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It is tax time!!!

I did a preliminary run through of my taxes on TaxAct last night. I used their Deluxe version. Currently it has me at a refund of $1172. Definitely not the $5K I was hoping for. Last year I received a tax refund of $3000. But I made $13K more than I did last year. That put me way above the EIC income limit of $34K and I couldn't even get the child tax credit either. *sigh*

I am still waiting on a couple of things, hence the "preliminary" run and not an actual one. I am not sure if the few dollars I made here and there from credit card bonuses and survey sites needs to be claimed. I believe the credit card companies "said" they will be sending me a 1099-Misc form for the money I earned from them.

I am also going to look into hiring an accountant to do my taxes. Hopefully I can see what number they come up with before I actually give them the go ahead. I must admit that I did not understand some of the questions in regards to itemizing my deductions. I winded up with about $14K in itemized deductions versus the standard of $7800. But I think they are more things that I should be able to deduct but I am not sure exactly WHERE to list them. I found this one accountant from a flier that was left at my daughter's school. His kids also attend her private school. I called his office on Monday to get some information. He charges a flat rate of $45 for non-homeowners (me!). He has about 15 years experience and has a pretty good reputation (I spoke to some other parents who have used him). I am going to set up a meeting with him in the next week or two to go over my 2007 taxes and also see if he offers other services. I am planning on taking a lot of big steps this year business and money wise so I want to have someone on my team that I trust and have a good working relationship with. That is the way that I am. I prefer to work with people I am familiar with and trust versus big flashy companies. I also like to stick with the same person the whole ride out. Once I get into a steady flow I hate for it to be interrupted because I gotta get the new guy into the same rhythm. It really urks me.

*Is that mean of me?*

Oh well.

I think I will most likely go ahead and invest in an accountant. Yes TaxAct deluxe only costs $20 but it is not an investment. I don't receive anything else from them once my taxes are filed. They just hit it and quit it. Spending $45 on this accountant, on the other hand, will allow me to forge a relationship with someone who has the expertise in an area that I will come to know very well this year and for years to come.

So I guess my mind is made up huh? Not quite.....

I want to look into other accountants in my area. One thing I have learned over the years is to never go with the first thing you see. Research, compare, and then make a sound and educated decision.


Comments

Rad said…
I was thinking the same thing. I don;t itemize my deductions yet and I don't own property, but I think having a skilled tax person that I already have a relationship with ready to go once my assets start to accumulate is a valuable asset in itself.

TAXACT "hit it and quit it", you should contact them about using that as their slogan lol
Velvet Jones said…
I just did my taxes last night. Mine are very uncomplicated (no real estate, no kids, etc.) so I saw no reason to pay someone for the service. I even was able to file my federal and state taxes for free. Federal because my adjusted gross income was below $54,000, and state because...well in my state you can file for free online if you want. I owed $1 to the state, and I'm getting back $622 from the feds. I want to decrease my withholding and claim 2 instead of 1 like I do now. No more free loans for the government. No ma'am.
Dimples said…
@ rad

I have never itemized before. I used to all ways believe that my itemized deductions would be much lower than the standard deductions. Well this year mine was double that of the standard. And now that I think about it I wish I would have itemized last year also. I probably would have gotten a lot more money back.

@ Velvet

I wonder if I can increase my withholdings. I claim 7 now. I am going to look into cuz them folks sure take a lot of my money. But then again I didn't get all of it back this year. Hmm I'll look into it.

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