As the end of 2008 quickly approaches, one of the first considerations will be compiling information from employers and thinking about the best tax filing system for their individual needs. Many people choose tax preparation software, such as TurboTax and TaxCut, instead of going to places like H & R Block. These programs have become so comprehensive that even those with little knowledge of the tax system can effectively use them. However, before an individual chooses one of the programs, they must look at the pros and cons of each.
TurboTax tax preparation software is probably the most recognizable name in the business. They are widely used because they claim to give bigger refunds and offer more information on deductible items. Individuals can file both federal and state income taxes using this program. TurboTax also automatically calculate data and provide updated information on the computer screen as individuals complete their tax filing. These features make it one of the most user-friendly programs available.
TurboTax software does not have to be purchased in a store. Interested customers can download the program on their computer by visiting the official website. They can choose from a number of customized packages, ranging from the free edition that only files federal taxes to the personal pro that takes care of almost everything and costs $89.95. Each package is priced according to customers’ needs, whether they are filing personal taxes or small business taxes. TurboTax’s official website has a comprehensive chart to let customers know what each package contains.
TaxCut tax filing software works with H & R Block, a recognizable off-line tax preparation service. Like TurboTax, they have a claim to provide services for all their customers’ tax needs. Their primary claims include simultaneous federal and state tax preparation by automatically transferring data from state to federal returns. They guarantee that their calculations will be accurate and that they can even import data from TurboTax software. This feature may interest individuals who were unhappy with TurboTax. They also offer a free session with a tax advisor and audit support from a tax professional.
TaxCut’s software is slightly less expensive than TurboTax; however, their largest package is higher than their competitor. They, too, offer free software to those who are filing federal taxes. The more services the customer wants, the higher the cost, ranging from $19.95 to $99.95. Unlike TurboTax, they don’t offer as much information on their website about what each package offers, and they don’t seem to have a lot of information about those who are small business owners. This program, then, would be good for a person who doesn’t have a lot of deductions or a home business.
Every individual tax payer will have to decide for themselves what program works for them, or if it is feasible to pay for tax preparation software. Whatever they decide, they should research the product by visiting their official websites and comparing services and costs. Another recommendation would be to look at consumer reports to see what others had to say about their tax filling experience with TurboTax and TaxCut. By considering this information, they can make an informed choice that fits their needs.