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Ask HN: Turbo Tax alternatives?

18 pointsby shinyabout 9 years ago
After reading about how Intuit lobbied against simplifying the tax code, I&#x27;d prefer not to use them, but not sure where to go. My income was entirely 1099-MISC in 2015, which means coughing up $$ for federal and state taxes if using Turbo Tax, so I&#x27;d like to avoid sending that to TT.<p>Thank you for any help!

4 comments

patio11about 9 years ago
So TaxAct is an option for you.<p>Can I tell you something which is much, muuuuuuuuch more significant than the $25 or so you&#x27;re contemplating spending on tax preparation software? It&#x27;s highly likely that you&#x27;re running a sole proprietorship (Schedule C). I am not sure from your phrasing that you are aware that you are doing something which can be categorized as a sole proprietorship. It is to your advantage to characterize what you are doing as a sole proprietorship given some plausible assumptions about what your cost structure is, because you will be able to deduct all expenses reasonably required to run the business from the revenue of the business (the number shown on your 1099-MISC) prior to paying taxes on the profits only. What the IRS considers &quot;reasonable and necessary&quot; is not what most natural humans would consider reasonable and necessary.<p>If you do not feel like reading an awful lot in the next month, bringing every receipt and credit card statement you have from the last year to neighborhood accountant will cost you a few hundred bucks and save you, plausible, 10X that in taxes. This is the bread and butter for lots of small accountants and tax-preparation shops, and they&#x27;re reasonably good at it. WSJ? Deductible, always, 100%. Phone bill? Guesstimate how much of it was for business? 60%? Good enough; let&#x27;s find all twelve of them. Do you have any other phones? Think hard. Internet accounts? Same story. 40%? Great. You&#x27;re in software? What&#x27;s your computer? When did you buy it? 2 years ago? Did you deduct it then? Nope? OK, so we&#x27;re going to depreciate it, that will be another $600 or so of which we&#x27;ll allocate $400 to the business and $200 to you personally.<p>I thought I was pretty good at this. My accountants are <i>much</i> better. We both color within the lines; they were just aware of entire other coloring books that nobody had told me about. (Most recent example: the Japanese government is sending me a wire for $600 because this year, instead of filing as exempt from paying sales taxes because all the products I make are exported, I am filing a return which shows me paying $0 in sales taxes on all $0 of my Japan-source sales. What on earth is the difference? Well, if you&#x27;re an exempt business, you can&#x27;t claim back sales taxes you paid against sales taxes you owe the government. If you&#x27;re not an exempt business, you can. If you paid more in sales taxes than your tax liability, the government wires you the difference.)
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Mzabout 9 years ago
H&amp;R Block allows you to file online. I am sure there are others and I don&#x27;t mean to suggest you &quot;should&quot; go with them. I have used Turbo Tax online and I have used H&amp;R Block online. So that&#x27;s what I am familiar with.
eschutte2about 9 years ago
I don&#x27;t understand your point about coughing up $$. I used TaxAct last year and it was fine. There are a bunch of other options, including by hand on paper. My income is all 1099 too.
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cik2eabout 9 years ago
Try a few different ones. I had a swing of $200 on my state refund from student loan interest between 3 different tax calculators. For me, that was worth the extra half an hour.