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At tax time, some decide to go it alone
IRS works with those who take do-it-yourself path to filing
Cox News Service
February 13, 2005
Despite the complexities and worries, a sturdy minority of American taxpayers prepare their own tax returns.
"Why should I pay someone else to do something I can do myself?" asked Jamise Goodman of DeKalb County, Ga. "I'd rather do something else with the money, like renovate my house."
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Goodman works for a bank, in a specialized area that requires some familiarity with tax issues. But her tax software also makes a difference. "It asks all the right questions," she said.
It's not just the software. Each year the Internal Revenue Service seems to come up with a few ways to simplify the process.
• More people will be eligible to use the simpler forms. The income limits for using Form 1040EZ (12 lines) and Form 1040A have increased from $50,000 to $100,000.
Last year, about 18 million taxpayers filed a Form 1040EZ, and an estimated 24 million filed a Form 1040A. About 1.6 million more taxpayers are eligible to use those forms this year.
• The IRS Web site, www.irs.gov, offers more extensive and easier-to-find help this year. Click on 1040 Central.
• Low-income taxpayers can get extra help figuring whether they're entitled to the earned income tax credit. The source, once more, is www.irs.gov.
• This year anyone can use commercial tax software Ñ for free Ñ at the IRS Web site.
"The Web site has everything you need," said Jennifer Hassani, a 41-year-old Newnan, Ga., resident who has done her taxes since she was 18. "I keep my own records through the year, and it's very easy."
She'll take advantage of the free software this year, Hassani added. She started using TurboTax two years ago, she said, "just so I wouldn't be so paranoid about math mistakes."
But tax preparation is not a walk in the park for everyone. Every year the IRS provides an estimate of average time required to fill out tax returns.
As the chart shows, the time seems to get longer every year.
Note that the estimate includes only Form 1040. If you itemize deductions on Schedule A, add an additional five hours and 37 minutes to your drudgery estimate.
Maybe it's no surprise that a majority of taxpayers hire an expert. In 2002, nearly 58 percent of Georgia's 3.7 million taxpayers paid somebody else to trudge through the paperwork.
Certified public accountant Roger W. Lusby III isn't surprised.
"If I were not in this business, I would pay somebody else to do my return," Lusby observed. "It wouldn't be worth my time and effort to constantly keep up with the law, buy new software and then figure out how it works, to prepare just one return."
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