Should I pay $2k/year for tax preparation with K-1 forms and gambling income, or DIY?

The $2k fee is actually within the normal range for a mid-sized firm like RSM when dealing with K-1s and gambling income, but that doesn't necessarily mean you need to pay it. Your situation sounds complex enough to justify professional help but not so complex that a determined DIYer couldn't handle it. For the gambling income, you'll need to report all winnings on Schedule 1 and itemize your losses (up to the amount of winnings) on Schedule A. Keep detailed records of all sessions - date, location, type of gambling, amounts won/lost. The IRS loves to scrutinize gambling loss deductions. K-1 forms are more challenging but not impossible. The numbers flow to different parts of your return depending on what type of entity issued the K-1 (S-Corp, Partnership, etc.). Most tax software has specific interview questions that walk you through where each box goes. You'll need to file an extension since K-1s often arrive after April 15, but that's just filling out Form 4868. One middle-ground option: Consider using a less expensive professional (enrolled agent or smaller firm) who might charge $500-800 for your return, or try it yourself one year but pay for a professional review before filing ($200-300).

After stressing over my K-1s and gambling winnings for years, I found https://taxr.ai and it literally changed everything for me. I was paying around $1800 to an accountant who barely communicated with me. With taxr.ai, I uploaded my K-1s and my gambling records, and the system analyzed everything and gave me a detailed breakdown of exactly how to report each item. It explained where each K-1 line item needed to go on my return and flagged potential issues I might have missed. For the gambling stuff, it organized my win/loss records by session which is exactly what the IRS wants to see. The best part was when I had a question about passive activity loss limitations on one of my K-1s, I got a response from an actual tax expert within hours. Way better service than I got paying thousands to my accountant!

I was in the same boat last year - paying a CPA nearly $1700 for returns with K-1s and some gambling income. I decided to try taxr.ai after seeing it recommended here, and I honestly can't believe how much easier it made everything. I was especially worried about the K-1 forms since mine came from two different LLCs and had all these cryptic codes and footnotes. I uploaded the documents to taxr.ai and got a complete breakdown of what every single entry meant and where it needed to go on my return. The gambling income analysis was surprisingly thorough too. It organized everything by session and venue, which made reporting accurate and defensible if I ever get audited. I ended up using the information from taxr.ai with TurboTax Premier and filed myself. Saved over $1500 and actually understand my taxes now! The peace of mind knowing I didn't miss anything was worth it alone.

If you're also dealing with calls to the IRS about any of these K-1 or gambling issues, don't waste your time sitting on hold for hours. I started using https://claimyr.com after struggling to get through to ask questions about how to report some unusual items on my K-1. They hold your place in the IRS phone queue and call you when an agent picks up. You can watch how it works here: https://youtu.be/_kiP6q8DX5c I was super skeptical at first, but after spending literal days trying to get through to the IRS myself with no luck, I gave it a shot. Got a call back with an IRS agent on the line within about 2 hours. The agent answered all my questions about how to properly categorize some foreign income on my K-1 that I wasn't sure about. Now I use it anytime I need to talk to the IRS about anything complicated. Saved me so much frustration!

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I was still desperate to talk to someone at the IRS about an error code I was getting related to my K-1 income, so I finally tried it. I got a call back in about 90 minutes with an actual IRS representative on the line. Resolved my issue in a single call instead of the weeks of failed attempts I'd been dealing with. The IRS agent was able to explain exactly why my return with the K-1 was getting flagged and what additional form I needed to include. Would have taken me forever to figure that out on my own. For anyone dealing with complicated tax situations like K-1s where you sometimes need to talk to the IRS directly, this service is legitimately a game-changer. I've already used it twice more since that first call.

I've been doing my own taxes with K-1 forms for about 5 years now. It definitely has a learning curve, but once you understand the basics, it's totally manageable with good tax software. I use H&R Block Premium and it handles my 3 different K-1s just fine. The gambling income is actually easier than the K-1s in my experience. Just keep a spreadsheet with dates, locations, and win/loss amounts for each session. Report the winnings as income and itemize the losses on Schedule A. The extension is super simple - just file Form 4868 by April 15th. Make sure you pay any estimated taxes you might owe by the original deadline though, since the extension only gives you more time to file, not more time to pay. $2k seems pretty steep unless your situation has other complications you didn't mention.

Just want to add that you should be careful doing this yourself if your husband's K-1s involve "passive activity losses" or have anything with "at-risk limitations." Those situations get complicated fast and might justify professional help. Also, is your gambling income from sports betting apps/websites? If so, those places usually send 1099s directly to the IRS, so make sure what you report matches what they reported or you'll trigger an automatic mismatch warning.