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TurboTax

The leading name in tax preparation software, TurboTax applies Intuit’s legendary ease to make taxpaying simpler. Whether helping first-time taxpayers find deductions or guiding investor through complex stock transactions and business deductions, TurboTax’s desktop and Web-based products are the definitive source for finding and taking deductions.

• With TurboTax, you will get the biggest refund you’re entitled to—guaranteed.* If you get a bigger refund using any other tax preparation method, we’ll give you your money back. It’s that simple.
• TurboTax simplifies taxes, so you can complete your return with speed, ease, and confidence.
• Concerned about being audited? With TurboTax, you don’t have to be. Our Audit Risk Meter™ helps you reduce your chance of an audit.
• More people trust their taxes to TurboTax than any other tax preparation method, so it’s no wonder it’s the #1 best-selling* tax software, year after year. In fact, last year alone, more federal returns were efiled with TurboTax than with all other consumer tax software combined.
• TurboTax consistently receives the highest marks from reviewers, making it the #1-rated tax software, year after year. In fact, USA Today said TurboTax 2007 was the “clear winner” over another tax software brand. And PC Magazine has ranked it #1 among the three leading tax software programs³ and once again gives it their Editors’ Choice award this year.
• TurboTax makes protecting your personal and financial information a top priority. Whether you choose a TurboTax CD, a TurboTax download, TurboTax Online, or free tax filing with TurboTax Online Free Edition, we’ve got you covered.

Supported Forms:
Federal Tax Forms Supported Varies by product:
TurboTax Free
TurboTax Basic
TurboTax Deluxe
TurboTax Premier

State Tax Forms Supported
All States Plus DC

Pricing:
Pricing Chart

Federal Free Edition + E-file

• Easy to use, easy to file, with extra help
• Handles big changes in your life
• Includes Audit Support Center
• Includes the IRS Tax Forms You Need
• State Return is additional $25.95

Federal Basic Edition + E-file – $19.95

• Includes all the feature from Free Edition PLUS
• Easy import features
• State Return is additional $34.95

Federal Deluxe Edition + E-file – $34.95

• Includes all the feature from Basic Edition PLUS
• Includes Audit Risk Meter
• Maximizes deductions for the biggest refund
• State Return is additional $34.95

Federal Premier Edition + E-file – $54.95

• Includes all the feature from Deluxe Edition PLUS
• Provides guidance for investments
• Uncovers deductions for rental property
• State Return is additional $34.95

State Return Price:
TurboTax State with Free Edition: $25.95 per state
TurboTax State with Basic, Deluxe, Premier: $34.95 per state

Free federal tax preparation and e-file if your Adjusted Gross Income is $30,000 or less or you are active military or you qualify for Earned Income Tax Credit. Includes Form 982 (Mortgage Forgiveness Debt Relief).

Reviews:
So far, I have found TurboTax to be the most user-friendly tax preparation software. I have used both the online and desktop version, and they are very similar. If you have been using the desktop version previously, you will find that migrating to the online version an easy task.

When it comes to user flow, TurboTax is still primarily based on the interview method. You are asked a series of questions and the software figures out which tax forms you need to fill out. In that past, I have found such method too cumbersome and time-consuming. However, they have improved their process since then and made it into a hybrid of interview-based and form-based methods. For beginners, you can still follow the interview questions which provide most guidance. For seasoned users, you are free to jump to specific forms that you know you need to use.

One cool feature is that for every page you navigate to, there is a side panel filled with popular questions raised by the “Live Community” regarding to the specific topics on that page.

Similar to H&R Block, TurboTax charges between $25.95 to $34.95 for each State E-File. Bottom line is that if you are looking for the best consumer tax preparation software, TurboTax is the leading candidate. However, it’s definitely not the cheapest. My recommendation is that unless your tax return is complicated enough to take advantage of the many features that TurboTax has to offer, look for a cheaper solution that can complete your tax return just as effectively.

Screenshots:
W2 Form

Income & Wages

Get an express tax refund with our FREE software!

A Missouri state tax refund or return for 2008 is so easy!

Get help with a Nebraska state tax refund or return!

Get fast fed tax refund software to help with your taxes.

H&R Block’s TaxCut

TaxCut Free Federal Edition + E-file, TaxCut Basic + E-file and TaxCut Premium + E-file all make filing your taxes easy by taking you through a simple, step-by-step tax interview. TaxCut Free Federal Edition + E-file is best for people with very simple tax situations. If you’d like to import your prior year personal and tax data, TaxCut Basic + E-file would be best for you. Or, if you’re looking for extra tax help and guidance with a Schedule C, home mortgage, rental property, home office, business expenses or asset depreciation, TaxCut Premium + E-file would be best for you. With TaxCut Premium + E-file, you’ll also receive 1 free tax consultation with an H&R Block tax professional at no additional cost.

In addition H&R Block offers TaxCut Signature if you prefer to do your own taxes, but want the added reassurance of having a tax professional review your return and then sign and e-file it with the IRS for you. Signature makes completing your taxes easy by taking you through the simple, step-by-step tax interview of TaxCut® Premium + E-file. Then, at the end of the interview, you’ll be able to choose to send your return to a tax professional who will complete the process for you. And, it includes the TaxCut Premium + E-file’s extra tax help and guidance for filers with a Schedule C, home mortgage, rental property, home office, business expenses or asset depreciation.

• An easy interview process that helps you complete your return before submitting it to your tax professional for review
• Automatic double-checking of your return for errors
• Easy access to IRS publications
• Imports data from TaxCut® online and software, H&R Block Offices, and TurboTax® software
• Advice for getting key tax benefits as your life changes (marriage, home buying, career changes and more)
• Store your return on H&R Block’s secure servers for 3 years
• Built-in multimedia video tax guidance
• Guidance to maximize tax savings associated with home ownership, education and more
• Additional assistance on investment income and stock options
• Business Expense Assistant
• Extensive help for the self-employed on home office and business expense deductions
• Guidance for rental property income and expenses
• Federal e-file included free
• Only from H&R Block: Unlimited year-round tax advice from a live H&R Block tax professional

H&R Block, founded in 1955, is not only the world’s largest tax services provider but also a fully-integrated financial services company that partners with its clients, helping them save for retirement, buy a home, pay for college, manage a business and much more.

H&R Block operates more than 12,000 offices in the U.S. and more than 1,300 locations in Canada, Australia. We have prepared 400 million tax returns since 1955. But it takes a team to serve our clients, whether it’s in the office or via the Internet.

Today, our focus is on delivering outstanding customer service and helping our clients reach their financial goals. As we see it, their success is a key measure of our success, now and in the days to come.

Supported Forms:
Federal Tax Forms Supported Varies by product:
Free Federal Edition
Basic Federal Edition
Premium Federal Edition
Signature Federal Edition

State Tax Forms Supported
All States Plus DC

Pricing:
Pricing Chart

Free Federal Edition + E-file

• A simple return excludes self-employment income (Schedule C), rental and royalty income (Schedule E), farm income (Schedule F) and shareholder/partnership income or loss (Schedule K-1)

Basic + E-file – $14.95

• Only from H&R Block: Worry-free Audit Support®
  
  Worry-free Audit Support is available for clients who purchase and use H&R Block tax software or online tax preparation solutions to prepare and successfully file (via e-file or print and mail) their 2008 individual income tax returns (federal or state). It does not provide for reimbursement of any taxes, penalties or interest imposed by taxing authorities. Additional terms and restrictions apply.

Premium + E-file – $39.95

• Only from H&R Block: Worry-free Audit Support® offers guidance plus an H&R Block enrolled agent to represent you in the event of an audit
• Only from H&R Block: With 1 included Ask a Tax Advisor session, an H&R Block tax professional can help answer your tax question via
  1-on-1 phone or e-mail consultation (a $19.95 value)

Signature – $79.95

• All the benefits of TaxCut® Premium + E-file and more
• Only from H&R Block: Unlimited live tax advice from an H&R Block tax professional, during tax preparation and year-round
• Only from H&R Block: An H&R Block tax professional can review, edit, sign and e-file your return for you
• Only from H&R Block: Worry-free Audit Support® and the H&R Block Guarantee assures that you’ll have support of an H&R Block enrolled agent if the IRS audits your return

State (base price) – $29.95

Free federal online tax preparation and e-file if your adjusted gross income is $56,000 or less and you are age 50 or younger. Includes Form 982 (Mortgage Forgiveness Debt Relief).

Reviews:
H&R Block and Intuit are the two leading Tax Service Providers. H&R Block offers a full suite of product and service to help you with your tax needs. They offer online tax software, desktop software, and over 1300 local offices. At this point, it’s only a matter of preferences for not picking H&R Block.

Their interview style tax preparation is very easy to follow. What impresses me the most is the abundance of information and assistance available to users while they are preparing their return. TaxCut provides assistance in the following forms:

• Ask a Tax Advisor
• Second Look® Review
• Tax Tips
• Tax Calculators
• Join Tax Discussions

Granted, some of these assistance do not come free. However, it’s nice to know that you can get help whenever you needed. Different versions of TaxCut is designed based on the level of complexity of your tax return. For people with more complicated returns, the Premium Edition and Signature Edition both provides tax professional assistance for a very reasonable cost.

The only downside is that State E-File is expensive at $29.95. Once you have completed your federal tax return, the state tax return more or less simply imports data from your federal tax return. I suppose this is their marketing strategy where since you have spent all your time preparing your federal tax return, you would go somewhere else to do your state return.

Screenshots:
W2 Form

Federal Deductions

Taxing Amazon.com Complicated by Tangled Forest of Tax Laws

Should states be able to collect state sales tax on internet purchases and catalogue sales that cross state lines? That’s the issue that’s currently confronting state governments around the country desperate for revenues in these poor economic times. In theory, it is grossly unfair for a purchase that is made online to be taxed less than an identical item purchased at a “bricks and mortar” store (individuals are technically subject to use tax on their internet purchases but it is almost impossible to enforce). But in practice, taxation of remote sales falls victim to legal barriers as well as decentralized tax policies.

To this day, a company in question must be benefiting from the services which the state provides in order to be subject to sales tax levies. The Due Process clause has been interpreted for tax liability purposes as meaning the state must “give something for which it can ask return.” The Supreme Court has ruled that taxation of remote retailers is unconstitutional unless they have nexus or a physical presence within the state’s boundaries. But in the era of widespread e-commerce, the lines between a physical and virtual presence are blurring. Companies that buy and sell goods within a state are making use of that state’s infrastructure whether or not they physically own operations in the state.

The most recent Supreme Court decision to address this issue, Quill Corp. v. North Dakota in 1992, upheld previous limitations to the circumstances under which the state may collect taxes from a remote retailer. According to the Court, the Dormant Commerce Clause prevents states from placing undue burdens on interstate sales which was violated by North Dakota’s sales tax of Quill Corporation. Tax laws are so complicated and widely divergent between the 7,400 tax jurisdictions in the U.S. that the Court ruled it unreasonable for retailers to have to account for all the technicalities. It’s important to mention, however, that many observers including the chief executive of Netflix note the improvements in tax software in recent years have dramatically reduced the practical complexity of accounting for different tax policies.

Legal realities haven’t kept states from trying to tap this potentially large revenue source, upwards of $18 billion per year according to an estimate from the University of Tennessee. An organization of more than 20 states known as the Streamlined Sales Tax Project (SSTP) created in 2000 has been trying to streamline their tax codes enough so that determining tax liability is less burdensome. This will help convince Congress to change the law and allow states to tax internet sales, bypassing the Court decision. It’s probably fair to say they’ve only had limited success so far. This is due both to the difficulty of adopting a commonly accepted definition of taxable goods and services that doesn’t benefit some states while disadvantaging others and the difficulty of getting such a bill through Congress.

Thus presents the Amazon.com dilemma. Its “wholly owned subsidiaries” own thousands of square feet of distribution facilities in several states according to the Wall Street Journal. Although they are legally separate, there is a debate as to whether they constitute a nexus. It’s fairly common practice for companies to establish “shell companies” to take advantage of tax loopholes that allow them to expand operations without expanding tax liability. Several states, including Texas, are reviewing whether Amazon’s in-state operations should really be exempt from taxation.

Unfortunately, the prospect for expanding the tax base has dimmed as the State Board of Equalization in California has ruled that entities that refer customers by links to Amazon do not trigger nexus under California law. This is true even though the sites benefit financially from their relationship with Amazon, garnering a percentage of the sales made from the sponsored links.

New York has already passed a law requiring remote retailers to collect sales tax on purchases made in the state which Amazon has challenged, saying it unfairly targets Amazon. Amazon has a number of affiliates and advertisers that benefit financially from Amazon sales within the state (other companies such as Overstock.com cut ties to its New York affiliates rather than have to face sales tax liability). New York law states that companies that enter into financial arrangements with Amazon are considered Amazon vendors for sales tax purposes. The question is whether they are acting as agents of Amazon or whether they are primarily out for their own financial interests. It will be up to the courts to decide whether affiliates trigger nexus in New York or whether it’s back to the drawing board for advocates of equal tax treatment of e-commerce.

Link to the original site

WHAT’S THE BUZZ? TELL ME WHAT’S A HAPPENNIN’ –

Link to the original site

COMMENTS, I GET COMMENTS

.
What Block is offering now is a credit card that is loaded with up to $1000 (less the annual fee.) While a paystub and prior year returns are needed, much of the decision is based on their credit rating. I have not seen the fine print this year, but last year it was a pre-paid type card with a 9% interest. If it was paid back by the date in the paperwork, the rate stayed the same but if it wasn’t the rate went to 26%. Since this was a pre-paid card, you had to not only pay back the advance but also bring the card back to a fully prepaid level. If you had received $1000 advance and used all of that, you would pay back $2000 to keep the lower interest rate. Then you could be subject to a bunch of little fees for just using the card.”

The sneaky bastards!

And here “Anonymous” (a most prolific commenter – I see his responses on blogs everywhere!) discusses another problem with the Earned Income Credit -

“Any other problems with the EITC aside, my complaint about it is that it is unfairly age-discriminatory — single people must be at least age 25 to qualify, even if they met the income requirements at an earlier age.
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If a person no longer qualifies to be claimed as a dependent by someone else (which would still keep parent-supported college students from getting it), they should be equally EITC-eligible, regardless of whether they are age 19, 24, 25, 45, whatever.
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An independent single 24-year-old who earns $10,000 this year is not any less poor than an independent single 25-year-old who earns $10,000 this year.
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As long as the EITC continues to exist, this ought to be fixed.”

To respond – While Anon does make a good point, I expect that the Congress did not want to provide the benefit to college students whose earned income is low because they are full-time students or to those just starting out in the workforce and therefore not earning much.

If you have read a post at TWTP, or elsewhere, that you found interesting or helpful why not return every so often to see if there are any comments. I sometimes get comments to posts many, many months after they have been published.

And please, if you have something to say about or add to one of my posts please comment away!

A word of warning – comments are not to be used for the sole purpose of “tooting your own horn”, although you may do so in the context of a genuine comment, or selling a product. I suggest you check out my post “Comments on Comments”.

So – any comments?
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TTFN

Link to the original site

1st time tax prep looking for a way to prep friends and families taxes for free using electronic filing. Sugg?

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