On line taxes

Lost count of how many years I have used Turbo Tax. Excellent program.

I have not used the free version but expect it has the same base function as the boxed version and would produce the same good results.

I've also been a Turbotax user for years, and other brands like TaxCut (now H&R Block) before that. Free online federal filing is pretty limited to the simplest of returns.

Regardless whether online or locally installed, check which forms are supported by whichever tax software vendors you're considering. Some include Schedules that another may force you into a costlier version to file, if applicable.

Some states allow you to file electronically for free, so IMO, no need to pay extra for that in a software package or online if your state offers free filing.

Between online vs. locally installed, I still prefer locally installed. Granted, electronic filing still passes my data through the software company's servers, and I have no idea whether they mine it for supposed marketing purposes, but AFAIK my data isn't stored there as would be necessary for recall in subsequent years to prepare future returns.

I feel safer this way with my info stored locally on my computer, until I transmit it to the IRS/State.

I actually got my brother in to using it. We use the delux version because it has all the forms we need. The on line versions are all "basic" and don't cover a lot. They would be for the simpler returns.
Tax Cut didn't have what we wanted.

Good, timely, topic charlesd45.

Like you, I've used a tax guy for years, probably 20+, so long in fact his son in law took over a couple years ago, small private guy, not one of the big companies. I like the personal service, catching up each year, etc.

I've thought about trying an online service but was afraid I'd miss something. My wife and I itemize our deductions because they amount to more than the standard deduction would. However I believe this years return (2018) the standard had gotten higher than our deductions would give us. I'll still let my 'guy' do them to be sure this year, but, if it does become incredibly simple I might again consider trying an online one.

I do wonder about the secureness of the online services, even though my guy submits ours electronically when he's done.

Another reason I hesitate, again, goes to personal service, is if I have a tax related question I can always call him so I'm not making the wrong decision about tax related things during the course of the year. For example my wife's father passed in 2018, a lot of tax related things came up as a result, guidance was needed, and offered for free.

This is a good topic and I too look forward to others opinion on the subject.

I locally installed my tax programs for more than 25 years but I switched to a tax preparer 3 years ago after retiring and relocating. I'm not familiar with the latest versions of the free offerings but I know in the past they were limited to the 1040EZ form. This form is fine for a lot of filers that don't itemize or have income outside one or two employers. You could be "disqualified" if you itemized or had a large laundry list of other conditions.

While there have been no reports of the tax companies being hacked, I feel it will only be a matter of time before one or more is breached for the trove of data.

I've avoided the online TurboTax but have used the PC version for many years. I had used the DeLuxe version for many years but now find that the Premier version is easier for me since I have investments with Vanguard with capital gains, etc. Not having tried the online version, I can't state how it compares to the computer-based one but will assume that it must be comparable.

I agree with others that for tax returns more complicated than having just a W-2 and maybe a 1099-INT, you probably would be told to pay for DeLuxe or Premier online to complete and file the return. Amazon or Quicken's sites should offer a table of 'what tax forms you have' and 'which TurboTax you should use.'

You may find that you can buy the proper TurboTax on sale somewhere that would be cheaper to use than the online DeLuxe or Premier versions.

Unless things have changed, plan that in addition to buying the proper TurboTax, you probably also will have to pay another $20 or so if you plan to file your state return electronically.

I have used the free file option for many years. I used to buy the Turbo Tax CD each year, but my taxes do not vary much from year to year and the free online versions work great for me.

Not much difference between the CD versions and the online versions. I just fill in the blanks with my numbers and go. I can't import from Quicken like I could with Turbo Tax, but I really don't miss it.

Good luck with whatever method you choose.

Thanks so far for all the information. Glad to see some users happy with the service.

I used to (many years ago) do all of my taxes by hand. Numerous years ago I started using Turbo Tax on the recommendation of my brother. I have never had an issue. Once they hand off your taxes to the IRS, they are pretty much done. I don't believe they keep anything on their servers. For example, in past years when I did my taxes, it would import the info from the past years into the new forms. Last year, after doing my taxes, my computer crashed (hard-drive died) and I had to get a new computer. This year, when starting my taxes, there was nothing to import. Turbo Tax searched and searched and the only thing it came up with was my son's taxes that I had done after I got the new computer last year. So, it appears that Turbo Tax doesn't store that information. Also, there is a registration screen when you first open the program. I never fill this out. It is possible that if you fill out the form then they may be able to tag your info in some way, but like I say, I never fill it out. By brother uses Turbo Tax for his business expenses (he owns several properties and runs a bed and breakfast) and Turbo Tax serves his needs. So, if you get the Premier edition, you should be able to do just about anything. I never use Turbo Tax for my state returns, I just go through the state's website.

Used TurboTax ever since Intuit bought out Personal Tax Edge many many years ago, back in the 1980s
Never had a problem, used it for my side business and home taxes.

TurboTax gets easier to use after the 1st year. Many of the tax forms received occur year after year from a given provider and in your 2nd and later years, TT will ask if you have forms from them again the next year and the form will pop up with names, addresses, etc. prefilled so you just need to fill in the new year's data field, review and approve names and addresses and not have to manually fill in the total form each year.

Also, many banks, investment companies, etc. allow their forms (1099-INT, 1099-R, 1099-B, Schedules B and D, etc.) to be downloaded and used in your tax return and that fills in the data which not only simplifies your tax prep but also prevents typos and other errors.

Even with my preferred Basic version of TurboTax, I have to say--particularly if you have an investment portfolio with much turnover during the year--even if you already have the forms in hardcopy or pdf format, the ability to download 1099's is a real godsend. The data is automatically transferred to the proper IRS schedules and calculated.

If you're concerned about entering your login ID and password for your financial sites into the tax program, change your password(s) as soon afterward as possible.

I used TT for years bought the disk when working now retired I do the online version this is the first year to use the free version.

I know when buying the disk the first thing you do is check for updates and the download is as big as the online download.

I never had a problem and feel its as safe as using an agent since they also file on line.

I've used Turbo Tax for 20 years, because my dad did. I am not sure as I bet the others import the files, but I just keep using it, whether they make it hard to print, limit # of returns, no matter what, I keep using it, and it has cost between $29 and $44 over the years.

I started to look at it for 2018 and as I suspected, refund will be smaller. I wasn't one who was fooled by the standard deduction nearly doubled and exemptions gone but we increased child tax credit nonsense!

Last year someone used our SS# to file before we did. Had to wait an extra 6 months and jump through hoops to receive refund. All that while using a local CPA and e file.
I would use an online tax service.
We all have to be careful.

Been using turbo tax both disk and online for to many years to remember. Never had a problem but always have to pay to efile state.

Done ours and all three kids until they go married. Knock on wood but never been audited but once by the state and that was due to a check mark in the wrong block.

Getting help from professionals doesn't mean it is safer. I've seen a printed form with my SSN & DOB on it getting thrown in a trash can right in front of me at some place that I can't remember exactly right now (could be at a financial institution or at HR Block). I asked them to give it to me so I can shred it. They picked it up and gave it to me while claiming that they will do the same (shred documents). OK but who can guarantee they will remember that?

I always by the CD. Like LostWithoutGps says, it's nice to have the info stored on my computer.

Standard version in Canada allows up to 8 returns and installation on 2 computers.

Bought mine at Costco last week for $24.99. Split the cost with my daughter so we can each do our own returns plus for our spouses.

Used turbo tax online for years. Never had any security issues. Security has improved/increased thru the years and feel very comfortable using it.

I've used TurboTax longer than I can remember. I buy the TurboTax Premier from Costco for $55 with free shipping. TurboTax allows me connect online with my brokerage and banks to download the needed tax information and adds it automatically to TurboTax without my having to key it in manually. I downloads and print out the various forms to check to make sure everything was included and accounted for before I call it finished.

Easy peasy!

My wife and I have used H&R Block for several years with the same preparer. We have a fairly simple return but we have them do our state and city, too. We had our 2018 taxes done last Wednesday, Jan. 23rd, and he electronically filed the federal return. He tried to file the Ohio return but Ohio wasn't accepting electronic files until today, Jan. 28th. The city return I mail in. H&R Block is relatively expensive (not outrageously expensive) but if there are error's made by them they'll pay any penalties. As far as seeing our SSN's being written down and then thrown into the wastebasket - ain't going to happen at H&R Block. Our SSN's are never written down on anything. Everything gets entered through their computers. I trust them completely. Or at least until I read that they got hacked that is.

Phil

Edit:
Just got my refund today, 2/6. Took exactly two weeks so not so bad.

When you realize that the IRS would do your taxes for you and for free - since they have all the information anyway - if it was not for the lobbyist in the employment of Intuit and others who have been fighting that idea for decades, you wouldn't buy any of the programs.

Interesting point.

Itemized deductions not reported. QCD not reported on 1099-R so it would all be income.

would I use an online tax program. I want the information on my computer and not somewhere in cyberspace.

You do NOT have to buy a Cdn tax program to do your taxes. I have for many years now used a completely free program you download and install on your computer and then fill in all the required info. This program I believe lets you do yours and all the rest of the family's returns FREE. If you have filed electronically in the past, this program lets you do that too. I may remember wrong but it could be as many as 19 returns can be done.

Just GOOGLE. " Studiotax " and download it.

Studio Tax is probably fine, but I've always used TurboTax and all my carry forward and other info from the previous year totally impirts to the new year.

Just easier for me. Great suggestion.

It's no different than extended warranties, real estate attorneys, whole life insurance. Nobody needs them. But humans are risk-averse. How complicated are taxes? And, given the changes, many, many, many, if not the majority, will stop itemizing deductions.

I'll reveal something about myself--I am married filing jointly, my itemized deductions are around $13,500 last year, have one child, and my property taxes are $6k (low). Did not trade any stocks but have lots of distributions and interest. Can you see how my taxes are simple, that Turbo Tax works perfectly for me, and how the recent tax increase wouldn't hit me that hard (we call it a decrease because the brackets went down, but so did deductions and exemptions eliminated)?

Some of my coworkers have 28k in property taxes, can you imagine? They aren't rich, lots of them have only 20-30% equity in their homes and are young relatively speaking. So to take for starters 5k away on property tax alone (5k net, not deduction), when everything is tight already, is a lot. Then limit their interest deductions and wow, 2018 is way worse than 2017.

p.s. when I was 20 y.o. an attorney gave me some good advice that I carry today. If you are not charged with a crime, you don't need a lawyer. Ever see people in traffic court with a lawyer? When they get out of it, they think it was because of the lawyer. That's a non sequitur.

Started using the free version last year after years of buying the paid version, and it worked out well enough to where I'll probably use it again.

I used to do taxes by hand but now just do a quick run by hand (estimate in early January) then the "real run" with software after we get our W2s, 1099s, K-1s, etc. If you are comfortable doing it by hand, it certainly makes it easier. For complicated stuff, that's what pros (CPA, etc.) are for.

My parents used to strictly do theirs by hand and now file via mail using a copy. Mom is still concerned about getting hacked but only had to run it once and decided to let the computer do the math. They're retired with farm income.

Installed locally is less tedious the second year on since it can see last year's file and prompts you for the same forms that you got prior. What I do is input everything, check it, then review it with my wife before clicking submit.

I've been using TurboTax 'Premier' for the past 10 years. I wish I could have started using it sooner, but it couldn't handle my unusual needs.

After the first initial year each successive year will be easier because TurboTax populates not only your personal information but also your previous year's tax information (e.g. Income, Deduction sources, etc.) so you will have those same accounts/items listed if you still need them. You will also be able to compare current year figures with your previous year's figures. And you can also import directly into your TurboTax return many of your Form 1099 document data (automatically fills in the boxes) and up to 500 stock transactions from major financial institutions and brokerages if you wish.

As for security - this should provide you with an understanding of how secure TurboTax is. Major financial institutions (e.g. Wells Fargo Bank) and brokerages (e.g. TD Ameritrade) provide Document Numbers on their 1099 Forms that allow their account owners to import their 1099 document data into their TurboTax tax return software. That should tell you how secure it is.

In case you are interested, importing 1099 document data into your tax return is easily accomplished, once you have received your 1099, by first logging-in to your TurboTax account and entering your bank or broker's name that will prompt a question about if you would like to import your 1099 document data. If you do want to import your 1099 document data you will be given the opportunity log-in (from TurboTax) to your bank or brokerage account. You will then enter the unique Document Number located in the upper right-hand portion of your 1099 form that you received in the mail or printed from your online bank or broker account. When you enter the unique Document Number on your 1099 form and click 'Import' all the pertinent 1099 document data (for that particular 1099 form) is automatically entered into the correct boxes in your TurboTax software. It's that easy!

There's no question about it being secure...because the IRS, Intuit and all those financial institutions and brokerages across the U.S. would never allow the exchange of such personal information to take place if it wasn't iron-clad secure. In fact, since the entire tax filing process, from start-to-finish, is online on secure websites it is far more secure than sending all that information using the US Postal Service!

The 'Help' forum and Chat/Phone Support is very useful if you need to report something that is uncommon or not straight forward (e.g. how to report Cash-in-lieu of Fractional Shares as proceeds for sold stock for example). And the Check/Prompt system they have won't let you forget about anything as you go through the reporting process. Everything is laid-out very nicely and is not convoluted at all. Finally when finished, the process of e-filing your taxes is excellent - notifying you when the IRS has received and accepted your tax return. You can print a copy, or save a copy, of your tax return (short version or long version) once you're finished. Need to print or look at a previous year's tax return - no problem. Need to request a time extension or amend your tax return - no problem.

Intuit (TurboTax) has had plenty of years of experience helping many tens of millions of clients file their taxes each year. There is no doubt the IRS works closely with Intuit to get their online tax preparation software spot-on, totally secure and usable for all but the most unusual tax returns. I highly recommend it...

I hope this 'consumer advertisement' has been helpful!

just checked and its only free if your AGI is below I think it was $33,000 if its above they charge you for filing.

I used TaxAct for years and they were good and cheap. TaxAct went up in price so I checked prices.
I found TurboTax Simple on Amazon for 39.00. This was towards the end of last year so I don't know what it is now but, at the time, that was the best price.
I have always ordered the download and do the taxes on my PC. I don't feel safe doing the free one online.
I also put a password on my file on my computer and on my external hard drive for backup. Just another layer of safety. I know if someone wants the information there is always a way to get it. I just feel better doing all I can to prevent it.
I do e-file from TurboTax. I think that defeats my purpose of not doing my taxes online but it said the file is encrypted and goes directly to the IRS.

TurboTax is $34,000, 66,000 if you are Active Military. The IRS lists a bunch more that allow as much as $60k and $66k.

wondering, and don't get me wrong, if a $29 bill were laying on the sidewalk, I'd bend over to pick it up.

Do people have an issue with the cost of turbo tax and that's the direction we're heading? I would wonder how you're able to post to this thread, from maybe a public library or internet cafe?

Here are the free ones listed by IRS and the requirements. https://apps.irs.gov/app/freeFile/

I too look for the deals, and basically accept anything up to $50. This year, I got the super duper one whatever it's called for $44 from amazon, but it also had a $10 gift card. Since the order now broke it out, $34 for the software and $10 for the gift card, I tried to cancel the gift card and just pay $34. It said you cannot cancel this because it's part of a package or something. The gift card came in the mail and I loaded it back on the account. Premier maybe it's called, with state. $34 is not $0, but at some point we just gotta let the moths fly I guess...

I have use Turbo Tax for years but I buy the CD and use that. I have never used the free online program b/c I think it is for really simple returns.

Correct - the TurboTax 'Basic' (free) version is for taxpayers that only need to file using the 1040EZ or 1040A form, which do not itemize because they do not have mortgage interest, dividends, earned interest, stock trade profits/losses, etc., etc.

The TurboTax 'Deluxe' version is for taxpayers that itemize with deductions related to mortgages, charitable contributions or other expenses the IRS allows you to write off.

The TurboTax 'Premier' version is for taxpayers with multiple investments (e.g. earned interest, dividends, stock trades, etc., etc.), multiple deductions (e.g. medical/dental expenses, capital loss carryover, property tax, charitable contributions, etc., etc.)

The TurboTax 'Deluxe' version is the most popular for most taxpayers to originally start with (that need more than just the basic 1040EZ or 1040A form to file). TurboTax will prompt you to upgrade to the 'Premier' version if (and only if) your tax return requires more than the 'Deluxe' version is meant to handle.

And, of course you do not pay anything until you either e-file your tax return to the IRS directly from TurboTax, or you want to print your finished tax return so you can mail it to the IRS. You can literally finish your tax return and then decide not to e-file it or print it - and it won't cost you a dime. There's no better way to figure out if you like the TurboTax program than to give it a try.

I think something that many people in the USA are missing is that they're no longer going to be itemizing starting with TY2018.

I have everything that would require premier, yet, my itemized deductions barely reached 13k last year. The standard deduction almost doubled.

It's as if people just don't want to accept that the steep interest payments on the mortgage will no longer benefit, nor will the steep property tax, nor will state and local income, even charity. My buddy even sold their home and moved into an apartment.

Also, home equity interest is gone too. A real paradigm shift with the tax increase starting in 2018. (I get the brackets went down so they label it a decrease, but for many, like me, it's an increase)

A lot of people can't seem to see beyond their net paycheck--so if you give them something there, they don't care about their overall liability increasing. Odd, but that's politics.

I think you got it right johnnatash4. Many charities are already feeling the pinch of falling charitable contributions, and after a year or two of tax filing when folks see the impact of not being able to itemize, the situation will get worse for charities.

I also think it will cause a significant slump in home purchases. If you can't recover part of your monthly house payment through mortgage interest and property tax deductions, you may as well pay rent. My brother just sold his condo and moved to an apartment. I don't know if that played a part in his decision, but I suspect it may have.

I went Turbo Tax a number of years ago. However, I won't pay to e-file. I actually print out the forms and mail them! There is just something about having to pay to e-file, on top of everything else, that just seems wrong to me.

TurboTax Online includes federal and state e-filing at no extra charge.

TurboTax Online does not charge an e-filing fee for federal and state returns. E-filing is included for free.

The same tax preparation fee is charged if you e-file your return or if you print and mail it in.

True for those using charitable donations as deductions. But for those of us ancient ones (and that seems to be a large segment of Factory Users here...just sayin')...that have Required Minimum Distributions from IRAs and TDAs, a QCD from the RMD to a charity reduces your 'income' and lowers your taxes due while still giving to charities. Don't forget this option if currently required to take the RMD because this year (or before) you turn(ed) 70.5 years old.

It does help some when you don't itemize.

Wifey and I had our taxes done by our guy, as usual, on Tuesday. We file jointly and the standard deduction was $24,000 for the federal income tax. He worked it out with, and without itemizing. Our itemizations didn't come close to the new standard deduction, and that included 2 months of taxable unemployment compensation, mortgage interest, a $1400 distribution from an inherited from an IRA from my wife's father who passed recently, charitable contributions, and other expenses.

We were able to itemize on the state tax return.

Our total income was about the same as last year and this year we had about $3000 less in federal W2 tax withheld and our return is about $1500 less than last year.

The state return is about the same.

.

This year, there's only one Form 1040; the 1040EZ and 1040A no longer exist. And Page 1 of the new form looks completely different than the one(s) we're used to.

Phil

I've never filed taxes using the short form. For many years I paid taxes in six different states and five foreign countries each year, which required an accountant charging 5 digits for his expertise. Now I can do it myself...

I originally used TurboTax for a number of years, but some years ago they made a change to their pricing structure that I considered price gouging, so I looked around and found the H&R Block software. I switched to them roughly ten years ago and have been using their product ever since.

TurboTax subsequently changed back to their old pricing structure, so I have periodically compared their product with the H&R Block product. However, I have found that the H&R Block software matched my requirements better unless I went to a higher priced version of TurboTax, so I am still using the H&R Block product each year. I prefer to keep everything on my own computer, partially for security, but primarily so I can go back to older years - which I actually had to do a couple of years ago.

I have found that the pricing of the CD version of H&R Block varies with time, so I keep an eye on it and buy when my experience leads me to think the time is right. Last week I bought the "Deluxe Federal and State" version of this year's software for $25.99. Not hugely cheaper than it was earlier, but enough for my wife to splurge at Starbucks.

- Tom -