The tax software also can prompt you for deductions or to check expenses and you can leave your chair to get the info you need. The CPA would have to ask him/herself if this could apply to you, decide that it does, call you for the info, and have you get it back to him/her for further processing. I simply think the tax software is much more flexible. You'd have to find a CPA with real expertise in your particular areas of interest before you'd come out ahead.

I'll second steve_o's vote for software. We have a professional do our taxes now (because we are involved in an LLC with multiple partners) but I found software to be a great solution once we moved into the "long form" format.

Several years ago I did our taxes with the software and DH took issue, saying his friend had a great accountant who could get all kinds of deductions for us. I was confident that we had deducted everything we could but handed everything to the accountant anyway. We had to take an extension because the accountant couldn't do it before April 15. He didn't get to it until August (near the extension deadline) and his numbers were EXACTLY the same as the software's. Boy was I mad!

Good luck.

I just looked up childcare in Turbo Tax and your wife is only partially correct. It's not a deduction - it's a credit against the tax you owe. For example, if your total tax owed is $5000, you can deduct $3000 (the maximum). So even though there's a limit, it's much more to your benefit than a deduction.
hth

IRS SITE:
"The credit is a percentage of the amount of work-related child and dependent care expenses you paid to a care provider. The credit can be up to 35 percent of your qualifying expenses, depending upon your income."

$7000 x .35 = $2450 maximum

And that's IF the 7K is all qualifying expense and IF they meet income guidelines.

Looks like TurboTax is wrong!

For HSA, I am not sure of the limit. We set money aside for both accounts every year which essentially is the same as tax deductions.

With these accounts, you use or lose it. So you need to plan ahead, if you can, ie braces, hearing aids, glasses etc that are not fully covered by insurance.

For child care, many in the health industry look for shifts that allow them to work alternating shifts from their spouse so that they do not have to pay for child care. I know of many couples where one works two doubles on weekends and have weekdays off and the other spouse works weekdays. I know of an ICU nurse that works 3 12 hours shifts a week, mostly on weekends. Another combination is one works days and another swing shifts. Just a thought....

The maximum credit is $3000. The credit is a percentage of the amount spent on child care. TT figures it out. Again, the credit benefits you more than a deduction would since it's taken directly against whatever tax you owe.

We use a CPA, and our organized approach to our taxes minimizes our costs. If we're audited, he will represent us. His fee is some of the best money we spend over the course of the year.

If you're willing to "work", listen to the others. I'm not! When I shut my Juki off and blow out the gravity feed iron I'm more interested in the gardens or walking the dog... . I feel the same way about paying the financial guy we've worked with for many years now. I'd rather do what I'm GOOD at and enjoy my leisure time.

I'm with you chelone.... out tax return requires a 3" binder full of documentation. NO way I'd trust that to a computer program.
We use an accountant (not a CPA) who specializes in taxation laws. He is worth every dollar he charges. I keep costs down by having everything on Quicken and having documentation prepped.

AND, IF there is an audit, he represents us and justifies the return.
With TurboTax, you are on your own!

In any case, have your info in condition that's easy to read/enter into tax prep. software.

Accountants, like other professionals, charge for their time.

If you can arrange your project in a way that reduces the time that they spend on your situation, you'll likely save fees.

Good wishes with dealing effectively with your problems.

ole joyful

Go with the software.

Gloria

However, assuming that your return is not complicated and assuming that you and your wife are reasonably computer literate, you will save money going with the software rather than paying someone $200-$300 to do your taxes.

If you lie about your deductions and don't have receipts to back you up, you are on your own. However, TT does guarantee the accuracy of the software:
TurboTax calculations are guaranteed 100% accurate. We're confident and we want you to be too. In the unlikely event you are assessed a penalty based on a miscalculation, we'll reimburse you for the penalty and the interest.

What we require of you:

Register Your TurboTax Software.
Keep your contact information current.
Update your software regularly.
Enter and classify all information accurately.
File an amended return if advised by TurboTax to do so.
You must contact us within 30 days of your penalty assessment if you believe a TurboTax calculation error has occurred. Follow the link to Submit Your Case for Review online.

I was audited about 12 years ago. I received a letter from the IRS challenging one of my calculations. In a panic I took it to an accountant who told me my options.
1) Just pay the IRS what the letter demanded, 2) Contact the IRS and set up an appointment to show them my documents and how I had arrived at my figures. This wasn't a full audit, simply one particular (complicated) section. I had sold stock that had been split several times and I could not figure out my basis. I just paid the amount the IRS wanted.
One feature of TT is that if you take a deduction that is way out of line, the software tells you that it could flag an audit. If you have the receipts to back you up and are sure you qualify, you go ahead with it.

So their child care tax credit is 20% x $3,000 = $600. The $600 will be taken right off the taxes due. TurboTax will calculate for you, as well as any available deduction for those medical expenses (which have to exceed 7.5% of adjusted gross income before you can deduct).

I like suggestion of using TurboTax & then paying for CPA to review or for questions.

Lp

However anything more...hire an accountant. I am quite willing to do a return with w2 slips, itemized deductions, interest etc for about $80.00. including efiling. And I will provide tax planning advice too...I'll identify if you're eligible for the savers credit or perhaps recommend you defer that purchase of an energy efficient heat pump until this year..so you get a credit. You get the gist. I don't just plunk in the numbers...you get a real live person to assist you with minimizing your tax liability and maximizing the dollars that stay in your pocket. How much do I charge for you to call me and ask a question during the course of the year -Nil, Zip, Nada - it's included in your tax preparation fee.

I have high end tax software and still find instances where the results are not the way they should be but at least I can IDENTIFY when something is wrong and fix it. It's amazing one missed checkbox and the whole return can be wrong.

And a word of caution: No matter how simple the return is please review the output before submitting it. Step back and look at the figures and make sure they make sense. Look for typos, missing information etc.

Carolyn, CPA!