Favorite Tax Preparation Software?

[RunningBum]

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

Some reasons I've had over the last few years.

1. Foreign Tax Credit (from an Intl Stock fund)
2. Figuring taxes with qualified dividends or LTCGs. The form for that is not straightforward.
3. ACA Premium tax credit
4. Keeping track and automatically transferring capital loss and foreign tax credit carryovers
5. If I fill out my taxes and get another form such a 1099-INT I can just enter it and all numbers are updated without me having to refill out all forms.
6. Same as above if I find on review that I entered a number incorrectly.
7. Same as above if I have to file amended return.
8. (upcoming) Figuring how much of social security is taxable.
9. Ease of filling out forms. Not having to worry about my poor penmanship.
10. Ability to E-file
11. probably others I can't come up with right now.

 

[Sunset]

....

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

....

A big one for me, is I finish the tax return, and the mail person delivers an amended or late to arrive tax form.

Now I have to change all the numbers related to income, etc. Doing it by had would be re-writing lots of forms, instead the software handles it all automatically

 

[Bullwinkle]

Those all seem like pretty good reasons. I've been using "free fillable forms" which takes poor penmanship and my inability to add out of the equation at least. It also works for e-file, if I remember correctly. I've never had to amend a form, maybe because I usually file at the last minute. That's right, it's a clever strategy of mine. The w2 and a 1099-DIV are downloadable nowadays, so no late mail either.

I do realize here I am claiming it's simple while previously admitting to making many mistakes so... uhh... not sure how to explain myself. I do worry I miss some obscure thing that is none of the above but significantly affects the numbers. Or maybe some trivial thing that affects it by $5 but the IRS really cares about that $5 and they'll tell me about it after 10 years when the penalty has accumulated to something unreasonable.

 

[mountainsoft]

what are the reasons to use a software package?

My main reasons.

1. They do the math.
2. They send it to the IRS so I don't have to mess with printing, postage, and mailing.
3. They fill out all the lines of the various forms (such as the multiple forms for self employment income).

I've tried out a number of products lately, and still think I'm leaning towards Credit Karma for next year. I just like the way it's laid out better than the others, and just happens to be free (though I would gladly pay for it).

 

[JustCurious]

I have used TurboTax and TaxAct and TaxHawk, my favorite is TaxHawk. And it's free for federal returns.

 

[ncbill]

• 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.

BTW, when I bought H&R Block Business from newegg on sale last month (under $40) it was sold as "Premium & Business" & installed as two different applications (Windows) so it's like getting Premium for free...will definitely be doing the same next year.

 

[DayDreaming]

I've always used TaxAct. I never compared it to anything else, it's just the first one I picked and it does everything I need it to. It carries over information from year to year, which saves a lot of time. Sound like TurboTax is everyone's favorite here, but I'm too lazy to look into switching.

Update: Since posting the above, I took a look at TaxHawk. It very easily imported the PDF of my 2019 TaxAct tax return, and I very quickly went through all of the Q&A to do this year's taxes. It seems a bit easier to use than TaxAct - a cleaner interface, and a whole lot cheaper. I haven't submitted my taxes yet, but might be switching to TaxHawk now.

 

[Jerry1]

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

mountainsoft and runningbum have named a few reasons that mostly apply to me but beyond those things, the software keeps up with tax law. For example, I know my situation and I do a couple other returns for my DD and a old family friend. Well the son of the old family friend now has sons working. Simple returns, done them a couple years and I just did them by hand because I didn’t want to use my free TT filings for such a simple return. Then, year before last, the law changed, and sons got to deduct the standard exemption even if they were claimed on parents return. I missed that. IRS didn’t and sent them a refund. Needless to say, I was a bit embarrassed. Had I entered them into TT, I would have seen that, questioned it and filed it correctly. So, don’t think just because you only do your return and because you know yourself, that you’re up on every tax change. Of course you certainly could be, but I don’t keep up on it that well especially if it’s an uncommon item that gets changed.

 

[lauradrops]

Update: Since posting the above, I took a look at TaxHawk. It very easily imported the PDF of my 2019 TaxAct tax return, and I very quickly went through all of the Q&A to do this year's taxes. It seems a bit easier to use than TaxAct - a cleaner interface, and a whole lot cheaper. I haven't submitted my taxes yet, but might be switching to TaxHawk now.

Use promo code TAXHAWK10 for 10% off, sometimes you can use TAXHAWK25 for 25% off. I have been using taxhawk for years and really like it.

 

[frank]

“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.

+1

 

[JoeWras]

Since it came up, my favorite hammer for smashing my thumb is an Estwing E3-16C. The 16oz. weight really does the job right!

Happy Sunday everyone!

 

[JustCurious]

Use promo code TAXHAWK10 for 10% off, sometimes you can use TAXHAWK25 for 25% off. I have been using taxhawk for years and really like it.

10% off of what? It's free for federal returns. Are you referring to state returns?

 

[Sunset]

Since it came up, my favorite hammer for smashing my thumb is an Estwing E3-16C. The 16oz. weight really does the job right!

Happy Sunday everyone!

I use the Estwing E3-22C, as long ago my friend a carpenter recommended it.
Now I really feel it if I use it a long time.
It's works great for smashing the thumb, I did that a few summers ago, and couldn't use my thumb for days

 

[JoeWras]

I use the Estwing E3-22C, as long ago my friend a carpenter recommended it.
Now I really feel it if I use it a long time.
It's works great for smashing the thumb, I did that a few summers ago, and couldn't use my thumb for days

22C! That's the TurboTax version to my HRB 16C version. That will really do a good job on thumbs.

 

[MJ]

I have used FreeTaxUSA for 3 years and it worked great for me. Returns included 1099 INT, R, DIV, 1098-T and schedule D's. My wife was hired last year as a contractor and FreeTaxUSA didn't provide the necessary forms for the business so I got HRB Self-Employed/Rental on eBay for $39. I like the ease of use FreeTaxUSA. I compared FTU with HRB excluding business and came back if the same results.

 

[smihaila]

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

I ran into the same issue just today, with the TurboTax online "Free" edition. False advertising. I guess it's free only if you wish to generate the PDFs, print, and send by mail, without e-filing. Also the State filing is never free with TurboTax, even with that "free" + online version.

Out of curiosity, I also gave a try today to H&R Block's "free" online product. Because I needed only the State part of my tax returned to be filed online, using e-filing. And guess what? Their workflow / question-based guided system, matched TurboTax's desktop edition, to perfection. And with the same resulting amounts. And the other surprise, was that it turned out to be really free, so I've ended up e-filing my state taxes through them. You'll be a bit nagged by "offers" and "recommendations for upgrades" etc, but if you are patient and stick to your objectives, you'll succeed in filing for free.

 

[smihaila]

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

I've tried Credit Karma's "Tax" product, but they insist on requiring a phone for two-factor authentication, and for some reason they dislike my voip phone - even when I've set it for "call me" instead of texting. Hence, I was unable to test Credit Karma Tax :-(.

 

[lauradrops]

10% off of what? It's free for federal returns. Are you referring to state returns?

Yes, federal is free but 10% off state and any add ons.

 

[indiajust]

I buy the disk for macintax/turbotax. then i share it around to amortize the cost and build goodwill.

 

[mistermike40]

I've used H&R Block Deluxe for quite a few years (maybe a decade?). Turbo Tax prior to that. Both work fine for my situation.

 

[ychuck46]

Same here

I've used H&R Block Deluxe for quite a few years (maybe a decade?). Turbo Tax prior to that. Both work fine for my situation.

Been using H&R for over ten years now. Much better than Turbo for people who know what they are doing.

 

[PaddyMac]

I started with TaxAct a few years ago as it will do our 1065 Partnership Return and then import it into the 1040 return (at least it used to, last year I had to enter the K-1s by hand).

The price has been creeping up, but I've figured out the quirks now, it has all our depreciated assets in a worksheet, and so am reluctant to change.

I also believe that Intuit is a pretty evil company so am loathe to give them any $. Unless TaxAct screws up, I will probably continue using it.

 

[MJ]

I've used FreeTaxUSA for 3 years but this year I had a slightly more complicated return so I purchased HRB Self-Employed/Rental. Yesterday, I got to the 2210 under payment form as I do every year since like many of you, I have varied income coming in. I was surprised to see that this paying app neglected to include the input for qualified dividends and capital gains unlike the FREE FreeTaxUSA and got a tax penalty. I thought that perhaps the form had changed so I finished the online FreeTaxUSA and saw that it had that information. Luckily, HRB allows you to access the whole form and found the lines to input the data and there was no tax penalty. Next year, I don't think I'll need the HRB software so it's back to FreeTaxUSA. BTW, I got the same results for both apps.

 

[Retire2013]

Turbo Tax is my favorite.

 

[mountainsoft]

My mom didn't receive her second stimulus check for some reason, and doesn't usually need to file a tax return. I had already purchased H&R block Deluxe to try out, so I used it to a file a return for her to get the stimulus money. It worked fine, even with some of the odd forms she has with the railroad retirement.

I'm guessing I'll need to file a return for her again next year to get the latest round of stimulus payments.