TurboTax Federal+State (See video) – Software Made Income Tax Prep Easy/Cheaper to Prepare.
Written: Mar 06 '08 (Updated Jul 06 '08)
Product Rating:
Pros: Saves lot of money compared to professional income tax service, equal or better results.
Cons: A few “up-charges” may apply, but I found them to be completely avoidable.
The Bottom Line: TurboTax will gently hold your hand during income tax preparation process and guide you with confidence. Recommended for novices and those with experience.
nonedude's Full Review: Intuit TurboTax Deluxe Federal for PC (404202)
Should You Use This Version of TurboTax?
A very important decision to make: Picking the right TurboTax version for your needs.
There are 4 versions of TurboTax, in order from least to most expensive:
1) TurboTax Basic - Avg Retail Price: $20
2) TurboTax Deluxe Federal + State – Avg Retail Price: $40 You are reading a review for this version
--2a) Turbo Tax Deluxe – Federal return only, no state return, generally 2 or 3 dollars cheaper than state included version.
3) TurboTax Premier Federal + State - Avg Retail Price: $70
4) TuboTax Home & Business - Avg Retail Price: $83.00
Items #3 and #4 will contain everything listed in this review plus additional features not listed such as Investments & Rental Property features (#3) and Sole Proprietors & Self-Employed features (#4).
This version of TurboTax (#2) does not handle sales of investments. Don’t sweat it if you already purchased this version, TurboTax allows you to upgrade over the internet (cost involved) if necessary and will inform you if the need exists.
Defining This Version of TurboTax
This version of TurboTax will:
- Guide you through preparing your income tax returns for Federal and State. State return software is not included on this disc, but is free to download (see “INSTALLATION NOTES” #2 below, for more info).
- EasyStep Interview walks you through your return and checks for errors
- Imports data from TurboTax, Quicken, QuickenBooks and other tax software brands to save you time
- Easily Imports W-2 & 1099 information from over 100,000 companies.
- Get live answers online from TurboTax experts and other TurboTax users
- E-file: receive IRS confirmation and get your refund in as few as 9 days ($17.95 additional fee per return)
- Deduction maximizer center covers over 350 deductions as you go – shows which you’ve taken and which you haven’t
- Easily handles changes in your tax situation and shows how they will impact your taxes.
- “ItsDeductible” helps accurately value charitable donated items
- Audit risk meter – helps you reduce your chance of an audit.
INSTALLATION NOTES:
1) Installation of disc was less than 5 minutes total on my 3.0 GHZ, 2GB Ram, 800mhz bus, 52x cd-rom Windows XP computer. Installation requires clicking through a few prompts. My pc is a few years old and did not require any third party software (mentioned in Minimum Specs. section) to be installed.
2) Installation of state return is per user request and takes place any time after completely installing disc. State return is downloaded via secure connection to Intuit server and does not require the creation of a username/password. You must choose which state applies and can only choose one state for free, additional states costs $34.95 per download.
3) The TurboTax software (including install, state return download, & completed forms) consumed 151 megabytes of space on my hard drive. This figure does not include any files possibly installed outside of the “TurboTax” folder located in “Program Files” and is representative of having no previous TurboTax versions installed on my computer.
Minimum Specifications per Packaging
--PROCESSOR:--
Win: IBM or compatible 450mhz 32-bit (x86) or faster processor
Mac: PowerPC G3, Intel Based Processor
--OPERATING SYSTEM:--
Win: Windows 2000 SP4, XP Home/Media Edition/Pro (32-bit), Windows Vista (32-bit) Home Basic/Home Premium/Ultimate/Business, For Windows 2000 or greater administrative rights required
Mac: Mac OS X (10.4)
--RAM: 256 MB--
--MONITOR—
Win: SVGA color monitor (high color 16-bit), 800x600 screen resolution (1024x768 recommended)
--CD-ROM DRIVE—
2X CD-Rom drive
--INTERNET CONNECTION—
28.8 kbps modem or direct internet connection (Broadband connection recommended)
-- HARD DISK SPACE—
Win: 256mb for TurboTax (plus up to 355 mb for Microsoft Internet Explorer and Microsoft .NET 2.0)
Mac: 255mb for TurboTax
--THIRD PARTY SOFTWARE—
Win: Microsoft .NET 2.0, Microsoft Windows Installer 3.0, Microsoft Internet Explorer 6.0, Adobe Flash Player 7.0, Adobe Reader 5.0, which are included and will be installed if not already on your computer.
Mac: Adobe Flash Player 7.0, which is included & will be installed if not already on your computer.
--PRINTER—
Any compatible inkjet or laser printer.
You, Your Computer, Your Income Taxes, & Help Galore
A “QuickStart” Card is included on the inside of software packaging. One side of the card is for Windows (pc) users and the other side is for MAC users. It contains very basic information on system requirements, installation, troubleshooting, obtaining help, and product returns.
You can bring up a small window containing a nice little calculator by clicking “Tools”, then sub-item “Calculator” from the text menu at the top of TurboTax.
By clicking on “Find Tax Help” menu, and choosing the sub-item “Tax Topic Videos” you will have access to the following informational videos:
Child Care Expenses, Tax credits for education, Charitable contributions, Depreciable assets, Filing options, Owning a home, Selling your home, Social Security benefits, Consolidated tax statements, Filing options, Importing from financial software, Instant data entry W-2, Instant data entry 1099/1098, Social Security benefits, & Form 1099R.
All videos execute from the installation CD. Videos primarily run from 1 to 2 minutes in length, are professionally narrated by either a man or woman’s voice, and contain still photos and graphs.
The most powerful help feature at your fingertips has got to be the TurboTax Live Community. It is an online message board beautifully designed to answer your income tax specific questions related to TurboTax software usage and applicable law. You may research questions which have already been answered and post questions if necessary. The answering community consists of TurboTax paid professionals and experienced users. 24/7 Access! Own the software and the Live Community is at your disposal (username/password creation necessary to ask questions, but not to research).
I had a question regarding health insurance premiums, thought I knew the answer, but wanted to be sure. I posted a question asking if these premiums are tax deductible if we both pay about 50% through payroll deductions. An experienced TurboTax user responded 8 minutes after my post stating “If the premiums deducted from your paychecks are pre-tax, then you can not deduct them. It they are post tax then you can deduct them. You will have to find out from your payroll whether they are pre or post tax.” That was fast and helpful!
If you insist on talking with a tax professional over the phone regarding a question, the ability to speak with one (fee applies) is easy as clicking “help”, then sub-item “live tax advice” within TurboTax. Availability is from 7am to 7pm PST Mon – Sat.
Don’t get me wrong, TurboTax does an excellent job of holding your hand walking you through income tax preparation and software usage. Having multiple help options extends this programs versatility.
TurboTax Guarantees Up-to-date with latest tax laws
Does the math for you
Double checks for errors
Easy to review and edit your entries
IRS-approved forms
Maximum (Biggest) Refund Guaranteed or Your Money Back
Satisfaction Guarantee - If you're not satisfied with TurboTax software, return it within 60 days of purchase with your dated receipt for a full refund of the purchase price. What do you have to lose by trying this software?
Getting Started
A simple yet effective and thoughtful tool included on the back of the CD cover (remove paper cover to view) is a “Tax Preparation Checklist”. When you sit down at your computer and start using the software, what should you have with you? It’s all covered in this checklist.
Data Input Sections Located In Program
Ebb and flow of data entry is provided by the program regarding where to input first, second, and so on. The following category listing should provide a basic understanding of chronological order. You can bounce around different categories/sections if you desire.
1) PERSONAL INFORMATION Category:
This is where you input background information on yourself, significant other (if applicable), & dependents (if applicable). Information such as: Name, Date of Birth, Occupation, Served in Military, Legally Blind, etc.
2) INCOME Category:
Wages and Salaries (Form W-2), Import Your Tax Info, Interest and Dividends, Other Common Income, Investment Income, Retirement Distributions, Business Income and Expenses, Less Common Income.
3) DEDUCTIONS and CREDITS Category:
Your Home, You and your family, Donations powered by “ItsDeductible”, Cars and other things you own, Education, Medical, Taxes Paid, Retirement and Investments, Employment expenses, Other deductions and credits.
4) OTHER category:
Alternative minimum tax, Additional tax payments, Presidential campaign fund, Other tax forms (Extension request / Amend return, etc).
My Experience Using TurboTax 2007 Federal + State
The interview process employed by TurboTax is perceptive and completed in sections as noted above. Each section involves inputting data into multiple screens; each screen is easy to work with due to a clean simple layout. I never felt overwhelmed. You do not have to complete your entire return in one sitting, the program automatically backs itself up and you can manually save at any point, even in the middle of any uncompleted section. I got a kick out of watching the refund meter (located in top left hand side of window) bounce up and down as I completed screens. This meter is easily visible at all times, with a black background and green colored dollar value if getting a refund, and red dollar value if owing money. Placing the mouse over top of the meter will provide a quick summary.
I was ultimately thrilled at how easy this software is to use and it’s ability to accurately complete detailed forms. Walking into the process, I knew I needed to complete a 1040 and that’s about all I knew. After finalizing and submitting my returns, I found out that the following forms were created and submitted (via E-File):
Form 1040 - including "Schedule A" Itemized Deductions
Form 2106 – Employee Business Expenses
Form 8880 – Credit for qualified retirement savings contributions
Form 4562 – Depreciation and Amortization Worksheet / Alternative Minimum Tax Depreciation Report
NJ-1040/TR-1040 – My State Income Tax Return.
I was highly impressed at how TurboTax walked me through claiming deductions for my personal vehicle and home office which I use on the job per employer requirement. I never in a million years would have touched these forms without help.
All data is retrieved through guided questioning from TurboTax (with plenty of help) and inputted automatically into the correct/applicable tax forms. Wow! I love it and plan on using TurboTax for many years to come. It will even use prior year returns inputted into TurboTax to pre-fill as much info as possible for new returns.
The built-in deduction finder and charitable donation value tools are impressive. I truly believe all bases were covered and my returns were professionally completed. To cap it off, error checking and audit risk meter are the icing on the cake. I was happy to find out I am at low risk for an audit. I trust everything TurboTax told me because the parent company (Intuit) has been a leader in the financial business for well over a decade.
Maybe you would like to see the YouTube video I created. It contains 40 screenshots documenting the install process, program updating, help screens, review screen, etc. There is no audio and running time of video is approx: 1 minute 58 seconds. Please copy and paste the following hyperlink if you are interested:
http://www.youtube.com/watch?v=F8bkZmNHXhM
You should be able to deduce a lot of information based on these screen captures in video, unfortunately I can't show a lot of the screens because they contain personal information about me.
Final Cost / Submission
I paid the $40.00 to buy “TurboTax Deluxe Federal + State” software at Wal-Mart.
A few up-charges exist only if you request the associated service as notated throughout this review, such as:
- Downloading an additional state return from TurboTax (did you work in two states and need two state returns?)
- Obtaining one on one professional phone support for tax questions (check the live community first, it’s great & free).
- E-filing for a quicker return of refund.
I could have printed and “snail mailed” my return for free. I elected to E-File through TurboTax, cost is $17.95 per return (1 Federal Return and 1 State Return = $17.95 times 2 = $35.90)
E-Filing note: You must digitally sign your 2007 income tax return prior to electronic submission. This is done by inputting your 2006 adjusted gross income when prompted for by TurboTax (located on line 37 of 2006 form 1040).
Per IRS E-File requirement: You must also create a 5 number E-File “PIN”, plus read and agree to a “Consent of Disclosure”. TurboTax will remember your pin for future reference and also walk you through each and every step. E-Filing is very easy! You can select to receive a check in the mail or direct deposit into one or more checking accounts. You will E-File federal return first directly followed by state return.
ULTIMATE COST FOR ME TO PREPARE INCOME TAXES:
$40.00 for the TurboTax software
$17.95 for federal e-filing (mailing through Post Office is free, except postage cost)
$17.95 for state e-filing (mailing through Post Office is free, except postage cost)
For a grand total of: $75.90.
For Your Info: I paid $160 last year to have a local accounting firm prepare all income taxes. I was not happy with their service! They made me feel like a number and I kid you not.
On The Web - Tax Deadline is 4/15/08
Web address for TurboTax:
http://turbotax.intuit.com/
You can purchase different versions of TurboTax on this website (CD or immediate download).
To keep in mind: Tax filing deadline is April 15th, 2008, return must be postmarked by midnight.
TurboTax can walk you through filing an extension request or even ammended return filing.
TurboTax electronic based e-filing is based on the Pacific Time Zone, if you e-file at Midnight EST your electronic postmark will indicate 9pm due to timezone differences.
Positives Quick Summary
Here is a listing of product usage pro’s I can think of:
Ease of use/design ___ Help features ___ Guarantee ___ Import information from Quicken, QuickBooks, and other financial software, and previous TurboTax editions/years ___ Refund meter ___ Deduction assistance & finder ___ Audit risk meter ___ Error Checking ___ PDF creation of tax return and all gathered information ___ Easy information retrieval & automatic backup procedure built into program ___ E-filing ___ Return Policy___ Password Protect Program (only you can open/view/edit).
Negatives Quick Summary
I can’t find any glaring cons. Certain reasonable up-charges exist as stated in the “Final Cost” section above, but I found it easy to avoid every one of them entirely.
Some may deem the downloading of state return to be annoying, I find it to be no problem and see the bright side as not having to install each and every state on my hard drive. Income taxes vary from state to state; TurboTax did the right thing here.
Ultimate Opinion
Easy call here, 5 out of 5 possible star rating. TurboTax has a new lifetime customer in me.
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