Tax Filing Easy With Software

Software Review

It's time to start thinking about taxes.

I suggest your first task should be buying tax preparation software to see what you could do today to lower your tax burden.

Even if you've got relatively complicated taxes - I itemize, run a small business and have a few small stock investments, for example - tax software can handle your return relatively easily. There are few basic home and office tax situations these programs can't handle.

TurboTax ranges from $20 to $90 after rebates, depending on whether you want a basic program for individuals or a fully featured program for business returns.

TaxCut is cheaper: $9.95 to $49.95 after rebates. The different versions include various freebies, such as a free version of Microsoft Money and a free version of Kiplinger's WILLPower or Home and Business Attorney program. Some offer a free download to handle tax returns in one state, as well.

Both programs can file tax returns with the Internal Revenue Service over the Web. But again, the costs vary depending on what type of state or federal return you're filing and, for TaxCut, whether you want the professionals at H&R Block to do it for you.

New for both packages this year are a host of add-on programs, advice opportunities and extra fees that are pitched throughout the tax preparation process.

There's the Review My Return fee if you want a real, live person to look over your return ($39.95 home, $59.95 home and business for TurboTax; $29.95 for TaxCut); ItsDeductible ($19.95 for TurboTax) and DeductionPro ($19.95 for TaxCut), third-party programs that analyze what you've given away or otherwise done this year to lower your taxes; live tax advice ($19.95 for 10 minutes with TurboTax and one issue with TaxCut); and the Tax Organizer ($14.95 for TurboTax).

TurboTax has always been my pick in past years for its thoroughness, flexibility and power in dealing with home and business returns. That's still true; the Premier version we tested handled our complicated test returns with aplomb. If you use Quicken to balance your checkbook, you'll appreciate the ease with which many of your return lines are filled out for you.

But TaxCut has added many of the pieces it was missing, and the price difference is growing. It finally addresses most common situations for home and small-business owners this year, and it's easy to use.

Copyright 2003 The Myrtle Beach Sun-News All Rights Reserved The Myrtle Beach Sun-News
January 10, 2003 Friday TSN EDITION, BYLINE: By Heather Newman; Knight Ridder