Tax Time/Tax Questions. Do I need an accountant?

[RyDogg66]

Well it is tax time again so why not start a thread for various tax questions. Here are a few I have.

 

I have always done my taxes on my own and never had much of a problem at all. However this year I started my own business in October and therefore I am considering having an accountant do my taxes.

 

Question 1) What I would have the accountant do is the taxes from my wife's job, my job prior to my business, and then my business. I have no investments or anything crazy like that, just income from 2008. How much should I expect to be charged by my accountant to prepare my tax returns?

 

Question 2) It occurs to me that from 2004-2006 that I might actually have been able to receive MORE than I paid in, as I was in school, making less than 30k a year and was supporting children. I believe it is the Earned Income Credit perhaps? I remember figuring my taxes and just stopping when I reached -0- paid in, even though it seemed I could have gotten back more than I paid in. It didnt seem like it was correct. Anyway, Question 2) Can I file Amended returns for those years and get back more?

[JJHardy7]

Question 1) What I would have the accountant do is the taxes from my wife's job, my job prior to my business, and then my business. I have no investments or anything crazy like that, just income from 2008. How much should I expect to be charged by my accountant to prepare my tax returns?

 

It all depends any other 'issues/situations' you had. Did you have your own business prior to October or is that just a W-2?

 

Question 2) It occurs to me that from 2004-2006 that I might actually have been able to receive MORE than I paid in, as I was in school, making less than 30k a year and was supporting children. I believe it is the Earned Income Credit perhaps? I remember figuring my taxes and just stopping when I reached -0- paid in, even though it seemed I could have gotten back more than I paid in. It didnt seem like it was correct. Anyway, Question 2) Can I file Amended returns for those years and get back more?

 

You may not be able to amend the 2004 return due to statute of limitations (3 years). Did you use any deductions or credits for your education?

[RyDogg66]

I left my job in Mid-September and started my own business 9/29/08. When you factor in what I invested into the business to start it up and what I made from October 1-December 31 I think it was about "even" so there would be no income, but I dont know the tax rules concerning self emoployment.

 

I mostly am wondering what I should expect to pay an accountant. Id have my wife's w-2, my W-2 from my old job, and the balance sheet from my biz where I indicate monies in and monies out and monies into my pocket. $250? More? Less?

[Thats Freakin Sweet]

Are you a sole proprietor? Single-member LLC? Sub-S Corp? Depending on entity selection, your tax return fee would be different.

 

If you are a sole proprietor and you'll be reporting your new business on Schedule C of your personal 1040, I would think $250 would be about right, give or take how much work would have to be done on the C. What type of business is it?

[Thats Freakin Sweet]

On an aside, you should definitely amend your 2005-2007 taxes. This is why unless you simply have a W-2 or two, somebody else should at least look at your return for you. No offense intended.

[whizkid]

Or use software that will catch or suggest things like the EIC. Taxact standard is free but it doesn't look like you can download past years of the free version. I wouldn't recommend it for your more complicated situation for 2008 but I've used it for 7 or 8 years and would recommend it for W-2, interest, dividends, capital gains, itemizing situations. Whether someone uses a CPA or software, it's in their best interest to develop at least a basic understanding of how the tax system works.

[RyDogg66]

Thanks guys, I am an LLC, no employees, just me (my law practice). Also, no offense taken on the 2005-2007 tax return advice. I just want to know the correct thing to do. If I think I might be able to get a little more back maybe I will have my accountant look at that as well.

[endaround]

How are you handling the receipts for your business? I guess I'm askign that if you are already using a intuit product (quicken) you may just want to get the premier turbotax software.

[JJHardy7]

If I think I might be able to get a little more back maybe I will have my accountant look at that as well.

 

Did you deduct/credit your education? You may want to figure out some rough cost/benefit analysis before you amend. If you didn't deduct/credit your tuition (I'm assuming law school), you could have a nice refund available. PM me if you want some specific help/advice. You'll need to get your 2005 return amended sooner rather than later if you want to get a refund.