Make taxes less taxing
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March 10, 1997: 12:29 p.m. ET
Software packages provide affordable alternative to accountants
From Correspondent Jody Davis
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NEW YORK (CNNfn) - Unless your taxes are so simple you need only a 1040-EZ or so complex they would make an accountant's head spin, tax software is probably for you.
The best-selling programs are TurboTax and MacInTax by Intuit as well as Kiplinger's TaxCut from H&R Block.
Each puts you through a friendly interview and removes you from the cold monotony of the tax form.
"It takes you away from all that IRS lingo," Money magazine reporter Derek Gordon said. "It asks you all the questions in simple, plain English. And that's the nicest thing when you're trying to fill out your tax forms."
Tax Cut puts you through a pre-interview, so you don't waste time answering unnecessary questions. TurboTax and MacInTax are better at explaining financial terms.
Consumers appear to judge the Intuit programs best overall since they make up about 84 percent of all tax software sales.
"Intuit is a true software company that understands what consumers want to do," said Larry Marcus, an analyst at Alex. Brown. "They do extensive market research before they come up with their products, and [they] have fantastic customer support."
Deluxe versions of the top two programs are also available on CD-ROM at $35 for TaxCut and $50 for TurboTax. Basic versions on disk sell for $20 and $35 respectively, which is less than you would pay for an accountant or tax preparer.
"But it doesn't have that human interaction," Gordon said. "It's not going to ask you questions you need to answer to determine if everything you're deducting is rock solid."
In other words, anyone with rental properties or a big home-based business needs more than a CD-ROM.
The average taxpayer who can work with the software still has to watch out for bugs that pop up in the programs.
And because most people have to file state tax forms, too, both manufacturers sell related software. TaxCut only covers 23 states, while Intuit programs cover the whole country.
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