It’s tax season and as I have done for over a dozen years, I bought a copy of TURBOTAX DELUXE at Sam’s Club for $39.98. This edition has Federal and New York State returns plus Federal E-File. We don’t have a complicated return. The biggest chore is entering all the charitable contributions we make to Public Radio and TV, various health charities, arts institutions, colleges, etc. It took me about a half hour to enter all the data and TURBOTAX told us we owed the Feds about $2000, but we were getting a $1000 refund from New York State. I like to break even, but this is close enough. If you’ve never used TURBOTAX, I highly recommend it. This edition walks you right through the process. Nothing could be simpler. Just make sure you have all your tax information handy and you can finish this chore in record time at minimal expense. GRADE: A
Cheaper than a tax guy.
Plenty of people need a Tax Guy if they have complicated returns, Patti. Ours is simple and straight-forward. TURBOTAX does a nice job.
The reverse is true for us: We got a federal refund, but we owed the state. Like you, I prefer to break even. I’m always surprised (and puzzled) when people get excited by a tax refund. I always say, “Well, you’ve been letting the government use your money interest-free for the last year.” Then it’s their turn to be puzzled.
I feel the same way, Deb. People with huge tax refunds are “lending” their money to the Government at ZERO INTEREST! Somehow, people don’t grasp that fact. Breaking even on taxes is always my goal, but the State of NY and the Feds are constantly changing tax policy so it’s almost impossible to achieve.
I used Turbo Tax for several years until we moved to Oregon. Then we had income from two states that first year. This year I need the tax guy again because Barbara retired and got a special severance bonus and that has to be handled differently, plus Oregon can’t withhold from my California pension, nor will they take it from Barbara’s Social Security, so we have to set up quarterly payments. Otherwise, ours would be easy. Maybe next year…
Moves almost always require extra help on taxes, Rick. Once my kids relocated to Massachusetts and Pennsylvania I stopped doing their taxes. TURBOTAX DELUXE supplies one State package and I pick NY. I also do my Mom’s taxes, but that should end this year when Medicaid takes over her nursing home bills.
Oops. We usually come very close to breaking even. Last year we had to pay, and will have to pay to Oregon from now on, but break even on the Fed.
Even if I used the Turbo Tax with Fed and Oregon, since my CA pension will not withhold for Oregon I still have to set up quarterly estimated every year and go through that crap. Bah!