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Intuit’s TurboTax is one of those rare pieces of software that effortlessly straddles seemingly opposite niches: it’s quick and easy for novices and first timers, while remaining exhaustive and up-to-date for those with more complicated finances. No other Tax preparation suite has as many features as TurboTax, but it should also be noted few are as expensive, or have more extra fees for various services.
Versions
Intuit has introduced a free edition for 2008 tax season for those who will file using the 1040EZ and don’t need much guidance while preparing a simple tax return. They eliminated the TurboTax Standard and Basic versions and introduced Free Edition this year. Looks like they are feeling competition from 2nd story software (Makers of Free TaxAct software) and this Free Edition may be a response to it. The state tax return with Free Edition is also discounted to $25.95. TurboTax Deluxe ($29.95) adds support for itemized deductions, and Premier ($49.95) adds further support for stocks and bonds and as well as rental property income. If you are self-employed or operate a small business, you will need TurboTax Home & Business ($74.95) .
TurboTax Free
For the 2007 tax year, Intuit, the company, is following 2nd Story Software when offering
Free Tax Software
; outside the IRS free file alliance. TurboTax Free Edition is recommended for those who file simple tax returns like 1040EZ or 1040A.
TurboTax Basic
TurboTax Basic gives you a step-by-step guidance system while preparing your tax return. TurboTax Basic helps you to prepare and e-file taxes by answering simple and easy to understand questions and the software will transfer your answers to tax forms.
TurboTax Deluxe
TurboTax Deluxe
is one of the top rated software packages for those tax payers who prepare and e-file common tax returns, including itemized deductions. The cost is $29.95 for the federal tax return and comes with an array of features. The deduction maximizer searches for over 350 tax deductions which you could have overlooked. The Its Deductible tool comes with the deluxe version and can be used to find accurate values for charitable donations. These tools enhance accuracy of your tax return and help maximize your tax refund.
TurboTax Premier
TurboTax Premier is uniquely formatted for those who own investments and rental property. You need this version of software if you do lot of transactions involving capital gains. It will accurately calculate the cost basis of mutual funds purchased over a period of time. If you own rental property then you will benefit from using TurboTax Premier to take advantage of its capability to find all capital gains and losses automatically.
TurboTax Home & Business
A sole proprietor, consultant, or those who own a part-time business will be able to take advantage of many features in the TurboTax Home \& Business software. Business taxes are more complicated compared to a personal tax return. Also a business may be eligible for some of the less known business tax deductions. Using this tax software specially made for business owners will help them to prepare their tax return easily and correctly without missing any valuable tax deductions. Anyone with some tax knowledge can use TurboTax Home & Business tax software instead of hiring a tax professional and you could save hundreds of dollars. You can prepare and e-file both personal tax returns and business tax returns together with this tax software.
TurboTax business
TurboTax business tax software is for filing appropriate business tax returns for a S Corporation, a partnership, a C Corporation, or a LLC’s type of incorporation. Using this software, business owners could file their business tax returns for a fraction of cost of hiring an accountant. It comes with many tools to maximize industry specific business tax deductions and to identify the best depreciation method. TurboTax business tax software is available for downloading or a CD could be ordered.
Features
A clean, responsive AJAX interface makes navigation through TurboTax easy. Deductions are grouped by category into a central list, allowing you to jump in and out of each section in the order you choose without losing data. A small gripe is that you cannot jump between individual forms, only sections, so trying to go back to a form that falls near the end of a section can sometimes take an annoying number of clicks. A “maximize my deductions” button guides the user through a list of common deductions sorted by how applicable they are to the return. The software also functions well as a tax tutor, linking each term to a central tax glossary, and affixing a “Guide Me” or “Explain This” button to any section that could conceivably be confusing. Some sections even feature a built-in video tutorial that will guide you through the interface click by click, or offer taped explanations of tax concepts.
TurboTax sports an impressive array of features. Naturally, it supports the importation of financial data from Intuit’s bookkeeping software, Quicken . It will also import financial information from Microsoft Money and major 90 US banks, as well as import W2 data from several different payroll companies. A deduction tracker at the top of the screen tracks your savings or the size of your return in real time, and the software will even keep track of your deductions from year to year, suggesting new opportunities for which you may not have been eligible in the past. A side-by-side comparison of filing jointly versus separately from your spouse is not available, but performing an impromptu comparison using the deduction tracker is a one-click process.
Support:
Support is offered in the form of an extensive FAQ, well-populated and active forums, a blog, an (almost useless) automated chat system, and a support line. Technical support by phone as well as professional tax advice are offered 7 days a week fro 8am-5pm. Unfortunately the latter will cost you $29.95 per phone or email conversation. You can check your federal status after 24-48 hours and your state status after 5 days. A professional audit defense will cost you $34.95, which compares unfavourably to HR Block’s TaxCut suite , where this is included at no extra charge.
Conclusion:
Feature-wise, TurboTax is the undisputed king of tax suites, and its deduction manager is peerless among its competitors. It is also one of the most expensive suites, especially considering the extra charges for audit defense and tax advice. If you plan on using either heavily, should consider TaxCut Signature , which offers both services for about $28 (with 15% coupon here ) more than TurboTax Premier . In any other situation, it’s hard to go wrong with TurboTax.
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