The Cutting Edge: COMPUTING / TECHNOLOGY / INNOVATION : PC Programs Help Make Tax Season a Bit Less Taxing
The bad news is that it’s tax season again, and, as always, most of us have little choice but to file an income tax return. The good news is that there are more and more ways to prepare and file your returns, and a good personal computer tax program can make the whole process far easier.
My CPA, who happens to be my brother, has been preparing my taxes for years, and I’ve yet to see a computer program that’s as good when it comes to gray areas, subtleties and giving strategic advice. Of course, I get a family discount, but even if you have to pay the regular fees, anyone with a complicated tax scenario may be better off with a tax professional.
If your situation is fairly straightforward or if you enjoy the sense of control you get by doing your own taxes, you should consider using a tax preparation program. And even if you do wind up working with a tax professional, a tax preparation program can help you organize your information and get an estimate of your taxes.
There are a number of tax preparation programs, including TurboTax from Intuit, TaxCut from Block Financial Software, Simply Tax from Computer Associates, TaxPerfect from Novell and AM-Tax Personal 1040 from AM Software Inc. I tested the two leading programs, TurboTax and TaxCut. Both have versions for DOS, Windows and Macintosh. (The Mac version of TurboTax is called MacInTax.)
Both TaxCut and TurboTax have ways to import data from any major personal finance program, making them especially handy if you use a personal finance program such as Quicken or Managing Your Money. Both programs also have CD-ROM versions for multimedia Windows PCs that offer audio and video help and extra hand-holding. The TurboTax CD includes video instructions and vignettes from personal finance guru Marshall Loeb and tax expert Mary Sprouse. The multimedia version of TaxCut has short video clips from its author, tax attorney Dan Caine, as well as extensive audio help,
TurboTax’s video help isn’t as extensive as the audio help in TaxCut, but Loeb and Sprouse do pop up when you need them most. Sprouse, for example, is there to help you determine whether you can claim someone as a dependent. Loeb explains what happens if you elect to contribute $3 of your taxes to the Presidential Campaign Fund. It even includes a short video clip of Richard Nixon accepting the 1972 Republican nomination that, while eye-catching, didn’t exactly inspire me to contribute.
The floppy disk versions of these programs have the same basic tax preparation programs, minus the audio-video help, and some special bonus programs and publications offered on the CD-ROMs. But they still provide a lot of hand-holding.
Both programs also provide phone numbers to call if you need help with the software, but TaxCut is the first tax program to come with free tax advice. Users can call any H&R; Block office with any tax-related question, and the program even displays the phone number based on where you live. I tested the service by calling my local H&R; Block office on a Sunday afternoon and was pleasantly surprised by the quality of the help. In the event of an IRS audit, Block will send a tax professional to accompany you or provide preparation assistance.
The programs offer a choice of entering data directly on a replica of an IRS form, or answering questions in an interview format. Unless you’re a tax form jockey, the interview is the way to go. TurboTax’s screens are among the prettiest and easiest to follow that I’ve seen, and, though figuring out how to navigate from one part of the interview to another is more obvious with TaxCut, it’s ultimately just as easy with TurboTax.
When you’re finished, your return will be printed on IRS-approved replica tax forms. They’ll also print out a special form to work with the IRS’ automatic scanning machines to reduce the likelihood of coding errors and speed up your refund.
The programs also create data files for electronic filing, but you must mail or use a modem to transmit the file to a service bureau which, for about $15, will transmit the return to the IRS. You still have to send in your W-2s and a paper form but, if you’re expecting a refund, it should come about three to six weeks sooner than if you filed a regular paper return.
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Lawrence J. Magid can be reached via e-mail at magid@latimes.com on the Internet or KPVN58A on Prodigy.
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Tax Forms On Line
If you need tax forms and don’t want to wait in line at your bank or post office, you can download IRS-approved forms from the Internet or the CompuServe on-line service.
On the Internet, use the World Wide Web to go to the IRS’ page at https://www.ustreas.gov/treasury/bureaus/irs/taxforms.html.
CompuServe, which is owned by H&R; Block, provides access to the same IRS forms, which are located in “Go TaxForms.”
With both the Internet and CompuServe, you’ll need a copy of Adobe System’s Acrobat Reader to view or print the forms. The reader may be downloaded at no charge (other than connect time) from CompuServe or the IRS’ Web and FTP sites.
