Turbo Tax Vs. Tax Professional?
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Okay Just got my taxes done in Michigan, but before I went, I checked to see what my return would be on turbo tax, My figure Turbo tax gave me was 585$ which was both state and Local. So the tax guy i went to got me a total return of 200$.. I dont understand? I madde about 5 grand and claimed single and 0, and also payed some city tax as well
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Answer:
I have used tax professional and have used Turbo Tax. I have also assisted some of my clients with tax preparation. Here's my recommendation: 1) Do a side by side comparison to see why the refunds were not the same. 2) Make sure you went through every step on Turbo Tax (because there are some great tax breaks you may have missed). 3) Look on your W2's to see how much tax you actually withheld (it may be less than you are thinking). 4) If all else fails, many tax preparation companies allow you to do a '2nd opinion' for free. So they will completely prepare your return. If the refund is better, you can choose to pay them for the new return.
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Other answers
Let me guess. You can be claimed as a dependent and had $275 withheld from your wages and you chose to have the $45 prep fee deducted from your refund along with a $30 fee for processing the fee payment. You went to the TT website and used their refund estimator and it included the Making Work Pay Credit of $310 in your refund. That would explain the numbers to the penny. The problem is that you are not entitled to the MWP credit since you are a dependent and the TT estimator can't handle dependents properly. You COULD have prepared your return for free had you gone to the IRS website and clicked on the Free E-File link. That way you would have received the entire $275 refund. There was no need for you to waste money going to a tax preparer, but what's done is done.
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