I am finally getting around to doing my taxes, and after years of using TurboTax, and am completely fed up with them. First, because the program incorrectly claimed that we had capital gains on the sale of our house. (Eventually , I erased all the data, entered it again, and it finally got that issue correct.). Then, the program insisted I upgrade to the Premium level, due to the fact that I had Capital Gains on the sale of the house….which, of course, I didn’t. And, it keeps sneakily trying to get me to agree to them using all my data to sell me services I don’t need. So, I am not happy with Turbo Tax and want to try another online tax prep program!
What are you using, and how do you like it? I will need to file state taxes, too, for the first time in 40 years, so looking for a program that can handle filing state taxes electronically.
I use a CPA, but I know people who have gotten fed up with Turbo Tax and moved to HR Block‘s Tax Cut and are happy with it.
Were you using TT online or the downloaded/disc version?
Am curious as I have only used the downloaded/disc version so don’t know if the upselling happens more with the online version.
I have struggled with TT myself, once having to reenter all the data as you did because I knew something was wrong but couldn’t fix it.
I refuse to pay the fee to file state taxes electronically so I print out the six pages and mail the state return.
I used Tax Cut for years then continued with it as H&R Block and have been completely satisfied. I get Deluxe which includes software for one state. I can usually get the software on Amazon for $25-30; I found it for $20 in December from Newegg. It covers five free online filing Federal returns; state is extra so I also print and mail.
After running into a couple of situations that TurbobTax did not handle correctly I switched to TaxAct about 20 years ago and have been satisfied.
Has anyone used TaxActUSA? I see it is free except for a very modest state charge. Wondering if anyone has any experience with it.
(I guess I should be getting on top of this soon…)
I use Turbo Tax Deluxe - I don’t buy the hype of higher versions for taxes.
I don’t do the state edition. TN has no state income tax but it used to have the Hall Income Tax - which was very simply. On unearned income (muni bonds, stock dividends, etc.) you had $2500 as a couple exempt and the rest 6%.
Puerto Rico/Guam/the USVI bond interest are state tax free in each and every state - but not according to turbo tax.
The paper form was so easy, I just did that.
As I do my kid’s taxes this year, I will not be using the state returns from TT.
Perhaps my hesitation to switch to another is that it retains all your historical info from year to year…but who knows if it’s right??
We have a CPA do ours, but I’ve helped my kids for years do theirs on TaxHawk. I’ve been very pleased with it.
We have relatively simple taxes (even when we had a mortgage, kids in college, etc.), so Turbo Tax has worked well for us. See no need for us to change.
I did ours by paper and pencil until older S went to college! I didn’t like what I was figuring and paid an accountant to do them. I was right. Ugh. Then I switched to TurboTax, especially for the kids’ returns. Their were much more complicated than ours.
Now they’re gone and I still use turbo tax. It’s been fine and it has our history already in there. Older S uses something else - maybe TaxAct or maybe freetaxusa. And he got younger S to use it too. Fine by me, as older S can guide younger S now. I’m done with complicated returns. Two nice govt/teacher employees with no major assets. Make enough to not get anything special. Don’t make enough to be phased out of anything special.
I have been using FreetaxUSA for the past few years. I am happy with the service (I do pay for the state forms -only the federal is free).
My concern is just accuracy (really of all federal and state) - it’s like a trust thing.
I’ll occasionally start an online freebie - just to ensure they get the same # as turbo tax.
It should be right but based on its botching the state tax way back when - i just never truly trust it (but yet still use it).
That’s not to say going to a CPA is right either - it was a few years ago a magazine gave the same taxes to ten different accountants and got ten different results.
Of course with such a large standard deduction today in lieu or write offs, that should no longer be the case.
I used to use H&R Block and go to them in person. Then, they screwed up my NJ state taxes 2 years in a row! They did cover both the amount and the penalty (I had purchased their peace of mind). I feel comfortable with the FreeTax - I look over what it creates fairly carefully. The past two years they have been correct, so I will continue using them.
I switched to Tax Act from Turbo Tax years ago, and have been satisfied with it. The interface could use a bit of updating, but it’s easy enough. I use the Self-Employed version, so I don’t have any experience with the free version.
My plan this year was to fill out my taxes with both TurboTax and FreeTaxUSA. After confirming the same totals, I’d file with the less expensive FreeTaxUSA. TurboTax went relatively smoothly. FreeTaxUSA did not. The first strike was not supporting imports of 1099-B and most other forms. Manually entering some of the more complex forms was awkward, but not a dealbreaker. More problematic were things like not having the correct deduction values for gas hot water heater installation and not handling my non-standard Roth backdoor correctly. I gave up on FreeTaxUSA and tried a few others that were significantly less expensive than TurboTax. None handled all of the situations above listed correctly, so I plan to just use TurboTax Premier instead. I expect net cost to be $65 for federal (Costco) + $5 for state ($10 off for Costco + $10 off for credit card).
Turbo Tax. I’m used to it and they have my information already in there from last year. I find Turbo Tax very intuitive.
After the TCJA and the expansion of the standard deduction and SALT limitations, we just use the standard deduction so it’s pretty easy.
We use TurboTax, I think Deluxe addition - hubby retired first and took over tax prep duty. The first year we did a big Roth rollover we considering hiring help (there were also a few other complicated things). It would have been $900 at a place recommended by fincial advisor… which we were willing to consider - but they were booked.
Turns out it was all very easy with TurboTax, which we’ve used for decades since i was distributed on diskette. We like the continuity, data from prior years.
What I struggle with on turbotax - is it seems a lot of questions are hidden - even when you choose the see all topics.
sometimes i’ll look at something - like my amount owed doesn’t go down when i’m doing a 529 or HSA - and i have to redo that question 3 times - til I get the magic checkbox that says what it needs to - and then i see - ok, now it’s right.
So there is a lot that seems like it could be missed.
But the reason i use turbo tax (or would another) is even if i paid someone - i’d still do it to triple check the work.
No one has care for things - like you will - and this is free money.
I have not used TT myself in a long time. But when I did, I found it useful to go back and forth between interview and forms view. From my husband’s comments, I suspect that is no longer as easy to do.
Form to Interview isn’t so hard - but it doesn’t seem that all the interview questions are always asked - or you have to find some trivial box to check when they give you a list of 20, etc.
In this case, my kid had a 1098T for $1250 but it showed no tuition paid. It was for Spring 2023.
The reason is - the tuition (and the other $13K of his scholarship) happened in 2022 (end year) - but the department scholarship lagged - so it came on later.
So it added the $1250 as income - and reduced his refund $300 or so.
I knew this wasn’t right - so I kept going back in the 1098T questions and finally one popped up - did an amount show up that should have been noted in the previous year - and when I clicked it - it went back.
Had I not known - I’d have just gone on. Same with the HSA.
So I don’t agree with people that it really is that easy. I surmise, maybe incorrectly, that some people leave money on the table with TT.
But if you know the rules of your situations, then it’s ok.