The DIY Tax Software for the Masses Continues to Improve

When it comes to mind-numbing chores such as renovating your kitchen, or paying your taxes, there are two kinds of people in life: those who hire professionals and those who dig in and do the work themselves deriving satisfaction from the process. For those who want to be as far removed from the tax preparing process as possible, there are places like H&R Block and Jackson-Hewitt to get the job done for you. For those who want to get their hands dirty, Turbo Tax Deluxe 2007 is the DIY tax software for the masses.

Intuit’s premier tax software provides the tools and the advice, and you take care of the sweating, the cursing, and the angst that comes with all do-it-yourself projects. When it’s all over, you’ll realize that it wasn’t so bad after all, and you’ll bask in the glow and pride of having done it all yourself for, well $49.99, plus the price of electronic filing (e-file) your taxes, which has risen to a mind numbing $17.99!

TurboTax Online vs. Desktop Software

As if you don’t have enough tax decisions to make, Intuit offers not only TurboTax Basic, Deluxe, Premier, Premier Home & Business, versions of their software, you also have the option of using an online product (Free, Basic, Deluxe, Premier, Premier Home & Business, Personal Pro) versus the desktop software.

The online version of TurboTax runs on secure Intuit servers and is constantly updated; there is no software to download. The version range in price from free (until you print or file your return) up to $99.95. Each version is tailored toward what you do and how you file your taxes.

The upside of the web version is that you can use it from any location that has Internet access (such as work or the library). The downside is that the advanced help and videos are not available on the web version.

I chose the desktop software version of TurboTax Deluxe 2007 because I wanted the security of running the program on my own computer and the ability to store my information on my own hard drive. This way, I have the freedom to access my tax data on demand without having to try to find it down the road at Intuit’s web site.

Deluxe versus Basic

Why choose Deluxe over Basic? Well, if you have a relatively straightforward return, I would in fact suggest the $19.95 Basic version and includes eFile however; the State edition will cost an additional fee. The main difference between the two is the enhanced tax advice that comes with Deluxe that you don’t get with Basic and the Deluxe 2007 version ships with the State application and eFile. TurboTax Deluxe 2007 provides on-screen IRS publications and tax guide, expert video advice and the Tax Law Advisor to alert you to relevant opportunities and the future tax impact of your life changes (such as a new dependent or investment). If you don’t feel your situation warrants extra tax advice, then TurboTax Deluxe 2007 may be overkill for you.

The TurboTax Interview

The TurboTax Interview is one of the best tools in the do-it-yourself tax preparation toolbox. For those of you who are new to tax software, the Interview is an easy to understand, step-by-step guide through the maze of IRS tax forms. You enter your data throughout the course of the Interview, and you don’t even have to see the actual forms until the very end (unless you want to). In addition, TurboTax imports any relevant data you may have from Quicken, QuickBooks, Microsoft Money and Its Deductible software. You are literally taken by the hand through a series of questions related to your tax situation. Based on your responses, the program completes the relevant form(s), keeps a running calculation of your refund/tax due status, double-checks for errors and alerts you to possible deductions.

TurboTax Deluxe Version 2007

Having used TurboTax in the past, I found this year’s version to be just as easy to install and use. The program has been stable on my computer system, updating the software was glitch-free, and downloading the state file was also without incident.

Within the software itself, you’ll find plenty of instructions and tutorials to get started. A list of “Common Questions” is conveniently located on the right side of the screen to provide ready access to questions you may have about a particular screen. You can view IRS Publications and the TurboTax Handbook. There is also video advice, FAQs, a Help & Info Center, and a Product Overview. Navigating through the program couldn’t be easier. At any time, you can move to a different portion of the Interview simply by selecting a button at the top of the screen. There, you will find the “Easy Step Navigator” which lists sections of your tax return so that you can easily review or make any necessary changes.

I started out with the improved “Welcome Interview”, and found it to be slightly better laid out than last year and not quite as annoyingly heavy with advertisements (although there are still plenty). I began with an easy import of last year’s tax information, which works seamlessly and eliminates the need to re-enter any data that was unchanged from a year ago.

TurboTax is worth its price in guiding users through Itemized Deductions, Education Expenses and Credits, and Investment Income portions of the tax preparation process. I have found the software to be indispensable in guiding me through accurate entry and calculation of income, expenses, credits, and deductions from a side business. I highly recommend tax software over manual preparation for anyone who has any self-employment income or who is planning to itemize deductions.

If you are a highly focused individual who wants to go through the Interview in one session, you certainly have that ability. For those who wish to break up the job into more than one sitting, you have the option to stop, save your work, and return to your form at any time. When you restart the software, you may continue where you left off, or start again at the beginning. Further, you can use the Progress Bar buttons at the top of the screen to navigate to any section of the form you desire.

Once you’ve completed the Interview, the program will do a final calculation and run an error check. I always run the TurboTax tools which include a Deduction Finder, Audit Alerts, and the US Averages comparison. These tools help alert you to potential deductions or inconsistencies regarding your return. There are also future tax planning calculators and forecasting tools that uses this year’s data to help you plan for next year taxes.

If applicable, you can also prepare your state form using the information TurboTax Deluxe 2007 has transferred from the federal. Electronic filing is painlessly straightforward, and the software will walk you through that portion of the process just as well as it did with the actual forms.

eFile

Of course we eFile (electronically file) our tax returns (Federal and State) every year, and I have notice that the price to eFile Federal returns has been steadily climbing, but I didn’t sweat it because Intuit always included a rebate firm in the box for eFile users. Not this year! Not only did the price climb to $17.95, but there was not rebate form! This would not stand. I called Intuit and after some passing the buck from department to department I finally got them to give me a rebate. Why should I, or anyone, have to pay to electronically file their taxes?!

Conclusion

Doing ones taxes can be a daunting, frustrating, hair pulling, government cursing experience that any sane person dreads like a Chicago commute. TurboTax Deluxe 2007 with its unique brand of tools make that pain more bearable, and dare I say enjoyable? Okay perhaps not, but it beats coming to the table alone, and running receipts in hand the nearest H&R Block.