Need withholding advice. Should I see an accountant? If so, how much will it cost?

[Anonymous]

Just use this calculator on the IRS site. I use it quarterly to make sure we are on the right track:

http://apps.irs.gov/app/withholdingcalculator/

[Anonymous]

Anonymous wrote:We had this problem when we got married. DH had his deductions based on what sounded right versus running the #s. Once we woke up to that, we used to take out extra $ every paycheck toward withholding. Some people even write check every quarter!

In our experience the IRS forgives you for one year of not getting it right. The second year you don't have a major fluctuation in income and don't deduct enough, you get a penalty. Since interest rates are so low anyway, we now overwithhold and then get our taxes done early to get the money back.

In almost all cases if you meet any of the criteria below, you won't have a penalty for underpayment. Your prior history doesn't matter to the IRS. The easiest rule: always make sure you will withhold/pay as much as your total tax last year.

No penalty for underpayment of tax if:
-less than 1k underpaid
-less than 10% underpaid
-withheld at least the amount of tax from last year's return

[Anonymous]

Anonymous wrote:

Anonymous wrote:turbo tax is good but doesn't get you back as much as a CPA.

IME, unless you have a home business, or rental property or some unusual situation, it is highly unlikely that a CPA will get you a larger refund, and it is extremely unlikely that they will get you enough to offset the cost of going to a CPA.

+1

We have used both and turbo tax is better for us. We are a 2 income family - one is W2 one is 1099. 2 rental properties. Turbo Tax premier is perfect for our needs. And yes, it does take AMT into consideration when determining your tax burden.

[Anonymous]

Thanks all. OP.

[Anonymous]

We have a multiple home offices, home businesses and rentals so a cpa really helps us.

When I was single and just a salary I didn't need one.

[Anonymous]

Another reason for a cpa is if you get one of those letters from the irs asking for more when they are wrong and overlooked papers. This happens to me once a year and my cpa stands by his work and assists me in sending the parts of the return the irs overlooked.

[Anonymous]

Anonymous wrote:Another reason for a cpa is if you get one of those letters from the irs asking for more when they are wrong and overlooked papers. This happens to me once a year and my cpa stands by his work and assists me in sending the parts of the return the irs overlooked.

You don't know how to use an envelope and a stamp yourself?