Discussion in 'Business & Tax Advice' started by Keevee, Mar 19, 2010.
I'm wondering why filing a Schedule C is so expensive when going to HR block or accountants?
It shouldn't be expensive as it is a simple form to fill out. I use Turbo Tax and there is nothing to it.
It's my first year doing taxes with online income as only source of income. Do you suggest going to an accountant and pay the hefty fee or should I just try turbo tax?
i use turbo tax for my schedule c and everything. but i am very experienced in taxes. you may want to go to a professional this time.
First year I would pay the man... next year do it yourself using turbo tax.
try turbotax first. it will walk you through all the steps and help you with your deductions. Then have someone review it. if they can save you more legally, pay them for their services, if not, stick with your turbotax results. thats all those guys use is some kind of software that resembles turbotax. you think those people working at those services are tax geniuses? I doubt many of them got past accounting 101 at the local community college. if you made more than 100k, it might be worth paying a CPA because your chances of audit increase tremendously.
Schedule C is nothing more than: income minus expenses equals profits. It is not complicated at all. If you are a sole proprietor I am not even sure that HR Block charges you that much. For corporations you have to go to their premium office which still seems to be a good deal, since the people there know what they are doing.
The worst for you is going through your records. (If you are a sole proprietor, then of course you just check your bank records and use the cash method of accounting which means: When I received the cash it is income, when I spent it, it is an expense)
I've said it a thousand times here: cpa's (or at least those who simply charge you for doing your return) are douchebags. No matter how inexperienced you are, you are still going to have to get all your files in order and pretty much get everything prepared anyway. Why pay an accountant $300 when all he's going to do is use his software which is very similar to Turbotax?
Schedule C is NOT difficult. Spend the $99 on the Home and Business version of TT. It will literally walk you through your entire process. It is incredibly user friendly.
Always it is recommended to pay Uncle Sam, then you can by turbo tax.
You can buy the software taxact online for less than $10 or $18 if you need state included. It will run a schedule c for you.
If you don't have anything complicated with your business such as Merchandise you hold (COGS) or anything else that is complicated, then I would recommend using the software. It is actually pretty easy and the software will ask questions to help you file the return correctly.
I also like the suggestion above do the first year by H&R or another Tax office and then next year you can go back and see how it was done. This will help you to make sure yours is correct.
The bad news is that most tax preparers do charge about $100 just for the schedule C form. By the time they complete your tax return you will owe them in the high $200's or low $300's. YIKES
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