Saturday, April 13, 2013

Time for Taxslayer

It's tax time.  Returns are due on Monday.  I have a few days.  Since I have been procrastinating for so long, you would never guess that I actually like doing taxes.  My dad did as well, and so he must have passed it on to me.

My taxes are slightly more complex than the average taxpayer's.  I have write-offs and investments.  I have interests and multiple income.   What can be fun about that?  Not much really.  So to make it fun, I see it as an academic exercise.  Of course, I like the aspect that doing my own taxes saves me money from having to pay a preparer.  There are many tax software programs these days that allow you to do a fairly thorough job.  Saving money is really the driver and my motivation to file my own taxes.

The first software program I used was TurboTax.  I remember using this and then incurring a penalty from the California Franchise Tax Board because the software program had me do something that was not correct.  I was penalized $2,000+, and so I vowed not to use TurboTax again.  I went to the IRS website to find out what software programs the IRS endorsed.  The name of the program caught my attention - Taxslayer.  What a terrific name.  I've been using Taxslayer for many years.  It's a SaaS program.  I really wish it could slay taxes, but it doesn't.  The name is very cool though.

After I gather all the data and paperwork that I need, it takes me about 4 hours to set it all up and file.  If there is a potentially new write-off, I dig for the information.  My situation has been the same for awhile, and so it is the same write-offs.  I've done my homework.  Questions can be complicated.  Are you a passive landlord?   How much can be depreciated this year?  Is there any 1099 income?  How much was paid in property taxes?  What is the 1098 total?  Were there any contributions made to charity?

I think I like doing taxes because it's challenging, and I can do a better job than the average taxpayer.  I don't like to be average or par or so-so or grade C.  I've been filing my own taxes since I was a teenager because my dad put a lot of faith in me to do it.  My filings have become more complicated since then, and I've formed strong opinions of the system.

I think it's a cop-out when people choose to leave this country so that they don't have to pay taxes.  I think it's wrong when people try to cheat their way through.  The taxing agencies are also wrong in some ways.  I think they should make filing easier and cheaper.  Why do we have to pay to file?   Why do we have to go to a preparer, or if we do it ourselves, why do we need to find the best way possible in terms of write-offs?  Why do I have to dig and dig for information on what I can write off?  Why don't the law-abiding, tax paying citizens receive a reward?  Why do the customer service phone lines need to be busy so much?  Why does our state tax refund have to be included in the following year's federal refund as income?

I filed an amendment with the IRS a couple of years ago, and they lost it.  I received the certified receipt that was proof they had received it, and when they had not taken any action for 8 weeks, I called them.  They told me that they did not receive the amendment.  So what good is it to file the form certified?  I sent the IRS a copy of the amendment and the proof from the post office that I had filed it.  They rejected it.  This went back and forth for more than a year, and I finally gave up.  The amendment would have given me back about $2,000 in taxes.  But I became too exhausted.  I think they do that intentionally to exhaust you.  It's a good strategy for people like me who reach a point when $2,000 is no longer worth my time.

So it's that time of the year again for Taxslayer.  It's a great name because it completely expresses how I feel about the process sometimes.  I'm gathering my paperwork.  See you in 4 hours!

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