Favorite Tax Preparation Software?

[jollystomper]

H&R Block Premium (efile + State) for the past 5 years, since TaxAct got too expensive in my view. I efile Federal, then use the info on the state forms to fill in the State efile website form.

 

[Rocket Man]

I use Tax Act and I have been very happy with it. The price has been going up every year, but I would be hesitant to switch. I import the previous year’s information for the current return and it is easy peasy! I am afraid to switch companies and get things messed up. It may not be a problem, but do not want to chance it.

 

[georgemoe]

Another FreeTaxUSA user. Been using for a couple years now and works well for me. As mentioned previously free FED and $13.95 to efile state.

 

[RunningBum]

OP, are you really worried about spending a few more bucks to make sure you get it right? What can you save? $30, $40? At the risk of spending hours on the phone with the IRS?

Anyway, I have always used TT. Never had a problem. I use Premium. Probably don't need it, but got it for $58 and got a $10 Amazon Gift Certificate. So, $48 net.

+1 That is exactly what I was thinking when I read the OP. I use Deluxe even though TT's marketing material would "recommend" Premier for me... $30 net for 2020 and I e-file 5 federal returns for that $30.

I would think that $30/year would have been well worth it for the OP to avoid the problems that he has has because he decided to go cheap and I don't see a different version of cheap as making a difference.

Another +1. OP has to file amended taxes for the last 2-3 years because of trying to save a few bucks on a tax program, and is still being cheap? Ridiculous.

Besides, you can go to Amazon and probably other reputable places to buy the TT Deluxe version on CD or download for $39, $49 with state.

 

[mountainsoft]

Another +1. OP has to file amended taxes for the last 2-3 years because of trying to save a few bucks on a tax program, and is still being cheap? Ridiculous.

I'm not trying to be cheap, but why pay more than I have to? $120 (Turbotax price on their web site) is a lot to pay when there are plenty of lower cost options. My needs are simple, I don't need top of the line. Thankfully, by asking here I have discovered other options I wasn't aware of.

I already filed our taxes for 2020, but I found the H&R Block Deluxe without state on Amazon for $18+tax. I bought it anyway so I could try it out and see how it works for next year.

Overall I think I like it. The low contrast appearance is a little hard on the eyes, but it seems fairly easy to use. I liked that I could import from my wife's W-2 form, though I did have problems importing other forms. It wasn't that hard to enter manually though. Being able to download brokerage transactions directly from Vanguard was a great time saving feature. I also like being able to save the tax file on my own computer (in addition to the final PDF version).

 

[JoeWras]

You should be fine with HRB. Good luck.

I think TT is a bit easier to use, but HRB is a good product too.

Here's a tip if you are interested in TT. For the last few years, Amazon's one day sale of TT has been Dec 26. This year it was $30 for TT Deluxe (including free fed file and 1 state).

The list price is fiction. Don't pay it!

 

[finnski1]

I'm not trying to be cheap, but why pay more than I have to? $120 (Turbotax price on their web site) is a lot to pay when there are plenty of lower cost options. My needs are simple, I don't need top of the line. Thankfully, by asking here I have discovered other options I wasn't aware of.

I already filed our taxes for 2020, but I found the H&R Block Deluxe without state on Amazon for $18+tax. I bought it anyway so I could try it out and see how it works for next year.

Overall I think I like it. The low contrast appearance is a little hard on the eyes, but it seems fairly easy to use. I liked that I could import from my wife's W-2 form, though I did have problems importing other forms. It wasn't that hard to enter manually though. Being able to download brokerage transactions directly from Vanguard was a great time saving feature. I also like being able to save the tax file on my own computer (in addition to the final PDF version).

Well as others have pointed out you can get TT home and business for a lot less than $120, Right now it is $79.99 on Amazon and I saw it as low as $54.99 somewhere else.
Depending on what your needs really are you can probably even use Deluxe at $39.99 or lower if you wait for sales as JoeWras pointed out.
Been using TT deluxe for years and for $40 bucks it is a no brainer to me. Simple to use, accurate etc and I'm pretty frugal myself.

 

[frank]

I have used taxhawk for the last 5 years, free fed and 12.95 state. carries over information from one year to the next. very intuitive. you can print out a state summary and mail it for free if you want. I like it a lot. I have used turbotax freedom edition for my grandaughter for the last two years and am impressed with the improvements they have made over the last year. I might use the freedom edition myself if it keeps improving.

 

[Car-Guy]

Turbo Tax Premier. From my POV it would still be cheap at twice the price.

 

[JoeWras]

Depending on what your needs really are you can probably even use Deluxe at $39.99 or lower if you wait for sales as JoeWras pointed out.
Been using TT deluxe for years and for $40 bucks it is a no brainer to me. Simple to use, accurate etc and I'm pretty frugal myself.

Yeah, it is pretty easy to find it for $39.99 during various windows. The Dec 26 was special in that it was still $39.99, but they added an instant $10 coupon you had to enter.

 

[Tafkah]

I've used Credit Karma for years with no problems. It's free to file both Fed and State, and is very straightforward. I like that they don't try to sell you anything.

 

[frank]

I've used Credit Karma for years with no problems. It's free to file both Fed and State, and is very straightforward. I like that they don't try to sell you anything.

I ran into that with taxslayer they say it is free until you get finished and it pops up with a bill for 50 or whatever

 

[Sunset]

While its fun to get the tax software at a good price, any way you look at it, we are saving money.

I do this old relative's tax return for free, after she told me she normally pays $250 to get it done at some tax place.

Compared to $250 , we all are saving a lot.

 

[qwerty3656]

+1 H&R Block

 

[MichaelB]

“Favorite tax SW” is sort of like “favorite hammer to smash my thumb with”. I don’t complain about taxes, but I also don’t look forward to preparing my taxes and the words “favorite” and “tax” just don’t seem to fit together.

Could be just me.

 

[frank2009]

Used Credit Karma for the first time this year. My taxes are simple though; just a few 1099's.

 

[GalaxyBoy]

HRB basic cheapest version. Handles everything we need including SS, pension, capital gains, Roth conversion, and common deductions. The only thing I’m annoyed with is foreign tax credits and form 1116. It handled it but I had to manually initiate the form and the mini interview was pretty basic and I had to consult the IRS instructions. There are threads on this issue from several years ago and apparently the more expensive version wasn’t any better at it.

For state, I use Virginia’s free fillable forms online. Our state is pretty simple so no need to shell out for me.

 

[mountainsoft]

My bank had an offer to get Turbotax for $30 so I figured I would give it a try. This was the online version, so I don't know how it compares to the download version. It started out well, looked nice and was easy to follow. After entering some investment information, it told me I would have to upgrade to the $50 plan. Annoying, but that's not prohibitive so I continued. Entered my simple self employed income, and TT told me I would have to upgrade to the $70 plan. I saw where this was going, so I bailed out. The interface was nice, but not worth the added costs.

I also tried FreeTaxUSA today to see how it compared. I was pleasantly surprised how easy it was to use, but after trying a few different products I'm getting fairly good at entering tax forms. The only advantage I saw with H&R was the auto download of investments from Vanguard, nice to have but certainly not a necessity.

The good news is every tax program produced the same results (except EZTaxReturn which didn't record my Roth conversion as taxable income). They each have their quirks, but really any of these tax preparation tools would be acceptable.

If I can find a good price on H&R next year I might go with that, otherwise Credit Karma or FreeTaxUSA would both be great options too.

 

[Sunset]

.....

If I can find a good price on H&R next year I might go with that, ....

Watch near the end of Nov, I buy whenever I see the price around $22 or less.
There is usually a thread on the site about the price at that time

 

[JoeWras]

The only thing I’m annoyed with is foreign tax credits and form 1116.

When I had REITs, I kept them in my 401k to avoid the tax madness. Last year I accidentally put most of my foreign exposure into my 401k. Seriously, I wasn't thinking. I just monitor the percentage from Vanguards portfolio analysis.

So this year, no 1116, just a low number that falls under the limit for filling 1116.

I'm not saying this is a sound strategy. I probably should spread my foreign exposure between retirement and non-retirement. I'm just saying it made my taxes less complicated.

 

[RunningBum]

My bank had an offer to get Turbotax for $30 so I figured I would give it a try. This was the online version, so I don't know how it compares to the download version. It started out well, looked nice and was easy to follow. After entering some investment information, it told me I would have to upgrade to the $50 plan. Annoying, but that's not prohibitive so I continued. Entered my simple self employed income, and TT told me I would have to upgrade to the $70 plan. I saw where this was going, so I bailed out. The interface was nice, but not worth the added costs.

Are you sure it told you you had to upgrade? I forget the wording, but when I hit that for 1099-B it was more of a suggestion. Which I ignore every year.

 

[JoeWras]

Are you sure it told you you had to upgrade? I forget the wording, but when I hit that for 1099-B it was more of a suggestion. Which I ignore every year.

The online version is different, but any desktop version (CD or download) can handle a typical 1099-B in Deluxe mode. TT will heavily suggest you do Premier, but you probably don't need it.

There are some things that Premier will do for you that you'd have to manually adjust (via forms) in Deluxe mode:
- ESPP
- Stock Options
- RSUs

I found Premier really helped with the above. Deluxe leaves it to you to make adjustments.

Premier also supposedly helps you with Basis information (non-covered shares). I have no visibility in to the extra help. I have non-covered transactions for last year and found Deluxe was sufficient for me since I had the information.

 

[socca]

• Individual tax returns: TurboTax Deluxe on Mac (amazon download). Handles a sole proprietorship just fine. I've been using this program since before Intuit acquired it (was called MacInTax in the old days). I e-file the federal and mail in three states. I have to wait for K-1s to arrive so I'm never able to file early.

• Partnership tax returns: H&R Block Business on Windows (amazon download). There are hints that a version of this software is also used internally by H&R Block tax prep folks (in the help documentation, it sometimes says "discuss with the client ...") The UI is quirky but after many years I've learned the tricks needed to get the job done. I e-file the federal and mail in three states.

 

[woodguy00]

I discovered Credit Karma Tax this year after many years with Tax Act. Tax Act was getting too expensive. CKT was easy to use, straightforward and completely free for both federal and 1 state. I plan to use it from now on.

 

[Bullwinkle]

I used to do on paper by hand, but later used TurboTax, or TaxAct. It seemed like no matter what I did with those I would get a note from the IRS a year or so later saying "here's some extra money we thought you'd like" or "we need more of your money." I guess the software can only be as smart as the person using it.

One year I got tired of the software and did it on my own until I got to AMT and it said I had to my taxes all over again, but this time the instruction booklet was written entirely in Martian, so I gave up and did TurboTax. These last few years I figured since I seem to get it a little wrong most of the time no matter how I do it, I might as well do it the old fashioned way.

My question is, what are the reasons to use a software package?

One is if you have to do AMT, given the Martian situation. Worth the $40 right there. But I haven't had to do that since that one year. Other than that, what is there to watch out for, for someone with a real simple situation? I have W2, then 1099-DIV. If I sell stocks then I have capital gains. No interesting investments so no 1099-INT. That's about it for me.

The other thing I can think of is deductions, but back when I used the software I would dutifully enter car payments, mortgage interest, contributions, etc. and it would come up with something about the same as the standard deduction... which seemed sort of weird, isn't the mortgage interest deduction supposed to be some giant benefit of being a homeowner? Anyway... no significant medical expenses, no commuting (2020 hah), no anything really.

Another thing I learned is remember to report your cost basis, if you have capital gains. But once again, software can't make up for the user being a klutz.