Income Taxes Computer Program or Paper?

[NY_Yankees_Fan]

I have done my income taxes the old fashion way, filling out the IRS forms with a pen for 25 years. Many years ago I would go to an accountant and watch him fill out the forms and charge me a $100 for that pleasure. I was wondering how many of you have used the computer programs now available. Did it save you time?, did it pick up something you missed,which program did you use? Any good web sites that compare the programs and features, etc? My return is not anything special a few kids, a mortgage, etc. no big capital gains, etc.

 

[Jimbrown]

I have used Turbo Tax for 8 years or so. It will do everything you want. You can let it talk you through the process or just do the forms as you would with paper. If you use it more than one year it will import all the data from last year into the new year so that you do not have reenter the same data. The basic program is about $20 most places.

 

[Bird]

TurboTax is the only one I've used, but I've been using it for too many years to remember when I first started. And I just installed it on my computer yesterday evening to use this year. I like their "interview" method of entering all the information.

 

[OkeeDon]

Computer. No question about it. If for no other reason, because it prevents math errors, and always transfers the correct amount to the correct place. The IRS says that most problems with returns are due to simple math errors. At the conclusion of filling out your taxes on the computer, the program will do an integrity check to make sure there are no errors.

In the early days, I tried a number of different tax programs, sometimes doing the taxes twice on two different programs for a direct comparison. In my opinion, there is only one choice - TurboTax. One interesting fact is that the TurboTax folks work so closely with the IRS folks, that the TT folks have pointed out errors in the returns to the IRS, and the IRS has made corrections.

I also use Quicken, but I don't import my Quicken data into TurboTax. I found that if I made any errors in categorizing the Quicken data, it will mess up my return. Instead, I use Quicken reports as my reference, and enter all the data into TT myself. If I receive any W2's, 1099's, or other statements, I use the number on the statements rather than my Quicken data -- that way, the numbers always match the statements already filed with the IRS. If I ever found an error on a statement, I'd request a new statement rather than trying to correct it myself on the return -- that would just flag it.

The IRS never releases information about how they flag returns, but I'm certain they do a lot less checking when the return is filed through a legitimate tax computer program they trust, because they know the odds are that there will be no math errors. Above all, I try to avoid having my return flagged for any reason. I've never been audited (knock on wood). It's not that there is anything wrong with my returns (there isn't); I just don't want the hassle.

 

[Bird]

</font><font color="blue" class="small">( I also use Quicken, but I don't import my Quicken data into TurboTax. I found that if I made any errors in categorizing the Quicken data, it will mess up my return. Instead, I use Quicken reports as my reference, and enter all the data into TT myself. If I receive any W2's, 1099's, or other statements, I use the number on the statements rather than my Quicken data -- that way, the numbers always match the statements already filed with the IRS. If I ever found an error on a statement, I'd request a new statement rather than trying to correct it myself on the return -- that would just flag it. )</font>

That's just the way I do it; thought maybe I was the only one too lazy to get Quicken all set up properly to just import the data. /forums/images/graemlins/wink.gif /forums/images/graemlins/laugh.gif

 

[fishman]

I always did it the old-fashioned way as well, first getting the necessary forms at the library, then graduating to pulling them off the web, and finally using Turbotax starting two years ago. There is no comparison. It's not difficult, but it did take a little while for me to figure out the software. When done, you certainly feel that you've done your taxes to the best of your ability. I also use the e-file, which is great. Works fine over dial-up if that is a concern, and you get your refund (if you have one) in days instead of weeks.

I recommended Turbotax because that is the only one I am familiar with. Certainly a vast improvement over paper and pencil.

 

[Joe1]

I have used TurboTax for about 6 years now. The first year takes a while to get everything in, but the subsequent years are much easier. What is particularly nice is doing the state returns. Once the FED is done, the state takes literally only a few minutes. It used to take hours by hand to make all the adjustments to the FED for the California Nightmare.

The professionals use more sophisticated versions, but my life is simple so my tax preparation software is also simple.

I also do my daughter's return and she lives in Pennsylvania. I don't know squat about Pennsylvania taxes; don't have to, TT knows, that's what's important.

For what it's worth, I spent 27 years investigating Criminal Income Tax Fraud for Uncle Sam and know my way around tax returns pretty well, and do mine with TT.

There may be better ones, but TT works fine for me.

It is also possible to override the program if you need to, so you'e not stuck with their calculations, such as for depreciation, etc.

I'm still responsible for what goes on it, and I have a smaller lump in my throat when I file using TT.

It also offers electronic filing options, but I file by paper. Oldfashioned, I guess.

Joe

 

[r0GuE]

Turbo tax, no doubt about it. Watch for Staples or Office Max coupons. I got Turbotax deluxe which includes state and e-filing for both and got a 10 dollar rebate and a 15 dollar staples gift card. Total expense,... $15.

 

[herbenus]

Turbo tax is the only way to go. And if have you brokerage accounts, it goes on line, downloads all info, and you let it figure all the capital gains, etc. I bought mine but may take it back and upgrade to the self employed / home office version. I'm doing a little contracting on the side and this may help.

 

[KubotaSteve]

As an accountant, of course my answer is computer. I don't really have a preference on the type of software, but Turbo Tax is the most recognizeable one. You can also go to the IRS website and they will have a list of software which you can download. Since I only do my own taxes, I use Taxslayer and it only charges you if you use the software to file your return online and then it is like $10. It is really simple to use and it too will import data from previous year.
Most people just use Turbo Tax because it was one of the first and is probably the most heard of.