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Owe $161 in Taxes

January 27th, 2013 at 09:10 pm

I've been using HR Block online tax software to file our tax return today. I'm not real thrilled with their set up. I'm using them because it is free to military personnel. I usually use Turbo Tax, and I would highly suggest it to anyone who isn't tax savvy.

I had estimated we would owe over $600 when I realized we received a 1099G from our state for last years tax refund. We did itemize, and generally this would be taxable. However, we used the sales tax method rather than income tax on our Schedule A. Sales tax deduction apparently isn't taxable the next year, like it would be if we used our state income tax. We use the sales tax because my husband's income is exempt from income tax in our state. This changes the amount we owe to about $161. I have one more interest income statement to add, that is only for $75, so it won't change too much.

I was most annoyed with HR Block's state return portion because it asked for type of employment. I clicked military. Yet, the calculator was still showing his entire income as taxable, even though it should be exempt. I had to change it in an adjustments to income part of our return. It wasn't obvious at all. I did find it, but I think it is confusing to the average user. I even had to fill in the amount that was tax exempt. I think Turbo Tax handled it better last year if I remember right.

I like that the amount is much lower than I thought. I hope to have the return finalized in mid February. I'm always jumping around from different software options to get the best deal. I prefer free! Do you use the same software every year, or jump around to get the lowest price?

4 Responses to “Owe $161 in Taxes”

  1. North Georgia Gal Says:
    1359322224

    I use turbo tax to file my taxes. They make it simple.

  2. TexasDisneyGirl Says:
    1359337940

    TaxSlayer has free returns for active duty military.

    We have used Turbo Tax these past few years. It's easy since our info is already stored in there.

  3. creditcardfree Says:
    1359338739

    I think I tried Taxslayer quite a few years ago. I may try it again this year and see if it is better. We do qualify according to the website. Thanks for the tip!!

  4. Sian Says:
    1359392410

    i only used turbotax b/c it can split if u lived in different states at the time. but i mainly use www.freetaxusa.com and i've never had an issue with it. especially since i'm deployed i wondered how it would work out but i've already input my info into it and it has adjusted accordingly. i also like free stuff!! =D

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