Tax Filing Software - What's Your Fav?

[Kestryl]

HSA should help your tax situation not hurt it. Might want to talk with your employer and make sure any withdraws are done for qualified expenses.

It's not that, it's because I get a 1099-SA and have to file Form 8889. And apparently Form 8889 isn't covered in the free version of H&R Block. I do pay less taxes overall because the contributions are tax free- it's just that dang form that jumps me from free version to paid version.

 

[eticketplease]

It's not that, it's because I get a 1099-SA and have to file Form 8889. And apparently Form 8889 isn't covered in the free version of H&R Block. I do pay less taxes overall because the contributions are tax free- it's just that dang form that jumps me from free version to paid version.

lol sorry I wasn't thinking.

I was thinking you owed on your taxes not that you had to pay for the software as now in the companies eyes they are more complicated by adding that form.

 

[Kestryl]

lol sorry I wasn't thinking.

I was thinking you owed on your taxes not that you had to pay for the software as now in the companies eyes they are more complicated by adding that form.

Ha, no problem! It wouldn't be tax seasons without a little goo mucking up our brains!

 

[_19disnA]

Filing taxes is mostly an exercise in filling in the blanks from the various documents you get. If you work, you get a W2. If you have investments/bank account you get forms relating to interest & dividends. If you sold some investments, you will get a form for that as well. If you collect SS, you also get a form for that. Paying a mortgage, there is form showing the amount in interest paid. I think some people are afraid to do their own taxes thinking the IRS is going to come and arrest you if you are off by $5 in your return, but that isn't how it works.

One year when doing my taxes manually, I made some sort of math error and got a letter from the IRS showing the error and the correct amount. Assuming you pay the tax they indicate, the issue was resolved and none of us went to jail !!!

No one should pay hundreds of dollars to some accountant if you have basic sources of income/expenses during the year. If you sold a business or have complicated depreciation calculations, then paying someone to help would make sense.

 

[sam_gordon]

I've been doing my own taxes for years. First with Turbo Tax software, then moving to online. I've used TT, H&R Block, and FreeTax USA. They've all been pretty much the same. If you have PDFs of your documents (W2, 1099, etc), you can upload them and it will read them and fill in the block (good thing to double check).

Our taxes are pretty easy. Mortgage and other deductions don't really matter anymore, because the standard deduction is more than what we can come up with.

One thing I don't like about the software is I spent a couple of years doing freelance work in addition to my full time job. Not only did I end up having to pay taxes on it (of course), but the software will "force" you in the "pro" or whatever version, which of course costs more money.

I stopped doing that work in ~2017, so haven't had to deal with it for a while.

I suggest picking one (if not a couple) of the online softwares that has been mentioned here and give it a try. I think they all allow you to fill out for free, but only charge when you file.

 

[tvguy]

No one should pay hundreds of dollars to some accountant if you have basic sources of income/expenses during the year.

I wish it was only hundreds of dollars. But he has done my taxes for 47 years without an issue. His father did my parents taxes for 25 years before that. He has helped guide us through the probate of my MIL's estate. He helped us settle my mom's estate. He has helped us through every tax situation we have encountered. And when my mom decided he was too expensive, a tax preparer at a national tax chain using that chains software did not know how to deal with annuity income, making a mistake that would have had her pay $15,000 in taxes.....a big chunk of money for someone living on $22,000 retirement income.......that she did not owe.
His fee is not just for preparing my taxes, but basically to also be on retainer for the year.

 

[Cadiewampus]

We use Turbo Tax just because we have always used TurboTax. It copies the information from the prior year which saves a good bit of time. If it ain't broke, don't fix it.

Word to the wise though; our taxes are dead simple. If you are like my DM and have recently lost a spouse, or have some other crazy tax situation, hire a professional. It took my DM years to get everything sorted out to the point where her taxes are simple again.

Yep ours as well. We are at the point where we do not have any deductions. House paid off, kids file themselves. Money all in 401ks. Needless to say we have to pay every year. I guess I could change my W4 so I get a return but why give the government a free loan

 

[mmbrad02]

Since I started this, I guess I should report back on the outcome

I started our taxes in Turbo Tax. As everyone said, it was actually quite simple.

Before I filed, my sister asked if I would help my nephew with his. He is 23, single, lives at home and has a full time job with a W2 and one 1099. I worked his up in Turbo Tax but the final price was more than we thought it should be, so I then entered his in Tax Act. It was quite a bit cheaper for whatever reason, so to compare, I did mine in Tax Act. Got the exact same results as Turbo Tax for myself. I proceeded to file my nephews in Tax Act.

In the meantime I got an email from Turbo Tax to "come back and file now and save X amount". Between the two programs, I preferred the layout of Turbo Tax, so I opted to file my own with TT. With the discount email it was cheaper or same as Tax Act.

I then proceed to help my other nephew do his in Tax Act.

So I feel like I'm decently versed in both of those now For my own personal taxes I will likely stay with Turbo Tax since it will all be saved there now.

 

[georgina]

Since I started this, I guess I should report back on the outcome

I started our taxes in Turbo Tax. As everyone said, it was actually quite simple.

Before I filed, my sister asked if I would help my nephew with his. He is 23, single, lives at home and has a full time job with a W2 and one 1099. I worked his up in Turbo Tax but the final price was more than we thought it should be, so I then entered his in Tax Act. It was quite a bit cheaper for whatever reason, so to compare, I did mine in Tax Act. Got the exact same results as Turbo Tax for myself. I proceeded to file my nephews in Tax Act.

In the meantime I got an email from Turbo Tax to "come back and file now and save X amount". Between the two programs, I preferred the layout of Turbo Tax, so I opted to file my own with TT. With the discount email it was cheaper or same as Tax Act.

I then proceed to help my other nephew do his in Tax Act.

So I feel like I'm decently versed in both of those now For my own personal taxes I will likely stay with Turbo Tax since it will all be saved there now.

For a simple return like your nephew's, freetaxusa does free federal returns (they charge for state ones). That is what I had DS use when I stopped doing his taxes and had him do them. The first time he did it I did them myself on paper to make sure it was accurate.

Personally I just use the free fillable forms on the IRS website and submit them electronically. But I have been doing my own taxes for 40+ years so am comfortable with doing them.

 

[EACarlson]

For a simple return like your nephew's, freetaxusa does free federal returns (they charge for state ones). That is what I had DS use when I stopped doing his taxes and had him do them. The first time he did it I did them myself on paper to make sure it was accurate.

Personally I just use the free fillable forms on the IRS website and submit them electronically. But I have been doing my own taxes for 40+ years so am comfortable with doing them.

When I looked into them a few years ago they wouldn't accept mine for free because I had a 1099. Now that I have business deductions as well as 1099 income I have to pay for the self employed version of either TurboTax or TaxAct.

 

[georgina]

When I looked into them a few years ago they wouldn't accept mine for free because I had a 1099. Now that I have business deductions as well as 1099 income I have to pay for the self employed version of either TurboTax or TaxAct.

He gets a 1099 from his Vanguard investment account so dividends, capital gains distributions, section 199A dividends, foreign tax credit. It can handle those. I'm sure there are other 1099s that it won't work for.

 

[TAX GUY]

Nothing beats an old No. 2 and pink pearl

 

[morgan98]

I am a CPA and work in a large firm, though I no longer do client work. However, when I did, I was in tax - mostly large corporate with enough individual experience to be very proficient. I gave up on doing our return on the software the firm uses and switched to Turbo Tax 8 or 9 years ago. I use the online version. I also use it to prepare returns for others.

Overall, I am impressed with its capabilities and the integration with online 1099s, W-2s and other reporting is robust. They do ask all sorts of questions to make sure you do not miss anything, which I admit I find a bit annoying. For me, because of my past experience, I would much prefer being able to go to a particular line on a particular form and click to see the data or enter my information. However, that is something I have just had to get over because I have always been satisfied with the accuracy of the reporting.

I spend the most time on the step between paying for the software and the actual efiling, because I always print my return to PDF to go over the actual forms with a fine tooth comb.

I may be able to save a few bucks switching software, but it is just not worth it to me. I like having a dashboard with all my previous returns and history (although I also download and securely store a copy as well).

 

[_19disnA]

Have used both Turbo Tax and H&R block software and they are basically the same. I like the idea where you answer some basic questions and then it inputs the necessary data into all applicable forms. When I used to do my tax manually many years ago, it always seemed like I needed a value from a form I hadn't yet completed or the instructions were vague. Tax software programs easily guide you through the process and if, for example, you do NOT own a farm or oil wells, it will bypass the rest of the sections dealing with those things.

 

[ScottOKW2K]

I use OLT - On Line Taxes. Works about the same as the others and usually sets me back about $10 to efile state and federal.

 

[LuvOrlando]

Anyone who does your own is brave, I am not that brave.

 

[TAX GUY]

Anyone who does your own is brave, I am not that brave.

I do my own...

 

[soccerdad72]

Anyone who does your own is brave, I am not that brave.

Probably 90% of the returns filed could reasonably be done by anyone who can follow directions. Most are not that complicated, especially with software available these days.

I ended up doing 6 different returns this year (not ours - we leave that one to the pros) and the longest I think any of them took was about 2 hours. None of them had anything more than W2s, a couple interest / dividend statements and maybe one or two other items.

For the record, I ended up using TurboTax, FreeTaxUSA, OLT.com and TaxSlayer.com during this season.

 

[TAX GUY]

Filing taxes is mostly an exercise in filling in the blanks from the various documents you get. If you work, you get a W2. If you have investments/bank account you get forms relating to interest & dividends. If you sold some investments, you will get a form for that as well. If you collect SS, you also get a form for that. Paying a mortgage, there is form showing the amount in interest paid. I think some people are afraid to do their own taxes thinking the IRS is going to come and arrest you if you are off by $5 in your return, but that isn't how it works.

One year when doing my taxes manually, I made some sort of math error and got a letter from the IRS showing the error and the correct amount. Assuming you pay the tax they indicate, the issue was resolved and none of us went to jail !!!

No one should pay hundreds of dollars to some accountant if you have basic sources of income/expenses during the year. If you sold a business or have complicated depreciation calculations, then paying someone to help would make sense.

Pretty bold of you to assume the IRS or state DOR is always accurate. I have an example of what a client is going through, right now for tax year 2023. When the returns were efiled, they were rejected because their SS numbers already showed on a previously filed tax return for the same year. They are now forced to paper file. No big deal, just an inconvenience. They just received a notice from the state DOR stating they corrected their tax return to reflect the increased health care penalty (for NOT having proper health coverage). That penalty is almost $2300, EACH. The problem is, their paper filed return hasn't been processed yet, and they DO have the proper coverage and indicated as such on their return. They also have proof from the provider showing the proper coverage for the year. However, without paying "some accountant" hundreds of dollars, they should just pay the $4600, because the DOR said they should? And for what it's worth, they have "basic sources of income/expenses".

But hey, if you'd rather pay an extra $4600 instead of a professional for their knowledge and experience, I understand.

 

[jazzsmith]

It depends a lot on your specific needs. It's a good idea to look at the features each one offers, especially if you have complex tax situations. If you need specific help or have questions, customer service can be a lifesaver. For instance, alliantgroup customer service is known for being really helpful and knowledgeable, which can make the tax filing process a lot smoother.