Last year I decided to use a computer tax program for the first time. My tax return was becoming a little more complex and didn't feel like manually filling out ten forms. This year I decided to do the same and I am now convinced that I will never go back to using manual forms again.

This year I decided to go with Kiplinger's program called TaxCut. I thought last year's Microsoft program was great, but I couldn't find it anywhere this year (I think they discountinued making it). The install went smoothly and didn't take up too much space on my harddrive. When you start up the program for the first time it instantly launches you into the dialogue to start a tax return.

Before you start an actual return, the program asks if you would like to download any updates. Some people may skip over this figuring that they just bought the program and there can't be too many updates. This is a big mistake. Take the time to download all the updates. When I installed this program and ran the uploader, there ended up being over 1000 updates. These updates are important and could save you money. (Or prevent an IRS audit)

Once installed and updated you are ready to begin your return. The program asks a series of basic questions such as your address, social security number, and number of dependents. Once these are entered you can move onto income sources for the year.

The program lists all possible income sources beginning with wages. You can enter other sources such as interest, capital gains, dividends, partnerships, and sole proprietership. Once you enter the basic info for each of these sources the program drills down into the detail. You enter all the info for each source.

Once the income is entered, it time to see where you can save money. TaxCut leads you through a series of questions to see if you are eligable for deductions. Deductions can include a 401k contibution, IRA contribution, Lifetime Learning Credits, and a dozen other credits. If you don't know if you are eligable don't worry, TaxCut has a tutorial to determine if you can take the credit.

One feature I like about TaxCut is the running refund in the top corner of the program. Throughout the entire process you can always see how much you owe the IRS, or whether you can go shopping this weekend.

When you finish the tax return the program has a feature that will search it for common mistakes. This feature is a bonus for someone who is not very familiar with tax code. The program will also help you find deductions that you may have missed. This is helpful since you could hopefully get an even bigger refund.

Because I bought the cheaper version it did not come with state software. Connecticut's return is easy enough that I did not feel the need to spend $20 extra. If you live in a state that takes as long to do as the federal, spend the extra money.

Overall, I think this software is a must have. The old days of filling out tax forms for days is over. Spend the money and save some time. You'll thank yourself.

Recommended: Yes