I have been using TaxAct for a while (largely because it's free), although I did pay for deluxe (with state of Calif) for a couple of years.
Has anyone used more two of the major three among TaxAct, TurboTax, and TaxCut?
Seems everyone swears the product they first bought and continue using.
But I want to know what the taxprep professionals say, or has there been a systematic study?
I wouldn't bother loading the software if they gave it to me.
"Paul Thomas" wrote in misc.taxes.moderated:
Sure, tax preparation pros and other financial experts might do it the old fashioned way (just on paper, or PDF form) because they can do it in their sleep and have memorized Title 26 and the statutes on income/sales taxation for their particular states.
But tax determination application software is useful for the do-it- yourselfer working up individual returns who only do it once a year and don't keep up on the latest acts of Congress affecting tax law.
I was just curious who did it the best.
"mavigozler" wrote
They all give the same results, if that's what you want to know.
mavigozler wrote in news:Xns9A7AC7CF3D71mavi@207.115.17.102:
I only do our joint returns. Have been since we came to the US. Situation was a bit unusual at first, simple 2 incomes, but I was a J1 student for a degree, so way back then I qualified for (whatever it was called) non-taxable (Federal). Ever since we have been doing taxes ourselves. If I had to start over, I'd go to a preparer, but I have "grown into" our situations. I don't know anything about accuracy. IRS has mostly accepted the returns, whether TurboTax or TaxAct. I quit TurboTax over the registration flap several years ago. Now the hassle of reentering data if I switch from TaxAct prevents me from switching programs.
I thought I recalled a study with moderately complex returns that showed they all gave different results (and phone calls to the IRS gave yet more different results).
Seth
That is definitely my experience. I have a complex return and I ran it on TurboTax and on TaxCut. Exactly the same entries (I checked), but TC saved me $4,000 compared to TT. I was really surprised and therefore checked everything several times and my entries in the interview processes were exactly the same.
Jeff
Why do you say that? I understand that a CPA would not need them to fill out the IRS forms, but in what way do you think doing it manually is better? Would doing it manually save on the tax bottom line?
Jeff
"Jeff" wrote
I haven't prepared manual returns in eons - but I could if I had to.
I don't use OTC software for tax preparation. I doubt many professionals do. Most of us use programs designed for the tax preparation industry.
So Jeff, what was the difference in the actual returns? One of the two programs didn't compute something (or take into account something) to make such a large difference? I'm most curious to hear what the bottom line difference was if you remember.
Jeff wrote: ...
...
So, inquiring minds and all that... :)
Where did the savings come from and was it justified?
I have used two of the three, but I am not a pro. Be aware that only TaxCut and TurboTax can import data from Microsoft Money or Quicken. That can be an important consideration.
The tax prep professionals often use Lacerte. They often say to use a tax prep professional, and they are often right that that is the best for a great many people and situations.
The final bottom line difference was about $4,000. I searched everywhere and could not find why the calculations were different, so I finally gave up and went with the lower tax bill :-)
Who knows. I could not find the reason for it.
Jeff
...
Going through a completed form line by line couldn't find a $4k discrepancy???
As Jeff asked below, are you saying that EVERY monetary line in the 1040 was the same except for perhaps TAX DUE which was $4,000 less? Something doesn't sound kosher at all.
I have a complicated multi page return (50 pages without the D1 of an additional over a hundred pages. So I have not bothered to print out both returns. But I can tell you there was nothing obvious that I could find and both programs found no final errors and both had exactly the same data entered. Possibly TaxCut's interview was more in depth and saved me money.
It seems to me there must have been _something_ observably different on the 1040 itself to end up w/ sufficient difference to make $4k on the tax. If that is line-by-line the same except for the tax owed, something's definitely broke in one or the other.
I'm only pursuing this in the case that if you're choice of TaxCut's answer is, in fact, in error, the IRS could send you an unexpected bill at a time not of your choosing... :(
It would seem prudent to me (but, hey, I'm just an engineer :) ) to find try to ensure that ain't agonna' happen.
for many yrs, I did tax manually, the only manual I ever needed after reading a bunch of commercial tax advisers is the 1040 IRS booklet. while software is useful to keep you from making calculation errors, it lowers your knowledge and understanding tax laws. even I use software for convenience since it is cheap, I still read the 1040 booklet each page and save tax from information it provides
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