Tax Software Recommendation

[Born2Fish]

I have been using free online software but things have gotten more complex now and I want to try a software that is easier to work with.

I sold some of my Roth conversion and triggered an early withdrawal penalty (I am 64 y/o but missed the 5-year date). I can't figure out how to clear things up using the FreeTaxOnline software.

It would be nice if I could load the files from Fidelity/TDA directly into the tax software. Mostly 1099-R forms but a lot of time to enter everything.

Any recommendations are welcome.

Would also appreciate help on figuring out the implications of the early withdrawal. Fidelity's 1099-R Box 7 showed a Distribution Code "T". Box 1 showed Gross distribution amount. All other boxes were blank.

I have been handling my own taxes for about 30 years.

 

[xlf11]

Turbotax

 

[PaunchyPirate]

TurboTax that you download and install to your local computer. It’s what I’ve used for many years.

 

[jazz4cash]

I prefer HR Block download deluxe version. I usually enter everything manually but this year I imported all 1099R info directly from Fidelity. I took a pic of my W2 and sent it to some secure site and imported it from there.

 

[Jerry1]

One thing about either Turbo Tax or H&R Block is that there are plenty of people on this forum that can help you if needed. Not to mention all the folks that use those two programs beyond this forum.

I primarily use TT and have for years. Couple things - get a version the you load to your computer. Don’t worry about getting the Premier version. Deluxe will likely handle anything you may have and if you need to upgrade, you can still do it. Not sure about TD, but TT works well with Fidelity.

 

[rk911]

Turbotax

yup. we've been a TT user for 30+ years.

 

[COcheesehead]

TurboTax

 

[Freedom56]

HRB for me this year. I have used TurboTax in the past. It was $34.99 for the Deluxe state edition (download) and included a $20 gift card for Panera Bread. That deal is gone now. The gift cards are only $10 now which does not buy much with inflation these days. I imported from TDA and Fidelity and also my 1099-R.

 

[foxcreek9]

All T means is Fidelity does not know if you met the 5 year rule or not. Personally, I would not worry about and file as if you had met it, and wait for a bill. I suspect you will never see one.

 

[wrigley]

I've used H&R Block for years.

Mike

 

[Car-Guy]

TurboTax

 

[tizod]

I use H&R. Cheaper, same functions/support etc. It has worked good for me on the MAC for years. It is also much better than using cloud SW where who knows where your data goes. I'd rather have it on my home server...in backup. Plus you can do 5fed/1 state w/ deluxe from one purchase and I usually do a few other family ones as well.

 

[Telly]

We used to use TurboTax, but bailed on them when they did the "screw the consumer" routine years ago. They left a critical schedule out of the common package, which would force many, like us, to upgrade to the higher $ package. After a lot of commotion, the CEO did a mea culpa. Uh-uh, not OK by us. They got caught, called out on it by many. If there hadn't been the strong blowback, they would have continued on with much higher profits. We try not to reward the wrong behavioral characteristics. It's personal, others will make their own choices.

We switched to H&R Block and have not looked back. No state income tax here, so the Deluxe without-state for us. We don't import anything, as we have a "multiplicity" of income sources, and it's easier for us to just type it in from 1099s.

Used software on CD, then later download to our PC. Every year around Thanksgiving, Amazon has it at the lowest price. We buy it and download then. After a bit, H&R will update it with the latest changes. We are always doing test runs with it early/mid-December to see the level of headroom we have after SS/other income/Interest/Dividends/CGs to do Roth conversions. Later we do the official run for taxes.

 

[REWahoo]

We used to use TurboTax, but bailed on them when they did the "screw the consumer" routine years ago.

^ This.

We switched to H&R Block and have not looked back.

^ And this.

 

[Jerry1]

you can do 5fed/1 state w/ deluxe from one purchase and I usually do a few other family ones as well.

Just to be clear - You can do any number of returns. Included in the price is that you can electronically submit 5 Federal returns. The price of some packages include the software to do one of the states. They charge you to electronically submit the state return (about $20). But, if you file on paper, there is no limit to how many you can do.

 

[jim584672]

TT and HRB, I have used both. HRB I like a bit better.

 

[RunningBum]

TT for me. I tried switching to HRB one year and got two letters from the IRS on different issues with my return, and had to file two amended returns. Never again. I also didn't like how the buried the way tax was calculated with qualified dividends instead of including the Qualified Dividends and Capital Gains Worksheet like TT does for my records. TT would have to really screw up to get me to go back to HRB.

 

[tizod]

I agree, same experience for me. Intuit got too greedy, too many pop up, complicated options and "forced" upgrades. They lost me forever back then. Won't ever buy their stock I was so pissed.

 

[Jerry1]

I agree, same experience for me. Intuit got too greedy, too many pop up, complicated options and "forced" upgrades. They lost me forever back then. Won't ever buy their stock I was so pissed.

I guess that’s when using the online version? I don’t get any pop ups or forced upgrades using the version loaded to my computer. I think it did ask my once if I wanted to upgrade to premier but I just clicked “no” and have never seen it again.

 

[jldavid47]

I've used the H&R Block program and it's predecessors since about 1989. (The program descends from one of the first available tax programs for DOS called "Ask Dan About Your Taxes". I kid you not) I've never had a problem and I'm now on an annual subscription for Deluxe + state which costs me $24.99 per year.

 

[REWahoo]

I guess that’s when using the online version? I don’t get any pop ups or forced upgrades using the version loaded to my computer. I think it did ask my once if I wanted to upgrade to premier but I just clicked “no” and have never seen it again.

I think they learned a very painful lesson and backed off most of those shenanigans. Did so too late for many of us to ever go back.

 

[COcheesehead]

For the peace of mind I would fix the error. If you wait for a bill as someone suggested you’ll owe interest and penalties.

 

[qwerty3656]

TT and HRB, I have used both. HRB I like a bit better.

+1

 

[Born2Fish]

For the peace of mind I would fix the error. If you wait for a bill as someone suggested you’ll owe interest and penalties.

That is my plan, although I'm not sure how to "fix it" yet.

I called Fidelity and the guy I spoke with told me that Fidelity does not provide tax advice. He recommended I download and complete Form 8606 - "Nondeductible IRAs". He handled the conversation in a very professional manner.

I printed the form 8606 and instructions. A summary review tells me it will take a while to clarify things.

I hope TT software will walk me through this process.

On a positive note, I'm retired so I have plenty time to do this the right way.

 

[ncbill]

For personal simple taxes H&R Block is fine.

For estates/trusts I had trouble using the H&R Block product, so I'd use TT Business even though it costs twice as much.