end year tax question

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MetalSlug

MetalSlug

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Jul 24, 2010
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LONESTAR state
First of all, 2 thing I cant talk about, what job I do and how much I made, please understand.

This guy did my tax for 4 years now, every year I told him what I made and he do his magic or what ever he did, and he send me the bill. This year he send me the bill with 4x amount I have to pay . I told him how much I made every years, same amount every year, I dont know what happent, this year it 4x more then what I use to pay. I dont mind paying, I just dont understand why it so much more then what it use to be, I did ask the guy, he just say, he put down everything like all the info I gave him and that how much I have to pay.
 
I think he made something error, or something happent on his side. Because every year is same, last year made a little more, but no different. Nothing I can do now, but pay for it.
 
Compare 2010 tax return with this year 2011 return to see which item(s) is different. If income increases a little and all other expenses are similar then your tax liability may go up a little not 4 times. I think he may forget to include some expenses such as mortgage interest ...
 
Are you sure you made the same amount? Gross or after all the stuff that possibly used to come out like pre-tax medical and retirement?

Did you change your withholding? Did you paycheck take-home amount every pay period change this year compared to last?

Did AMT creep up on you?

When you say 4x, do you mean the amount you have to pay at tax day to be paid in full has increased by 4x, or has your entire, full tax bill gone up 4x over the year? Big difference.
 
Though I could recommend TurboTax, I prepared mine for free, and efiled for only 29.95 (promo with my financial institution hehe); and I was surprised....I was only going to get $999 back.....I was like huh? what? Waaayyy less than last year.....something can't be right. So then I did it myself (on paper, with 1040EZ); and yea, same numbers....well turns out they got rid of the "Making Work Pay" tax credit for lower income workers this year....so this year I opted for the "Form 1040" and decided to claim my student loans, health insurance, and 401k.....so....I had a debacle :P

Settle with the $999 and do my taxes myself (actually, through free fillable forms dot com....used them the past 2 years), or...

Pay 29.95; and get an extra couple bucks by claiming my health care, 401k contributions, etc.....funny, cause it went from $999 refund with the 1040EZ, to $1,111 - with the 1040 Form, and claiming student loans, 401k, and health insurance.....so yea, I paid $29.95- for the difference in $112 - which basically amounted to a net gain of 82.05
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But yea, I don't know, my parents had a flaky instance similar to this with their tax accountant.....so they finally broke ties...they had the CPA for a good 3 or 4 years, and every year they got less and less back.....so finally they stopped going their, this year my mom got a big chunk back, doing it herself using the TurboTax software.....falls into that "so easy a caveman can do it" category....lol. My mom has trouble finding the glowing green power button on the desktop PC.....and she even managed to file all by HERSELF (I had to work, HA!) without my help
smile.gif
 
Who is the "guy" who does your taxes? And how complicated are your taxes?

If your taxes are fairly simple there's no reason why you can't do them yourself. If you have a more complicated tax situation then you should find an accountant who you trust to keep your books in line, and to do your taxes.

I assume you are aware that taxes change every year, and that you should beginning planning for your taxes at the beginning of each year, not at tax preparation time. Again, if your taxes are simple you can do this yourself; if they're complicated your accountant can guide you through the process.

And on a side note, if you're getting a refund and excited about it then you're doing an extremely poor job of managing your taxes. You've just given out an interest free loan for a year and wasted a significant amount of interest that you could have been collecting throughout the year.
 
One thing to note, the "Making Work Pay" credit was eliminated by the Congress this year so you would not have the up to $800 tax reduction for calendar year 2011.
 
I work for myself, so no refund end of the years for me , I dont mind paying, it just the guy this year saying that he have new system and ask for my DL and stuff ( he have do that for last 4 years, he alway use same info, but this year he ask me ). I think the new system is what mess it up. Or he got in trouble with tax peoples idk.

he will send over the paper, I sign and pay, but some u mention that I can bring to some one else for second look, its too late to do that ? because I have feeling I dont want to use him next year, because the way he talk to me, he say this made me dont like him " ahhh just use your credit card and pay " .... for me I just recently get out high interest credit card, take me couple years, but finally got out and pay all off, and I dont plant going back in credit card thing. I use the bank for that with low interest.
 
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I am a Certified Public Accountant with a specialty in income tax. I think I know a little bit about this....

No one has given enough information for anyone to approve or condemn their tax preparer, or their preparing and filing their own return. Getting a free review from some national tax firm is just plain dumb, unless you have a real simple return and you prepared it by hand. Many who do so don't know about child tax credit, earned income credit and other tax freebies. Even Liberty can figure those out most of the time.

In OP's case, I have no idea based on the information given, which was close to none. However, it could be that significant fixed assets are now pretty close to completely depreciated so now he doesn't have that deduction.

A good, independent tax preparer is always better than 15 minutes in the aisle of a big box store or going into the place with the clown out front waving a sign. A good, independent tax preparer might be a CPA, an enrolled agent, or just someone who has extensive tax and accounting experience. It is almost never the 3 months of the year place.

Doing your own taxes is like doing your own oil change, good for some, bad for others.

Expect taxes to go up a lot in 2013. This is because those so called Bush tax cuts for the rich expire next year. This is when the lowest income earners of the former middle class will see tax rates go up, especially on capital gains.
 
Why don't you just ask your tax preparer why you have to pay more this year versus last year?

That's what I would do.
 
Originally Posted By: 757guy
Why don't you just ask your tax preparer why you have to pay more this year versus last year?

That's what I would do.


That's what common sense would dictate.
 
Originally Posted By: CivicFan
Originally Posted By: 757guy
Why don't you just ask your tax preparer why you have to pay more this year versus last year?

That's what I would do.


That's what common sense would dictate.


That the first question I ask him.
 
MetalSlug, BoatOwner's first post is the best advice that can be given with the information available. If you are self employed, his best guess for the depreciation to have run out could be one factor why your taxes are more this year than in the past.

The best thing is to have a conversation with your CPA.
 
Since it looks like you're a sole proprietor using a schedule C I'm assuming, you say you don't have a refund at the end of the year.............did you make estimated payments? You have to either have withholding from a W-4 or pay quarterly estimated payments amounting to 90% of your tax bill at year end, or you face penalties.

Asking for tax advice over the internet without providing much specifics is futile at best.
 
I know, but I cant give out any info, I dont feel giving out any info either. Im just wonder why my tax this year is higher then last couple year where i made same every year.

I think this topic is done, im already over it, thanks every one for opinion
smile.gif
 
Seriously? You cant give out any info? You dont feel like giving out any info? Then why discuss it? Do you really think we are magic mind readers? We dont see your return, and if you cant give us info, then how can we do anything but speculate?

Either go ask your CPA, give us more info, or let's shut this thread down.
 
Originally Posted By: JHZR2
Seriously? You cant give out any info? You dont feel like giving out any info? Then why discuss it? Do you really think we are magic mind readers? We dont see your return, and if you cant give us info, then how can we do anything but speculate?

Either go ask your CPA, give us more info, or let's shut this thread down.


do wat ever haha
 
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