Random PSA: online tax prep software

[Mabouya]

This Friday's the deadline for submitting 2020 tax year returns if you sent in a request for an extension. So last Friday I took the day off to get my paperwork in order and on Saturday did them online using the cheapest semi-reputable place I could find - TaxSlayer.

I've now tried TurboTax, H&R Block, TaxAct, and TaxSlayer.

Compared to the others, TaxSlayer is noticeably a bit clunkier. Not in any way that was a serious impediment to my getting the job done, but a minor annoyance. It's tough to tell if it was worth it to save the ~$30-$40 I did save.

Come next year (yes, I do plan on filing on time - I've filed '19 and '20 taxes way late, even though both the Feds and the State owed me non-trivial amounts) it will be a tough call - go the cheap route, or go with the better quality product. I'll probably compromise and use either H&R Block, or maybe TaxAct. We'll see.

Bottom line (at least for people in my situation - not super-complicated, but not super-simple taxes) I've concluded that TurboTax isn't worth the premium they charge, but how far down the food chain you go really is up to you and the details of your situation. YMMV.

[j44ke]

Wasn't there an initiative to widen the availability of the Free File service? https://www.irs.gov/filing/free-file...taxes-for-free

[Mabouya]

Wasn't there an initiative to widen the availability of the Free File service? https://www.irs.gov/filing/free-file...taxes-for-free

For the freebie you have to know ahead of time what forms to use, and given the recent changes to the code I didn't want to take any chances.

IMO it's safer to have the software know what questions to ask you (e.g. "Did XYZ happen?") instead of you knowing what needs to be done.

[Saab2000]

I recognize the cost of TurboTax but it’s so good at walking me through the process that I haven’t considered anything else for like a decade. It asks me pertinent questions and guides me based on those answers. I like the format. They make a painful event way easier to deal with.

[j44ke]

For the freebie you have to know ahead of time what forms to use, and given the recent changes to the code I didn't want to take any chances.

IMO it's safer to have the software know what questions to ask you (e.g. "Did XYZ happen?") instead of you knowing what needs to be done.

I was referring to the service for earners under $72,000 that operates on the question by question basis. I remember some aspect of that being proposed for expansion - that rather than income it should be based on complexity (or rather, simplicity I guess) of the return, incomes under $72,000 being a subset of that group. But perhaps that's gone by the wayside.

[bigbill]

When I was doing volunteer tax preparation at the United Way, the IRS was used TurboTax the first year then switched to TaxSlayer for the remaining four years I did it. TaxSlayer wasn't as intuitive but after a few returns, it was okay. I personally use TurboTax because it asks the right questions for a person like me with W-2s, 1099Rs, and other stuff that complicates returns.