Turbo Tax

Turbo Tax Software Overview

Turbo Tax, by Intuit, the makers of QuickBooks, is easy to use for novices but powerful enough to handle small business tax preparation. Thus far, over 14 billion dollars in tax refunds have been processed with Turbo Tax, and program improvements include more tax and program help than ever as well as an increased focus on self-employment issues.

Though four versions of Turbo Tax exist, in a nutshell, the program walks you through an easy to understand interview process with optional help provided along the way. The program utilizes the answers you provide to fill out your tax form. This information is reviewed as the program checks for and fixes errors. Additionally, most versions optionally probe you with questions to maximize deductions, though this process can be conveniently skipped. Lastly, you are ready to file your return either electronically or print and file via conventional means.

Online Versus Desktop Version

Both an online and desktop version of Turbo Tax are available and benefits to each version exist. Basically, the two programs are quite similar. A distinct advantage to the online version is that it is free to use until you are ready to e-file or print your return.

The desktop version is recommended if:

• You need to import financial data from sources other than Quicken, QuickBooks or Microsoft Money.
• You want to store the information on your computer or other data source.
• Preparation or access of your tax information involves multiple computers.

The online version is recommended if:

• Your computer resources are too limited to run the program effectively.
• You want to save money on the program or on multiple returns.
• You will be filing electronically; this is included as a free feature.
• You lack dependable storage of your tax return, or prefer to have it stored online.

Four Versions, Which One?

Features and price differ substantially among the four versions of Turbo Tax. Overall, this is useful as it reduces the likelihood of paying for unneeded components, but selecting the right program becomes a little more involved. Intuit offers considerable assistancein helping you select the program that best meets your tax filling needs.

Self-Employment Enhancements

If you are a sole proprietor or have both business and personal income, the choice is simple. Turbo Tax Home and Business offers the ability to maximize your deductions and properly fill out the IRS Schedule C form for doing so. When you select which category of business applies to your work, you receive additional interview questions specific to your industry. This offers more ways to save on your taxes with potentially unconsidered deductions.

Additionally, you have the option to create 1099 forms for individuals whose services you employed. Considering how overwhelming taxes can be for the self-employed, Turbo Tax does an excellent job of making the process easier to understand and implement.

Investments

Depending on your investment strategy, Intuit recommends either the Investment Premiere or Home and Business version. The Premier version includes an 'Investment Sales Expert' that provides detailed assistance and can help you find the correct original value for your stocks. The Sales Expert features are quite useful, whether you lack adequate record-keeping or are perplexed about stock values following company mergers and acquisitions. You also have access to an investment forum for more tax advice.

Conclusion

If you remain uncertain whether this tax preparation program is right for you, the online version may be best as it is free to use until you are ready to file your taxes. Turbo Tax costs more than most competing products but offers ease-of-use and robust features for preparing your taxes and maximizing deductions. Lastly, Intuit guarantees that it will pay for IRS penalties and interest should any related error occur while using their program. For more product information see the Intuit Company Web site.