Date Published: 03/15/2007
Tax time is the most stressful, least favorite time of year for nearly everyone. Thanksgiving dinner with relatives or last-minute holiday shopping seem like a cakewalk by comparison. Trying to select the right tax software package -- or decide whether to hire a pro or go it alone -- just adds to the stress.
The possibilities may seem overwhelming, but depending on your particular situation, you can't go far wrong with the following tax software programs.
2nd Story Software TaxACT 2006 Ultimate Bundle
TaxACT is pretty difficult to resist. Three of its four available versions have very budget-friendly price tags; the fourth version (federal return only) is available free.
Free is good, but the Ultimate Bundle offers a few things that make it worth parting with $19.95 of your hard-earned money. First of all, the package includes both a federal and state tax return (print or e-file). It also includes detailed information taken from J.K. Lasser's popular tax guide, Your Income Tax, as well as Life Events Guidance, which can help you deal with the tax changes inherent in major life changes, such as buying a house, getting married, or having children.
On the down side, even the Ultimate Bundle doesn't offer as much help or information as H&R Block TaxCut or Intuit TurboTax. And none of the versions can import data from Intuit Quicken or Microsoft Money.
In other respects, TaxACT is fairly similar to its competitors. It gives you the option of using an interactive interview to complete the relevant tax forms or completing the forms on your own. It also checks your return for errors and alerts you to any missing information or potential problems.
H&R Block TaxCut Premium Federal-State-E-file
H&R Block doesn't offer a free version of TaxCut. Instead, it offers something that many individuals may find more enticing and certainly more reassuring: free support in the event of an audit. If you e-file your federal tax return and, despite the program's checks and balances, you end up the target of an IRS audit, an H&R Block Enrolled Agent will help you prepare for the audit, and even represent you, if you so choose. Fortunately, most people will never need to take H&R Block up on the offer, but it certainly helps reduce some of the worry and stress of tax time.
We found TaxCut's interactive interview to be a little less cumbersome and technical than in previous versions, a welcome change. The overall interface is also a little cleaner and easier to navigate.
Help is just a click away throughout the entire process, whether you choose to follow the interview or go it on your own. TaxCut includes plenty of built-in help, tax information and tips to bail you out if you get stuck.
 H&R Block TaxCut Premium Federal-State-E-file |
TurboTax is still the first name that comes to mind when most people think of tax software. Although it's far from perfect, it's still our personal favorite, for both ease of use and depth and breadth of help and information. The Deluxe version includes federal and state tax returns, a Deduction Maximizer Center that will help ensure you don't overlook any deductions, and a Life Events Planner, which makes it easier to incorporate the changes that a major life event, such as buying a home, getting married, or having children, may have on your tax situation.
TurboTax offers the usual interactive interview, which both determines which forms are appropriate to your tax situation and helps you fill them out. You can also go directly to any form and complete the information on your own.
Last but not least, when you've finished the sometimes marathon process of entering all of your information, TurboTax will carefully review your returns and alert you to any errors or missing information.
Intuit TurboTax Home & Business 2006
Turbo Tax Home & Business 2006 offers an easy way for sole proprietors to complete their business and personal tax returns in one fell swoop.
The tabbed interface is well organized, straightforward and easy to navigate. As usual, you have a choice of using an interactive interview or tackling forms on your own (or both). No matter which method you choose, TurboTax performs all calculations for you, including depreciation of business equipment. Program help and in-depth tax information is readily available during every step of the process.
In addition to checking your completed return for math and other errors, TurboTax Home & Business will also look for things that typically raise red flags and trigger IRS audits.
