Tax season is a high stress time for many tax-paying individuals. Even for the self proclaimed math proficient the pages and pages of tax code and line items make the simplest returns less than user friendly. Luckily we are past the days of paper booklets, scrap paper and calculators! The many online tax preparation services and self serve tax calculation and filing software programs have made the process much more user friendly. With all of the tax preparation software options and competing services, how can you know which programs perform well under the pressures of tax season? These five online tax preparation programs will make your life easier as that tax deadline approaches!
H&R; Block at Home. The latest online tax preparation software from H&R; Block replaces the TaxCut software that the company has used for a number of years. The latest version remains user friendly with various levels of the program available for the many needs of users. Those with basic returns can easily use the lower tiered software while those with more complex returns require the more detailed, more expensive, tiers of the program. The software allows returning users to import basic information from previous returns-making it a wonderful time saver! Users enter details as requested by the software “interviews” through the areas of personal information, income, credits, and deductions. The software is equipped with a library of help documentation to explain virtually every question throughout the interviews. The service also allows for a free consultation with an H&R; Block tax professional to ease any last minute questions. As with most tax preparation services, users are able to eFile free of charge with paid preparation.
TurboTax. This software from Intuit remains popular. As with the H&R; Block at Home software, TurboTax allows the import of previous year’s TurboTax entered data as well as supporting the import of QuickBooks financial data. This software offers tiered levels for users to choose from based on the level of support and detail required for the individual tax situation. The online system, and the downloadable version, offers easy to understand “interview” style questions to allow users to enter details into the appropriate forms. TurboTax does offer help documentation throughout the process but, professional consultation is only available for a fee-but, the service includes access to an online forum for help and questions. Again free eFiling is available for those with paid form preparation.
TaxAct. This is one of the least expensive software pieces for the amount of detail and level of preparation service. TaxAct allows the import of previous year’s data-but, there is no upgrade of software for users of older versions. Those with older versions must upgrade to the newer online or downloadable software. TaxAct is different than the previous two software pieces in that users may choose a user friendly “interview” style of data entry OR enter numbers directly into the forms manually. This is great for those who manually complete the forms but want the opportunity to eFile. Some of the “interview” areas are more drawn out than in the other two programs discussed, but TaxAct does offer email or phone support with paid plans and uniquely offers forms that support the completion of college FAFSA documentation. Free eFiling is also available for paid form preparation.
CompleteTax. This software offers much of the same functionality as the last three programs, but with less ability to accomplish more complex returns. Users are able to import previous year’s data-as well as payroll information from affiliated servers. CompleteTax uses interview style data entry and has a wealth of tax help information in its library. The interviews and help information are not as simply worded and easy to understand as the previously mentioned online tax services. Users have access to customer service via email and online chat and free eFiling is available for paid form preparation.
TaxSlayer. This is an extremely low cost option that seems to work well for simple returns. Data can be imported from previous returns and the software uses interview style data entry and does have a large searchable database for help. Recently, the software does seem to be slipping in functionality as filing errors have become more common on more complex returns. For those unfamiliar with credit and deduction eligibility or for those with more than basic, simple returns, TaxSlayer may not be ideal. Customer support is accomplished through email and is not as readily available. For simple, W-2 income situations in one state without itemized deductions or investments, or the need for customer service, the cost of TaxSlayer makes it a viable option.
Tax preparation software has advanced a great deal in the past decade. Most software allows users to sample the software and even complete the return in many cases-requiring payment only once the return is filed or printed. Try a few before selecting one to find the style and tone of the software that appeals most to you and best fits your individual tax situation.
