I did them myself when my only income was W2 income. But then I bought rental property in another state and had to file state and city taxes in the new state. Instead of figuring out the new state and local taxes I decided it was time to hire an accountant.
I gave up on doing it myself decades ago when the IRS told me I’d done them wrong and owed several hundred less than I thought. The only time since that I tried was one year I let it go too late, so I bought software. The federal tax seemed manageable but on one of our state taxes the software said I owed twenty something thousand, and I could not make it come out believably (it’s normally a couple hundred for that state). The whole system is such a mess that I pay $400 to have a CPA do it. But it is pretty amazing that we have created an entire tax prep industry whose only output is to cope with requirements set up by branches of the government we fund.
I’ve been using StudioTax for almost a decade. It’s pretty awesome. As of last year, it has the ability to check CRA’s database for any forms that have already been submitted with regards to your account (by your employer or bank, etc), so I haven’t even had to enter my T4 data. Just RRSP contributions and charitable donations. It takes me almost as long to remember my login info for CRA’s website so I can check when my return is coming as it does to do my taxes.
I do it myself in the US with HR Block software. Not too terribly hard but then we just have simple work income, investments, and deductions.
I have a full time business with multiple employees.
Tried for a while. Made a mess
Now I have a payroll service and an accountant. Its cheaper than the penalties.
We did when we lived in Alaska, because there is no state income tax there. My wife didn’t feel like wading through the Oregon tax law after we moved here, so we now have an AARP tax preparer do it for free. Their computers automatically link the state return to the federal. My wife does her own calculation of the federal before we go see the guy, though.
I prepare my own taxes. This year’s was the trickiest yet because I had a lot more money in various investments, made quite a few stock trades and so forth. But I got through it and my return was accepted by the IRA, so I’m calling it a win.
My mother used to work for Nationwide Tax Preparer after she retired from the Feds. As a result, she always got a hefty discount if I let her do my taxes.
She’s been gone for awhile now but one of the gentlemen she’d trained still works for them. I’ve been going to him since her death. And yes, I still get the hefty discount for being a loyal client.
I once worked for Turbotax. It is still the product I use.
Recently while buying a new business the bank asked me for an explanation of why I filed a Schedule C when I was only a member of a partnership LLC.
I thought, " Fuck. Are all my returns for the Last 3 years wrong? Do I have to delve further?"
You see, an LLC Partnership Gives A K-1. That gets reported on a form that isn’t a schedule C.
When I looked at the returns, Turbotax had calculated all correctly. I had an answer for the Bank.
Turbotax, I told them asks for the K-1 information by boxes, then it turns to another potential tax break, namely expenses from personal automobile use. I have personal automobile use for my business, and because I worked for Intuit supporting Turbotax, I understand the documentation required.
Personal automobile use is a legitimate expense for one with an LLC. It is not seen in the K-1, therefore, Turbotax generates a Schedule C.
This was the explanation I gave the bank. I think I’m getting the loan… Still got my fingers crossed, though.
I’m a salary earner in New Zealand. As such, absent greater than a certain amount of investment income, I don’t need to file a return each year. Interest and earnings from bank accounts and investments are taxed but the institution managing those investments will withhold tax at a nominated rate. Mine is the highest rate at 28% which is apparently sufficient, even though my top tax rate is 33%
I do my taxes, using whatever free software is still around for it (though that’s getting harder to find). I’ve never used an accountant, though I might have to next year, since I’m dealing with an inheritance.
I usually get a big refund. I prefer it that way; the five bucks interest I’d earn over a year (assuming I put it in my bank account) is not worth the effort and concerns about adjusting my withholding, especially since I sometimes have 1099 income in addition to my salary. Since that’s unpredictable and I have to keep withing 90% of what I’m owed, it isn’t worth my peace of mind to play with the numbers.
BTW, the IRS could easily just send you a statement each year, calculating what you owe or are due back. The tax preparers have lobbied to keep that from happening in the US.