This last year, I worked in both New York and Ohio. Aside from this, my taxes should be fairly simple–I’m a college student with a couple of savings accounts and an IRA. In the past, I’ve done my taxes online with TurboTax, but I’m a bit hesitant this time due to my two-state situation. I don’t know how sophisticated TT is, nor how complicated this will really make my tax returns. (The last time I had this situation was nearly ten years ago, with PA and OH–I don’t remember anything about how it went back then.)
In this situation, is TurboTax sufficient, or should I go to a professional? If a professional would be required, would I be safe with the likes of H&R Block or another chain tax shop, or should I use an accountant?
In general, TurboTax can handle multi-state tax filing, although you need to pay for both state’s tax returns (assuming you have to pay for them at all). In many cases, TT will give you one state return for free and you have to pay for the other one. But it will do the calculations right, as long as you follow the instructions carefully.
Of course, if your situation is particularly complicated, you may want a professional’s advice.
I’ve used TurboTax a few times with two state incomes, I work in NJ and the wife in NY. It’s worked pretty well, as far as I can tell, no major issues getting the total tax calculated. This year, though, we did NY by hand and used TT for NJ, to save on the extra filing fees. That was significantly more complicated than prior years, but saved us a few bucks.
When I moved from X state to Y state mid-year, I used TaxAct and instead of paying to file, I opted to print and mail a copy of the return. Although it wasnt as fast as filing electronically, it really wasnt that much of a wait either. I am guessing this is because many more people are filing electronically over the past few years.
Anyways, I actually prefer to use TaxAct and have done so (free of charge) for several years after a professional tax-preparing-relative suggested it. So far so good.
