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Jewish World Review April 5, 2012 / 14 Nissan, 5772 Tax prep: time to get serious, dudes By Mark Kellner
http://www.JewishWorldReview.com |
Procrastinators of the United States are a little lucky this year: for 2012, tax-filing day is April 17. Normally it's the 15th, but this year that's a Sunday, and the next day is Emancipation Day in the District of Columbia and Patriots' Day in Massachusetts. So, we all get 48 more hours to sweat over our returns.
Or not -- if you're using online tax preparation services such as Intuit's TurboTax or H&R Block At Home. Boxed versions of each firm's tax software are also available at office supply stores and many warehouse club stores, but I'm told that doing this online is far more popular.
While there's a number of providers out there, this year I've returned to two favorites: the Block firm and TurboTax. Arguably, these two are the industry leaders, and with good reason. Each has a long history in the field, each is a respected brand name, and each has such a large user base that the providers can (and do) put in a lot of research and development each year to make things work well.
Both companies will charge equal amounts for your returns: $49.95 for their "deluxe" products - aimed at users who need more than just a simplified 1040 form, but don't have rental properties or are solely self-employed, and an extra $39.95 to prepare and file a state tax return. I wish the latter price were lower at either TurboTax or Block, since almost all of the data and information used in a state return is entered in the preparation process for the federal return. But even at a total of $90, that's generally less than you'd pay walking into an accountant's office, and, whatever you spend is deductible - on next year's return.
The big advance this year, however, is for those with very simple tax needs: both Block and TurboTax will give you an app for your smartphone that'll allow you to take a picture of your W-2 form, enter some additional data, and - presto! - have a federal tax return ready to electronically file - and all for free. (The state returns are extra, usually around $30.) Now, this is for people who would normally file a "1040-EZ," which omits most of us earning above a certain level, or who have children, or are homeowners, or take other, usually itemized, deductions. That group is in the "you get to pay for all of this" category.
Both TurboTax and Block, online, work in an interview format: you fill in information, answer questions - did you buy a home last year? - add numbers and come up with an expected refund (or payment). Both firms' systems are easy to follow and are difficult to mess up; besides, up until the moment you click to file, both systems are rather forgiving and let you retrace your steps to change things and correct mistakes.
Both will also examine your return for potential audit problems, and offer a degree of advice on how to handle things. H&R Block offers a "live" service where you and a preparer can work together online; TurboTax has people online to help, too.
With both services rather equally matched, what's a user to do? In this case, I really believe it boils down to which firm you're most comfortable with, and if you've had prior, positive experiences with one, you're likely to return. I'm leaning towards TurboTax this year, because they've given me good service in most of the years gone by. But H&R Block's offering is also very appealing, and is certainly worth investigating, especially if you're new to the online tax-prep scene.
One word of advice, no matter who you use: be sure to password protect your files as much as possible. Income tax returns contain enough data for an identity thief to practically clean you out, and before you even know it. If there's any situation where safeguarding data is crucial, this is it.
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JWR contributor Mark Kellner has reported on technology for industry newspapers and magazines since 1983, and has been the computer columnist for The Washington Times since 1991.Comment by clicking here. © 2012, News World Communications, Inc. Reprinted with permission of The Washington Times. Visit the paper at http://www.washingtontimes.com |
Arnold Ahlert | |||||||||||
