Need advice on tax preparation software. Idiot here. Help! :-)

[Dem2theMax]

This may not be in the right forum, but at least it will be seen. :D

I've never had to file anything other than the basic 'EZ' form for my taxes. Now my parents want me to do their taxes and I'm stumped :crazy: as to which software to use.

I've heard that Turbo Tax is good. If anyone suggests this, is it better to buy the software or use the Turbo Tax online site? (I'm on dial-up, if that makes any difference.)

Also, H&R Block sent a disk to my folks. It will let you do your federal form for free, but you have to pay $29.95 for your state taxes. Has anyone ever used this and is it any good?

I have NO clue as to how to do taxes. I wouldn't know a deduction from a hole in the ground. Can an idiot like me understand these tax programs or are my folks just guaranteeing themselves an audit by asking me to do this for them? If the program walks you through it, I'm guessing I could do it. I hope. LOL.

Anyway, ANY and ALL comments, recommendations, whatever you want to add, will be very much appreciated.

Thanks ahead of time to anyone who replies! :hi:

[wryter2000]

1. What state are you in?

I used Turbo Tax last year, and it was sure easy. I have no idea how accurate it is.

If you got something free for the Federal taxes, you very likely can use that for the feds and do the state tax manually. In California, the form is very easy once you've computed your adjusted income for the feds. You take that figure from the federal form and then do some simple calculations.

So, last year, I used Turbo Tax to do the federal form and did the state form on paper.

[Dem2theMax]

4. They are in California.

I'm going crazy just reading all the replies. LOL!

[napi21]

2. I've used TaxAct for the last 3 years. It works well and is

very user friendly. The cost of TaxAct for the Fed is $19.95 and another $9.98 for the state return.

Do you know if your parents really need to file anything beyond a 1040A? The only reason I use a tax software is because I have a small p/t business. If it weren't for that, the feds have increased the standard deduction so much, all I would be able to file would be a 1040A which anyone can do by picking up a form and an instruction booklet at your local Post Office. You wouldn't even need to spend the $30.

[Dem2theMax]

7. I honestly don't know how to answer that question.

That's how much of an idiot I am when it comes to taxes. They are retired and don't have much. They own their own home, get social security, have a small annunity that comes in every month. They normally pay some guy to do their taxes for them (from habit I think, from owning their own business years ago) and he charged them $275.00 to do the taxes. They don't own any stocks or bonds, no investment property. I know my Mom keeps everything having to do with medical expenses. They were both in the hospital in 2005 and had lot to pay out there.

Is that any help? Boy do I need help. LOL? :crazy:

[LittleClarkie]

12. The expenses might add up to be enough to itemize

I would go to H and R Block, but that's just me.

[napi21]

14. I suggest you stop by your local Post Office and pick up

the instruction booklets for a 1040EZ, & 1040A. Take a moment to read them, then talk to your Mom about what she has. From what you've said, it sounds like the 1040A would be all you'd need to file, and there's no charge.

Don't let the Feds scare you. Most of the basic tax forms are extremely simple to complete, and you shouldn't need any tax software or accountants.

Again, the feds have increased the standard deduction so high, we own our home, pay the RE taxes ourselves, paid $200+ in med expenses, and still didn't make expenses high enough to have to file more than the 104-A and use the standard deduction.

[Dem2theMax]

15. Very good suggestion! I have to go into town tomorrow

so I'll drop by the post office and pick up the booklets. Thank you so much. I didn't even think of that. And no matter what I end up doing, the booklets will help a lot. :)

[Justitia]

10. We've used TaxAct for yrs also - it's easy, walks you thru

The standard version is free:

http://www.taxact.com/products/index_personal.asp

[LittleClarkie]

3. How complicated are their taxes? Do they own a home?

Own any stocks? Eithter one have a pension? It makes a difference.

I did my dad's. I had to include his pension in his income, and I deducted his nursing home expenses so that he'd get money back. But that's all I knew how to do.

I've just been told by a friend that Turbo Tax is indeed very good, letting you know if there is a deduction you might be able to take and such. I believe he paid for it though. It will cost you about $30 anyway, so same difference I guess.

[Dem2theMax]

8. See reply number 7 for some of the answers.

No, they don't have pensions. I'm trying to think if they have any more income or money going out for expenses, but other than medical and some home improvement things they did this past year, that's about it.

[NMDemDist2]

5. i'd take a look here if I didn't use an accountant....... FREE via IRS

http://www.irs.gov/newsroom/article/0,,id=153364,00.html

[Dem2theMax]

9. Thank you for the link. I'll go take a look.

:)

I appreciate it.

[InsultComicDog]

34. I just might try that this year

... my taxes are pretty simple now that I don't need to itemize.

[cynatnite]

6. We've done TurboTax for four years...

Did pretty well, too.

I would only use H&R Block if it would guarantee bush's impeachment. They did lousy work for us and charged too much money. Friends of mine have had horrible experience with them as well.

I hear TaxAct is good, too.

[Dem2theMax]

11. You gave me my LOL moment for the day.

And thanks for the warning as well. I used them once when I had to break into my 401K to pay a hospital bill and had to pay penalties. But even then, it was simple.

I'll have to check out TaxAct. I've never heard of them. Thank you!

[Beaverhausen]

13. I used H&R Block last year

I went through the IRS link someone posted above to their website. The Fed return is free and state is $29.95. Another thing is once the state was done I had to print it and send it in myself. The process is pretty simple, you can stop and start again for days if you need to gather more info to finish. They ask you any question you need.

I know people here don't like H&R but I used them and like them. My return isn't very complicated though. So your milage may vary.

Good Luck. :hi:

[Dem2theMax]

17. Thank you for the H&R Block feedback.

I'll have to pop the disk in the computer and see what it has to offer. Sounds simple from what you wrote. I like the part about stopping and starting. I'm always being distracted and that would be very helpful. Thank you! :)

[B Calm]

16. I have used Turbo Tax the past three years and love it.

A really nice feature is if you have money invested with Dean Witter, etc. etc. it will enter (on line) your investments, making it even simpler.

[Maru Kitteh]

18. I've used both TurboTax and TaxCut for a combined 12 years

I prefer the H&R block TaxCut software. Better options, better support and it seems to dig a little deeper for deductions without leaving you in dangerous gray areas. This is of course only my HO but I've been doing our personal, business and the parents taxes every year for the last 3 years with TaxCut and like it much better than Turbo.

Best of luck to you but let me also say this: If you find yourself unsure at the end of the process don't be afraid to tell your folks you may have bitten off more than you can chew. That aside, chances are you will be just fine, you'll probably suprise yourself.

Welcome to the stage of life where you start taking care of your folks instead of the other way around. Good on you for being there for them. :yourock:

[Dem2theMax]

20. Whooooo boy, have you said a mouthful! "Taking care of the folks

instead of the other way around." I never expected life to take this turn quite so suddenly, but in one three week period everything changed. They both got sick, both ended up in the hospital and ever since then, well, let's just say I'm first on the list for human cloning. LOL?

There is not enough time in the day to get everything done. And now taxes. Whoopee! :silly:

I'm REALLY glad to hear from someone who has used both TurboTax and H&R's TaxCut. With the experience you've gained from doing all types of returns, that helps me out a lot.
And believe me, if I get to the :crazy: point, I'll be sending them off to a professional. :)

[Maru Kitteh]

28. It started that way for me too with my fathers first heart attack

It was ebb and flow for a while, then much more ebb than flow. I sure do know what you mean by not enough time in the day. It has it's rewards though. They'll see you with new eyes, new respect - and you get to really understand what unconditional love and patience really is.

Our best to all of you. :hug:

[Justitia]

23. oops

moved post

[InsultComicDog]

32. I agree

I've used one or the other for the last 16 years or so.

I prefer TaxCut myself. Though the last time I used TurboTax it wasn't too bad.

[Autumn Colors]

19. I love TurboTax

I've done our taxes for the last 4 years with TurboTax and my husband has to file multiple state tax forms each year because of the nature of his job. We have a mortgage, IRA, mutual fund investment, and it's been a breeze using this software.

If you buy TurboTax for federal, you can download State Tax software for one state for free. I always get the most expensive version of the software because it comes with all kinds of explanations and also sign up to get tax advice if you get stuck on something.

It really is simple and it walks you through each section and asks you questions in plain English and if you don't understand, there's always a "What is this?" link you can click for more info.

[Obamanaut]

21. We've used both of the ones you mentioned in OP. This year

we bought Tax Cut from Office Max and tossed out the CD that came in the mail when it arrived about 2 weeks later. I didn't notice any major difference between Turbo T and Tax C. We're both retired, own our home, very little med expenses - standard deduction is all we get to use.

[FloridaPat]

22. H&R is the worse. Turbo Tax seems to be pretty good.

I use to buy both to compare. H&R was always getting stuff wrong, putting the wrong numbers in the wrong columns. Couldn't do a lot of things I needed done.

[Justitia]

24. If they are at least 65, they may not even have to file a return.....

If they are over 65 and their non-Soc Sec income is less than a certain threshold (around 18k, I think), they don't even have to file a return.

Also, from the IRS website:

Tax Counseling for the Elderly (TCE)
The Tax Counseling for the Elderly (TCE) Program provides free tax help to people age 60 and older. Trained volunteers from non-profit organizations provide free tax counseling and basic income tax return preparation for senior citizens. Volunteers who provide tax counseling are often retired individuals associated with non-profit organizations that receive grants from the IRS.

As part of the IRS-sponsored TCE Program, AARP offers the Tax-Aide counseling program at more than 9,000 sites nationwide during the filing season. Trained and certified AARP Tax-Aide volunteer counselors help people of low-to-middle income with special attention to those age 60 and older.

For more information on TCE call 1-800-829-1040. To locate the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's Internet site http://www.aarp.org/money/taxaide/

[Dem2theMax]

25. Wow. I had absolutely no idea that this kind of help was out there

for seniors. My folks are in their 80's so they qualify. Thank you so much for the link! :)

[Dem2theMax]

26. Something no one has answered and I'm really wondering -

If I go the Turbo Tax route, is it better to buy the software or just use their web site (remembering I'm on dial-up)? Living in the sticks is the pits. No decent (read affordable) high speed access where I live. Sigh. :crazy:

[Maru Kitteh]

29. I wouldn't. I like the hard versions downloaded or on disk and here's why

1. What about 6 months from now or 14 months from now when you need a bit of info off one form or another? Online would be a pain in the ass.
2. I want to be able to try out different options (itemized/ not itemized, etc.) separately and find out what works best without having to have to worry about little leaving little tracks all over some server that is owned by some company and only GOD knows who it's being shared with.
3. You're on dialup? Oh hell no. Why not just start grating your eyeballs with a used garlic press right now?

[Dem2theMax]

35. "Why not just start grating your eyeballs with a used garlic press"

LMAO! OK, you convinced me. No downloads. I love garlic. But ONLY in my mouth. :silly:

[Blue_In_AK]

27. I've used TurboTax for years - no complaints.

No audits, either. - I have preferred buying the program, but that's just me. My taxes are fairly confusing. We have an owner-occupied duplex, renting out the apartment; a business, some pension money...all that passive/active stuff. I'd go nuts if I had to do it by hand.

[question everything]

30. First step - look at their previous tax returns

You said that someone was preparing this from them. Look at the past two or three years. Assuming that their financial situation had not changed much, this should give you a way to start.

I have used TurboTax on the web for the past five years and really like it. And our are more complicated than your folks, I am sure.

What I like about it is that it then emails the returns electronically to both the IRS and the state and within 48 hours you are notified whether it was accepted. And if there are refunds due, you get them within a week.

I have not started ours yet this year - still waiting for the 1099s - but you often can get a discount if you use them by, say, the end of February.

As others said - a dial up may make it a bit complicated, but perhaps you can go to the public library. Just remember your password.

I have never needed to go back but supposedly they keep the returns until October - if you need to change. And, of course, you should print everything.

And... it remembers this year's data, so for next year some of the info - name, address, SS#, names of the banks or other financial institutions that provide the income - will be on file. It will ask you whether this information is still correct.

Do come back and ask again. This is quite simple.

[Dem2theMax]

36. I just had them get out last years returns. I'll have them dig out a few

years previous as well. Thanks for telling me to do this. At least it will give me an idea of what the heck I'm supposed to be doing. LOL.

I just remembered that I do have access to a computer that is high speed. It's in the 'community hall' where my folks live. I wonder if I could get away with downloading the program onto that computer. Hmmmmmm. As long as I have all the info I'll need, maybe I can do this online. Otherwise, I'll buy the program. I HATE HATE HATE sitting here waiting till all hours of the morning for something to download.

I love the fact that it will remember all the info for next year. Heaven only knows what this year is going to bring and any little thing that will simplify life for me is great. :)

[Horse with no Name]

31. If they qualify financially

Which it sounds like they do, try Free File
http://www.irs.gov/efile/article/0,,id=118986,00.html
You can choose any of the popular software, TaxCut, TurboTax, etc. and when you are finished, you can file it electronically for free. Most of the sites will also let you archive the return so next year all the info will already be there. The software is integrated and anyone can do it. It's hard to make a mistake.
Good luck!

[Dem2theMax]

37. Ding! Ding! Ding! We have a winner!

I just went to the site. They qualify. I wonder how long this program has been in effect? They've qualified for years. AAARRRGGGG. And to think that they've been paying $275.00 a year to get someone to do their taxes for them! It may not be much money to another person, but for them, it's food, medication, etc..

Bless you Horse with no Name! Whatever program I use, it will be through this site. :) :) :)

[Horse with no Name]

38. This is the third year

My daughter has used it and it is really nice. She used Turbo Tax.
Good luck!

[Nicole]

39. Did it really cost them $275.00?

They should have gotten that back in the form of a deduction the following year. I pay to have my taxes done every year & it's 100% deductible.

[Dem2theMax]

40. Yep, every year. I have no idea if they were given a deduction

the following year. I didn't know about that until you told me just now, but now that I do know, guess what I'll be looking for tomorrow when I examine last years return? Thank you for the heads up. They've used the same accountant for years. I pray the guy did the right thing by my parents. I'll know tomorrow.

I think I'm going to want a vacation soon. LOL.

[Nicole]

41. I hope they got it

Vacation sounds good! I would definitely need one if I tried to do my own taxes.

[Rosco T.]

33. Turbo Tax for the last 5 years and e-filed the past three...

zero problems and the e-file got he refund back in less than 10 days.