>Turbo Tax vs. Tax Professional – Revisited
December 18, 2010
>Althouse thinks you should purchase TurboTax to do your taxes; I say otherwise. (Hmmm. Both of us seem to have a profit motive for our positions in the debate. Well, consider the merits of my argument while discounting my motive and do the same for Althouse. I still win.)
Price seems to be the biggest factor for those who favor TurboTax. (Which is a pretty good program, don’t get me wrong. Just ask Tim Geithner, Treasury Secretary, who able to manipulate it into preparing a false return for him.) If that’s the case for you, here’s my number 2 reason in my Top 10 list of reasons to hire me:
Price isn’t everything is it? Cost is. What will it cost you to use TurboTax to do your tax return rather than me? Let’s see, there’s the cost of the software, the computer to run the software, the time you spent learning the software and inputting the information, and the potential cost you’ll have if the IRS has a question about your return. And make no mistake, the IRS is questioning more and more returns. You’ll have to take time to respond to any IRS inquiries and should the IRS take a hard line – something they seem to be doing more and more nowadays – you’ll have to take time to research and respond to that. That’s all included with my fee. I call that a pretty low cost for a some peace of mind.
Bottom line: forget about the cost of my time; what’s the cost of yours? What’s your time worth? I’d say your time is worth far more to you than mine.
1.) There are no free lunches. I’ve had a chance to look further into Turbo Tax’s free edition of their software and it’s not, you know, free if you have to file a state tax return or you call them with a question. Their other packages? Sure, somewhat cheaper than what I’ll charge you but my price includes the state return and, of course, e-filing’s free. So while TurboTax can beat my price, they can’t beat it by too terribly much.
2.) Price isn’t everything is it? Cost is. What will it cost you to use TurboTax to do your tax return rather than me? Let’s see, there’s the cost of the software, the computer to run the software, the time you spent learning the software and inputting the information, and the potential cost you’ll have if the IRS has a question about your return. And make no mistake, the IRS is questioning more and more returns. You’ll have to take time to respond to any IRS inquiries and should the IRS take a hard line – something they seem to be doing more and more nowadays – you’ll have to take time to research and respond to that. That’s all included with my fee. I call that a pretty low cost for a some peace of mind.
3.) Customer support. I’ll grant TurboTax has pretty good customer support. Not as good as you’ll get from me – I’m a phone call or e-mail away. And depending on the circumstances, I’ll even come to you. I don’t think anyone from TurboTax will do that, do you?
4.) Coffee. Drop your information off and stay for a chat, get coffee. It’s Colombian. It’s free.
5.) Change is the tax code throughout the year? Changes in your personal status? You won’t call TurboTax will you? Didn’t think so.
6.) Record keeping. I maintain files of all the tax returns I prepare for you. Think of all the attic space you’ll save. And I’m ready to provide copies to whomever you authorize me.
7.) A reliable referral source. Anyone you send to me, I guarantee will get the same great service you got.
8.) Networking. I have an incredible span of clients. Chances are, if you have a professional need, I can refer you to someone I know who’ll take care of it. We’re all in this together, you know.
9.) Tax organizers. At the beginning of each year, you get an organizer from me to help you get your records in order for tax preparation. That and a client letter with the latest tax information that might affect you.
10.) If you have a business, I can do more than just your tax returns. I can do your accounting, payroll, consult about QuickBooks, your business, perform financial statement reviews and audits. Name it. I’ll help you find a solution for your business.
Interested? I’ve added my contact information on the sidebar. Give me a shout. Let’s see what I can do for you.
TurboTax, Geithner Edition
January 1, 2010
Via TaxProf Blog, Mary O’Keefe captures some screen shots of the new TurbTax version that would’ve kept Treasury Secretary Tim Geithner out of trouble.
Oh, that’s right, Geithner didn’t get in trouble for over-riding TurboTax’s tax computation. He was confirmed as head of the the Treasury Department and paid the tax on his “error” without penalty. You should be so lucky.
With the new version of TurboTax, Geithner won’t have any excuse now. Not that he didn’t have an excuse before. But still. . .
(I’m getting a lot of my hits from this post and this post. My best case about using a professional versus using TurboTax and I don’t think I have anything to add to it right now.)
