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I hate doing my taxes

cipher6 said:
Uhh... I call BS. Having H&R do your taxes does NOT guarantee you will not be audited. The IRS audits who ever they want when ever they want.

Having your taxes done by a professional that knows what their doing and keeps irregularities out, will lessen your chances of being audited, but there is nothing you can do to "guarantee" you won't get an audit.
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You can call BS all you want. They have it right in their advertisements that if you let them (H & R Block) do your taxes and you get audited they are the ones responsible for any indiscrepancies found. So you're basically audit proof. Yeah you can still get audited I guess, but you won't be getting in any trouble, they will.
 
If you read the fine print, they only cover penalties resulting from their mistakes. They wont cover you if your numbers are wrong. Plus, certain mistakes can make you ineligable for credits in the future. Like eic. Sure, it would be nice to have them on your side, but there is still a lot that can be lost.
 
nlsme said:
If it is a reimbursement for work expenses(mileage, clothing, tools) it isnt income. Just about everything else is.
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That's not true. I actually looked at several sites and found that the answer is "maybe". In my case, my clothing reimbursement from work is income. My employer withholds on it and it goes on my W-2. I have no clue if my mileage is income or not. Some reputable sites I go to say yes. Some say no. Some say it depends. Some say no with a dozen qualifications. I'm very tempted to just split the difference and stash the refund and a few hundred for penalties extra away just in case the IRS comes after me.
 
Mileage has set guodelines. If your employer reimburses you, it is not income. Clothing allowance isnt income if you are required to wear certain clothing. The IRS really isnt vague, maybe complicated, but not vague. Even money given to you has guidelines to wether it is taxable or not. The hotline will help. Yes, you can record the call, jut make sure you inform the call is being recorded. But, they will tell you it is only a helpline, and they only give advice. Such as, the law states a and b equal c.
 
nlsme said:
Mileage has set guodelines. If your employer reimburses you, it is not income. Clothing allowance isnt income if you are required to wear certain clothing. The IRS really isnt vague, maybe complicated, but not vague. Even money given to you has guidelines to wether it is taxable or not. The hotline will help. Yes, you can record the call, jut make sure you inform the call is being recorded. But, they will tell you it is only a helpline, and they only give advice. Such as, the law states a and b equal c.
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We are required to wear suits for work. The company gives us a clothing reimbursement to purchase said suits. That is taxable income to me (reported on my W-2, employer withholds on it, etc....). We're also required to drive out POVs for work. The employer reimburses us for that as well, but that's not reported on the W-2. Hence my confusion.
 
You just have a good company to work for. Clothing allowance for suits is a nice perk. But, it isnt a uniform. The mileage isnt income to you. It is reimbursement to you for the expenses you incure. It is a set rate, and the irs has a set rate as well. The irs rate is the average cost of travel. Travel costs vary, so some companies reimburse at different rates. The mileage is a no brainer as not being incom. The clothing allowance is being reported to the irs as income, so it is income. The only maybe is really wether or not you can deduct the costs of your suits. If your job requires them, it should be a deduction.
 
nlsme said:
If you read the fine print, they only cover penalties resulting from their mistakes. They wont cover you if your numbers are wrong. Plus, certain mistakes can make you ineligable for credits in the future. Like eic. Sure, it would be nice to have them on your side, but there is still a lot that can be lost.
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Well yeah, there's ALWAYS fine print. lol

Naturally you still have to keep good records and declare everything. I certainly wasn't insinuating to the OP that so long as he goes with H&R Block he can lie, cheat and steal all he wants. I didn't get the impression that he was trying to get away with anything. Keep good records, bring them down to H&R Block and if you have any worries about understanding the tax code and fubbing it up, then that's probably your best bet.

That's all I was saying.
 
I didnt think he was trying to steal either. Your right, they have a pretty good program, but, it isnt perfect. Mistakes happen. Their mistakes are only going to get them to cover penalties. You still run the risk of losing future credits. Not saying it is likely, but it is possible. And, if it did come to that, hr block wont make up the differance.
 
Seek the help of a professional(s) if he doesnt feel comfortable doing them himself. But know, that even they can make costly mistakes.
 
I see. Well, perhaps I was painting a bit too rosey of a picture for him. I guess I'm a bit less paranoid about being audited because I have flubbed on my taxes before, and have never been audited (uuuuuhhhh... does the IRS monitor these forums do you think???). And I don't know a single person who has ever been audited, so I suppose I sort of have it back there in my head that getting audited is just a myth.

But I also don't know a single person with AIDS (who's aware of it anyway), and I know that's not just a myth. So I guess I should consider that when I'm giving advice eh? :D
 
My ex fraudulantly claimed my daughter one year. I was in contact with the irs before she did it, in between her filing and me filing, and every year since. They never seemed to care. And that is with huge red flags, and me pointing to them. But, like you said, aids and audits do exist.
 
nlsme said:
Seek the help of a professional(s) if he doesnt feel comfortable doing them himself. But know, that even they can make costly mistakes.
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This is my point exactly. I have no desire to cheat the IRS because of the consequences of doing so. It's just not worth potentially going to jail over $800. However, what other options do I have? I can pay a professional, but the tax code is so complex that even a professional who spends 40 hours a week and has it in their best interests to know the code inside and out can't give me an answer with 100% accuracy. This is why I hate doing my taxes. I have no choices, but to swallow a bitter pill and all of them are equally bitter it seems.
 
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