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February 4, 1999
Turbotax
TURBOTAX
(Intuit; $29.95; Windows 3.1 and later, and Macintosh.)
ntuit has been making financial software for the home and professional market for quite some time now and has a dizzying array of products available for the home user, the business user or the home-and-business user.
Overview
Tax Software: Good Company for a Tough TaskThis Week's Reviews
Turbotax
Kiplinger's Taxcut
Taxact
WintaxRelated Article
It May Still Be Certain, but at Least It's Easier
(January 21, 1999)
The company started a Web-based version of its tax software several years ago (www.turbotax.com) and this year put the user interface in its desktop products. It takes a close look to distinguish the Web and desktop products; the chief difference seems to be response time.
The browser-style interface is usually quite helpful, but in some places it would have been nice to cut back on the features and make the screen easier to understand. With the navigation menu on the left collapsing and expanding when the mouse inadvertently moved over it, and the collection of Frequently Asked Questions on the right changing from screen to screen, the page can fill up with distractions. On the bright side, the information you need is usually at your fingertips.
But that information seemed to exclude Roth I.R.A. conversions. It led to a maddening loop in the help files, and I failed to find a form for entering information on an I.R.A. that had already been converted.
The installation was straightforward, but as with Kiplinger's Taxcut, registration was a problem. Although the software correctly found the high-speed Internet connection to check for updates, it could not figure out how to register the product.
The program correctly located last year's return, done with Turbotax, and the financial software package used and imported the information, although, again like Taxcut, it put some Schedule C information into Schedule A.
The interview process became tedious as it looked for income -- and deductions -- in every nook and cranny. A way to speed up things without triggering audit alerts later would have been nice.
The program pointed out, based on answers to the interview questions, several places to look for deductions, but it was hard to find the correct code to indicate what business the taxpayer is in. Audit alerts pointed out several errors, and a few things that looked like errors but were not.
When finished with the Federal return, Turbotax walks you through a review of your return, and it offers to export the data to any state returns needed. State returns are available for $27.95 each in both Windows and Macintosh versions.
Although Turbotax is cumbersome at times, and more expensive than its competitors, it deserves its reputation for quality. People using Intuit's Quicken personal financial software will also appreciate the tight integration between the products.
Kiplinger's Taxcut
KIPLINGER'S TAXCUT
(H&R Block; for Windows 3.1 and later, $34.95; for Macintosh, $24.95.)
rom the wonderful folks who gave you those ubiquitous H & R Block storefronts comes Kiplinger Taxcut, in both desktop and Web versions.
Overview
Tax Software: Good Company for a Tough TaskThis Week's Reviews
Turbotax
Kiplinger's Taxcut
Taxact
WintaxRelated Article
It May Still Be Certain, but at Least It's Easier
(January 21, 1999)
Like most of the desktop packages, Kiplinger Taxcut uses an interview to gather information and then enters that information in the correct tax form. Also like most packages, it allows users to bypass the interview process and enter the information directly, something not for the faint of heart. A nice added touch is the ability to pull into what the program calls the "fast lane," where the user can bypass queries and go straight to selecting topics and forms.
The program installed quickly, although the registration process was somewhat painful, gathering more marketing information than I thought was necessary and allowing registration only through a dial-up connection, fax or snail mail. Users cannot register through an Internet connection, which seemed like a strange and unfortunate oversight.
It would have been nice to check for software updates before starting the interview process rather than waiting until going through a half-dozen screens. It was also a bit perplexing when the program claimed that it had found my previous year's Taxcut form and offered to import some of the information because I had not used the program before.
Taxcut correctly located and imported data from the tax program I used last year, which was Turbotax, and it can call in data from the major personal financial programs, saving some retyping of information. It even found possible deductions in the process. But based on last year's data, it insisted on putting some Schedule C expenses into Schedule A, where they had been last year. Once it got past those minor glitches, the program sailed.
The interview process was simple, focusing on areas that seemed to matter the most, like whether you qualify for the child care credit, while still offering the opportunity to look at other options. It had the best explanation of Roth I.R.A.'s I have seen, and a calculator to help decide if it was worth converting existing I.R.A.'s to Roth I.R.A.'s, a feature I did not find in other programs.
The screen has been laid out sparsely and has a big fat Help button on every screen. Also handy was a drop-down Tools list with a link to such things as the Windows calculator. The program also looked at the entry in the "occupation" field and suggested other potential deductions. Unfortunately, the Internal Revenue Service has changed its business codes, and for those people who need to report outside income, perusing the list of business codes is slow and painful. Look it up elsewhere first.
At $34.95, the deluxe Windows version of Taxcut costs $15 more than the standard version, but the deluxe version allows you to file electronically and install all the state versions you need at no extra cost. The Macintosh version costs less, but you must purchase the state versions separately. Also, the Macintosh state version covers only 10 states; the company said those states were the ones with the most complex taxes. Street prices for this program are often lower than the manufacturer's suggested price, which makes it a bargain.
For those who do not need the full-feature set of Taxcut, a simpler version is available free through the Web (www.taxcut.com), but it is only for filers planning to use the 1040EZ form. You enter information directly into the Web version; nothing needs to be loaded onto your computer.
Gene Goldenberg, vice president and publisher of the Taxcut line at H & R Block, said he saw the Web service as a way to attract new customers.
"Our feeling was that this was advantageous to help them out now," Goldenberg said. "Hopefully they will remember us when their return gets more complicated."
Those using the 1040EZ product can log on, enter their data and file electronically at no charge. This is partly good marketing and partly an effort to keep the I.R.S. happy. This, and a similar program from Intuit, come from a push by the I.R.S. to have 80 percent of all returns filed electronically by 2007. Providing this free Web service helps with Taxcut's market share and keeps the I.R.S. happy, usually a good thing.
For the many users who have returns more complex than the EZ can handle, Taxcut offers its more muscular products. They can be purchased and downloaded at the site.
"We don't feel that there is enough demand for the full product on the Web," Goldenberg said. "When you come to taxes, it's the big enchilada. People are really touchy about that."
Taxact
TAXACT
(2d Story Software; basic version is free, deluxe version is $9.95; Windows 95 and later.)
he new kid on the tax block is Taxact from 2nd Story Software, a small company that has been in business for about a year and put its first product on the market a few weeks ago.
Overview
Tax Software: Good Company for a Tough TaskThis Week's Reviews
Turbotax
Kiplinger's Taxcut
Taxact
WintaxRelated Article
It May Still Be Certain, but at Least It's Easier
(January 21, 1999)
Don't let the newness fool you, though. The four founders of 2nd Story Software have an extensive background in taxes and software. They all worked at Parsons Technology on several tax and financial packages as well as in related fields. The company distributes its product over the Internet (www.taxact.com), which holds down costs, and it gives away the basic version of the program to establish market share.
The program's screen layout is not crowded, making it easy to breeze through the interview. And you'll find a nice twist in the interview itself. Instead of having you sit down and enter data off all those forms that come over the transom, it starts with a discussion of "life events." The program asks if you were married or divorced, changed jobs, moved, started a business or did any of 14 other activities. If any are checked, it asks questions focused on those events and points out likely financial consequences; then it gathers the information needed and puts it in the appropriate places. Of course, it still asks the standard questions, but since it has gathered much of the information in the life events section, that portion of the interview zips along.
The deluxe version, at $9.95, carries a guarantee for accuracy, covers more life events (the basic package deals with three) and has a handful of other features. Electronic filing costs $7.95 more. The state versions of the software cost $12.95 each, but the company covers only 21 states so far. This dark horse makes a good showing for its first time out of the gate.
Wintax
WINTAX
(Wintax; $10; runs with Excel 97.)
intax is for those who will happily forgo all the bells and whistles of the fancier tax packages but who do not want to do the math. It is a set of templates for Microsoft Excel 97 that do all the calculations for the user. There is no interview, no electronic filing -- just forms and a built-in calculator.
Overview
Tax Software: Good Company for a Tough TaskThis Week's Reviews
Turbotax
Kiplinger's Taxcut
Taxact
WintaxRelated Article
It May Still Be Certain, but at Least It's Easier
(January 21, 1999)
Robert Spiegel put the tax templates together to help himself. Spiegel's background is in electronics and electrical engineering, so he was comfortable with computers and chose Excel for doing his taxes.
"I did it for myself," Spiegel said. "A year and a half ago, my son said, 'Gee, Dad, why don't you sell it on the Web,' so I did." The software can be ordered through the Wintax Web site (www.wintax.com). You need to have Excel 97 to use it.
Spiegel has written templates for the 1040a and all of its associated forms and is finishing up the 1040 and its forms. The templates look just like the Internal Revenue Service forms available on the Web, at a post office or at any number of other places. The major difference is that many fields have a Help button that calls up I.R.S. information for that field. On many parts of the form, entering inaccurate information will make red text pop up as a warning.
For someone who wants a little help doing the taxes but is not excited about loading another program or doing the taxes on the Web, this is a simple option. And it costs 10 bucks.