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Is Electronic Filing for
You?... Page 2
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To file electronically, you’ll have to prepare your return on the computer. That
means purchasing one of the tax preparation programs that are available. Each year
you’ll have to buy new software, since the tax rates and rules are ever-changing.
And to send your return to the IRS electronically will cost another fee on top of the
software cost. And with many of the programs, you have to prepare your own state return by
hand, since the program doesn’t prepare it.
Here are some of the tax preparation programs that are available.
Quicken TurboTax. The old-timer of tax preparation programs is Quicken’s
TurboTax, which has been the top-selling tax software for years. The deluxe program
includes software for preparing your state return and a free copy of Quicken’s
personal finance software. You can file electronically for free, and Quicken offers
top-notch technical support.
Kiplinger TaxCut. This program is a few dollars more expensive that Quicken, but
is it very highly rated and worth a look. Like Quicken, it calculates your state tax
return as well as your federal taxes, and let’s you file electronically for free. It
will also import tax information from a variety of checkbook software.
H&R Block. The granddaddy of tax preparation has finally gone electronic. You
can download the tax preparation software from its site, but you’ll have to pay a fee
to file electronically for all forms but the 1040 EZ.
Microsoft TaxSaver. This is the baby of the family, but like most Microsoft
babies, it will grow into a behemoth rapidly. Microsoft’s products are generally of
high quality, so you may want to give this new program a whirl. But more cautious
taxpayers may want to wait a year or so to give the program a chance to work out the
kinks.
On-line preparation. Both Quicken (www.turbotax.com)
and Kiplinger (www.taxcut.com) offer on-line
preparation, so you don’t have to purchase disks or download software to your own
computer. But if your return is complex, the on-line version is likely to become
overloaded, so install the software on your computer rather than working on-line.
The Women's Institute for Financial
Education (WIFE) is a non-profit organization which provides financial education,
networking opportunities, seminars, and workshops for women of all ages. |
