Turbo Tax & Me - 12 Steps to Easy Tax Filing

This is my third year to do our taxes with Turbo Tax. I purchased Turbo Tax Deluxe on-line and had it delivered to our home. It sat in my desk for a month before we used it. It's not that I don't like the system, I do, its just that I hate doing taxes.

This latest version continues Turbo Tax's theme of file by interview. It asks you questions, you answer and move on. Sweet!

Since I have my last two years taxes on the computer this year's program pulled any needed data from past years. Don't worry, if this is your first year you'll do fine.

It works best if you do it like this:

1. Compile your income records beforehand; get W-2s, 1099s, and what ever other documents about the money you made last year together. You'll need it to answer the questions accurately. NOTE: not answering accurately can cost you money!

2. Organize your expenses. Charities, mortgage interest, local taxes, anything that may be a deduction.

3. Put the Turbo Tax Deluxe CD in your computer and follow the instructions to load it up. Take my advice here and wait to load updates till later. If you have dial-up internet you will need an hour or two to get the complete download. (most of which will mean nothing to you) They give the option of mailing you an Update CD but that takes a couple of weeks. Just proceed without updating for now.

4. The first screen will be the Federal Tax page and will tell you what it does. Push continue, here you're given the option entering your income on the Specific topics side or letting the program interview you about all types of income. If you have a job, and a savings account choose specific topic. If however you have made money on stocks, home sales, business or whatever, let the "guide me through income" side do its bit. Turbo Tax shows 8 income categories and asks questions about all. You just click on view list by the category and answer the questions. THE KEY IS TO HAVE YOUR RECORDS HANDY AND ANSWER QUESTIONS CORRECTLY!

5. When done click done with income and move on to deductions. Here I recommend using the "maximize my deductions" button. It will lead you through 9 categories of deductions. Again click on the subject and answer the questions. At the end, click calculate my deductions and see a page of all you've entered.

6. Next is the "Other page"; here Turbo Tax gives you access to odd stuff like underpayments, additional taxes and other tax forms. Click through and see if anything applies, for most of us it doesn't.

7. When finished with "Other" you start "Federal Review" which will highlight anything the program thinks you should revisit.

8. The next click and Turbo Tax shows your bottom line. Do you owe or will you get a refund?

9. At this step if you want to check for updates, DO IT NOW!, get yourself a cup of coffee, or take a nap or whatever. Let Turbo Tax update,(it will need to go on-line) and chill out.

10. After that you have an error check page, (which checks the forms for errors and helps you correct any found) a couple of ads for extra cost services,(ignore unless absolutely needed) and you move on to state taxes.

11. Here you must download your state forms from the internet and then the process starts again as in Federal, except Turbo Tax loads all your Federal Info for you onto your state form. Cool, huh?

12. The process will mirror what you did for the Federal return only all the info is in there already, so you mostly just answer questions and click through the process.

NOTE: At any time during the process Turbo Tax lets you look at the actual form and make changes just by clicking on forms in the toolbar at top.

At the end of this you can file electronically, (costs just under $18), print out State and Federal Returns to mail, or save the files and wait till April 14, to file. It's up to you.

I finished in a couple of hours this year and it only took that long because we decided to amend a previous return which took more time to learn.

Give Turbo Tax a try; it'll be the best $50 you ever invested!