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Professional Tax Preperation Saved Me Over $5,000

by The Happy Rock on April 7, 2008

Well, the results are in from the CPA vs. Turbo Tax and other DYI tax programs fight. The winner is………quality professional tax preparation by a landslide.

Here is the break down:

taxes-2007-results-happyrock.GIF

My CPA isn’t responsible for all of the savings, but the service was definitely worth the cost. First, we tuck away 40% of The Happy Rockette’s paycheck, so we knew we had more than enough for our 2007 taxes. We were expecting a bill of around $4,000 dollars between federal and state.

One big difference was that we made about $6,000 less than 2006. I didn’t work any overtime and had $3,000 of gambling winnings to claim in 2006. We also donated $1,500 more in 2007. That accounts for some of the shift, but almost all of the rest came from the great tax advice.

I was going to do my own taxes to compare, but looking through the return I can see where most of the savings and deductions came from. The highlights are:

  • $750 dollars in mileage and expenses for the Rockette’s consulting that I wouldn’t have filed.
  • $1,000 of extra itemized deductions.
  • Plethora of savings for The Happy Rock including a percentage of my home depreciation and utility costs, equipment depreciation, and expenses that I wouldn’t have known to claim.
  • Proper handling of child care expenses.

That is a great list for the measly cost of $400, but I now also know what receipts and expenses that I should track to claim in 2008 which will save me thousands going forward. The only part I regret is that I didn’t pay for professional services years earlier!  More money back in my pocket with a lot less stress, you can’t beat that.

{ 2 comments… read them below or add one }

speedy April 8, 2008 at 6:15 pm

Gee, any chance your tax person can look over your returns for the past year or two? You may be able to file an amended return and get back some more of what you paid….

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The Happy Rock April 13, 2008 at 11:47 pm

@speedy – I looked over the last two, and the only thing we missed other than the miles for my wife and my a spare expense. It may be worth filing, thanks for the advice.

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