Federal tax filing advice.

[sloinker]

Howdy, I have always done my own taxes and have used turbo tax for going on two decades. Pretty straightforward filing for me. This year, is all as a retiree and has become more complicated. No W-2's, I suppose 1099's and whatever else will be coming my way. After retiring I bought an annuity with my 401k and we receive monthly payments until my wife and I are both dead. I also have one pension that pays until we are both dead. I also started receiving SS in February, I am 63. The wife is a few years out, she doesn't work outside the home. I also had an orphan defined benefit pension that was only worth $50k and I took that as a lump sum with 20% taxes on it. What is the general consensus, should I continue using something like Turbotax or seek out a pro? The rules on income/SS taxation, what is taxable and what isn't. Threshold calculations and differing methods of interpretation makes me a little dizzy. Not as clear cut as years past. So what do you think? Any retirees onboard with advice?
Thanks.

 

[oldgrayman]

Get a pro to sort it out . And I'm not talking about one of those people in the kiosk at Walmart .

 

[zzyzzx]

Why wouldn't the appropriate version of TurboTax still work for you?

Did you remember to have taxes withheld and/or make estimated payments?

 

[hrv]

Howdy, I have always done my own taxes and have used turbo tax for going on two decades. Pretty straightforward filing for me. This year, is all as a retiree and has become more complicated. No W-2's, I suppose 1099's and whatever else will be coming my way. After retiring I bought an annuity with my 401k and we receive monthly payments until my wife and I are both dead. I also have one pension that pays until we are both dead. I also started receiving SS in February, I am 63. The wife is a few years out, she doesn't work outside the home. I also had an orphan defined benefit pension that was only worth $50k and I took that as a lump sum with 20% taxes on it. What is the general consensus, should I continue using something like Turbotax or seek out a pro? The rules on income/SS taxation, what is taxable and what isn't. Threshold calculations and differing methods of interpretation makes me a little dizzy. Not as clear cut as years past. So what do you think? Any retirees onboard with advice?
Thanks.

I have been retired since 2017 and continue to use Turbo Tax.. Mine looks a little like yours and Turbo Tax takes you through it with questions along the way...While a tax pro may be good for you to talk to Turbo Tax will take you through it very easy...

 

[sloinker]

Why wouldn't the appropriate version of TurboTax still work for you?

Did you remember to have taxes withheld and/or make estimated payments?

I am curious as to people in a similar situation as mine. I am not averse to continuing to use TurboTax or another equivalent, but surely don't want to leave money on the table or worse, get sideways with the IRS. I imagine I will have to pay some this year and have my SS in the 85% taxable because of that $50k disbursement. So be it. Next year I will know exactly where I stand and can make the W-4 adjustments needed to keep me even. This year was just too confusing, everything all at once it seemed early in the year.

 

[hrv]

I am curious as to people in a similar situation as mine. I am not averse to continuing to use TurboTax or another equivalent, but surely don't want to leave money on the table or worse, get sideways with the IRS. I imagine I will have to pay some this year and have my SS in the 85% taxable because of that $50k disbursement. So be it. Next year I will know exactly where I stand and can make the W-4 adjustments needed to keep me even. This year was just too confusing, everything all at once it seemed early in the year.

My first year was confusing too....Turbo Tax took me through it with no problems and did my State Tax too...

 

[zzyzzx]

When you see what a professional wants you will switch to TurboTax pretty quickly.

 

[sloinker]

When you see what a professional wants you will switch to TurboTax pretty quickly.

I think I will continue with the TurboTax and if any major hiccups occur re-think my direction. We have also been receiving ACA/Obamacare subsidies to the tune of $3900 a month based upon my best guess last January. I am hopeful we will not be on the hook to return any of that.

 

[Aredeeem]

Get a pro to sort it out . And I'm not talking about one of those people in the kiosk at Walmart .

I think I will continue with the TurboTax and if any major hiccups occur re-think my direction. We have also been receiving ACA/Obamacare subsidies to the tune of $3900 a month based upon my best guess last January. I am hopeful we will not be on the hook to return any of thao

 

[Aredeeem]

Yea, I know how it is. You’ve been on cruise control with Turbo and now there’s a few new wrinkles to deal with. Are you the same guy you were two decades ago when you set this original deal up or do you want somebody to hold your hand a bit and guide you thru this? Sucks getting old and having to ask for help. I know ..I’m there too. Just remember “Pride goeth before the fall”. If you think you need professional advice, it’s because you do.

 

[Rand]

I think I will continue with the TurboTax and if any major hiccups occur re-think my direction. We have also been receiving ACA/Obamacare subsidies to the tune of $3900 a month based upon my best guess last January. I am hopeful we will not be on the hook to return any of that.

I thought that was income based.. so having a giant income boost you might not qualify for it.. but any good tax program will work
I use freetaxusa.. they dont nickle and dime you.

Mine is fairly standard with occasional odd income and royalties etc.. works fine if you think it through and read.
occasionally googling something if it is not clear.

if you need it they have tax pro to help you with questions for $39.99

loading...

www.freetaxusa.com

 

[dnewton3]

I would think TT would still be a viable option.

Here is a suggestion for this one first year of retirement ... why not do both?
Pay for a CPA to do your taxes, and also do them with TT on your own.
Then, compare/contrast the documents and final figures.
What little may be potentially different could teach you what you need to do moving forward next year, and you've only paid for one year of a CPA, then continue to use TT.

 

[doitmyself]

Next year I will know exactly where I stand and can make the W-4 adjustments needed to keep me even. This year was just too confusing, everything all at once it seemed early in the year.

I'm still working, but started collecting my 403B annuity last year (it made sense). What I found incredibly difficult was adjusting my state and federal withholding. We had to go to an expert and even she cringed at how something so simple was made so difficult.

 

[NormanBuntz]

I've done my own tax preparation since 1990 using computer programs, first Turbotax, then H&R Block Taxcut. With their detailed Q&A format, you can use either one with confidence to guide you.

 

[Nick1994]

A CPA doesn't cost that much. I used one this past year for the first time and it was so worth it. I didn't realize I should have been Head of Household with a dependent, instead of Single with a dependent. Turbo Tax didn't help me figure that out, the CPA did. Changed my income brackets for taxes quite a bit in my favor.

 

[ecotourist]

I've been retired from my main job for almost a decade. I had self employed consulting income for the first three years. I have numerous investments which involves trades resulting in capital gains or capital losses, domestic dividends, foreign dividends with (recaptured) with-holding taxes, interest income, the sale of non residential real estate with a tax deductible capital loss, and 3 different pensions in addition to Canada Pension and Old Age Security (much of which is being clawed back). And my wife has an investment that is taxed as a partnership. My wife pays tax on part of my pension income to the maximum permitted by law.

One year I claimed a large deduction for senior's home renovations. The CRA asked for documentation to support my claim and accepted my claim.

I've done our federal and provincial income taxes throughout using TurboTax. The program leads you through all the complications very nicely. I have not bought the add-ons like a professional review or audit support. So far so good - knock on wood.

I live in Canada where the rules are different but reasonably comparable as far as complication is concerned.

My sister and her husband are retired and have very straightforward taxes. They pay a bundle to have an accountant do their taxes. Go figure.