1040 With a Good Buddy
1040 With A Good Buddy
Human backup available for some do-it-yourself packages.Mike Hogan
Tax time is almost here, and the same 2001 law that mandated the largest tax cuts in two decades also introduced some 400-plus revisions into the federal tax code. If you ever needed personal tax software, this is the year.
And you don't have to go it alone, even while doing it yourself. Two major makers, Intuit and H&R Block, now offer hand-holding on specific questions or sections of your return. Use H&R Block's TaxCut program, and one of its tax preparers can provide assistance by phone or e-mail for $20 per solution. If you're nervous about your work, you can pay H&R Block $30 or more to review your completed return electronically. Intuit operates a similar program with its Quicken TurboTax software, but it relies on a team of independent accountants who charge per minute.
In their various offerings (see chart), Intuit and H&R Block--as well as 2nd Story Software with TaxAct 2001--have worked to address the tax code changes and accommodate their implications. The newest features of each focus on the changes, and the number of new tools and guides in each is directly proportional to the software's price.
In my tests of beta software, none of the three programs was difficult to use. All lead you through intelligently designed--though slightly different--tax interviews with access to individual tax forms. Of the three, 2nd Story's TaxAct probably does this best.
Intuit's TurboTax is the perennial best-seller and the most expensive. The largest number of new features is vested in the new TurboTax Premier edition and its online counterpart, TurboTax Premium for the Web. H&R Block's TaxCut provides similar but less-elegant renditions of the new TurboTax features.
This year's complex tax-law changes make the assorted Deluxe editions definitely worth the extra money. Intuit's TurboTax has the most useful tools for exploiting the new tax laws. If your return is simple, 2nd Story's TaxAct is probably the easiest to use. And TaxCut is a good option if you plan to use the H&R Block consulting services or need a money manager.
At a Glance: Tax Software Itemized (chart)
<table cellspacing="0" cellpadding="3" border="1"><tr><td align="left" valign="top">Product </td><td align="left" valign="top">Federal/state software (list price) </td><td align="left" valign="top">E-filing fees, federal/state (list price)</td><td align="left" valign="top">Mail-in rebate </td><td align="left" valign="top">What's new<SUP>1</SUP> </td></tr><tr><td align="left" valign="top">2nd Story Software TaxAct 2001 Standard (http://www.taxact.com) </td><td align="left" valign="top">Free download ($6 CD-ROM)/$13</td><td align="left" valign="top">$8/$5 </td><td align="left" valign="top">None</td><td align="left" valign="top">No new features</td></tr><tr><td align="left" valign="top">TaxAct 2001 Deluxe (http://www.taxact.com) </td><td align="left" valign="top">$10/$10</td><td align="left" valign="top">Free/$5</td><td align="left" valign="top">None</td><td align="left" valign="top">Tax planning under new laws; e-filing available for more states</td></tr><tr><td align="left" valign="top">TaxAct 2001 Online (http://www.taxact.com) </td><td align="left" valign="top">Free/$8</td><td align="left" valign="top">$8/$8</td><td align="left" valign="top">None</td><td align="left" valign="top">Tax planning under new laws; federal program is free</td></tr><tr><td align="left" valign="top">H&R Block TaxCut Basic (http://www.taxcut.com) </td><td align="left" valign="top">$15/$20</td><td align="left" valign="top">$15/$9</td><td align="left" valign="top">$35 toward purchase of Money 2002</td><td align="left" valign="top">Wizards to maximize retirement and tax savings under new laws</td></tr><tr><td align="left" valign="top">TaxCut Deluxe (http://www.taxcut.com) </td><td align="left" valign="top">$25/free</td><td align="left" valign="top">Free/$9</td><td align="left" valign="top">$35 toward purchase of Money 2002</td><td align="left" valign="top">All new Basic features; video help and tax publications on CD-ROM </td></tr><tr><td align="left" valign="top">TaxCut Platinum for Your Home & Business (http://www.taxcut.com) </td><td align="left" valign="top">$50/$20</td><td align="left" valign="top">$15/$9</td><td align="left" valign="top">None</td><td align="left" valign="top">All new Deluxe features; three-year tax/earnings planner; corporate forms</td></tr><tr><td align="left" valign="top">H&R Block Online Tax Program (http://www.hrblock.com) </td><td align="left" valign="top">$20 ($30 after 3/31/02)/$10</td><td align="left" valign="top">Free/free</td><td align="left" valign="top">None</td><td align="left" valign="top">All new Basic features; up to a $5000 advance on your refund, for a fee</td></tr><tr><td align="left" valign="top">Microsoft Money 2002 Suite with TaxCut Deluxe (http://www.taxcut.com) </td><td align="left" valign="top">$90/free</td><td align="left" valign="top">$0/$9</td><td align="left" valign="top">$20 </td><td align="left" valign="top">Easy importing between TaxCut and Money</td></tr><tr><td align="left" valign="top">Intuit Quicken TurboTax (http://www.quicken.com/taxes/) </td><td align="left" valign="top">$20/$30</td><td align="left" valign="top">$13/$7</td><td align="left" valign="top">$13 off one federal e-filing</td><td align="left" valign="top">Expanded W-2, 1098, and 1099 instant data entry (no Tax Law Advisor) </td></tr><tr><td align="left" valign="top">Quicken TurboTax Deluxe (http://www.quicken.com/taxes/) </td><td align="left" valign="top">$40/$30</td><td align="left" valign="top">$13/$7</td><td align="left" valign="top">$10 off federal, $30 off state, and $13 off one federal e-filing</td><td align="left" valign="top">Tax Law Advisor; video help and tax publications on CD-ROM</td></tr><tr><td align="left" valign="top">Quicken TurboTax Premier (http://www.quicken.com/taxes/) </td><td align="left" valign="top">$50/$30</td><td align="left" valign="top">$13/$7</td><td align="left" valign="top">$10 off federal, $30 off state, and $13 off one federal e-filing</td><td align="left" valign="top">All new Deluxe features; 401(k) Maximizer, year-to-year deduction comparisons, and ten-year tax forecaster</td></tr><tr><td align="left" valign="top">Quicken TurboTax Home & Business (http://www.quicken.com/taxes/) </td><td align="left" valign="top">$70/$30</td><td align="left" valign="top">$13/$7</td><td align="left" valign="top">$20 off federal, $30 off state, and $13 off one federal e-filing</td><td align="left" valign="top">All new Premier features; depreciation and small-business deduction wizards</td></tr><tr><td align="left" valign="top">Quicken TurboTax for the Web (http://www.quicken.com/taxes/) </td><td align="left" valign="top">$30 ($35 after 3/31/02)/$11</td><td align="left" valign="top">Free/free</td><td align="left" valign="top">None</td><td align="left" valign="top">Expanded W-2, 1098, and 1099 instant data entry (no Tax Law Advisor) </td></tr><tr><td align="left" valign="top">Quicken TurboTax Premium for the Web (http://www.quicken.com/taxes/) </td><td align="left" valign="top">$20 ($25 after 3/31/02)/$11</td><td align="left" valign="top">Free/free</td><td align="left" valign="top">None</td><td align="left" valign="top">All new Premier features; depreciation and small-business deduction wizards</td></tr></table><br /><SUP>1</SUP> New tax laws incorporated in all products