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post #1 of 14 (permalink) Old 02-05-2007, 12:55 PM Thread Starter
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Tax Time Problem

I am currently using two different tax software programs. TurboTax and H & R Block TaxCut. I have entered all my information into both programs and I get two different refund amounts.

TurboTax = $8008

H&R Block = $8555

I have used TurboTax for the last four years and have had no problems at all with the IRS. I am curious to find out if anyone else has used the H&R Block program and did they have any problems with this software? I'm also hearing that some people who went into H&R Block locations last year are now being audited and the H&R folks are telling them they are on their own at the audit.

Any ideas?

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post #2 of 14 (permalink) Old 02-05-2007, 01:08 PM
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I've used H&R in office service for the last 8 years and haven't had any issues (knock on wood!!).
post #3 of 14 (permalink) Old 02-05-2007, 02:21 PM
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I have used the Turbo Tax stuff for about 4 years now. Last year, IRS said I made a mistake and I contacted Turbo Tax customer support. They sent me the forms I needed and it got corrected with no out of pocket for me. Just my experience, no knowledge on the H&R stuff.

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post #4 of 14 (permalink) Old 02-05-2007, 05:40 PM Thread Starter
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I found the problem. Went back through all the forms line by line and figured it out. Also found out I was screwing up the filing status on the TurboTax. Changed that and damn near fell out of my chair when I saw the refund amount:

$9,141 :shock:

Holychit. Better hide the parts catalogs before I figure out how to blow every dime.

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post #5 of 14 (permalink) Old 02-05-2007, 06:13 PM
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EEK!

If you're letting the IRS play with almost 10K of your money over a years time, you're wasting it boss! Change what you claim, fix that problem. You could make 5-6% in a years time minimum. You're throwing away a few hundred bucks every year...time to fix it.

I wish I had that problem though. I got a stock dividend distribution from a company I used to work at that won a Microsoft lawsuit and taxes were not taken from it. That is going to be one big check I have to write this year.

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post #6 of 14 (permalink) Old 02-05-2007, 06:32 PM Thread Starter
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I've had this bad habit for a few years now. On my W4 I usually go with "Single & 1". Then, at tax time, I file as "Head of Household & 3". Couple that with all the expenses I racked up racing last year and you end up with that ungodly amount. I'm thinking that I need to change to at least "Single & 3" then still use the Head of Household at tax time along with my Schedule C for the racing. Might be the best of both worlds.

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post #7 of 14 (permalink) Old 02-05-2007, 06:45 PM
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Quote:
Originally Posted by ShadowMaster
I've had this bad habit for a few years now. On my W4 I usually go with "Single & 1". Then, at tax time, I file as "Head of Household & 3". Couple that with all the expenses I racked up racing last year and you end up with that ungodly amount. I'm thinking that I need to change to at least "Single & 3" then still use the Head of Household at tax time along with my Schedule C for the racing. Might be the best of both worlds.
How do you go about filing for racing expenses? I have heard that is a real gray area and I dang sure don't want to get audited. I heard it would come down to the auditor if it was a hobby or business.

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post #8 of 14 (permalink) Old 02-05-2007, 07:41 PM
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I

I thought I read on here we don't have to pay taxes?
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post #9 of 14 (permalink) Old 02-05-2007, 07:42 PM
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taxes

A friend of mine would rather have a big tax refund at the end of the year
( say $7,000) as opposed to only $50-$100 extra dollars a week.
He says that it is like having a savings account that he can do something nice with once a year and if he had the extra weekly money he would not save it but would blow it on something less memorable.
I can see his reasoning although I differ in mine.
To each his own ;^).
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post #10 of 14 (permalink) Old 02-05-2007, 07:44 PM
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Re: I

Quote:
Originally Posted by 65comet404
I thought I read on here we don't have to pay taxes?
You don't, in America, you don't have to do a lot of things. That don't mean you won't go to jail though :lol:

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post #11 of 14 (permalink) Old 02-06-2007, 08:26 AM
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I'd like to know how you do the taxes on the racing as well. I understand it's income once you win, etc... Any insight on how to file it fo writeoffs, etc..

Also, even though no interest is earned throughout the year I'd rather get a large refund at the end of the year too.....

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post #12 of 14 (permalink) Old 02-06-2007, 09:49 AM
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Here's my 2 cents worth.

I used to go to H&R Block. However when I started racing a LOT they wouldn't even consider writing off my expenses and at the same time my now EX changed her status at work in order to get more money each pay check and THEN we were left writing a $1200 check to the IRS.

SO I got rid of BOTH problems. No more H&R Block and bye bye to the financially unstable baggage :lol:

Since then when I'm racing a full season I write off most if not all my expenses. For the last 8 years I have been taking my information to EK Williams Small Business Solutions in KY. Since then we have been getting back astronomical refunds. Last year I changed my status at work in order to dampen some of this refund so the govt doesn't have my money all year :roll:

We'll see how it goes this year. Due to my engine failure this past year and all the parts I purchased in order to build the new engine I'll have quite a few more deductions.

The key to writng off these 'business losses' is to claim a profit every once and a while. For instance in 2002 I actually made a profit racing and claimed it on my taxes

Granted it was only a profit of say $800 after adding up all the expenses but it IS a profit :idea:

Reminds me, I need to dig through all my receipts this weekend



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post #13 of 14 (permalink) Old 02-06-2007, 10:03 AM
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Quote:
Originally Posted by Phantasea466
Here's my 2 cents worth.

I used to go to H&R Block. However when I started racing a LOT they wouldn't even consider writing off my expenses and at the same time my now EX changed her status at work in order to get more money each pay check and THEN we were left writing a $1200 check to the IRS.

SO I got rid of BOTH problems. No more H&R Block and bye bye to the financially unstable baggage :lol:

Since then when I'm racing a full season I write off most if not all my expenses. For the last 8 years I have been taking my information to EK Williams Small Business Solutions in KY. Since then we have been getting back astronomical refunds. Last year I changed my status at work in order to dampen some of this refund so the govt doesn't have my money all year :roll:

We'll see how it goes this year. Due to my engine failure this past year and all the parts I purchased in order to build the new engine I'll have quite a few more deductions.

The key to writng off these 'business losses' is to claim a profit every once and a while. For instance in 2002 I actually made a profit racing and claimed it on my taxes

Granted it was only a profit of say $800 after adding up all the expenses but it IS a profit :idea:

Reminds me, I need to dig through all my receipts this weekend
Yes, I believe it is every three years you have to claim a profit or else it is considered a hobby! A lot of guys around here go through the same thing with horses.
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post #14 of 14 (permalink) Old 02-06-2007, 10:41 AM
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We track all our racing expenses, along with our photography expenses (take pictures at the track and sell copies). We've shown some profit the last two of 4 years, will do so again this year. Got to - made over $9K this year bracket racing. I've used Turbo Tax every year for, well, almost since it was first released. They've made it more expensive this year for us Schedule C folks. They figured out that us small bidness folks are in a corner and just have to pony up. It's still a lot less than a CPA and the few that I've used knew as much about the tax code as I did.

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