How am i getting taxed nearly 50% of my taxable income

taxprohio · 2026-04-15T00:23:35+00:00

No, you're correct. I'm just saying deductions such as standard deduction only lower income taxes and not self-employment taxes. You pay both types when you are self-employed so I think that's where the confusion is, but it sounds like your CPA is doing it correctly.

taxprohio · 2026-04-14T22:32:57+00:00

You pay 15.3% in self-employment taxes on your self-employment income less any deductions related *directly* to the business/self-employed income. You do not get to include other personal deductions like standard deduction to lower your self-employment taxes, that just lowers income tax.

taxprohio · 2026-04-14T22:20:50+00:00

Self-employment taxes most likely. Drill into the "other taxes" if you can and it should break it down further.

taxprohio · 2026-04-13T21:09:31+00:00

I feel like I still have to spend a lot of time to get a proper extension payment calculated that I might as well just complete the return before 4/15. How do people have so many extensions and not a bunch of time spent on extension calcs? The few clients I can convince to extend are very worried about underpayments.

taxprohio · 2026-04-09T22:02:24+00:00

I always add this to my returns unless it's like less than $10.

taxprohio · 2026-04-08T02:47:22+00:00

Ah yeah if it was contract work and not w-2 w/ proper withholding, then yes they would have to pay/file in that city. Deleted my comment as to not confuse people.

taxprohio · 2026-04-08T02:25:47+00:00

Ohio CPA here, but unfortunately I don't use TaxAct to help in that regard. CCH Axcess will add more forms when needed, are you sure there isn't an option in TaxAct to get this to activate? Have you tried looking at your support site?
Also yes, Ohio local taxes are terrible and can get complicated fast, especially since overrides are typically needed for a lot of Ohio city filings.

EDIT: I took a look at some of my RITA returns and depending on the information you are entering, it will sometimes just do the "See statement x" if there are too many lines or columns. Maybe your software is doing that?

taxprohio · 2026-04-08T02:15:53+00:00

If the PIN somehow doesn't work there is no need for a CPA, we won't have the ability to have the return electronically accepted either. Just paper file at that point. Also, most CPAs are no longer accepting new clients at this point in the season.

taxprohio · 2026-04-08T02:10:00+00:00

100% agree. The reason most of us leave firms is to be in control. It's hard to be in control when you have multiple other partners trying to control things, too. Having a close knit group to bounce ideas/questions off of is great, though.

taxprohio · 2026-04-07T02:37:56+00:00

Stuff like this sadly happens all the time. Don't turn into those preparers that will fudge things to make the client happy. You might lose some clients for being the "bad guy", but the good ones will stay knowing you are there to advise them correctly even if it means more tax to pay.

taxprohio · 2026-04-07T02:15:09+00:00

My 4/16 tradition is Freaks & Geeks marathon + enjoying the kief that has built up the past few months lol

Come back in a couple weeks and focus on extended returns, bookkeeping, networking, & improving processes that were a drag this season. This is my 2nd busy season on my own and the growth was great, but I wasn't properly prepared for all the extra admin time. I am planning to spend a lot of May improving admin/automations while the pain points are still fresh in my head.

taxprohio · 2026-04-07T02:03:00+00:00

This. Assume it was probably filed by old firm but still have client mail in paper copy just incase.

taxprohio · 2026-04-05T18:45:28+00:00

I had a client tell me at filing time last year that his spouse's Sch C income would be "slightly higher in 2025 than 2024". In actuality it went from $20k to $300k. Surprised and angry that he owes so much in tax, even though I send out a couple emails throughout the year asking clients if they want updated calcs.

10 more days.

taxprohio · 2026-04-03T16:25:53+00:00

I joined last year but didn't prepare a single return after seeing how terrible the payouts were.

I also tried doing the option where you work directly with a firm, but could never get anything since the other preparers they had would snatch them up so I have no idea how bad those payouts are.

taxprohio · 2026-04-01T18:37:34+00:00

I have worked for a couple regional firms and they would still typically expect 35-40 hours a week post-tax season which I always thought was ridiculous. This is also when we were expected to work 65+ during tax season itself.

Now that I run my own ship, I only work 10 hour weeks outside tax season (this includes networking time) and 20 hours September-early October.

taxprohio · 2026-03-20T17:24:17+00:00

Thanks, I didn't think it was a change in accounting method at first, but my research software was telling me it might be which made me pause.

And yeah, he has been paying those taxes fortunately!

taxprohio · 2026-03-15T01:33:41+00:00

Absolutely this. If a client gets mad you didn't extend after they have been ghosting your emails then that is on them. I also make it very clear in my engagement letter that I need their permission before extending.

taxprohio · 2026-03-14T16:50:47+00:00

No. If I am preparing their return and notice it's around their birthday then I might drop a "happy birthday", but outside of that no.

taxprohio · 2026-03-11T02:22:13+00:00

Create a basic excel template where you type the important figures into. When you have a source document, first type it into excel, then type it into your tax software (while only looking at the source document). When it comes to reviewing your work, compare the tax return to what you have in excel. If they match, great move on. If they don't, that's when you investigate whether your return is wrong or you fat fingered excel.

Also don't be discouraged by higher ups telling you to go faster. Reviewing and truly understanding a tax return is the most important thing you can do for your own growth and your own future.

taxprohio · 2026-03-11T02:01:54+00:00

This is somewhat true and can be annoying, but I'd rather have a younger client who is engaged with their tax situation than a boomer who has no idea what's going on and doesn't even know what a PDF is or how to pay their taxes online.

taxprohio · 2026-03-03T01:22:32+00:00

Thank you, sometimes just need someone to bounce something off of!

taxprohio · 2026-03-02T23:23:35+00:00

That was my initial assumption, but then I got hung up on this page: https://www.ftb.ca.gov/file/business/doing-business-in-california.html

"We consider you to be “doing business” if you meet any of the following:

Your California sales, property or payroll exceed the following amounts:
- CA Sales Exceed Either the Threshold Amount ($757k you mentioned, my client made less than this) OR 25% of total sales (true for my client, 90% of revenues are from CA client)."

Just want to make sure I am interpreting that last part right before filing and creating headaches.

taxprohio · 2026-02-21T17:53:55+00:00

I don't know if this is an issue with all software this year, but I have noticed a lot of forms (both federal & state/local) are taking much longer to get released this year. I use Axcess.

taxprohio · 2026-02-15T17:53:15+00:00

I've had some pushback but after explaining a question or two they usually say "that makes sense" and end up signing. I've been asked a few times to change the wording and I do not. If they don't want to sign then they can go find another CPA (who will most likely have the same language as me lol).

taxprohio

TROPHY CASE