It’s that time of year again, and whether you are preparing\r\nto write Uncle Sam a hefty check or you are anticipating a fat refund, it’s\r\nclearly in your best interest to make sure that your tax returns are complete\r\nand error free, and that they contain all the deductions you’re entitled to.\r\nFortunately, Americans who do their own taxes have more software choices than\r\never before, and for lightweight returns there are even free options available.\r\nWhile I don’t claim to know which application is going to put the most cash in\r\nyour pocket (the applications should theoretically deliver the same results), I\r\ncan provide you with a rundown of some of the available choices.
Although this article provides a brief description of five\r\nfree tax applications, it’s worth mentioning that the IRS actually offers its own\r\nfree tax filing service, called FreeFile.
Note: This gallery is also available as an article.
The software asks you some questions and uses your\r\nanswers to complete the underlying forms (which are not immediately exposed\r\nduring the interview process). Unfortunately, Intuit has included nag screens\r\nin the interview process to try to get you to upgrade to the commercial\r\nversion.
The nice thing about TaxACT Free Federal is that you can use\r\nit to complete both simple and complex returns. Not so nice is the fact that\r\nthe software occasionally nags you to upgrade to the Deluxe Federal version,\r\nwhich allows data to be imported and contains some extra calculators, reports,\r\nand things like that.
One especially helpful TaxACT feature is the ability to\r\nimport a PDF copy of your previous year’s return. This makes it convenient to\r\nenter basic information (name, marital status, etc.) without having to do it\r\nmanually.
As with some of the other apps, TaxSlayer uses an interview\r\nprocess. But oddly enough, when I clicked on certain navigational links within\r\nthe interface, I received error messages telling me that to ensure that the tax\r\nreturn data was saved properly, I had to use the buttons at the bottom of the\r\npage. It was really frustrating to have navigation links I couldn’t use. I can\r\nonly assume that they aren’t really links, but rather progress indicators.
One thing I did like about TaxSlayer is that it provides an\r\nonline tutorial and a browser compatibility test. Both of these are handy\r\nbecause they allow you to make sure that you have got all your ducks in a row\r\nbefore you get too far into your return.
H&R Block Free is another online tax preparation site. It includes\r\nall the basics for simple tax returns, but it lacks access to forms such as\r\nSchedule C, Schedule C-EZ, Schedule D, Schedule EIC, and Schedule SE.
One good thing about this app is that it doesn’t require you\r\nto create an account right away. This means that you can explore the software\r\nwithout the hassles of account setup. The software also allows you to import\r\nyour previous year’s return from H&R Block, TurboTax, or TaxACT. And once\r\nyou start your return, the software tells you what you might need next (such as\r\nsocial security numbers and birthdates of family members).
H&R Block uses a simple interview process to ask for the\r\ninformation it needs. In working through some of the screens, I didn’t\r\nencounter any nag screens, although it is possible that some may exist.
Another thing that struck me about 1040.com is that it did\r\nnot seem to be as limiting as some of the other free options. The site’s\r\ninitial screen indicates that the free version can be used only if you’re\r\ntaking the standard deduction, yet I was able to access Schedule C and screens\r\nrelated to mortgage interest deductions. It’s possible that the software lets\r\nyou get all the way to the end of your return before telling you that you have\r\nto upgrade to the paid version. I tried to complete a “sample return”\r\nto find out, but the software would not allow me to use a bogus social security\r\nnumber.
* 1988 - Started teaching myself about computers \ * 1992 - Mainframe programmer for an insurance company \ * 1993 - Network Administrator for a different insurance company \ * 1996 - Author for The Cobb Group \ * 1998 - Network Administrator for Fort Knox \ * 1999 - CIO for chain of hospitals \ * 2000 - Gave up the corporate rat race to work out of my home. I have been a full time technical author ever since. Visit my Web sites at http://www.brienposey.com and http://www.relevanttechnologies.com \
