TAX SAVVY
It’s Time to Pay Your Taxes – Turbotax vs. Tax Preparer
Feb
It’s tax time! And I know we are all enjoying getting our receipts together so we can settle up with the IRS. For years I have used Turbotax because my situation was not complicated. All of my information was saved from year to year. I would take the standard deduction and hope for a refund.
However, as my income grew, my tax strategy changed. I deposited a little more in my 401K so my taxable income would decrease. I started to give a little more to charity, so it made sense to itemize my deductions. I also became a homeowner and was able to deduct my property taxes and mortgage interest paid. I wished I would have taken advantage of these homeowner incentives years ago.
Now, by starting my home-based business with AIRBNB, I have been able to deduct additional expenses. I deduct a portion of my utilities, housekeeping fees, and lawn care, just to name a few perks. I feel good about finally getting some of the tax advantages afforded to business owners.
Yet, my tax situation will become more complicated this year than I can figure out on my own with Turbotax. I will be starting at least two additional businesses by investing in real estate and monetizing this blog. Reading Tax-Free Wealth by Tom Wheelwright has been helpful in identifying what to look for in an “Investment Focused” tax preparer who is aggressive in
claiming all legal business expense deductions. Also, I have picked up lot of good tips from Terrie Chantel at www.terriechantel.com. Because of her webinars, I will be deducting expenses from my Beyonce inspired Birthday and Blog Launch party in April.
Turbotax has served me well over the last 15 years as a efficient and cost effective method to complete my taxes. But, I think it is time to expand my team and interview some tax preparers. The new adminstration has passed it tax bill so we will have to stay abreast of changes like caps on mortgage interest and property tax deductions. Who will help you complete your taxes this year? What was the deciding factor that made you choose one person or method over another?
