
Ask HN: Turbo Tax alternatives? - shiny
After reading about how Intuit lobbied against simplifying the tax code, I&#x27;d prefer not to use them, but not sure where to go.  My  income was entirely 1099-MISC in 2015, which means coughing up $$ for federal and state taxes if using Turbo Tax, so I&#x27;d like to avoid sending that to TT.<p>Thank you for any help!
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patio11
So TaxAct is an option for you.

Can I tell you something which is much, muuuuuuuuch more significant than the
$25 or so you're contemplating spending on tax preparation software? It's
highly likely that you're running a sole proprietorship (Schedule C). I am not
sure from your phrasing that you are aware that you are doing something which
can be categorized as a sole proprietorship. It is to your advantage to
characterize what you are doing as a sole proprietorship given some plausible
assumptions about what your cost structure is, because you will be able to
deduct all expenses reasonably required to run the business from the revenue
of the business (the number shown on your 1099-MISC) prior to paying taxes on
the profits only. What the IRS considers "reasonable and necessary" is not
what most natural humans would consider reasonable and necessary.

If you do not feel like reading an awful lot in the next month, bringing every
receipt and credit card statement you have from the last year to neighborhood
accountant will cost you a few hundred bucks and save you, plausible, 10X that
in taxes. This is the bread and butter for lots of small accountants and tax-
preparation shops, and they're reasonably good at it. WSJ? Deductible, always,
100%. Phone bill? Guesstimate how much of it was for business? 60%? Good
enough; let's find all twelve of them. Do you have any other phones? Think
hard. Internet accounts? Same story. 40%? Great. You're in software? What's
your computer? When did you buy it? 2 years ago? Did you deduct it then? Nope?
OK, so we're going to depreciate it, that will be another $600 or so of which
we'll allocate $400 to the business and $200 to you personally.

I thought I was pretty good at this. My accountants are _much_ better. We both
color within the lines; they were just aware of entire other coloring books
that nobody had told me about. (Most recent example: the Japanese government
is sending me a wire for $600 because this year, instead of filing as exempt
from paying sales taxes because all the products I make are exported, I am
filing a return which shows me paying $0 in sales taxes on all $0 of my Japan-
source sales. What on earth is the difference? Well, if you're an exempt
business, you can't claim back sales taxes you paid against sales taxes you
owe the government. If you're not an exempt business, you can. If you paid
more in sales taxes than your tax liability, the government wires you the
difference.)

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matt_s
Sounds like shiny's (OP) argument is that Intuit lobby's to keep tax code
complicated and he doesn't want to fund them. Yet as you explain many of these
complicated parts about filing taxes, when handled by a competent accountant,
can save you 10x the cost of using an accountant or for tools like TurboTax.

It would be like a non-tech person saying they don't need any fancy expensive
software like a database because you're just paying for over-complicated
solution. Then that person goes and builds out a massive Excel file with
thousands of records across multiple sheets and vlookups.

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Mz
H&R Block allows you to file online. I am sure there are others and I don't
mean to suggest you "should" go with them. I have used Turbo Tax online and I
have used H&R Block online. So that's what I am familiar with.

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eschutte2
I don't understand your point about coughing up $$. I used TaxAct last year
and it was fine. There are a bunch of other options, including by hand on
paper. My income is all 1099 too.

~~~
shiny
Sorry for the confusion - I expect to spend money, but preferably not at Turbo
Tax.

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cik2e
Try a few different ones. I had a swing of $200 on my state refund from
student loan interest between 3 different tax calculators. For me, that was
worth the extra half an hour.

