# First time doing taxes



## lorena (Sep 27, 2006)

So this will be the first time I have to report my earnings and pay my sales tax to my state, and report my profits and INCOM..

A little scared. 

I dint make much, mostly just sold to friends and family. I think I used more money than I profited. 

Any advice?


Lore


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## binki (Jul 16, 2006)

get a cpa.


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## lorena (Sep 27, 2006)

You dont understand. I dint make big buck, so i dont have big bucks to spend on a CPA.

I make about $1700 for the whole year. 

lore


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## greyhorsewoman (Jul 19, 2007)

Try Turbo Tax ... it's very easy ... goes step by step, I've been using it for years.


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## lorena (Sep 27, 2006)

I normally do my own taxes online with H&R block and file them myself electronically... but this year I have to report my income from my business and include all the deductions...

I have all my recepts.


Lore


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## Comin'OutSwingin (Oct 28, 2005)

If you have everything, it shouldn't be too difficult. It's not a hard process at all. Just time consuming.

If you've done you own taxes in the past, you should be fine with the business stuff.

It walks you through what you need the same way it does with your personal income.


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## Chani (Jun 18, 2007)

This year is going to be a nightmare for us for taxes. We are netting a loss (equipment + supplies + consumables + merchandise -- against almost no profit), but Mark also has other things to contend with on his taxes.

Do you suggest that maybe we go to H&R Block or anything like that?

I'm just afraid we're going to really mess things up and the IRS will come after us. We have all receipts, etc.

My mom may be willing to assist us, but I'm still afraid we'll really mess this up.


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## Comin'OutSwingin (Oct 28, 2005)

Yeah, if you're that worried about it, I'd get some help.

I know H&R Block has a guarantee that if you get audited they will be there with you, and if they make an error, that they pay for it.

I don't know how good they are, but if they stand behind the guarantee, that may be the way to go.


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## Chani (Jun 18, 2007)

Yeah, I think we might go that way. We'll see if my mom can point things out to us first, and see how that goes, but we're both starting to feel like we'll be more comfortable if we have a professional do it. 

We're right there with ya, Lorena!


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## binki (Jul 16, 2006)

Any tax preparer will talk to the IRS when they come knocking. We use a CPA because that is his profession. The Blockheads are just transients and part timers that do monkey work and put the information into a tax program like turbo tax. 

I stand by my recommendation. CPA's are not that expensive.


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## Girlzndollz (Oct 3, 2007)

I'd also recommend using a tax accountant. 

We used HR Block for personal for 3 years and when I went to Turbo tax, our returns nearly doubled. I've done TT for a few years, time consuming but once you get through the first year, you know what to organize during the year for the next time. 

Lou (Badalou) uses Turbo Tax for his business. I may or may not use it. Depends on how overwhelmed I will feel. I got a few prices from accountants and they were about $350. Not bad to get a real accoutant over the part timers looking for extra income like at HR.

I was wondering, are accoutant fees are also deductable? 

Also, as a sole proprietor, should I be worrying about a loss, that passes through to my personal taxes and doesn't that reduce my tax there if I have a loss?

First year for me, too, so I have tons of questions as well.


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## binki (Jul 16, 2006)

Yes, tax prep fees are dedcutable (personal and biz) as well as *ALL *expenses related to your business.


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## Chani (Jun 18, 2007)

That's something that we've been very good about is keeping receipts.

I think we *might* try Turbo Tax to see what we come up with. We may still go somewhere to get them filed...


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