TurboTax Puts the EZ Back into Tax Returns

It's hard to believe that at one time all income tax returns were filled out by hand using only a pencil and an "adding machine". As a young tax preparer working for H&R Block, that was the method I was taught. Two years later the computer took over, but only for tax preparers. It was still impossible for the average taxpayer to do anything but an EZ form. Anything more required hours of scouring through several confusing IRS publications. Enter Intuit's Turbo Tax! Turbo Tax has come a long way to assist taxpayers in completing even the most complex tax return. Yes, there are other tax preparation software choices out there, but after at least ten years of using TurboTax, I see no reason to change.

What I find most advantageous is the seamless method of importing data from my Quicken files. I actually own two businesses and use Quick Books for my accounting. All my information is instantly downloaded to my tax return. This saves at least 2 hours of tedious manual transfer. If you use Quicken for your personal finances, you'll really appreciate this feature.

TurboTax uses an Easy Step interview process that guides you through the entire tax return with clear cut questions customized to your unique tax situation. This information will be automatically transferred to the appropriate tax form. Because TurboTax knows all the right questions to ask, you're assured every tax advantage available to you will be taken into consideration.

The navigation features allow you to go from one section of your return to another. Should you find yourself missing certain information, you can skip that topic for now and continue with the rest of your return. You can also jump right to the particular form you are working on if you want to double check accuracy.

If you have questions about a tax topic, TurboTax will find the answer. Their extensive resources are by far the best in the industry. With help sections, video tutorials, a tax library and links to IRS publications, your own personal tax accountant is as close as your keyboard and eyeglasses. If that's not enough, TurboTax has its own online community that can also assist you with answers.

Once your tax return is complete, TurboTax really goes to work for you. It runs an error check and looks for missed deductions. It then compares your return to the national average of other returns similar to yours and flags entries that might make you more prone to IRS scrutiny. Print, save, file electronically and fill out your state return. Bam! You're done!

TurboTax is available out of the box or as an online version. The online version is advantageous in that it eliminates the need to install software or store tax files on your computer. It's all done on Intuit's secure servers.

Several versions are available depending upon your particular tax situation:

Free Edition

Yes, a free version! If you're filing an EZ or other simple return, this is a bargain! Great for your working teenagers. Includes electronic filing. The State return will cost you $29.95.

Deluxe Edition

If you own a home, have medical expenses or other "itemized deductions", this is your choice for finding maximum deductions. Includes electronic filing. Cost is $29.95 with each state return an additional $34.95

Premier Edition

For taxpayers who own mutual funds, stocks, bonds or rental property, the Premier Edition will take care of all the details. $49.95 includes electronic filing and each state return costing an additional $34.95.

Home and Business Edition

Of course this is my favorite! Not only does it handle your personal tax information, but if you own a sole proprietorship or are a single owner of an LLC, this will save you well over $200 in tax preparation fees even before you plug in. For only $74.95 with an additional $34.95 for your state return, this is a bargain.

If that isn't a menu of deals, I've yet to see one! Is it any wonder I got out of the tax preparation business almost five years ago? There's no money to be made when TurboTax offers a product like they do at such an affordable price.

Wait until next year! Your first year with TurboTax is the most strenuous year of all. You have to enter information such as your employer, your mortgage company, banking information and the like. Next year, you get a reprieve. TurboTax goes into last years' tax return and imports all that information into your new return.

TurboTax can also do some analytics on your upcoming year. Watch it do some withholding analysis or evaluate 401K contributions. Spend a little time with it after your tax return is filed and discover the other tools it offers for next year.

There are some caveats to TurboTax. As with any software, financial or other, there's bound to be a quirk or two. I find TurboTax's depreciation calculus to be a bit off. Last year I also had trouble swapping out an old vehicle for a new. Luckily TurboTax allows me to navigate to the "forms" mode where I am able to override TurboTax's entry. Any problem I've faced with TurboTax concerned more "involved" issues that don't usually come into play on the average tax return.

If you used other tax preparation software last year, TurboTax can more than likely import that information into their program.

I'd be lying if I tried to convince you that tax preparation was fun, but TurboTax makes it about as fun as it's going to get!