The Taxman

Taxes. The word alone seems to inspire fear in many, especially when you are talking about preparing the yearly income tax return. I fully believe and understand that the IRS is incompetent, and that our system is horribly designed, but I still don't fear preparing my return in the least.

Perhaps it is my accounting background from high school shining through, but I simply don't find it difficult at all. The laws and process are clearly defined, although it does take a bit of searching sometimes to find the right document. Before someone goes and says that I just don't have a complicated enough scenario though, let me demonstrate to the contrary.

I have a long list of itemized deductions that I take advantage of, both on the federal and state return. Everything from donations, to mortgages, to a 529 college plan for all 3 kids. I fill out at least 2 schedule C forms for my wife's businesses every year, and have filled one out for the LLC that I co-founded in the past as well. Add several income sources, multiple investment types, etc., and my taxes are about as complicated as an individual return needs to be. On top of this, since last year I have been preparing the return for my property owner's association as well.

Yes, I agree, that some corporations will have returns that dwarf this, and they absolutely should use a paid tax accountant. However, for everyone else, I just don't understand the confusion, concern, or the money paid to tax preparers. The price to do simple forms is outrageous. Especially the 1040EZ. There is a reason it has "EZ" in the name people, a freaking monkey could fill it out correctly. You have to think more and follow instructions more when you order fast food (granted, some people seem to fail that concept too. Meh).

Okay, to the real point of the post. Although taxes make sense, the sheer amount of filling out the paperwork would drive me mad. That's where my friend Mr. Turbotax comes into play. I have used Turbo Tax for the Web for the last 7 years, and I wouldn't want to do my taxes any other way. The software makes it so simple to do the return, I don't have to fill in any actual papers, all math is done automatically, and at the end everything is checked and then whisked away to be e filed. The addition of importing from previous returns and from online statements has only improved the program over the years.

Each year, a few of us play the game of trying to pay as little as possible for the opportunity to use TurboTax. THe first two years I used it for free due to it being new, and my low income as a college student. After that, I managed to find deals each of the following years to greatly reduce the price. Last year, after checking out taxfreedom.com, we found that going through Fidelity offered the greatest discount. That coupled with a coupon code I found floating out in the Ether led to me only paying $19.95 for both state and federal taxes to be e filed.

This year, Fidelity once again is giving $10 off federal taxes. That takes your cost to $9.95 + $24.95, for a total of roughly $35. I still have the box taunting me for a promotion code too, so I will wait for a code to show up and then send away my already completed taxes. As in years past, I can then be treated to my money showing up electronically in my savings account in just about a week. That is freaking cool.


Summary: Tax system bad. People Silly. Use TurboTax with many Discounts. Grab a beer from the magic fridge.