by Milton G. Gugenheim, Jr.
It’s that time of year again when the tranquil sounds of spring, birds singing, lawnmowers, leafblowers and children playing are muted by the heavy footfalls of the taxman.
Most of us seem to put the dreaded tax chore off till the last moment and then find ourselves faced with incomprehensible IRS forms, shoeboxes of receipts, check registers, antacids and headache pills.
Fortunately help is on the way in the form of a couple of pretty good tax preparation programs from Intuit, TurboTax and Block Financials Kiplinger TaxCut.
In addition to well-crafted interfaces and good online help both TaxCut and TurboTax include Microsoft’s Internet Explorer Web browser for seamless integration with the World Wide Web.
Even if you find that you need the skills of an experienced CPA in the preparation of your return, either of these programs will help you to become better organized and possibly keep accountant fees to a minimum.
Sadly I found only four software tax packages, Turbo Tax, TurboTax Deluxe, TaxCut, and TaxCut Deluxe for 1997 tax year for Windows 3.1 and 95, to review. One of the long-time favorites, Personal TaxEdge from Parsons Technology, is no more, and other prod ucts that have shown promise, U.S. Tax from TotalTax and Simply Tax from CD Titles are not available for 1997.
Features
TurboTax 1040 (Intuit) is the basic package needed to file all individual returns including professional or sole proprietor, and includes Internet Explorer 4.0 on CD. Floppies are available on request (Explorer is not included in floppies). Turbotax has a 16-bit version or 32-bit version.
TurboTax Deluxe 1040 includes all the features of TurboTax 1040 plus one free electronic filing, links to tax library resources, tax planner for 1997 and 1998, on-screen references and IRS publications, video advice and a financial planner. It is availab le on CD only.
TaxCut for Windows-Deluxe (Kiplinger-Block) is almost identical to TurboTax 1040 including Internet Explorer 4.0. on CD. Floppies are not mentioned in my package. The available bits are not given.
TaxCut Deluxe (multimedia version) includes all the features of TurboTax 1040 plus one free electronic filing, Kiplinger tax tips, on-screen IRS instructions and publications, and free MCI Internet access (30 days). It is available on CD only.
All the programs will import financial data from most popular financial programs, and include details on preparing a return, reviewing a return, electronic filing via a second party, planning for next year, plus help locations.
Installation
All packages were easy to install following the given directions. TurboTax Deluxe requires 22 MB of disc space without the installation of Explorer. TaxCut Deluxe requires 14 MB of disc space without the installation of Explorer and the MCI telephone/mod em program for Internet access.
Each of the deluxe packages includes a video player. The program was not installed because I have a Real Audio 3.0 on my computer program that worked. Turbo Tax requires a 9600 baud or faster modem (and Internet access for on-line registration and/or ele ctronic filing). No requirements are given for TaxCut.
Manual
TurboTax includes a user guide with typical screens of the described function. A troubleshooting guide is included. TaxCut provides on-screen help only. TurboTax includes on-screen help. I prefer a user’s guide so I can compare the screen with the guide.
All of the packages have an easy step-by-step program to walk the taxpayer through the various steps required to do a return. The experienced taxpayer may prefer the forms method after completing a basic information page. The taxpayer selects the form an d fills in the required information. Some have supplemental sheets for recording the information, which is then transferred to the form. Help is available from any screen.
Details
The 1997 tax changes are incorporated in the packages. The major change is schedule D (capital gains) in the packages. Each package allows the taxpayer to enter data on various forms after completing the basic information sheet. The return is then saved. Be sure to give the file a name if more than one return will be prepared using the same program. The deluxe programs may be used without the CD, which contains support information. The programs may be used whether you are the organized type or the shoeb ox type. The shoebox type should organize the various types of entries first.
Printing
Turbo Tax allows you to print an IRS return or select a form or schedule to be printed. TaxCut will print an IRS return, 1040PC or electronic filing. The current computer printer setup does not have to be changed.
Summary
The basic package of TurboTax or TaxCut is more than adequate for most users. The deluxe packages are great for users who like the “bells and whistles” that include lots of helpful literature, suggestions, etc. The street price for the basic package is a round $20 after rebate and is around $35 after rebate for the deluxe. A new program is required for the 1998 tax year.
Helpful Hints
I suggest the return be prepared in all caps since this is preferred by the IRS. All returns are mathematically corrected based on the input data. I suggest that the tax return you send to the IRS be a 1040PC. You will use less paper (a 12-page return ta kes up only 1-1/2 pages on a 1040PC) and the return is optically read by the IRS so transcription errors are eliminated. The 1040PC has the standard header and signature block and only prints the schedules and forms that contain required information and data. For your records, print the schedules and forms you used. Some of the programs and forms have detail sheets that are covered by other records, so I request each schedule or form individually.
Intuit. $35 for TurboTax or $50 for TurboTax Deluxe, Windows 3.1 or Win95 and for more info call 800-446-8848 or go to http://www.intuit.com/turbotax/.
Block Financial. $20 for Kiplinger TaxCut or $40 for Kiplinger TaxCut Deluxe Multimedia (look for $10 mfg. rebate coupon) for Windows 3.1 or Win95 and for more info call 800-235-4060 or go to http://www.taxcut.com.
Milton Gugenheim is a HAL-PC member and an ARRP Tax Aide Instructor and Local Coordinator. He may be contacted at mgug@hal-pc.org.
E-mail me at webmaster@hal-pc.org with any comments you have and tell me what you want to see here.