MVrays08ParticipantStatus: PhysicianPosts: 19Joined: 02/13/2019February 18, 2019 at 9:21 am MST #191711
“A fa and their team should be the wise people talking about strategic and operational efficiencies. “
I whole heartedly agree seeking expert advice. If you are using an FA for business decision advice that is out of his/her wheelhouse, that is your choice. If you are only using a CPA for tax preparation, you are leaving chips on the table. Which FA do you use ? I don’t understand the generalized comment. Consultants have areas of expertise. Sometimes you pay for it when it’s needed. An FA, CPA, attorney and insurance broker are common needs.February 18, 2019 at 9:22 am MST #191712StarTrekDocParticipantStatus: PhysicianPosts: 2124Joined: 01/15/2017
Most people use Tax prep/filing as just that — higher standard deductions and SALT really does make tax filing quite simple for vast majority of America.
For the rest of us (including most physicians), there’s a bit of planning that’s needed short term (operational within year spending, tracking, and filing) and long term (financial planning, wealth preservation, generational planning). They go hand-in-hand. Hence, if one has a financial planner employed, they should be equally involved in the tax strategy too; otherwise, leaving $$$ on the table. — I don’t think you’ll be finding that level of expertise at your local HR Block office though.
eg – bunching donations to take advantage of the increased standard deductions; 529 strategies; roth conversions.FIREshrinkParticipantStatus: PhysicianPosts: 1027Joined: 01/11/2017
Most of the active readers here will already know about backdoor Roths, 529s, HSAs as retirement accounts, etc. So there needs to be some higher level strategy to entice me from that end. And it better not be a whole life insurance policy!FIREshrinkParticipantStatus: PhysicianPosts: 1027Joined: 01/11/2017
Although as I get into my sixties (still more than a decade away) I will be interested in strategies to optimize retirement income while minimizing taxes. But will a good CPA be better than the collective wisdom of this group, the Bogleheads, the Bogleheads wiki, iORP, etc?StarTrekDocParticipantStatus: PhysicianPosts: 2124Joined: 01/15/2017
The ideas are all here and certainly many of us DIY, but some will want to choose to have a FA+CPA team do these things for them. This is all very different from tax prep; which the OP was referencing. Tim just continued my sidebar response that tax filing is just a mile marker for ongoing tax strategy/Financial planning.February 18, 2019 at 10:55 am MST #191737— I don’t think you’ll be finding that level of expertise at your local HR Block office though.Click to expand…
H&R Block are taxpreparers, not CPA’s. CFP’s do not have the same level of requirements as CPA’s. A CPA normally does not have the level of expertise as an attorney that focuses on estate planning. Not all CPA’s even do personal taxes. Finding a GOOD CPA that handles both your taxes and provides you with actual advice would be much more efficient than finding an FA to do your taxes (all they have to do is register). TurboTax actually hires CPA’s to field inquiries and phone calls. Everything comes with a price. By the way, FA has no license requirement either. I do not mean to throw darts at anyone, it’s just simply finding someone that is adequately trained, competent and reasonably priced.February 18, 2019 at 11:10 am MST #191741jfoxcpacfpModeratorStatus: Financial Advisor, Accountant, Small Business OwnerPosts: 8322Joined: 01/09/2016
Limited 1099 income from a chart review per diem job. Less than 5KClick to expand…
You should be fine on your own. Give it a try and see – you don’t have to file and can still go to your CPA. Just be sure to prorate any related deductions such as CME, licenses, etc. I recommend prorating on an income earned basis. You won’t get much deduction on your sch C, but it will help a little. Example:
February 18, 2019 at 11:14 am MST #191743aCMDParticipantStatus: PhysicianPosts: 24Joined: 10/05/2018
- $300k physician salary
- $5k 1099 income
- $305k income total
- 1.6% of any “work” deductions go against 1099 income on sch C, the rest are lost.
Historically – I have done the paper forms and tax prep software. Started using a CPA about 10+years ago due my desire to not have to continue to do my taxes, calculate quarterly taxes – fed and state on 1099 income plus my W2 income. I have zero desire to go back to doing my own taxes. Could I do my own taxes- sure but the time using a CPA gives back to me is worth the fees I pay. This year I had several questions with the new laws, recent changes in my income (1099 and W2) and how to reduce my tax burden. My CPA gives tax advice to ME for MY specific situation. So therefore I would echo what has been outlined – there is value in the tax planning a CPA provides not just the tax preparation.
GregJarpeeParticipantStatus: Physician, Small Business OwnerPosts: 127Joined: 02/06/2017
Just discovered FreeTaxUSA and plan to file through them this year. Anyone have a long history with them? Seems very easy to navigate and only costs $7 for “deluxe” edition. I had a question about the QBI deduction input and used the online chat and was connected in under 2 mins and my question was answered thoroughly. So far I can’t believe I haven’t heard of them sooner! Just wanted to see other’s opinions as to how they compare to more well known software.February 18, 2019 at 3:36 pm MST #191845Larry RagmanParticipantStatus: Other ProfessionalPosts: 633Joined: 08/30/2018
Jarpee, Tim had some feedback on p. 1 of this thread.February 19, 2019 at 1:51 am MST #191961LithiumParticipantStatus: PhysicianPosts: 1217Joined: 02/15/2016
Finishing up my taxes this year. I am learning not to trust tax software, at least not the free kind. I had some issues with FreeTaxUSA last year and never could get it to handle a Backdoor Roth IRA. Since then I’ve been dinking around with Tax Slayer, which I use through the IRS Volunteer Site. It can’t really do Form 1116 and I realized that it also didn’t reconcile my employer’s extra Medicare withholdings. That would have cost me an extra $500 if I didn’t catch the mistake. Maybe Turbotax and H&R Block are more reliable. Fortunately I have done my taxes enough times and my situation is simple enough that I can just do the fillable forms. I would pay for these other products if I weren’t morally opposed to supporting those companies.February 19, 2019 at 12:10 pm MST #192098
“ I weren’t morally opposed to supporting those companies.”
Please enlighten me.February 19, 2019 at 12:30 pm MST #192104PedsModeratorStatus: PhysicianPosts: 4636Joined: 01/08/2016
lobbying. keeping the tax code extremely complex and unnecessary.February 19, 2019 at 12:37 pm MST #192107LithiumParticipantStatus: PhysicianPosts: 1217Joined: 02/15/2016
The other insidious thing the tax software companies do is make it seem like paying your taxes is supposed to be some kind of fun holiday where you get a massive check just in time to book a cabin at the lake over Memorial Day weekend. It’s basically on par now with Black Friday or Super Bowl Sunday (which usually has a TurboTax ad). I can only imagine they were in Marco Rubio’s pocket, and that led to the CTC getting doubled.
I doubt I will continue the tax volunteering after this season, which I’ve realized was started to get low-income folks their refundable credits. I feel like I am just feeding them Soylent Green.February 19, 2019 at 12:52 pm MST #192114