Best Tax software for submitting U.S taxes?

[mwyatt82]

Hi,
So my employer has done my taxes for this year seeing as I was half and half in the UK/US. Next year i'm on my own so I wanted to canvass opinion on how people do theirs (software or pay someone to do it?) and if they use software designed for it? Turbotax has been recommended to me, is it easy to use? Are there any alternatives and what pros/cons do they have? Thanks!

[Matt Harper]

I would suggest that this is VERY dependent on how complex your tax situation is.
Anything other than very basic W2/4 submission would require a CPA in my opinion - and claiming anything other than zero allowances could potentially leave you with a tax liability next April, rather than a refund.
Do you have signing authority in any non-US financial accounts worth more than $10k? If so FBAR requires all that to be declared also.
If in doubt, don't wing it - an IRS audit is something you really want to avoid.

[h0b0]

I have relatively complex taxes and use turbo tax. Every year I have gone to a "professional" and they have either made incorrect assumptions or glaring mistakes. I will admit that I am very much a numbers person and read up on tax laws in depth. But, turbo tax has been a great tool and is very easy to follow.

[unrepentant]

I used a CPA the first year as I had moved from the UK, bought a house, got married etc.. and things were a bit complex. Now MrsU does them and it's reasonably straight forward. As Matt says, you have to declare overseas bank accounts separately as well as declaring the income on them in your main return. If I were on my own I'd use a CPA, the relatively small cost is worth it for the peace of mind.

Don't be tempted to go to H&R Block.

[Stu R]

Turbotax is fine. I've yet to find a CPA I'd trust to manage my stuff. I've taken 2 on the back of glowing recommendations and pulled both of them up on stupid mistakes. Ended up doing it myself.

[pasogrande]

You still have a few hours! If you haven't done them yet, it is very easy to get an automatic six month extension. This gives you extra time to file your 1040, but you will be assessed interest & penalties if you owe them money. Best to include a cheque for the estimated amount you owe them.

TurboTax is popular, but I hear TaxAct is better. I do mine myself by going to irs.gov and picking each Form I need; it comes in a .pdf format and allows you to complete and print it ready for signature. Instead of Schedule A I am able to take the standard deduction (I am old and my house mortgage is paid off). My complete document is three sheets plus the 1040-V and my cheque.

My advice for next year is that in February you collect all your W-2 and 1099 forms, etc. and complete the forms yourself on the IRS website. Then go to a good CPA and have them done professionally. You will learn what you have omitted and be able to do them yourself for the next few years. Then go to a CPA maybe every five years.

Wilf.