Which Software Is Right For Me?
There are two brands of tax software available for the do-it-yourself tax payer: TurboTax from Intuit, the makers of Quicken, and TaxCut by H&R Block. Each has four different levels of their software. Each also has a program to help you better plan your deductions. And each has modules for state income taxes.
TaxCut, being an H&R Block product also has a product that allows you to enter your data, and an H&R Block professional will complete your return, So if you are looking for a product to help you organize your data before going into an H&R Block office, your choice is easy. Go directly to the TaxCut H&R Block Signature package.
If you've faithfully been using Quicken, entering all your financial data, and properly categorizing it for the past year, it's doubtful that you can find enough benefits from the TaxCut products to give-up the ease of full integration that TurboTax can offer you. (But don't think TurboTax is only for Quicken users. The TurboTax line offers a lot to everyone.
Note that if you have a Macintosh computer, you can eliminate TaxCut from the running. Only TurboTax has a Macintosh version, and it requires OS-X. The Macintosh software is included on the same CD as the Windows software. However, while ItsDeductable comes with some of the versions of TurboTax, it's not available for Macintosh.
If if you haven't yet decided between the two brands, don't dispair. Instead of picking a brand first, let's explore what level you need. Once you know what level you need, then compare each brand's offering at that level. But be warned: The deciding factor may be what freebies and rebates you can get from each brand. That information can also be found here in The Holzemville Money Center. Our prefered vendor is Amazon.com, and we'll provide you to all the freebies and rebates that customers buying through Amazon.com are entitled to. We'll show you where to find the forms, and what you need to do (and by when you need to do it) to get the best value.
Two last disclaimers: Although both TurboTax and TaxCut are amazing pieces of software, they don't take the place of a professional tax preparer. Although the US Tax Code is thousands of pages thick, it doesn't anticipate every possible situation, and tax preparation software anticipates only a subset of what the tax code covers. While most people will likely be in fairly common situations that the software can handle, if your situation is fairly unique, you may wish to consult a professional. This would be especially true if the dollar amount in question is greater than what a professional charges. While the low-cost preparers may use software similar to these packages, the results are theoretically reviewed by hand. And lastly, these software packages are intended for single use. They cannot be used to file returns for multiple people beyond married people filing separately, or (in the case of the business products) individual taxpayers and their small business. You cannot use these software packages to start your own tax preparation business. (State laws may also limit whether you can prepare taxes for others in exchange for valuable consideration.)
The Levels
As noted above, each brand has four levels. TurboTax has Basic, Deluxe, Premier and Business. TaxCut has Standard, Deluxe, Premium, and Business. For purposes of our comparisons, we'll use the terms basic and standard (note the lower-case) more or less interchangably. If you see Basic or Standard (note the capitalization), then we're refering specifically to the respecive brand. Same for premier and premium, and the bussiness packages. Lower-case will signify general, and capitalized will signify one specific product. We'll also try to keep the context clear as well to make it as clear as we can when we're comparing at the same level versus refering to a specific package.
More complete information about the individual software packages is available on the TurboTax and TaxCut product pages. You'll also find information about rebates availible on the product pages as well. The following information is intended to be very general. Specific information about the individual products can be found on the product pages.
NOTE: While all software packages will have access to online updates to reflect any last minute changes in tax laws, the first release versions of the software will not be available until approximately November 2005. Pre-orders will be taken, but until then, the "Buy Now!" links will go to the same place as the "More Information" links. When know, both the date that pre-orders will begin, and the date that shipping of the software will begin will be stated. Rebate information will also include the start and ending dates when known.
^ TOPBasic and Standard
Let's say your income was mostly from a job, you don't own a house, you had no unusual financial events, and your investments don't get more complex than a savings account down at the bank. You may be in a situation so simple that you don't even really need software to do your taxes.
Well, Standard or Basic would be for you. This level of the software will make sure your numbers get entered on the right lines, will correctly calculate amounts (math errors are the most common errors on tax returns), and ask you questions to make sure you aren't overlooking anything.
Depending on when you buy the softtware, available rebates (see the TurboTax and TaxCut product pages), you may find the final cost of the software to be virtualy nothing. And if you have problems keeping track of paperwork, you'll always have a copy of your tax return on your computer hard drive (or other backup medium you choose.)
| TurboTax Basic Buy Now! More Information |
TaxCut Standard Buy Now! More Information |
Deluxe
If you own your own home, or if you have numerous potential deductions, you should move up from Standard or Basic to Deluxe. For most people, Deluxe will be the right choice. In the deluxe versions you'll find more detailed questions and advice about your home, medical, and educational expenses, and possible deductions and credits you may be eligible for. The deluxe versions will better help you plan for the coming year as well.
As far as rebates and extras go (see the TurboTax and TaxCut product pages), you'll usually find more at the deluxe level. For example, it's not unusual for the state income tax module to be included free after rebate for those buying at least the deluxe level. You get all the benefits of the base versions of the software, often without paying anything extra for the deluxe level.
| TurboTax Deluxe Buy Now!: Federal & State Federal Only |
TaxCut Deluxe Buy Now!: Federal & State Federal Only |
Premiere and Premium
If you have investments, Premium or Premier is the level for you. If you bought or sold stocks, bonds, or mutual funds, or if you rolled-over or cashed-in a 401k, IRA or other retirement account, this is the level for you.
The potential costs of savings of making a mistake on a more complex return will be well worth the cost. And depending on when you buy the software, you may find the rebates and extras available to buyers will more than cover any extra cost. (See the TurboTax and TaxCut product pages for more information.)
| TurboTax Premier Buy Now!: Federal & State Federal Only |
TaxCut Premium Buy Now!: Federal & State Federal Only |
Business Versions
Are you self employed? Own a small business? Have any expenses related to earning your income? Then Business is the level for you.
You'll find everything that's in the other levels in this top-level software, and more. Things like extra help for Schedule C expenses, vehicle, travel, promotion and other business related expenses. You can also prepare W-2 and 1099-Misc forms with this software, and you will have the most complete access to all IRS forms, publications and other resources.
Dependind on when you buy, the rebates and extras for the software at this level (see the TurboTax and TaxCut product pages) may cover any additional cost.
| TurboTax Business Buy Now! More Information |
TaxCut Business Buy Now! More Information |
Deduction Planning
Deductioin planning isn't just something you do the first three months of the year. This is a year-round activity. These packages include advanced advice for deduction seakers. While you can get better advice from most CPA's and tax professionals, you won't get as much advice as what's in these packages. And your appointment never ends. You can review the advice, and pose as many "if I do this instead" questions as you want.
Depending on the level of the basic software you purchase, you may find some of what is included in those packages, or you may find rebates or special deals to get these packages. (See the TurboTax and TaxCut product pages.)
| TurboTax ItsDeductible Buy Now! More Information |
TaxCut Deduction Pro Buy Now! More Information |
All information about the software programs is believed to be accurate. The software publishers offer guarantees that may apply if you are not satisfied with the software. TaxCut: If you are not completely satisfied with H&R Block TaxCut software, simply return it within 60 days of your purchase and H&R Block will refund the purchase price. See the Quick Start Guide included in the software package for details. If TaxCut makes a calculation mistake, H&R Block pledges to pay resulting IRS penalties plus interest. See the software license agreement for details. Intuit offers an unconditional 60-day money back guarantee on TurboTax desktop products (except for orders of more than 99 TurboTax CD-ROMs) and ItsDeductible products. These guarantees cover the purchase price of the product only and do not include shipping, handling, or related charges. If your charitable deduction does not total at least $500 after using ItsDeductible, you can return your product for a full refund of your purchase price (excluding shipping and handling). Visit the TurboTax website for more information. If you are a registered user of TurboTax and you pay an IRS or state penalty and/or interest solely because of a calculation error on a form prepared using TurboTax then Intuit will reimburse you for the amount of the IRS or state penalty and/or interest you paid to the IRS or state. See the software licence agreement for additional limitations and conditions. All products featured at Holzemville are guaranteed by their manufacturers. Holzemville is not a retail outlet, but refers sales to affiliated retailers. Customer service issues are handled by the respective retailers. If you are not happy with the response from a manufacturer or retailer, Holzemville appreciates your comments and feedback, but does not assume any liability for your problems with independent entities.
