online tax softwares

Now with online tax paying picking up, we need to find the best one for our requirements. Here is the analysis of some of them by collecting data from web resources.

H&R Block and TaxCut

HRBlock advertises the most and is the most popular online tax service. You can import previous tax data from TurboTax and TaxCut.

Pros: HRBlock online tax software offers 5 choices of service at different costs. They offer a limited free filing service. Audit coverage is provided at a cost. Advanced tools are available on more expensive plans.

Cons: The extra choices add to an already complex software with too many choices. It seems like HRBlock has worked hard to maximize revenue at your expense. Several annoying requests for refund loans and similar services add to your cost if purchased. At a cost of up to $99.95 (extra for state returns), HRBlock is not a value. At this price you can have an accountant do it for you beginning to end.

RapidTax

Pros: RapidTax has an open and easy to use platform starting at under $15, more for states, and is user friendly. You can file returns from previous years. Live chat and email support are a bonus with RapidTax.

Cons: Audit support and professional review add to the cost. States are expensive at $19.99 and are in addition to fees for the federal return that max out at 34.99.

TaxSlayer

Pros: Active duty military people can file their taxes for free. Tax return cost starts at $9.95 plus $4.95 for unlimited states.

Cons: TaxSlayer is a low grade tax program. For easy returns, the price is right. Audit assistance only. Ouch.

TaxAct

Pros: Business and individual returns are offered with a money-back guarantee. Free file is available for very simple returns. Free email and phone support. Previous year's software available.

Cons: Price is right at $17.95, but annoying bank loan features cost significantly more. Audit support only. You will need a solid understanding of taxes to prepare your return with TaxAct. Still, a solid value for most.

1040.com

Pros: 1040.com is the easiest online tax preparation program I reviewed. The program doesn't ask irrelevant questions. Lowest cost at under $20 without additional fees. Bank products offered, but not invasive. Questions answered by a local tax professional. Audit protection is handled by local experts.

Cons: No free file. You should at least know what a 1040 is if using 1040.com. You don't need to be a pro, but a little understanding goes a long way.

CompleteTax

Pros: Free file available for simple returns. GainsKeeper compatible. Tax resources, financial calculators, tax news and alerts are nice additions to their services.

Cons: Difficult to navigate and overpriced at $49.95, plus $24.95 for a state return.

EZTaxReturn

Pros: Easy to use for those with little or no tax knowledge. Free newsletter and audit alerts. Referral program offers your friends $5 off their preparation and a $10 referral fee to you.

Cons: Very basic software. They brag that you need no tax knowledge which is never a good idea when filing taxes. Online resources are thin. Cost for federal and state is $39.95. They also sell fill-in forms for $19.95; they are free at the IRS website, www.irs.gov.

TurboTax

TurboTax, like all software reviewed, guarantees accuracy and the maximum refund. TurboTax is published by Intuit, maker of QuickBooks.

Pros: TurboTax has a comprehensive service that includes online preparation of corporations, partnerships, and LLCs, in addition to individual income tax returns. Limited free filing service is available. They also have an audit support center. TurboTax has the best free file program.

Cons: TurboTax has a more cluttered feel to their website. They are cheaper than HRBlock, but still charge up to $74.95, plus additional charges for state returns. The TurboTax website is slow at times and adds to frustrations. Like HRBlock, they offer overpriced and unneeded bank products

TaxBrain

Pros: Audit services include payment of up to $4000 in federal and state assessments in an audit. The questionnaire and worksheets are easy to fill out, making preparation a cinch.

Cons: Audit service agreement has enough outs to save Taxbrain from paying most tax assessments. Very expensive preparation fees at $69.95, plus $29.95 for states

CompleteTax

Pros: Free file available for simple returns. GainsKeeper compatible. Tax resources, financial calculators, tax news and alerts are nice additions to their services.

Cons: Difficult to navigate and overpriced at $49.95, plus $24.95 for a state return.

Ranking

Several factors were used to determine the order of the following list. Price, ease of use, and additional hidden fees are the most important. Also considered, but less important, are: layout, research, audit services, and support.

1.) 1040.com Ease of use, low cost, and no hard-sell on bank products, makes 1040.com the best. They don't advertise. They are supported by a network of over 28,000 professional tax preparers nationwide.

2.) TaxAct: Low cost and ease of use cannot trump the multiple efforts to add to your preparation bill.

3.) RapidTax: Low cost, ease of use and the opportunity to file previous years played in ranking RapidTax third.

4.) TaxSlayer: Low cost is TaxSlayer's biggest benefit. Concern over the software quality reduced the ranking a notch. Lack of a firm audit protection program hurt, too.

5.) EZTaxReturn: The opportunity to earn money on referrals coupled with reasonable cost is EZTaxReturn's biggest advantage.

6.) TaxBrain: High cost, but a compelling audit protection program. Doubtful TaxBrain will pay many tax assessments from an audit.

7.) CompleteTax: Average program and fee is a little high, but nice financial calculators and research resources.

8.) TurboTax: The two biggest are also the biggest disappointment. TurboTax is cheaper than HRBlock/TaxCut, but still has a very high price with invasive attempts to add to an already bloated fee. They have name recognition and charge heavy for it. Software is excellent if you have the time to wade through the endless sales pitches.

9.) HRBlock/TaxCut: Easily the worst tax preparation offer on the Net. Their price is so high you are better off visiting a local CPA and having it done for you. The effort to add to the already high bill adds more time to your tax filing effort. Solid program if you don't throw your computer out the window first. Name recognition allows HRBlock to charge the way they do. Not worth the headaches or cost.

Source : Web/Internet

Cheers,

Vinay