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Letter to the editor

Many tax filers opt to go it alone

By HELEN HUNTLEY
Published February 17, 2008

We asked

Are you doing your own income tax return this year?

I always do. Web sites make it so easy. I am using TaxCut this year. It was a breeze to sail through their easily understood program. I've never had a problem with online filing.

Bob Lartz, St. Petersburg

I have a CPA do them for me. I am past 79 and time is too short to spend with phone-book-sized rules and regulations just to pay taxes. The money I spend is well worth the freedom to do enjoyable things.

Lindsay Ball, Crystal Beach

At one time I had a tax professional do it. After preparing all of the information for the tax preparer, I felt most of the work was done. This will be my fourth year doing it myself on my laptop. I have been very satisfied. I use the TaxAct software package.

Don Kohler, St. Petersburg

Up until last year we paid a lot of money annually to a certified public accountant, but now in retirement we do our own using TaxCut software purchased on sale at Wal-Mart.

Billy Ball, Pinellas Park

I used to do my own taxes using the TurboTax software and found it to be quite useful. Now I volunteer to do other people's taxes with the AARP program. It not only keeps me apprised of all the new tax laws each year, but also helps the people who find it challenging to fill out their tax return.

Sylvia Scoble, Largo

You asked

I had IRA money sent to three different charities last year and have letters from them acknowledging this. How do I report this on my income tax form? The 1099 reports only the total amount withdrawn from my IRA, which includes funds that I withdrew for myself.

Notice that IRS form 1040 asks for two numbers on the line for IRA distributions. The first one is the total amount of the distribution, which is what was on your 1099. The second one is "taxable amount," which is the amount that you withdrew for yourself. Write the letters QCD for qualified charitable distribution next to the taxable amount on your form.

If a friend inherits an annuity, is it taxable?

Yes. Anyone who inherits (friends, foes, relatives) an annuity will owe taxes on distributions just as the original annuity holder would have.

In one of your articles you mentioned banks buying extra insurance for depositors so they would have more than $100,000 from the FDIC .What was the name of that insurance? Is there a list of what banks have this?

The insurance is called CDARS, which stands for Certificate of Deposit Account Registry Service. It is offered by Promontory Interfinancial Network. You can find a list of banks offering it at www.cdars.com.

Ask a question

To ask a question, make a comment or answer the Money Question of Week, e-mail hhuntley@sptimes.com or write Helen Huntley, P.O. Box 1121, St. Petersburg, FL 33731. Visit her MoneyTalk blog (blogs.tampabay.com/money) for more money information.

[Last modified February 15, 2008, 18:15:03]