Perhaps the second time's a charm after all. Last year's foray into the world of tax software (TurboTax Deluxe 2001) was a less than joyful experience - of course, since when is doing one's taxes ever a pleasant experience for anyone other than a stone masochist? Still, the task of completing the annual hair-tearing episode was upon me again, so I gave them another try. I must admit that all the sturm und drang I'd read about registration gave me pause, but I've had good enough experience with Intuit over the years that I felt they deserved my support.

And I'm glad I did. Here's why:


Back to Basic

Although last year I used the deluxe version of TurboTax, this time around I opted for a copy of the Basic version. I didn't miss the free copy of TurboTax State packaged with the deluxe version, since I live in a state that has no income tax (don't worry, we have plenty of other taxes). I also found that I didn't need the included interview process included in last year's deluxe version, so the additional ten dollars just wasn't worth it to me.

So what do you get in the basic version? Well, you get support for almost every IRS form an ordinary citizen is likely to need. Since they're included in the package, you don't have to make any more trips to the local library for some arcane form, or visit the IRS website for a download.

Using the software walks you through the process of filling out a return on a step-by-step basis, just as if you were doing it on paper. You can quit in disgust at any point, then resume at the same point next time you're in; or you can march through the entire process at one sitting. Even after you've completed a return, as long as it's not yet filed you can go back and update any of your input. When you do so, change ripples through the entire set of forms. For example, if you find a missing receipt for a charitable donation, updating that section also changes the bottom line on Schedule A which changes your AGI which changes your total tax due which changes your refund or amount due - all without your entering an additional keystroke.

As you step through filling in the blanks, a real-time number in a corner of the display keeps track of your current bottom line - the dollar amount you owe or the refund due you - based on the amount of withholding that you entered with your W2 information.

The real-time updating feature process allowed me to fill in all all those blanks and do the math in a far shorter time than I would in a paper world, and more accurately, too. I was also able to do sensitivity analyses, like experiment with the effects of different funding of the Ms's IRA. The speed, accuracy, and productivity pay for the software all by themselves!


Software Interfaces

You can import all manner of financial information from your copy of Quicken with a single click, or you can skip the import process and enter the numbers by hand. If you've fallen for the hype of ItsDeductible, you can import your deductions directly from that software as well, or skip it and fill in the blanks by hand. When the time comes to enter your information from last year's tax return, TurboTax automatically pulls that data from either TurboTax 2001 or from TaxCut. I can state that the former works invisibly, but have no idea on the latter.

If you filed an electronic return last year, TurboTax also automatically grabs your bank routing information for electronic funds transfers out of the old return.


Help

There's context-sensitive help everywhere you turn while you're filling out the return. Unlike the deluxe version, which includes videos of "tax experts" addressing your questions, everything is textual. It's not all that different from reading a Lasser manual, but it's better than trying to puzzle your way through some of the IRS publications. If you don't mind paying additional fees, you can get live tax help from Intuit, too.


The Process from Top to Bottom

Installation from CD-Rom took less than ten minutes, including registering the product (more on that later). The required update to my copy took an hour over a dialup connection, but I had none of the time-out problems that I had when trying the same process on April 14th last year. Filling in all the forms took about two hours, mostly because I didn't import directly from either Quicken or ItsDeductible, which would have been a lot quicker. I also had to go scrambling around looking for a couple of forms I'd lost. Completing the return and filing an electronic return took about ten minutes.

Electronic filing costs $14.95 plus taxes, but Intuit refunds the filing fee.


Will I Buy TurboTax Again Next Year?

You bet. This year was a great deal easier than last because the software makes the process so much faster. Now whether you should buy the product is another question. Here's some things to continue (points I made last year):

* It's a waste of money if you're not itemizing deductions.
* It's a waste of money if you have only a very simple set of deductions; such as just charities, property taxes, and mortgage interest.
* It could be indispensable if you have complex income and expenses from self-employment, farming/ranching, or rental property.
* It could save you the cost of the software with just one discovery of a deduction if you're not already tax-savvy.
* Electronic filing thing can be a godsend.

I'll buy either the Basic or the Deluxe version, since they're both worthwhile.


Myths and Truths about Registration

There are many complaints about the registration process out there. Here are some facts to consider when reading those complaints (from Intuit, not from me):

Myth: You can't install your copy on more than one computer.
Truth: You can install on all the computers you want, but only the registered CPU will be able to print or to file electronically. Files can be moved from a secondary computer to the primary when you're ready to file.

Myth: If I buy an new computer or hard drive, or have to reformat my hard drive, I'm sunk.
Truth: Intuit will help you reinstall on a new computer or hard drive; if you reformat the hard drive most of the time the re-registration proceeds automatically.

Myth: If I'm audited next year and have a new computer, I'll have to pay again for a re-registration.
Truth: Registration is free for any 2002 products installed after October 16, 2003.

Myth: A little piece of my memory is locked up forever by the registration process.
Truth: The C-Dilla "gatekeeper" software can be uninstalled just like any other software package, but it can't be uninstalled until you've taken TurboTax off your computer. Instructions for doing so are available on the Intuit website.


Recommendations

Don't listen to all the complaining. The product runs the same as it always has, and it's well worth the cost when you consider its accuracy and the time you'll save. If you and your buddy both have to buy your own copy this year, just consider it a good tradeoff - Intuit will be able to continue to make accurate, helpful, and valuable software in future years.

Highly recommended.




Recommended: Yes