Tax Software - Taming the Paper Tiger

How much better can they get? That's what wealso offer access to tax pros who can answer a
asked ourselves about the leading tax preparationspecific question or review your entire return.
software packages this year, given the depth andThis year's crop of PC-resident packages2nd Story
approachability we saw in the category last year. ButSoftware's TaxACT, H&R Blocks's TaxCut, and Intuit's
indeed they've managed to improve, incrementally atTurbo Taxhave improved in subtle ways. Navigation is
least, delivering plain-English help on a broader range ofbetter, and the depth of questioning in some topics has
topics and offering live advice for users with questions.been increased. In many cases, the programs' "voices"
As in the past, these packages provide the tools youhave become friendlier and less jargon-laden. These
need to complete federal and state tax returns, doingand other, smaller changes make your apprehensive
all of the calculations required and nudging you to layjourney through the 1040 a little more palatable.
out all of your income and deductions. If that soundsEach company (not to mention a host of smaller
pretty basic, it's anything but.players) also offers an online-only version for users
Software companies have bent over backwards tocomfortable with an ASP model. But these services
ensure that your path through the 1040ez is pavedtypically don't go live until January; hence they couldn't
with a ton of help and interpretation. Specifically, theybe tested for this story. The bottom line: The vast
offer the option of a step-by-step interview that asksmajority of filers will do very well with tax prep
you questions and puts the answers in the right placesoftware, unless they're dealing with thorny topics like
on forms and schedules. And when you think you'redepreciation and the sale of securities, which require
done, the software does a sweep of your return andmore acumen.
highlights answers that may be problematic. You areIf you used either of the leaders (TaxCut or
then ushered to planning tools that give advice on howTurboTax) last year and were comfortable with it,
to minimize your tax burden for next tax year.there's no compelling reason to switch to the other this
Help abounds, and it comes in several flavors.year, as they are very evenly matched. But if you are
Unfamiliar terms are hyperlinked to explanations.new to such packages, our favorite (and Editors'
Context-sensitive FAQs dot most screens, and IRSChoice) this year, by a nose, is TurboTax. While
instructionswith intelligible interpretations of themareTaxCut will more than meet the needs of the vast
available for each topic. Additional helpful text and tipsmajority of users and is the better bargain ($20 less
flesh out puzzling content. And all of the tax lawexpensive, not counting the free advice call buyers are
changes that have been incorporating since last yearentitled to), we slightly prefer the interview process and
are built in. If you're still unsure of something, the leadersoverall feel of TurboTax this time around.