What should we go with?

My wife and I are trying to decide if we should go to a professional for our taxes. We had a complicated year as I was laid off, on unemployment in Texas, and rehired. So three different sources of income. We also made interest income of over $600 and have a brokerage account that did not make over $600. We also pay my mom as a contractor to watch our baby. We paid $450 last year to have our taxes professionally done and we felt like this was not worth it. But with how complicated life was last year I almost think we need a professional to do our taxes. We will take any guidance regarding this. We have also considered doing TurboTax with a professional filing for this (looks to be under $200). We also are considering going with one of the free services or back to our original tax people.

We appreciate any advice or feedback.

Doesn’t sound like anything too complicated. Some preparers charge a flat fee, while others charge per form. Have you gotten quotes from any other tax prep office?

Clarke said:
Doesn’t sound like anything too complicated. Some preparers charge a flat fee, while others charge per form. Have you gotten quotes from any other tax prep office?

Haven’t really looked yet. I just wanted to know if from the surface it looked like we were getting ripped off. Our taxes were done for free for about 4 years when we were in college. My mom worked in the office so it was free. But we pulled my mom over to watch our baby so no more free tax stuff haha. So it may be a real good deal at $450. I just didn’t feel it may have been worth it, especially looking at how easy the 1099 form looks to fill out for my mom. Seems more tedious than anything else.

@Shawn
Is your mom watching your kids at your house?

Sky said:
@Shawn
Is your mom watching your kids at your house?

It’s about 50-50. She comes back for lunchtime and about an hour at the end of the day since my wife and I both work from home so it can be a contract relationship.

@Shawn
You paying your mom is not a business expense, so you wouldn’t issue her a 1099-NEC. This doesn’t mean that she doesn’t have to report the income. She should, especially if you’re claiming the Child and Dependent Care Credit.

@Valen
So I don’t need to report what I paid her, but she would?

Shawn said:
@Valen
So I don’t need to report what I paid her, but she would?

Correct. If she’s watching in your house then you have to file Schedule H and follow all the requirements that come with that.

Shawn said:
@Valen
So I don’t need to report what I paid her, but she would?

Correct. She’d need to give you a receipt showing what you paid her that includes the info you’d need to claim the Child and Dependent Care Credit. See Part I of Form 2441. She’d need to report the income on her tax return.

Sky said:
@Shawn
Is your mom watching your kids at your house?

So I believe the 1099-NEC should work.

Nothing in this looks super complicated. I vote for paying yourself $450 to do it.

What do you want to pay to have this done? Federal and one state for $300 is reasonable, add another $150 for the household employee forms. Shop around for a price, you have plenty of time to do so.

Lennon said:
What do you want to pay to have this done? Federal and one state for $300 is reasonable, add another $150 for the household employee forms. Shop around for a price, you have plenty of time to do so.

Yeah I don’t have to file state because we are in Texas. I just don’t know why I would not go with TurboTax with full service since it caps out at like $200 and that is for business.

What decent professional does a return for $450 I haven’t a clue. Most CPAs I know won’t touch a return for under $1000.