I finally got around to doing my taxes this past weekend. I used to pay H&R Block to do them for me but that changed two years ago when I started using a free online tax service instead. However, this year figured to be more complicated tax-wise so I decided to give TurboTax a try for the first time.
TurboTax does offer a free edition for 1040EZ and simple returns but I chose to use the deluxe Web version for $29.95 intended to help users maximize their deductions. I am a self-acknowledged tax novice so I wanted something that was simple to use. In that regard, TurboTax does deliver the goods. The program starts by asking you a series of general questions (name, address, marital status, etc) so you can create a financial record and make sure you complete the right tax form.
Next, I was prompted to fill in my W-2 income data and that of my spouse. The system was able to automatically enter most of my employer’s W-2 information but it couldn’t do the same for her. That was only a minor inconvenience but it meant I had to double check all her numbers because its easy to make a mistake in the process.
The next step was to choose whether I wanted to search for deduction options myself or have the program walk me through each potential deduction. I chose to search for my own although I later went back to have TurboTax search for other potential deductions. My deductions included interest from my wife’s student loans and property taxes for my home and investment property. Filling in all those numbers is simple enough but you need to make sure you have all those documents on hand in order not to have to stop and save what you’re doing until you can find the correct paperwork. I ran into this problem because I didn’t have last year’s tax return with me when I started using the program.
Here’s what happened. I had chose to file my return electronically so that meant I need to use an electronic signature in order to certify it was me filing the form. The program asked me to provide my adjusted gross income from 2006. I spent the next 20 minutes searching for last years’ return before I finally found it. Then, I spent another 20 minutes searching for my wife’s 2006 tax return when I was asked to provide the same information for her electronic signature.
I thought I was done until the program found a problem while doing its final error checking scan. TurboTax claimed my wife’s employer’s address didn’t exist! It turned out I had mistakenly entered the employer’s home state as NE instead of NV for Nevada. Having solved that error, I chose to have my tax refund directly deposited into my bank account and sent the return on its way. The entire process had taken almost two hours but part of that was my fault for not being prepared.
TurboTax emailed me a day later to confirm that my return had been accepted by the government. Overall, I thought the program was convenient and easy to understand. I could definitely see myself using it again next year. Have you used an online tax service or software? If so, please feel free to share your tax stories and tips with our readers.
TurboTax does offer a free edition for 1040EZ and simple returns but I chose to use the deluxe Web version for $29.95 intended to help users maximize their deductions. I am a self-acknowledged tax novice so I wanted something that was simple to use. In that regard, TurboTax does deliver the goods. The program starts by asking you a series of general questions (name, address, marital status, etc) so you can create a financial record and make sure you complete the right tax form.
Next, I was prompted to fill in my W-2 income data and that of my spouse. The system was able to automatically enter most of my employer’s W-2 information but it couldn’t do the same for her. That was only a minor inconvenience but it meant I had to double check all her numbers because its easy to make a mistake in the process.
The next step was to choose whether I wanted to search for deduction options myself or have the program walk me through each potential deduction. I chose to search for my own although I later went back to have TurboTax search for other potential deductions. My deductions included interest from my wife’s student loans and property taxes for my home and investment property. Filling in all those numbers is simple enough but you need to make sure you have all those documents on hand in order not to have to stop and save what you’re doing until you can find the correct paperwork. I ran into this problem because I didn’t have last year’s tax return with me when I started using the program.
Here’s what happened. I had chose to file my return electronically so that meant I need to use an electronic signature in order to certify it was me filing the form. The program asked me to provide my adjusted gross income from 2006. I spent the next 20 minutes searching for last years’ return before I finally found it. Then, I spent another 20 minutes searching for my wife’s 2006 tax return when I was asked to provide the same information for her electronic signature.
I thought I was done until the program found a problem while doing its final error checking scan. TurboTax claimed my wife’s employer’s address didn’t exist! It turned out I had mistakenly entered the employer’s home state as NE instead of NV for Nevada. Having solved that error, I chose to have my tax refund directly deposited into my bank account and sent the return on its way. The entire process had taken almost two hours but part of that was my fault for not being prepared.
TurboTax emailed me a day later to confirm that my return had been accepted by the government. Overall, I thought the program was convenient and easy to understand. I could definitely see myself using it again next year. Have you used an online tax service or software? If so, please feel free to share your tax stories and tips with our readers.
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