stay at a Holiday Inn Express last week.
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Taxes
Feb 25, 2017 21:42:09 GMT -6
Post by jlenwood on Feb 25, 2017 21:42:09 GMT -6
I believe your expenses have to exceed 10% of income before you can start making deductions. And that is net income, not just your coaching income.
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Taxes
Feb 26, 2017 7:56:46 GMT -6
Post by coachd5085 on Feb 26, 2017 7:56:46 GMT -6
90rocket What kind of expenses were you looking to record so you could deduct?
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Post by Coach Vint on Feb 27, 2017 11:47:17 GMT -6
My accountant told me you can deduct any expenses you have that are not reimbursed by your employer. Coaching shirts, shorts, shoes, jackets, etc. can be deducted as uniform expenses. Union and professional organization dues for state associations can be deducted. He said you can deduct milage and fees for clinics, as well as meals and hotels. If you go to a college to watch spring practice you can deduct those costs as well. If you are a stipend coach who gets a 1099 you can deduct all coaching expenses directly related to your 1099. Again, that is from my accountant. He is an expert with taxes. It is worth paying an accountant a few hundred $$$ for the $2k in tax savings I get each year. They will give you the best advice. You can keep a simple log of expenses on your phone or on your computer. I use my phone to take a picture of receipts. They save to the cloud so I have them if I get a new phone or lose mine.
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Post by coachd5085 on Feb 27, 2017 11:55:46 GMT -6
My accountant told me you can deduct any expenses you have that are not reimbursed by your employer. Coaching shirts, shorts, shoes, jackets, etc. can be deducted as uniform expenses. Union and professional organization dues for state associations can be deducted. He said you can deduct milage and fees for clinics, as well as meals and hotels. If you go to a college to watch spring practice you can deduct those costs as well. If you are a stipend coach who gets a 1099 you can deduct all coaching expenses directly related to your 1099. Again, that is from my accountant. He is an expert with taxes. It is worth paying an accountant a few hundred $$$ for the $2k in tax savings I get each year. They will give you the best advice. You can keep a simple log of expenses on your phone or on your computer. I use my phone to take a picture of receipts. They save to the cloud so I have them if I get a new phone or lose mine. Coach...I don't think those deductions accumulate a $2,000 tax saving. Keep in mind those deductions you mentioned (uniform expense) are :1 ) somewhat questionable and would be based on a tax court's definition of everyuse 2) are subject to a 2% floor of your AGI. And if you are spending $2,000 out of pocket on coaching expenses..OUCH! My sympathies. Now, you are correct, if you get a 1099, and fill out a Schedule C on your taxes, you could deduct things as a "professional coaching company". However, the district probably would (and SHOULD) give a w-2 and not a 1099 on that based on the definition of employee vs contract labor.
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Taxes
Feb 27, 2017 12:58:51 GMT -6
Post by Deleted on Feb 27, 2017 12:58:51 GMT -6
My accountant told me you can deduct any expenses you have that are not reimbursed by your employer. Coaching shirts, shorts, shoes, jackets, etc. can be deducted as uniform expenses. Union and professional organization dues for state associations can be deducted. He said you can deduct milage and fees for clinics, as well as meals and hotels. If you go to a college to watch spring practice you can deduct those costs as well. If you are a stipend coach who gets a 1099 you can deduct all coaching expenses directly related to your 1099. Again, that is from my accountant. He is an expert with taxes. It is worth paying an accountant a few hundred $$$ for the $2k in tax savings I get each year. They will give you the best advice. You can keep a simple log of expenses on your phone or on your computer. I use my phone to take a picture of receipts. They save to the cloud so I have them if I get a new phone or lose mine. Coach...I don't think those deductions accumulate a $2,000 tax saving. Keep in mind those deductions you mentioned (uniform expense) are :1 ) somewhat questionable and would be based on a tax court's definition of everyuse 2) are subject to a 2% floor of your AGI. And if you are spending $2,000 out of pocket on coaching expenses..OUCH! My sympathies. Now, you are correct, if you get a 1099, and fill out a Schedule C on your taxes, you could deduct things as a "professional coaching company". However, the district probably would (and SHOULD) give a w-2 and not a 1099 on that based on the definition of employee vs contract labor. This is pretty much spot on. If you are a volunteer coach most of that stuff could be considered volunteer expenses which are deductible. I know it probably sounds ridiculous but I do spend well north of $1,000 per year as a volunteer coach. After you add up mileage, cpr/coaching certifications, photocopying, etc. you're pretty much there. Now factor in apparel, equipment I buy for the team, meals & treats for the kids... if my wife knew how much this was costing us she'd get me fired.
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Post by Coach Vint on Feb 27, 2017 13:28:55 GMT -6
My accountant told me you can deduct any expenses you have that are not reimbursed by your employer. Coaching shirts, shorts, shoes, jackets, etc. can be deducted as uniform expenses. Union and professional organization dues for state associations can be deducted. He said you can deduct milage and fees for clinics, as well as meals and hotels. If you go to a college to watch spring practice you can deduct those costs as well. If you are a stipend coach who gets a 1099 you can deduct all coaching expenses directly related to your 1099. Again, that is from my accountant. He is an expert with taxes. It is worth paying an accountant a few hundred $$$ for the $2k in tax savings I get each year. They will give you the best advice. You can keep a simple log of expenses on your phone or on your computer. I use my phone to take a picture of receipts. They save to the cloud so I have them if I get a new phone or lose mine. Coach...I don't think those deductions accumulate a $2,000 tax saving. Keep in mind those deductions you mentioned (uniform expense) are :1 ) somewhat questionable and would be based on a tax court's definition of everyuse 2) are subject to a 2% floor of your AGI. And if you are spending $2,000 out of pocket on coaching expenses..OUCH! My sympathies. Now, you are correct, if you get a 1099, and fill out a Schedule C on your taxes, you could deduct things as a "professional coaching company". However, the district probably would (and SHOULD) give a w-2 and not a 1099 on that based on the definition of employee vs contract labor. When I talk about a $2k tax savings I am not just talking about coaching. I am talking about an accountant saving me money on my entire tax situation. My accountant helped me to structure some things to be more advantageous at tax time. If you itemize it helps to consult an expert who can help in tax planning and preparation. In NYC we had some coaches who were paid by our booster club. They got a 1099. If you speak at a clinic you get a 1099 for your speaking fee. Any expenses that are not reimbursed can offset your 1099-MISC income. I am thankful my accountant helps me navigate these waters. Taxes are complicated and a pain in the rear. I am not nearly an expert and know very little about taxes (and a lot of other stuff). This is simply my experience with a very good accountant.
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Taxes
Feb 27, 2017 14:58:51 GMT -6
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Post by runitupthemiddle on Feb 27, 2017 14:58:51 GMT -6
My accountant told me you can deduct any expenses you have that are not reimbursed by your employer. Coaching shirts, shorts, shoes, jackets, etc. can be deducted as uniform expenses. Union and professional organization dues for state associations can be deducted. He said you can deduct milage and fees for clinics, as well as meals and hotels. If you go to a college to watch spring practice you can deduct those costs as well. If you are a stipend coach who gets a 1099 you can deduct all coaching expenses directly related to your 1099. Again, that is from my accountant. He is an expert with taxes. It is worth paying an accountant a few hundred $$$ for the $2k in tax savings I get each year. They will give you the best advice. You can keep a simple log of expenses on your phone or on your computer. I use my phone to take a picture of receipts. They save to the cloud so I have them if I get a new phone or lose mine. In my state u can take a 200 deduction for teaching supplies and deduct all coaching supplies too. And mileage to clinics that's not reimbursed. My guy said just keep a note book and write everything down in it, and save receipts When u can.
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Taxes
Feb 27, 2017 15:01:09 GMT -6
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Post by runitupthemiddle on Feb 27, 2017 15:01:09 GMT -6
Coach...I don't think those deductions accumulate a $2,000 tax saving. Keep in mind those deductions you mentioned (uniform expense) are :1 ) somewhat questionable and would be based on a tax court's definition of everyuse 2) are subject to a 2% floor of your AGI. And if you are spending $2,000 out of pocket on coaching expenses..OUCH! My sympathies. Now, you are correct, if you get a 1099, and fill out a Schedule C on your taxes, you could deduct things as a "professional coaching company". However, the district probably would (and SHOULD) give a w-2 and not a 1099 on that based on the definition of employee vs contract labor. When I talk about a $2k tax savings I am not just talking about coaching. I am talking about an accountant saving me money on my entire tax situation. My accountant helped me to structure some things to be more advantageous at tax time. If you itemize it helps to consult an expert who can help in tax planning and preparation. In NYC we had some coaches who were paid by our booster club. They got a 1099. If you speak at a clinic you get a 1099 for your speaking fee. Any expenses that are not reimbursed can offset your 1099-MISC income. I am thankful my accountant helps me navigate these waters. Taxes are complicated and a pain in the rear. I am not nearly an expert and know very little about taxes (and a lot of other stuff). This is simply my experience with a very good accountant. Correct
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Taxes
Feb 27, 2017 15:31:27 GMT -6
Post by coachd5085 on Feb 27, 2017 15:31:27 GMT -6
My accountant told me you can deduct any expenses you have that are not reimbursed by your employer. Coaching shirts, shorts, shoes, jackets, etc. can be deducted as uniform expenses. Union and professional organization dues for state associations can be deducted. He said you can deduct milage and fees for clinics, as well as meals and hotels. If you go to a college to watch spring practice you can deduct those costs as well. If you are a stipend coach who gets a 1099 you can deduct all coaching expenses directly related to your 1099. Again, that is from my accountant. He is an expert with taxes. It is worth paying an accountant a few hundred $$$ for the $2k in tax savings I get each year. They will give you the best advice. You can keep a simple log of expenses on your phone or on your computer. I use my phone to take a picture of receipts. They save to the cloud so I have them if I get a new phone or lose mine. In my state u can take a 200 deduction for teaching supplies and deduct all coaching supplies too. And mileage to clinics that's not reimbursed. My guy said just keep a note book and write everything down in it, and save receipts When u can. In your state? That would be state tax, not federal tax then correct? Regarding federal taxes, there is a $250 deduction for educators for classroom expenses (athletic expenses if you are a PE teacher) that is separate from itemized deductions. The other deductions being talked about here probably would not help the original poster because he said he is not a home owner. Without including mortgage interest, few people would come close to the standard deduction when adding up expenses, and again, one has to keep in mind that all of those itemized misc. deductions are subject to a 2% floor (not max, but min) of your AGI. Meaning, you only benefit from them if they total at least 2% of your AGI. That means about $800 in unreimbursed expenses for someone with an AGI (not Gross income) of $40,000
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Taxes
Feb 27, 2017 16:05:46 GMT -6
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Post by 44dlcoach on Feb 27, 2017 16:05:46 GMT -6
Much easier to deduct if for some reason you receive coaching pay on a 1099 form rather than a W-2. Though, as others have mentioned, outside of maybe clinic speaking and things of that nature I'm not sure why anybody would be issued a 1099 rather than a W-2 for their coaching duties.
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Taxes
Mar 2, 2017 15:12:24 GMT -6
Post by texasslot on Mar 2, 2017 15:12:24 GMT -6
I went through some old posts about tax season. I assume many of you are in the same boat as me in that you don't have the time to keep receipts for all of your potential deductions. Are there any tricks to the trade or suggestions so that I do not owe money again this year? I know previous posters have said to go to an accountant but I'm a single, non home owner and make south of 60,000 so I don't see that as completely necessary. I'm in the same boat as you: single, no dependents, non-homeowner, and make about $41k a year. I tried to itemize all my deductions and I only came up with close to $4k worth of deductions. So, I just take the standard deduction of $6,300. I pay $140 for a CPA to do my taxes. I thought about this year using something like Turbo Tax to do mine and save money, but I decided not too. Because I pay $140 for a CPA to mine, I know my taxes are done right and I get the most refund that I can. Before I sent my stuff to the CPA I used some of those online calculators to see how much taxes I owed, and it said that I would owe money to the IRS this year. After I got my taxes back from the CPA, I'm getting back $800 dollars from the federal government and $250 back from my state taxes. For me, I think its worth paying a little bit of money to have a professional do my taxes. I don't trust myself with something as complex as the IRS code to make sure I've done them right.
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Taxes
Mar 2, 2017 16:37:04 GMT -6
Post by coachd5085 on Mar 2, 2017 16:37:04 GMT -6
I went through some old posts about tax season. I assume many of you are in the same boat as me in that you don't have the time to keep receipts for all of your potential deductions. Are there any tricks to the trade or suggestions so that I do not owe money again this year? I know previous posters have said to go to an accountant but I'm a single, non home owner and make south of 60,000 so I don't see that as completely necessary. I'm in the same boat as you: single, no dependents, non-homeowner, and make about $41k a year. I tried to itemize all my deductions and I only came up with close to $4k worth of deductions. So, I just take the standard deduction of $6,300. I pay $140 for a CPA to do my taxes. I thought about this year using something like Turbo Tax to do mine and save money, but I decided not too. Because I pay $140 for a CPA to mine, I know my taxes are done right and I get the most refund that I can. Before I sent my stuff to the CPA I used some of those online calculators to see how much taxes I owed, and it said that I would owe money to the IRS this year. After I got my taxes back from the CPA, I'm getting back $800 dollars from the federal government and $250 back from my state taxes. For me, I think its worth paying a little bit of money to have a professional do my taxes. I don't trust myself with something as complex as the IRS code to make sure I've done them right. Coach, I am not a Certified Public Accountant, (Never sat the exam) and although after college coaching I worked for a Big 4 CPA firm, it was in audit and not taxation. Summary, I am not a individual tax expert. That said, As a single guy with no dependents taking the standard deduction, I can't imagine the questionnaires used in the free tax services, or even the simple $15.00 tax services would differ that greatly. You mention the complexity of the IRS tax code, but truth is much of that complexity does not apply to the average joe making $41,000 a year. Quite frankly, your taxes probably take about 7-10 minutes to process. Input Income, make adjustments (educator expenses, IRA contributions, Alimony health savings accounts etc). That gives you your AGI (Adjusted gross income). Subtract from that most likely $4,050 in exemptions (1, for yourself), and the standard deduction of $6300 and you have taxable income. This determines your tax liability. Compare that liability to what you have already had withheld and thats it. Refund or Write a check. Without prying too deeply --in an attempt to save you $140 or so next year-- what income records did you report? How many w-2 forms did you receive? Did you receive any 1099 forms from banks, state government, businesses etc? Did you contribute any to an IRA account, or a health savings account? I really think you probably just put the wrong figure in some field on those online calculators coach.
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Taxes
Mar 2, 2017 16:49:07 GMT -6
Post by Deleted on Mar 2, 2017 16:49:07 GMT -6
I mean no disrespect by this but I'm suspicious of a CPA that charges $140 to do a tax return. Unless he's doing your return as an accommodation for doing a much bigger project or he's an old guy that just does it for walk around money I just don't understand his business model. The $140 returns are the returns you get done at H&R Block or Jackson Hewitt. A good CPA makes money doing the $1,400+ returns. As 5085 said this is a simple return that you can do yourself, likely for free.
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Taxes
Mar 2, 2017 16:52:34 GMT -6
Post by coachd5085 on Mar 2, 2017 16:52:34 GMT -6
I mean no disrespect by this but I'm suspicious of a CPA that charges $140 to do a tax return. Unless he's doing your return as an accommodation for doing a much bigger project or he's an old guy that just does it for walk around money I just don't understand his business model. The $140 returns are the returns you get done at H&R Block or Jackson Hewitt. A good CPA makes money doing the $1,400+ returns. As 5085 said this is a simple return that you can do yourself, likely for free. @boneyard That is precisely how one makes the money. $140 for a 10-15 minute project is a nice wage. He could do 10 returns like this in a much shorter time than something he would charge $1,400 for.
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Taxes
Mar 2, 2017 16:59:03 GMT -6
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Post by 44dlcoach on Mar 2, 2017 16:59:03 GMT -6
Different CPA firms have different business models. You can find a sole proprietor that does simple individual returns for cheap because he doesn't have any employees, doesn't have overhead, doesn't have to subscribe to tax research publications, etc. so he can keep his billing rate down.
That's a lot different from a big 4 firm, which is designed to service much more technically complex clients, and thus charge a much higher rate per hour. A partner at that type of firm probably charges $400-500 per hour for just their time, no way you can get a return done at a place like that for $140.
All that having been said, if you are just a teacher with no spouse or kids, don't own a business, etc. you should be able to find a website where you can prepare and file for free in about an hour or less of your time. Your CPA isn't finding tax breaks for you with that kind of tax situation, that type of return is essentially data entry.
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Taxes
Mar 2, 2017 17:31:06 GMT -6
Post by coachd5085 on Mar 2, 2017 17:31:06 GMT -6
Different CPA firms have different business models. You can find a sole proprietor that does simple individual returns for cheap because he doesn't have any employees, doesn't have overhead, doesn't have to subscribe to tax research publications, etc. so he can keep his billing rate down. That's a lot different from a big 4 firm, which is designed to service much more technically complex clients, and thus charge a much higher rate per hour. A partner at that type of firm probably charges $400-500 per hour for just their time, no way you can get a return done at a place like that for $140. All that having been said, if you are just a teacher with no spouse or kids, don't own a business, etc. you should be able to find a website where you can prepare and file for free in about an hour or less of your time. Your CPA isn't finding tax breaks for you with that kind of tax situation, that type of return is essentially data entry. As I mentioned, the actual HOURLY rate of a single, no dependent, standard deduction taking return for an income under $45,000 that costs $140 is probably well over $500 an hour. texasslot I know you said you feel more comfortable, but I just wanted to point out that rate you are paying. I really think you would find it incredibly easy to file your own return and save that $140. I am curious as to the online calculator process you used.
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Taxes
Mar 2, 2017 18:04:30 GMT -6
Post by Deleted on Mar 2, 2017 18:04:30 GMT -6
I mean no disrespect by this but I'm suspicious of a CPA that charges $140 to do a tax return. Unless he's doing your return as an accommodation for doing a much bigger project or he's an old guy that just does it for walk around money I just don't understand his business model. The $140 returns are the returns you get done at H&R Block or Jackson Hewitt. A good CPA makes money doing the $1,400+ returns. As 5085 said this is a simple return that you can do yourself, likely for free. @boneyard That is precisely how one makes the money. $140 for a 10-15 minute project is a nice wage. He could do 10 returns like this in a much shorter time than something he would charge $1,400 for. My point is you don't need to be a CPA to do those kinds of returns. Heck, you don't even have to be an enrolled agent to do them. A lot of people think that just because someone is a CPA it makes them a braintrust and that's just not true, it just means you can pass a very difficult exam. I had a guy that worked for me that was both an attorney & a CPA and when it came to accounting/auditing/tax he couldn't find his ass if it had a bell on it. I eventually made him our IT manager and he was great at it. If I was a 1040EZ factory that did 40 returns a day I'd be sucking on a tailpipe at the end of one week but Godspeed to those that like it, they fill a need. But I also wouldn't trust them with complex returns because it's obviously not in their wheelhouse.
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Taxes
Mar 2, 2017 18:37:45 GMT -6
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Post by 44dlcoach on Mar 2, 2017 18:37:45 GMT -6
Different CPA firms have different business models. You can find a sole proprietor that does simple individual returns for cheap because he doesn't have any employees, doesn't have overhead, doesn't have to subscribe to tax research publications, etc. so he can keep his billing rate down. That's a lot different from a big 4 firm, which is designed to service much more technically complex clients, and thus charge a much higher rate per hour. A partner at that type of firm probably charges $400-500 per hour for just their time, no way you can get a return done at a place like that for $140. All that having been said, if you are just a teacher with no spouse or kids, don't own a business, etc. you should be able to find a website where you can prepare and file for free in about an hour or less of your time. Your CPA isn't finding tax breaks for you with that kind of tax situation, that type of return is essentially data entry. As I mentioned, the actual HOURLY rate of a single, no dependent, standard deduction taking return for an income under $45,000 that costs $140 is probably well over $500 an hour. texasslot I know you said you feel more comfortable, but I just wanted to point out that rate you are paying. I really think you would find it incredibly easy to file your own return and save that $140. I am curious as to the online calculator process you used. I'm skeptical that any CPA firm can prepare a return in 10-15 minutes and still meet the record keeping requirements, checklists, etc. required by the AICPA for them to sign a tax return, maybe they can though. My point was simply that the fact that you can get it done for $140 wouldn't make me question the guy doing it. There is a business model to make good money getting paid $140 for a simple return. I totally agree with the point that people with a W-2 and a standard deduction should really consider doing it themselves and saving their money.
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