Posted on 01/01/2005 7:56:45 AM PST by expat_panama
Tony Lima, Special to PC World
The W-2 forms have arrived, the 1099 forms aren't far behind, and it's time to choose your best line of defense against the IRS.
Three companies lead the pack for desktop tax software. By my ranking, they are TurboTax from Intuit; TaxCut, marketed by H&R Block; and TaxAct, sold by 2nd Story Software.
You can find Web-based versions of these three programs, as well as of CCH's CompleteTax and Petz Enterprises' TaxBrain. Those online options are reviewed separately.
The shrink-wrapped programs are very different, and each is available in several versions. TaxAct is the budget deal, offering a free download ($6 for a CD). TurboTax starts at $30 for the Basic package; most comments here are about the Premier version, however. TaxCut's pricing starts at $15 for its Standard version, though my evaluation covers the Premier version. Various rebates reduce some of the prices. On the other hand, getting support for state income taxes costs extra in some cases.
[snip]
(Excerpt) Read more at pcworld.about.com ...
Ideas?
Marry a CPA, like I did then you don't have to worry about tax software. :-)
She does it manually and refuses to trust software for tax purposes.
I use Turbo Tax Deluxe in combination with Quicken. I use that to create tax return for me which includes self employment income and depreciation. Now that I've got most of my Quicken entries coded properly, at the end of the year importing Quicken into Turbo Tax takes care of the bulk of the data entry. I spend more time reviewing the final return and printing it out than I do actually preparing the forms. Does state return also. I like it a lot. In a crunch I could complete the return and prepare the mailings to fed and state in about four or five hours. If my income didnt come primarily form self employment income I could finish in probably an hour or two.
My returns have also been pretty complicated and I've used TurboTax for years. Since they got rid of their copy protection scam a couple of years ago, I'll probably be using them again. I think if you have a complicated return they're the way to go - this article seems to support that. The one thing I don't like about TurboTax is how you get a free e-file of the federal tax but then you have to jump through some hoops to actually get the rebate for it.
Use Turbo tax. When you give up you can bring a copy to many tax preparers who will be able to transfer your file to the preparer version of turbo tax.
I have used TaxActonline for three years running, and I'm very impressed with it. My returns don't sound as complicated as yours, but they aren't all that simple, either.
>> I really want to know what y'all have been using.
My wife the tax CPA, and whatever serious CPA firm tax software her firm uses. It isn't one of the ones in this article.
We endeavor to become the kind of client her firm seeks out.
I remember reading an article in Consumer Reports a few years ago where they had their staffers sit down at all three of the major packages. Each input the given scenario and they then evaluated the package that was easiest to use. In short, they found few differences and all were rated as "easy" to use. And, by the way, no one got the correct answer.
The fact of the matter is that ANY reputable tax package will do what the average person needs. The problem is with understanding the tax law and knowing what is needed. I am a CPA and have prepared tax returns for 21 years and even I don't know everything (although I know how to research).
My advice would be to spring for the money to go see a good CPA this year. See what they do, what they ask for and where all the numbers go. Next year, find a tax package and do it yourself based on how the prior year return was prepared. Then find another CPA who is willing to check your work (for another fee). Keep doing this until you are sure you can do it right (a total to 2-3 times to a CPA should do what you need), then start doing it yourself again. It will cost you for a couple of years, but you will have more peace of mind.
Besides, by then we will have tax simplification - and even a good CPA won't be able to figure it out.
Link for
Free File Home - Your Link to Free Online Filing
http://www.irs.gov/efile/article/0,,id=118986,00.html
Very interesting-- thanks, and a very happy new year to you and yours!
I think it depends on how complicated your return is. I used to use turbo tax, then I had a small business and some other things so I used an accountant. For 2004, all I will have is mine and my wife's w-2's, the mortage interest deduction, and the child tax credit, so I am going back to Turbo Tax.
I've been using Taxcut for about 15 years... but as others have said if your taxes are simple then any of the packages would work.
| --"added a Product Activation scheme that completely alienated their customers. Much like Microsoft's Windows XP, the TurboTax product has to be activated. While I had no problem with activating the process, others have had difficulty. In the past month, my e-mail box has seen a steady stream of TurboTax users who have complained that the activation has caused problems. This has been compounded by the fact that the TurboTax technical support number wasn't manned late at night or on weekends. (Although I hope that it will be as we get closer to tax time.) The activation scheme also allows you to print returns or electronically file from only one computer. This has also caused frustration for some users. It could also cause more frustration as tax payers look to reinstall the program in the future to view previous tax information." |
IOW, when I get next year's gripe from the IRS, I'd be SOL if I've changed computers.
Is that a new source you quoted from? As I recall, this was an issue last year that I thought Turbo Tax was going to fix.
That is a 2003 article. I believe that it is outdated.
I do my own taxes using Quickbooks for my business and TurboTax. That said, there were a couple of years where using a real CPA would have saved me a bundle, but I didn't realize it until too late.
Most years, TurboTax is fine. Intuit used to shaft me on the rebates but lately has been more reliable.
I wouldn't mind trying a different program.
Virginia state taxes can be filed online for free. This is a wonderful thing, it works very well for us.
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