http://www.rgbrenner.com/blog/2010/02/19/new-york-state-to-delay-refunds-again/ Income Tax Consultants Fri, 03 Feb 2012 18:04:13 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.rgbrenner.com/blog/2010/02/19/new-york-state-to-delay-refunds-again/comment-page-1/#comment-77 Monica Brexendorf Wed, 24 Feb 2010 23:23:02 +0000 http://www.rgbrenner.com/?p=1023#comment-77 I have a good friend who bought the Turbo Tax Deluxe edition last year to prepare his taxes on his own, and when he could not figure out the program he called me for help since I have been a Tax Consultant for 12 years. Even I could not figure out how to get the program to put the Donations onto the correct line of his Schedule A. The software kept putting Cash Donations onto the Non-Cash Donations line and asking for descriptions of the donated items. There are rules about how much can be claimed as well as an additional Form 8283 for Non-Cash Charitable Contributions that is needed if the donation is above $500, so this was a real issue. The program was making what should have been a simple task impossible. He was left with two options; either submit the return incorrectly or pay to use another program to prepare the return which was very frustrating after spending $49.95 for Turbo Tax. I ended up preparing the return for him using Professional Tax Software; I wasn't going to let my friend submit an incorrect return. The issues that come out of preparing a return with incorrect information don't show themselves right away, the IRS and States usually wait a couple of years then they send a letter requesting changes or backup. These letters can turn into bills requesting payment for the tax liability, plus penalties and interest. Definitely a bad idea to try to "wing it" and prepare your tax returns yourself if you are not versed in tax law. It can be a very expensive mistake, especially since your taxes are the most important financial documents that you file each year. I have a good friend who bought the Turbo Tax Deluxe edition last year to prepare his taxes on his own, and when he could not figure out the program he called me for help since I have been a Tax Consultant for 12 years. Even I could not figure out how to get the program to put the Donations onto the correct line of his Schedule A. The software kept putting Cash Donations onto the Non-Cash Donations line and asking for descriptions of the donated items. There are rules about how much can be claimed as well as an additional Form 8283 for Non-Cash Charitable Contributions that is needed if the donation is above $500, so this was a real issue. The program was making what should have been a simple task impossible. He was left with two options; either submit the return incorrectly or pay to use another program to prepare the return which was very frustrating after spending $49.95 for Turbo Tax. I ended up preparing the return for him using Professional Tax Software; I wasn’t going to let my friend submit an incorrect return. The issues that come out of preparing a return with incorrect information don’t show themselves right away, the IRS and States usually wait a couple of years then they send a letter requesting changes or backup. These letters can turn into bills requesting payment for the tax liability, plus penalties and interest. Definitely a bad idea to try to “wing it” and prepare your tax returns yourself if you are not versed in tax law. It can be a very expensive mistake, especially since your taxes are the most important financial documents that you file each year.

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