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Choosing the Right Tax Software for You

Author: William Smith Author Ranking Silver | Posted: 07-12-2006 | Comments: 0 | Views: 288 | Rating:  (50) Article Popularity - Green (?) Got a Question? Ask.
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With so many tax software programs on the market, many people are foregoing tax professionals and preparing their own taxes. However, choosing the software program that best fits your needs can be a daunting task.

Do you need tax software made for a business or an individual? How much can you afford to spend on software? Spend some time comparison shopping, and you'll be able to make an informed choice.

Best Tax Software For Complicated Returns

Intuit TurboTax Premier is frequently rated the top tax software program for people who have complex returns. This software allows you to deal with complicated issues such as multiple stock sales, mortgage refinancing, rental expenses and income, and business deductions.

This tax software can prepare W-2 and 1099 forms for your employees, and it also helps those filing Schedule C. This program includes all of the federal tax software, and offers step-by-step instructions on how to download the software for your home state. You can also e-file with the government for free, using this program.

The program walks you through each step of the process, so it is nearly impossible to skip a step or forget something, which is great for less experienced software users.

TurboTax Premier runs about $60, but is well worth it if you have a complicated return. Intuit also makes a version called TurboTax Deluxe, which offers the same state and federal tax software, but is geared towards someone without capital gains, employees, or other business considerations.

If you don't need those features, at about $35, this software is a better value. Both TurboTax programs are known for having thorough customer service, so if you're new to using tax software, it might be worth your while to spring for one of these programs.

Tax Software on a Budget

If you have a very simple, straightforward return, you might try TaxAct Ultimate. Selling for about $20, this program still offers the state and federal tax software and the free e-filing that the pricier options give you.

If you are confident that you won't run into anything out of the ordinary during your tax preparation, this software will undoubtedly serve you well.

Individuals whose adjusted gross income is less than $50,000 have a very inexpensive option- filing for free on the IRS website. This is only for your federal taxes, however.

You'll need to handle your state taxes on your own, either with a professional or with a software program. Luckily, despite what many think of the IRS, their website is very easy to navigate, even for people who have never filed their own taxes before. With this method, you won't have a hard copy of your return, other than what you print out.

If you don't feel comfortable leaving everything to cyberspace, you might want to forego the website and use a software program, even if you have to spend a little money for it.

Still Afraid of Going It Alone?

If you're worried about making mistakes, or if you think that you may get fed up halfway through the process, H&R Block TaxCut Premium is a great program for you. The program runs about $40, but if you decide at any point during the process that you simply can't manage on your own, just take your copy of the tax software to your nearest H&R Block storefront.

They will credit you the price of the software towards your tax preparation. Also, TaxCut Premium offers a safety net for those unlucky 1 percent who face audits each year.

Even if you complete the process all on your own, and e-file your return if you are selected for an audit, H&R BLock's Worry-Free Audit Support ensures that a live tax professional will personally help you prepare for your audit.

As you can see, tax software is available to help anyone who wants to try their hand at filing their own taxes. Choose the software program that's right for you, and you'll be shocked at how easy it can be!

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Frequently Asked Questions

IRS w/holdings on investments and CHILD SUPPORT w/holdings..
By: SoSwtnSasy | 12-09-2008
Two quests: 1) Can the IRS take money i had invested w/ EJ (from husbands death (2001) from death benefits/life policies) if i haven't filed taxes for a few yrs? I just haven't filed as i don't work. I'm disabled since i was 28 am now 38. They are seizing monies from the acct and i just found out now.. 2) Can child support be deducted from investments ie: a bond? Or just the interest earned on it? Ty! Dani

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Hello,  I had a few tax questions I was hoping you might be able to answer.  1) If trying to use principle of Roth IRA tax free for first time home purchase, does the first time home purchase need to have a structure or can it be undeveloped residential property? 2)  Can a tax free Roth IRA principle be used for first time home purchase in Canada? 3)  Is a Canadian employer required to issue a 1099 or any like document for contract employment?  4) Does the burden of responsibility for 1099 Private Contracting Declaration fall on the payer for services rendered? 5) If no 1099 is issued then how does one declare private contracting income? 6) Are there any special tax guidelines for self employment in Agriculture: Equine Training/Service? 7) Is reimbursement  for materials/equip rental on a contract job taxable? 8) What is the proper way to declare worldwide income? 9) If a spouse receives most of his/her income in another country, what is the proper way/status to file/file under?   To what extent is time spent in the foreign country a concern?10)Where do I send esimated federal tax if I am a resident of WY. I hope these questions are clear enough.  Thanks for any assistance you can provide.  Walt

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By: Momof2 | 09-09-2008
Hi Tracy, I have a somewhat complicated story which I'll try to keep simple.  I have filed taxes for 2004, 2005 but not yet for 2006.  In 2004 I was entitled to the earned income tax credit but did not take it mostly because I was doing taxes manually and didn't know enough to do it.  I believe I am entitled to a refund.  In 2005 my husband had significant earnings and he has not yet filed for that year.  Now, because I am going to have to file bankruptcy, I must file everything.  Here's the question.  Either one of us (my husband and I) or both of us have been on the title to our home since 2004 (longer than that but that's another very complicated story).  My grandmother was also on title and the mortgage was in her name.  HOWEVER, we made ALL THE PAYMENTS and can back that up with copies of checks.  As our mortgage was sizeable ($36kish) we'd REALLY like to deduct it.  Can we?  We have the relevant forms from the bank documenting the interest paid.  Is it best to just deduct it and include the form with her name and hope for the best or is it better to include an explanatory letter with copies of the checks.  Keep in mind that I will be submitting three years back taxes at once - hopefully with a refund for 04 and 06 and taxes due (for my husband) from 05.  So, can I deduct the mortgage since we paid it even though it was in her name?  My grandmother never deducted it (she passed in 2004 but we didn't refi into our names until 2006).  Should I send it in with the form in her name or should I write an explanatory letter and include evidence? I need to do this very soon as I need to get the refunds before I file for bankruptcy.  Many thanks!

Sam and Janet are married. Sam left home in ...
By: Sandee | 08-09-2008
Sam and Janet are married.   Sam left home in April 2007.  Before leaving home he earned 3000.00.  Janet did not know of his wearabouts.  If Sam made any more money that year Janet is not aware of it. Must Janet file an income tax form for 2007?  What filing status should she use?  How much income should she report? 

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