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For many, perhaps most of us, taxes are pretty simple, especially with the higher standard deduction.
So, did you prepare your own taxes, use a free tax preparation service, an accountant or fee base tax preparer?
Did you directly download 1099s for investments from your record keeper as opposed to manual entry?
Why did you make the choice you did? We’re you satisfied with results?
I have used TurboTax for several years. It works for me, but certainly there are many reasons to use other methods
Been using TurboTax for many years. Back when we ran our own business, we used a CPA due to the complexities of that situation. Even with kids in college and living at home, TurboTax was able to handle any situation required with minimal complication.
After doing them by myself with paper forms many years things got a little complicated. So I went to a CPA firm. This year I worked with that same CPA firm I’ve been with for over 30 years and I did the Return with TurboTax myself at the same time.
I downloaded some of those forms and uploaded them but others I entered manually.
TT Premier online and I download whatever 1099’s I can. Much easier these days having consolidated various accounts over the past few years. I’ve found that Costco has offered the best pricing overall if you watch for the sale(s) on TT products. Further, TT usually offers a “Costco bonus” of $10 that can be applied to say, state e-file costs. I bought my software online in late 2024 but the product was not usable until 2025, likely as a caution against late tax code updates or similar. Should the next sale offer an even lower price, I’ve found that Costco will readily refund the difference at the store (saved another $10 or $15.)
I also use the previous years software as a tool for estimated payments during the current tax year as our income varies significantly during the year (and year to year) and I will not stand for underpayment penalties and interest on them. Of course, the standard deductions, brackets, etc will not be correct but as they are usually (but not guaranteed) “better” each year, so your results will have a little cushion in them in your favor. The other caution here is that you need to know there isn’t a major tax code change that renders the old software as useless. This is true on local, state and federal levels, of course.
As I executed a Roth conversion in this tax quarter, this process proved useful to become aware of a benefit on our MI state taxes for pensions and retirement account payments. My wife turned 65 last year and is the oldest key taxpayer using MFJ. When I ran the year end numbers with this conversion taken into account, the state taxes owed didn’t make sense (much too low). With some additional research on the state Treasury site, I became aware of a favorable tax treatment, up to certain limits now that the older filer is 65+ (MI Form 4884). Our last conversion was in 2022 when this would not have been available to us. Happy days!
For our fairly simple return, we use Cash App (formerly Credit Karma).
Please edit the title of this essay to include “your”.
My apologies….as a volunteer I was able to file our taxes for free through VITA, using tax slayer.
VITA uses tax slayer
I volunteered with VITA ( United Way) this year as a first time, basic preparer. Filed Federal and PA state, local returns. Clients file with a maximum income of 70,000, but friends and families can be exceptions to that ceiling. Most taxes are e filed and refunds occur within a few weeks . Very rewarding to help folks file ( no fees). Amazing to see how many seniors have only SS and maybe minimal savings.
Good for you CZ
I do our taxes using H & R Block software, have for years. The funny part about this is that my husband is a tax attorney! Not personal income tax, though.
I prepare my own return using Tax Act, the same package I have used since 2002. At that time, the company was located just a few blocks from where I worked. I like to deal with local companies. The software has never been troublesome or difficult, it just does the job. The help in the software works well and most other questions I can answer reading IRS Publication 17.
When I retired, taxes became simpler as I planned to have very few items to deal with. Just a few 1099’s and I’m done. I don’t have any exotic investments with K1s or other distractions. I filed my return in mid-February, and my $22 refund was received the first week of March.
TurboTax Home and Business, download, on my Mac, because I occasionally do a little consulting, and I mean little consulting. I like it because I just import last year’s return and go from there. I download most of my 1099s, however, I usually have a problem with options. Invariably, there is “negative” capital gain, from one option sale, that ends up in my Alabama return, which then causes TurboTax to reject electronic filing. I then go into the form, correct the option entry, and voila–Alabama accepts the return. I get 5 free Federal returns and 3 of my kids piggy back on the software. They send me their stuff, I prepare the return and file for them. It works out great.
I’ve been waiting for my refund for several weeks. I verified it was received.
Yesterday I viewed my USPS Informed Delivery account and saw there was going to be a letter from the IRS in my mail box 😱😱
Turned out it was a verification letter. They would not release my refund before I verified it was me who submitted the filing and requested payment to my bank.
Don’t you love it when the IRS gets friendly?
Did the letter indicate what the issue was with your identity?
It said it was a routine security check to prevent fraudulent payments. I looked it up and apparently it’s a routine process.
Last year, after filing my return, my wife was placed onto the master death file by mistake of some funeral home. Besides getting her SS check cut off, the IRS refused to file my joint return because, well, I was now single. The IRS answered the phone, gave me some guidance on my letter, and it all got resolved in about a month. Imagine having that problem now with the customer service issues at the SSA and IRS. Interestingly, my car insurance company, USAA, actually called me on the phone to express their condolences and ask me if there was anything they could do. I don’t have life insurance with them, so I was amazed they knew of the situation and called.
Thanks for sharing a happy outcome story.
“The report of my death was an exaggeration.” by Mark Twain.
Scary stuff
For at least 15 years, I did my own taxes-this was basic training, taxes 101. Then TT came along and I started using it and think I “graduated” to Deluxe.. I then added a rental property and used TT Premier for rental real estate so for 20 years until 2017 when I sold my rental house before retirement getting. After retirement, in 2018 I started my own part time consulting business and switched to TT small business. Somewhere along in there my financial situation got increasingly complex and my status switched from Single to MFJ. After a year of using TT small business for a small amount of year business income, we then thought it prudent to use a CPA for an added layer of protection and assurance with my increasing business income. For the first couple of years I still prepared for the CPA on TT, but for the past 5 years, we have just used the CPA. Preparing to submit our information to the CPA forces a level of bookkeeping diligence which is enforced my wife, who would put the IRS to shame (she is always looking out for me even if it hurts). I was skeptical about using the CPA at first but he found a couple of bits in the first couple of years related to AMT and government programs that I was not aware of and did not come out during my use of TT, saving us some money even with his fee. A CPA tax preparer on his staff now has been doing our return for the past several years. She is very good but in most years, including the last 3, I found an error or two after reviewing her draft return. For the 2023 return, it was a detail buried deep on the brokerage statement and this year it was a simple data entry error. It must be all those years of doing my taxes, not to mention my wife, that drives my attention to detail. For the past 2 years when reviewing our final return the lead CPA has me if I want a job. 🙂
Turbo Tax download. I download entries directly and double check them line by line.
TurboTax Premier (due to a rental property). Linked and downloaded 1099s. E-Filed Federal, but printed/mailed State (DC) because I refuse to pay Intuit an e-filing fee (the “free” state software needs some love). Used to like it, now it’s mostly inertia. And I do have/use an IP/PIN.
Overall, I don’t think the quality of the software has kept up with the times – updates come out very late and I don’t find it to be a useful planning tool, only a filing tool. I get it early in the cycle as a download from Amazon, for some reason that always seems the cheapest way (even with discounts from various financial services firms).
I use Free Fillable Forms, combined with a spreadsheet I have built over the years. I just put my numbers in the spreadsheet, and it does the all the calculations. I just copy the results into the forms, and check everything carefully.
I’m a retired CPA, so I do ours, 2 of my children’s and MIL’s. I buy a version of the professional software I used that includes 10 returns. It files any state, e-filing and many other nice features. I still have my old EFIN that allows me to use the software. I have been e-filing since 1992, and have never had a security issue, and the acknowledgement has been handy a few times when the Service “lost” a filed return in their system. I also have an EFTPS account for making payments, and on the rare occasion I have a refund, I apply to the next year or have Direct Deposit. I would paper file only if I couldn’t e-file. Paper takes longer to process and increases risk of error. For those who think certified return receipt covers you, I only proves something was filed, not what was filed; I have read this for years and have managers say that in seminars. Also, I urge people to obtain an IP-PIN to help prevent a criminal from filing under your SSN.
Jeff – is that Drake you are using? I did not know they offered a version with such small volume.
It is helpful, when you mention TurboTax to mention which version you use. I get by with TT deluxe. At around $40 each year (no state income tax here) I think it is a bargain. I can use TT Deluxe because my affairs are pretty simple. I own no rental property, don’t own a business, and rarely have any capital gain transactions. I have no need to download date directly into TT. I just type it in from the 1099s I have received electronically. If I had a lot of CG transactions, I would have to get a more expensive version of TT.
As was mentioned by other responders, the TT What-If worksheet is pretty wonderful. You can run several simultaneous projections of what your tax liability might be depending on what options are available to you.
And hopefully the worksheet uses the correct tax brackets, unlike TT 2023 which never updated to the correct capital gains brackets for 2024.
I use TT and enter the Vanguard consolidated statement info using the document ID. This seems to work like a charm.
My observation is with this information TT will automatically treat my Treasury bill and I-bond interest as state tax-exempt.
But I must do the work myself in TT when it comes to entering percentages of various mutual funds and their “government-obligations”. All the info I need is on the last page of the consolidated statement.
I paid a little too much in state-tax before I realized that.
Some high-tax states like California, New York, and Connecticut require at least 50% of a fund’s holdings to be in Treasuries for state tax exemption.
I have municipal bond funds and I have to be careful to enter the interest from NJ bonds separately.
I very reluctantly use TurboTax desktop ($105). It’s a piece of crap and a scam, but it’s like the Mafia, once you join there’s only one way out.
Michael I agree 100%. I hate turbo tax but we’ve been inseparable since it came out. I paid amazon $45 for it but I would pay a lot more.
Why would you say that? It has worked fine for me for many years. What’s the scam. What’s to join? I never joined anything.
I use TurboTax, and have done so since before MS-Windows existed. I download all 1099s that are available, but some must be entered by hand. I used the What-If calculator to evaluate different filing scenarios and estimate what will happen in the coming year.
I file my Federal tax return electronically via TurboTax for free. The NC State tax return is very simple, just a couple of pages, so I mail it in. But if any payment is due, I go online with the NC Department of Revenue to make the payment electronically.
Now that tax season is over, I’m thinking about having a Tax/CPA guy review our last few returns to see if we could be doing anything differently.
For those with charitable intent, who donate to qualified charities, use the standard deduction, have a traditional individual retirement account and have reached their required minimum distribution age then making some of their charitable donations via a qualified charitable distribution (QCD) seems to be a popular choice to get a lower tax bill by just doing something a little differently that you already are doing. You would have a small amount of additional tax complexity when you file your return in any tax year you make a QCD. Using your what-If calculator should give you the information to decide if using a QCD makes sense for you.
Here is a link to a IRS requirements summary if you are interested-
https://www.irs.gov/newsroom/give-more-tax-free-eligible-ira-owners-can-donate-up-to-105000-to-charity-in-2024
If you choose to make QCDs I recommend becoming familiar with the detailed rules found in Pubs 526 and 590-B to be sure you are not running afoul of any of the requirements.
.
Best, Bill
I do QCDs each year. TurboTax asks if any portion of a RMD was a QCD and you just enter the total amount. We do several different QCDs but you enter an aggregate number. Easy.
I always use TT. I am very knowledgeable of tax regs but it is a time saver to use TT. I also do my son’s taxes for his remodeling business which is somewhat more complex. Both of our taxes are a little too complex for these free services. I have tried the freebies but they did not work for me.
I also use TT for state returns. Mine is included in the software cost but I pay $25 extra for my son.
For security reasons, I do not connect TT to my investment accounts. I download the 1099s and enter the info manually. It does not take long and I believe it eliminates a small risk of hacking.
I do the same. No big deal to enter it on my own and, like you, I prefer not to connect tax software to our personal accounts.
That’s a very good point about not connecting TT to investment accounts. I used to let Vanguard’s aggregator function access my Schwab accounts. Then I read Schwab’s anti-hacking guarantee and realized if I provided my login credentials to an outside entity, the guarantee was void.
Downloading from Vanguard, you enter a document ID for the 1099, so you don’t have to enter login credentials.
Randy, thanks for that and good to know.
I think that people who prepare their own taxes have a deeper awareness of their of their financial world. I encourage DIYers to use some sort of computer software due to the fact that it asks questions about credits and deductions that you could easily be unaware. One such person missed $10,000 in education credits over a 4 year period.
And I suppose if one has masochist tendencies, they may enjoy figuring out the worksheets for taxable Social Security, long and short term capital gains, qualified dividends and etc. That’s not me.
A word of caution. Using software, you have to answer the questions correctly, and that is not always as simple as it sounds.
At the end of the day however, give me software or give me death.
HRB, purchased near-BlackFriday, with IRS PIN, fetched in early January. Was planning to switch to the IRS’s “Free File” system for 2025 but I saw yesterday that the prez is killing it (for obvious reasons, I guess).
For state I use the free, on-line filing system provided by the Dept of Revenue.
I used Free Tax USA for the first time. I have used Taxslayer for several years as an AARP tax preparer. It worked great with no cost as I live in an income tax free state. I downloaded all 1099s from 2 brokerages and my pension. Of course it was announced on April 14th that the entire state of Tennessee had be given until November 3rd to file and pay federal income taxes. Announced one day before the deadline, so how many have already filed and paid?
Each year after paying Intuit for TurboTax Premier plus three state returns, I find myself wondering: why, given that most of my filings are straightforward and largely pro forma, can’t the IRS pre-populate my return based on information they already have? I could simply review, make any necessary edits, and submit—only turning to TurboTax or a CPA in cases involving more complex or exceptional circumstances. It seems increasingly inefficient for taxpayers to bear the burden of data entry for information the government already possesses.
I then remind myself, lobbies have rights too! There’s my annual taxes rant… I feel better now 🙂
The process you describe is performed by multiple governments more advanced than the US. These governments’ allegiance isn’t to the tax preparer industry, but their population. They send out a short form of the information they have. Residents then correct or fill in any missing information and return it to the revenue department.
This story was in the news Wednesday:
Trump administration plans to end the IRS Direct File program for free tax filing, AP sources say
https://apnews.com/article/irs-direct-file-tax-returns-free-trump-4bb0bca02fab9b3d06ae6f45ac67b7ab
H&R Block software. Switched years ago from Turbo Tax and haven’t looked back. It has been flawless except once for a state form that H&R did not have (calculation of an underpayment penalty, that involved computations and worksheets for each quarter — yuk!). Oh, and the font size on the interface can’t be changed and seems each year to be getting smaller. 😉
I still do manual entries, work offline with the software, and file by certified mail in an attempt to minimize the chance of cyber risk. I print and review the paper copies a few days after completing the forms. Seeing the entirety of the documents in a different format has helped me to spot needed corrections.
Paper return data has to be entered into IRS software by an IRS employee, now exposing your return to data entry error.
Not an issue for me so far. I keep copies of the returns and always apply my refund to estimated taxes. I suspect the IRS uses optical character recognition (OCR) and scans my return instead of doing manual entry. OCR is very accurate these days.
A little research reveals that you are correct, as of this year. In prior years the data was entered into a computer by hand.
I have used TurboTax back to the point where you could calculate your return on your computer but then had to print the return out and mail it to the IRS as there was no electronic filing. I have downloaded the 1099s for a few years but previously entered manually. I complete my first iteration about the second week in February which takes a couple of hours, then a week later review and send. I usually get my small refund check in a couple of weeks. I do the basic return and believe it costs < $100 (NH has no income tax) and worth every penny.
David, I also follow a process of early prep, a cooling off period, and then file when I’m sure there are no outstanding forms. The past few years we’ve owed a bit so I have started to wait through March assuming I will have an Epiphany that will magically lower our tax due. Still waiting for inspiration..
I do something similar. I fill it out on TurboTax and the put it aside for several days and then review my entries and file. I filed on March 30 this year, a bit late for me. I’m still waiting for my refund, but the state was prompt taking from my bank on 4/14 what I owed.
Turbo Tax, for as long as I can remember. I directly download 1099s. TT is easy to use and I trust it.
Hello Dick,
I am younger dinosaur. I prepare both federal and state by hand on paper; I don’t find it onerous.
It usually takes a morning, perhaps into the early afternoon if I have to learn a new form. I’ve never had to learn more than one new form in a tax year. I use publication 17 for general guidance and the internet instructions for specific forms.
I received my refund promptly except for one year, I think 2021.
The total cost is three stamps (two for my federal forms, one for the state).
Perhaps might try free fillable forms one day.
We dinosaurs have to stick together, but you have me beat. I have a strong aversion to filling out forms and welcomed the age of electronic filing. 🦖🦕
Ever catch an error?
No, but I prepare the taxes one day and do the double check the next day with a fresh set of eyes. The IRS hasn’t caught one, which is the important one for me!
Turbo tax premier. I prepare taxes for my in laws, my parents , my two college aged sons and our own. I try downloading the 1099 from the brokerage when possible, but I have to double check the cost basis each time for stock sales as for some quirky reason the correct information is on the supplemental form which does not get imported. Very weird, at least from Fidelity, that has been my experience. I don’t mind doing the taxes, for some reason, it just doesn’t seem that complicated and to knock out 5 relatively simple returns takes me about 3 hours total. My return is the most complicated and I spend around 1.5 hours on that. All the others take the standard deduction and is fairly straight forward.
I guess I’m the odd one here as I’ve used H&R Block software for the last few years. Buy it on or near black Friday and the download it with the purchase code in early February. Paid extra to e-file the state return but that’s much easier than having to print, mail and hope it doesn’t get lost.
My brother-in-law was a lead program manager for Intuit’s Turbotax a few years back. From Christmas through April 15, he worked round the clock to fix software issues. The Turbotax software was too fragile and needed constant fixing during the tax season. Apparently, there was poor communication between Intuit tax CPA and programmers.
This tax season is the last time I used Turbotax. It has unresolved problem for people with Schedule K-1 filings. This problem arose for 2024 tax year, no problem for prior 4 years. It started to generate random numbers in various boxes, and then it refused to allow manual corrections, hence e-filing is not possible! TT tech support sent out email in Feb 2025 about the issues, but no resolution to date as of 4/16/25. They also refused to refund the software purchase and State e-file fee.
Dick, Have you no mercy? I am suffering from a different kind of TDS—Tax Decompression Syndrome.
I have no desire to re-live or recount the mental pressure of onerous calculations, snafus, puzzlements, paper clutter and lost receipts.
I’ve taken on the appearance of a frazzled Baby Yoda—bug-eyed and bedraggled—but relief from it all is making me giddy!
The final insult—we owe additional money to the IRS. Why persist in pursuing the agony? Puh-lease! put this to bed.
Added: I didn’t think it was necessary to add that this was tongue-in-check humor but it’s definitely not a criticism of Dick’s post and I can’t imagine who would interpret it differently. Dick? Nah. 😇
He’s got a good sense of humor.
Right you are Majorie, I got it straight away. Now it appears you can enjoy filing your 2026 estimated payments. 🤑
First payment done! ☺️ thanks, Dick
I used Turbo Tax- free from my relationship with Fidelity. Only cost was to efile my state return. Was glad I did efile, instead of mailing a paper return- I happened to catch that i owed additional state taxes due to an error I had made in reporting my quarterly estimated taxes during 2024. It wasn’t a large sum that I underpaid, but catching it yesterday avoided penalties and interest.
Anyways, have always done my own taxes. I find that it help me understand the tax code better, and make good future tax planning decisions.
I hate and love turbo tax. Have used it since it came out!
I’ve used TurboTax, and I’ve filled in the forms myself, but I used a CPA the first time I filed after taking RMDs, and just kept doing so. I caught an error this year and am thinking of finding a replacement. I download from Vanguard, scan in hard copy and upload the lot to the CPA’s aite.
TurboTax. Been using it for 2 decades and have all the files. It’s easy and inertia is a powerful force. I hav done direct download from Vanguard in the past, and ADP back when we had W-2s. The worst was direct download from Bettement years ago. With all their tax loss harvesting the composite statement was massive. I like checking all my forms so I generally enter them manually.
I could do my return for free using TaxSlayer at AARP. Like Bill below, I keep my personal separate. But plenty of volunteer preparers I know do their own and family and friends.
Mike X’s comment above reminded me of one of the reasons I’ve used TT – I used to do ours, our sons, and both my parents and in-laws returns. The software made it much easier Year-after-year
We used TurboTax for our 2024 return. We even splurged and the one with the State return filing option.
I always do both. I like the transfer info from federal to state. I also like how they take you through the questions.
Used TurboTax as usual. We do not have TurboTax download directly from our financial institutions. Rather, we download them ourselves, then upload, let TurboTax fill in the blanks then check the work. It all went pretty smoothly this year. Doesn’t always.
Haven’t investigated free filing. Our taxes aren’t complex, but I suspect they have a few things that would preclude it, such as taking credit for foreign taxes paid.
Edit to clarify that the process in first para always works fine. It’s TT itself that isn’t always smooth every year. The foreign tax credit I just mentioned has been a real headache in the past.
We had someone do them this year since we were back and forth so much with Spouse’s brother. Yes, we had to pay, but it was worth it to not have to worry. Chris
I have used clunky free file fillable forms for the past few years to file my federal 1040 since I initially retired.
My state, Tennessee, no longer has a personal state income tax return requirement. In the past Tennessee had a very limited tax on certain interest and dividends that was repealed a number of years ago.
I used TT for a few years for our personal returns but decided the cost for me was not worth the benefit. The software worked just fine, I just did not need to answer their compliance questions that as a CPA practicing, part time in my unretirement, that I already knew the answer to or that I have the resources to find the right answer.
I have access to the professional tax software Lacerte through the CPA firm I work part time for at a reasonable cost should I want to, but I really like keeping business and personal work separate. Lacerte’s cost would be unreasonable if you do not prepare returns as a profession. Intuit acquired Lacerte Software Corp in 1998 and the company operates as a subsidiary of Intuit and focuses on developing tax software for professional accountants at larger firms. Lacerte has all the bells and whistles and is updated continuously.
I have intentionally kept my personal tax matters as simple as possible. My belief is the lack of complexity in my personal taxes allows me more time to work for compensation for those who have complex or really complex returns which I enjoy doing and I get paid for doing so. The biggest benefit from keeping my personal taxes simple is, hopefully, I will not be leaving a tax mess for my spouse or our children.
I downloaded PDF’s for W-2 and twelve 1099’s; and 18 QCD cashed check images with 18 scanned QCD receipts; and scanned winter and summer property tax documents. Uploaded everything to our accountant’s secure portal along with my notes. Result from accountant was within a few dollars of the online tax estimator I use, except for some carried forward capital gains losses that the accountant remembered. Paid $535 for what amounts to a data entry process and the cost of the accountant’s software. Thinking about changing but perhaps there is some value in having someone else review the numbers.
I started using TurboTax when both Quicken and TurboTax were owned by Intuit. You could transfer data from Quicken to TurboTax. I’ve never had any issues with TurboTax and now our taxes are fairly easy. I like the ‘what-if’ feature and also like the flexibility of moving between the step-by-step process and the actual form.
I download our 1099s from Fidelity, but enter my bank 1099 manually because it’s easy (one number). I enter the K-1s manually.
Any issues downloading from Fidelity?
Yes! It doesn’t capture the correct cost basis for stock sales, that is quite frustrating.
I’ve downloaded from them for 7 years. Downloads are flawless.
Bill, I have RSU’s and ESPP sales and the whatnot, turbo tax never has gotten these right for me. I have to manually enter the cost basis that Fidelity provides on a supplemental form. Are you saying that yours is always correct? I am wondering what the heck am I doing wrong?
Free e-file through 1040.com, for both state and federal. Had to amend state by hand though because it was missing some deductions 😮💨
I’m reading in today’s news that Direct File may be shut down. Is this the same as 1040.com?
Interesting, not familiar with that. Is it really free?
Yeah, free guided federal tax return software for those with AGIs under 89k. They also do free state returns for most states, but I ran into issues with certain specific credits like renters credit and 529 contribution credit, which weren’t covered by the software. So that part wasn’t my favorite. This was my second year using this platform, and it’s great, especially for a free service!
Edit: I should mention you have to find the free file sites through the IRS website, I don’t think you can really get to them directly via the web.