Is using Turbo Tax a good idea?

I'm starting a new thread because I didn't make it clear that I was seeking advice on Turbo Tax on my previous thread. Sorry.

I'm asking those with knowledge of the software if it's a good thing. I'm thinking about switching from a traditional tax guy and I want to hear horror stories or success stories. Thanks.

 

Typically I use H&R Block but their prices have been inching up over the last few years. Because their employees are not "professionals" in the classic sense I've come to wonder if I'd get at least as good a result with Turbo Tax. I have one friend who has been using Turbo for years without complaint. She may be winning me over.

 

The tax guy I have been using for years says, "Oh no. Stay away from that horrible thing. It will mess you up." I wonder if he is giving me the straight scoop or just attempting to keep clients.

 

Yeah, maybe it's like all those B&M college professors who say that DL is evil. Just looking out for their jobs.

 

Armed assassination drones? That's only for people who don't file or for people who post mean things about the IRS on discussion boards.

 

I've used them for years, never been audited, never had a single issue at all with them, recommended them to many people, got my mother using them, and saved A LOT of money using them vs a traditional tax guy, HnR Block, Jackson Hewitt, etc... I love em and say GO FOR IT!!

 

Used to love it, but won't use it again.

I know this post is a little late, but since it's that time of year again, figured it was relevant. I also need to add a disclaimer. I currently own a financial services business that prepares tax returns and I worked for H&R Block in the past.

I was previously an avid fan of TurboTax and would brag about how I used it every year and how much of a waste it was to go to a professional. I recommended it to everyone. I had been using TurboTax for over 10 years. My taxes are not that complicated(but that's what everyone says), I own a home and have a small business so I thought the software was fine. Then I had a child. I went through the same process as every year, answering all the questions and as usual the software would get a little confused and make me run in circles a bit, but ultimately it got the job done and I was able to finish the return to my satisfaction. I was due a federal refund of about $1,500. This was about $1,000 more than usual because I now had a child. TurboTax wanted to charge about $75 for this return plus a California return, so I decided to just take a look at another program that was a lot cheaper.

I re-did my return using the TaxAct software and I was shocked when their software told me I was due an additional $1,000 because of the "Additional Child Tax Credit". For some reason, TurboTax was not giving me this credit. I entered the exact same information in each program. This was a few years ago and I would never recommend this kind of software to anyone again unless they are single with absolutely no write-offs. I had two of my prior year returns double checked at H&R Block because they do it for free and both had significant errors in which I now owed money to the IRS. It was because of my experience with their tax software that I decided that I should become a professional tax preparer.

Just because you don't get audited it does not mean your taxes are done right. If you use TurboTax you will see the return states "Self Prepared" on the bottom. The IRS will not accept ignorance as an excuse for errors. Hope this was helpful.

 

I always went the "safe route" by using H&R Block. But they are getting too expensive so I went with Turbo Tax last year and I have no regrets. This year will be my second year using them, but so far so good.

 

I've been using TaxAct for years, and before that TaxEdge, the predecessor to TaxAct. I believe it comes with a guaruntee that if you have an IRS problem due to the software, they will cover the fine. However, if the problem is you didn't provide some information, of course you are on your own. I pay $9.99 per year (no state tax in Florida) and that includes one electronic filing.

I just about meet the previous poster's requirement in that I am single but I have a few write-offs. Not many though. I suppose the thing to do would be to use a software program of your choice, then pay a professional, and see if there is any difference. If you've used pros in the past, get old versions of tax software and attempt to do prior years yourself just to see if there is any difference.

 

I used the Tax Professional guys, but they put on my tax paper "self prepared." They charged $100.00 to $150.00, but every year I got wrong refund amount either less or more. Then I started using TaxACT, then I moved to Turbo Tax because I do not feel confident to leave my PII online. Yes, some year I got audit, but only during the Obama administration in 2009 and 2010. Maybe I am a Republican...who knows.

I really like Turbo Tax because I can save it, then do some research before continuing to prepare my tax return.

 

I've been using the H&R Block software for the past few years. I don't have any complaints so far.

 

No complaints from me either. I've used HR Block for about 11 years.

 

TaxAct

I've used TaxAct for the last ten years or so and I haven't had any problems with it.

Now, I don't prepare tax returns for a living but I am SUPPOSED to know a bit about the subject. Here are a couple of thoughts:

How complex is your return? If your income is from wages, investments, Social Security, stuff like that, life is pretty simple. If you've been using either the 1040EZ or 1040A, you are pretty safe with just about any software package.

But if you have a business, reported either on Schedule C or one of the 1120 series, where you have extensive deductions for depreciation or are entitled to preferential tax treatment, I STRONGLY recommend that you not rely on any standard software package. The reason is, no software can anticipate the your particular situation and it gets complex in a hurry.

SHAMELESS PLUG: Enrolled agents are a good place to start.

 

I download TaxAct to my computer. Nothing is left online. Maybe that's the difference between the free version and the $9.99 I pay?

 

I used to use turbotax several years ago but it did not account for a certain area for California.
Since then I just download tax forms and instruction books from the IRS and do it myself (Including my business). I recommend Publication 17.
I do keep excel spread sheets though the year for medical expenses, busines income/expenses, investments, local taxes, and other income. Takes me about four hours to do joint state and federal returns . I do have enough taxes withheld from one income source that I can avoid preparing quarterly returns.
I mail in paper returns with checks for unpaid taxes (I aim to pay $3,000 a year in April having earned interest on that money throughout the year).

 

H&R Block had an option to do your own return online via their secure website.. I think it was around $8/person. I used TurboTax last year for my wife and myself and it did a good job (from what I can tell.. though that really doesn't mean much ) - it was pretty easy to use and cost me $30 to buy; the previous year I used an accountant and paid over $300 for our two returns... so $270 in my pocket is well worth the investment and the time spent.

 

I've been using TurboTax for about a decade. I haven't had any problems.

-Matt

 

Ditto.....

 

So, anyone here used tax software and been audited before?