This is the tax season again, and many people are starting to prepare their tax returns. Some are preparing the documents to provide to their tax preparers (you might want to read this post on how to chose your tax preparer), others are trying to do it themselves.
This year I’m joining the ranks of those in the latter category. I will be using Turbo Tax to prepare my own tax return. I’ve mentioned Turbo Tax before on this blog, and it is my opinion that while may be more expensive – the Turbo Tax program is much better than the competitors (H&R Block was also reviewed here).
However, this year I have another suggestion to you. The US tax law is convoluted and extremely complex. Sometimes, the preparation software guidance is not enough to understand the terms or to answer the questions it presents. Many times, it suggest to go to the IRS instructions, which are notorious for not being very clear or helpful.
So what is my solution?
Several accounting firms publish annual tax guides, which are affordable in written in clear language with specific examples. I decided to go with the E&Y Guide (published by the Ernst and Young firm, one of the accounting Big-4 in the US). There are other publishers as well (CCH is highly recommended if you are preparing a business tax return). Check here for the full list.
Definitely worth the $20 I spent on it. Highly recommended.
Speaking of Turbo Tax – this year, again, there’s a promotion where you can use your refund to buy Amazon gift codes, and will get 10% bonus. Click here for more details and about Turbo Tax and the promotion. H&R Block has a similar promotion with Target and Staples.
Enjoy your tax season,
Your Little Advisor