You do your taxes via their web site. No software to buy or install on your own computer. Of course, there is a charge, but about the same cost as actually buying the software. (You actually don’t pay until you want to submit the return, so you can play around with if for free first if you want to try it out.)
Yes, the deduction of tax preparation works as Mama Zappa described. The software you use will list that as an expense that could be deducted from last year. But yes, it falls into that silly 2% category (or it did the last time I tried it…), so it probably won’t make a difference…
GT
I’ve used H&R Block’s Web site for the past three years. It is no longer free, but the interface is familiar and easy to use, plus all of the previous years’ info can be imported or looked up. Their website is easy to use and navigate, and let’s you freely fiddle with the numbers in advance during the year.
I also prefer it to an installed software package, because I can do a little at home, a little more at work, a little more while sipping coffee in a web cafe…you get the idea.
We’ve used TurboTax for the last 6-8 years. It took about an hour this year. Our return used to be rather complicated; **Rhiannon8404 ** had stock options and employee purchase plan stock, we had childcare expenses to deduct, mortgage credit certificate, etc. TT handled everything we threw at it without difficulty.
A few years ago I signed up for their “automatic renewal” plan. They send me the new version of TT in November or so, saving me a trip to the store (and an excuse for not getting the taxes done). We file electronically, and I’m expecting our refund to be direct deposited some time next week.
I’ve use TurboTax for 7-8 years and always liked it until this year. They keep messing with the format, and inserting ads, which makes me mad since I already paid 39.95 for the software.
I think the new format is inferior to past programs. I had problems with two areas: (1) I had a qualifying distribution from a Roth IRA and I had to mess with it for 30 minutes to get it to recognize it wasn’t taxable; it kept saying I had a distribution from a traditional IRA. If the program had recognized the “Q” code in box seven it would have ended all the confusion, but for some reason it wouldn’t or couldn’t. (2) part of my retirement is untaxed as I’m recovering my contributions; again, I had to mess with it over and over, going back and forth to the actual form before it would calculate the taxable portion correctly. I did this easily last year. (3) One thing they have never corrected is that you can only print one form at a time, or the entire kit and kaboodle. I would just like to print the schedules without the worksheets so I can actually look at the return and check through it before I finalize it. When you print one at a time it takes Forever.
It’s fine for a simple return, but I’m not so sure if you don’t know anything about taxes. Also, for those of you who do more than one return, the software is much more flexible than doing the returns online. I think I’m going to try another program next year.
P.S. I forgot; if you want to file online for free go to the irs.gov website and the links are there. the income limit is, however, 50,000, but it does to any number of state returns for free as well.
I use it but I honestly don’t really like it. I always feel unsure whehter I’m doing things right and I worry about missing something big. If I didn’t have simple taxes (just the standard deduction), I would probably go to a tax preparer.