And here’s their evidence:
Of course more folks are e-filing. It’s fast, it’s easy. And with more folks than ever with internet and computer access, it’s to be expected.
But.
And you knew there would be a but.
Here’s my cynical take… You’ll note fewer taxpayers filing generally, down a whopping 12 million this year. There’s a bump in 2008 – certainly attributable to the stimulus. Might it be the case – and I’m just saying – that folks have been encouraged to filing electronically in order to get money back a little quicker.
I’d love to see the data for 2009 returns filed in 2010. I’m betting if you back out the homebuyer’s, that percentage will drop a little. And I’m not a betting girl normally. But I have a hunch on this one.
Taxpayer asks:
Hello taxgirl,
I love your blog! My question is as follows:
I prepare taxes, so naturally I will prepare my own taxes. Can I deduct MY tax preparation fee (the fee I would charge someone else for a tax return with the same complexity)?
Thanks,
Taxgirl says:
Thanks for the nice words!
Unfortunately, I’m going to have to say no to your question. 
The idea behind claiming most deductions is that there is generally a corresponding item of income (some exceptions exist but you get the idea). So when you pay someone to do your taxes, the preparer reports it as income, you claim it as a deduction. Voila! But when you self-prepare your taxes, whether or not you’re a professional, there’s no income component. So it makes sense that there would be no deduction.
On the plus side, you can claim a deduction for out of pocket expenses paid for tax preparation software, tax publications and the costs associated with electronic filing. Those expenses, together with fees paid to a tax preparer in the year of the return (for example, fees paid in 2008 would be reported on your 2008 return) will be reported on Schedule A of your federal form 1040 as an itemized miscellaneous deduction. You have to itemize to take advantage of this deduction.
And yes, since I know some tax pro out there is gonna ask, if you paid yourself (though not sure why you’d do this), I’m thinking you could deduct it.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the taxgirl! – Now on Facebook!
Taxpayer asks:
Hi…
I’m about to file my taxes through efile using H&R Block’s Tax Cut software. I was wondering if the IRS will see my list of charitable organizations? When I filed paper copies in past years, that information was not disclosed.
Does efile provide the IRS with more information then paper filing?
Thanks!
Taxgirl says:
I can’t speak to the specifics of TaxCut but most software with efile capabilities only sends the required forms with no additional information. If you’ve made cash contributions, those will be reported on Schedule A, though not by name. If you’ve made non-cash contributions valued at more than $500, those will be reported on form 8283.
In most cases, the pages which you keep as your file copies are more detailed than what is transmitted to IRS. This makes sense because at audit, you would want to be able to break out charitable contributions by organization (and provide the applicable receipts).
If you want confirmation of what is being efiled, you can always try to contact H&R Block directly by phone (1-800-HRBLOCK or 1-800-472-5625) or online.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the taxgirl! – Now on Facebook!
Taxpayer asks:
I went to the website that you referred to for free e-file. Why is it that the free e-file websites have a 55 year age limit and gross income cap of $56,000. Why is there nothing available (for free) for people over 55 with a combined income over $56,000? I even called the IRS hotline thinking that perhaps they could direct me to a website that I might be able to use, and they seemed to be unaware of the age and income limit.
Taxgirl says:
Try the AARP. You can find their contact info in this post that I wrote for Seniors Support. I am not 100% sure what the age limits are for the tax services but since the AARP is open to those who are age 50 and above, I’m guessing that’s the magic number.
And despite what the rep at the IRS hotline says, there are special filing sites for seniors. I know because I volunteered at one (at our local senior center) for eons. Try calling (again) the IRS at 1-800-829-1040 and specifically ask for a Tax Counseling for the Elderly site near you. They should be able to give you a contact number – you can ask about income limits when you call the TCE site directly.
Finally, don’t send me any nasty emails about calling those folks over 55 seniors. I didn’t. The post is titled “Tax Help for those over 55″ because that’s the subject of the reader’s question. I do not claim to know when it’s appropriate to call someone “senior.” I do know that there are a couple of folks in a certain small southern town who are pleased as punch when senior means relatively young at a restaurant buffet (especially if crab legs are on said buffet)… So don’t get irritated and send me nasty emails for calling anyone a “senior” too early. Just consider this a buffet of tax advice.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the taxgirl! – Now on Facebook!
