Is it worth buying tax software instead of just doing it online?

[heyaheather]

I'm in a little bit of a quandary. Each year we usually buy tax software @ Staples, because they have the deal with the internet security software. We usually buy the cheapest version for $30, plus $9.99 for the other software. We also paid last year to e-file our state return @ ~$16-17. All together it's less than buying the internet security software all by itself.

Is there a cheaper way to go? I keep trying to rework the numbers to make it less $$ for us to shell out, but I haven't found a way yet. Right now we have Norton, so we'd just need an upgrade.

[heyaheather]

Also, does anyone know what the difference between renewing the program I have and getting an updated version? It seems like there really wouldn't be a difference, other than getting the updated version will cost me more $$ on their website.

[jonjaktez]

If you have state farm products (insurance, bank accounts, etc) you can file for free (use of tax software and filing). It's totally free. Just be sure to go thru their website. Depending on your state you may also can file your state taxes for free.

I upgrade my norton. I don't buy tax software. I use it online. It's the same software online as it is in the store for most tax fillers. It does differ but that is only when you get into those that have a lot of investments, rental income, home business, etc.

The best thing to do is look at the cost of upgrading and compair it to the cost of buying the tax software and norton deal.

[MaryMary]

All depends on your income and complexity of your return: do you have investment income needed to be reported, any business incomes, etc.
Many banks, investment powerhouses like Fidelity and Vanguard, insurances, offer tax filing for free.

[Macaela25]

I used one of the recommended sites from the irs website, taxact.com. We itemized and it cost us $9.95 to file. I used H&R Block's website first to go through each possible deduction step by step for free, then went to the other, much cheaper website and made sure each of those deductions were accounted for when I filed.

[MaryMary]

H&R Block is giving away Free TaxCut Premium 2008 + State + E-File.
https://ecom.taxcut.com/webregistration/2008

[Onward]

I used to use TurboTax - bought the upgrade each year. About 3-4 years ago the IRS began posting on their website (IRS.gov) a list of recommended websites that allowed you to file your federal tax return free. I'd already bought that year's TurboTax upgrade & filed. Out of curiosity I went to one of the IRS's recommended sites (I think it's freetaxusa.com) and did my return there. I got the exact same results as I had on TurboTax. So I've used the free site every year since; all I pay is the $9.95 fee to file my state return.

[luvmy3boys]

H&R Block is giving away Free TaxCut Premium 2008 + State + E-File.
https://ecom.taxcut.com/webregistration/2008

This link is dead. Nice if you already downloaded it.

[clarasmom]

I buy Turbo Tax each year but I'll be checking out the online options this year. I suspect they won't work for us since my husband owns a business, though.

As for internet security software, it would be best to use the free version of AVG. It is highly recommended and is much more stable than Norton. In fact, Norton can cause many problems with your system. AVG is very popular with computer geek types (like my hubby!) You can download it here: AVG Free - Download antivirus and antispyware software for Windows XP and Vista (http://free.avg.com/)

[heyaheather]

I buy Turbo Tax each year but I'll be checking out the online options this year. I suspect they won't work for us since my husband owns a business, though.

As for internet security software, it would be best to use the free version of AVG. It is highly recommended and is much more stable than Norton. In fact, Norton can cause many problems with your system. AVG is very popular with computer geek types (like my hubby!) You can download it here: AVG Free - Download antivirus and antispyware software for Windows XP and Vista (http://free.avg.com/)
TY all for the suggestions. The AVG free version is only the anti-virus. It's $55 for the whole suite, which is what I'm looking for.

It looks like the way I'm doing it now is the cheapest way taking everything into consideration. If I'm wrong on that, PLMK!

[computerguy923]

Why do you need the whole Norton Suite? Any tool you need in the Norton Suit can be found free online.

Antivirus
AntiVir (http://www.free-av.com/)
Free AVG (http://free.avg.com/)
Avast (my favorite) (http://www.avast.com/eng/avast_4_home.html)

Firewall
Zone Alarm (http://www.zonealarm.com/security/en-us/zonealarm-pc-security-free-firewall.htm)
Comodo Firewall (http://www.personalfirewall.comodo.com/)
PC Tools Firewall (http://www.pctools.com/firewall/)
Windows Firewall (Included in newer versions of Windows - Windows Vista version is very advanced)

Spyware
AdAware (http://www.lavasoft.com/)
Windows Defender (http://www.microsoft.com/windows/products/winfamily/defender/default.mspx)
Spybot S&D (http://www.safer-networking.org/en/index.html)

Are there any other tools included that I am missing?

[bugface711]

I have used taxact.com for years for my taxes and those of all my family. I really like it. Piece of cake to do.

Not everyone will agree, but why pay for software that is free online? We to itemize and have all kinds of "things" to put on our taxes and its step by step with taxact and others as well.

[computerguy923]

Don't forget the VITA program too if you qualify

Vita IRS Program (http://www.irs.gov/individuals/article/0,,id=107626,00.html)

[heyaheather]

Thanks CG, I didn't know that you could get all of them online for free. Are there any programs in each category that are considered better than the others? I am a little iffy to use something online that is free & is supposed to protect some very personal info, KWIM? Maybe I'll have DH put them on our old laptop that had fried but now sort of works. (He's the only one that uses it, so he can be the guinea pig)!

[fperkins]

I have used TaxAct.com for years, as well. I love it. We use the free version to file our daughter's taxes, but upgraded to the $9.95 version for ours. Every year in December or so, I get an offer to sign up and only pay $7.95, so I have done that for the last several years. I have found TaxAct to be very user friendly. Our taxes aren't terribly complicated, though this year we did have tuition and financial aid for our college daughter. (Darn the brainiack, she got more aid than it cost, so we had to pay taxes on it. LOL!)

We had some investment income, royalties and gambling winnings. All new to us, but easily handled with TaxAct.

HTH someone. :biggrin:

[Cheme]

I also used taxact. The $9.95 price is if you itemize. However, it will compare it for you, and if the standard deduction is larger, you don't have to pay the fee.

[mkmattingly]

Does Taxact do any kind of storage of your return? For example, TurboTax online stores my past tax returns, so it's kind of nice that anytime I need a copy I can pull it up without having to go find it, find the file, whatever.

[TheWoman]

Taxcut basic is available at the dollar tree for $1. That comes with a free federal e-file. Since my state taxes are simple once federal is done this is good enough for me.

[computerguy923]

Thanks CG, I didn't know that you could get all of them online for free. Are there any programs in each category that are considered better than the others? I am a little iffy to use something online that is free & is supposed to protect some very personal info, KWIM? Maybe I'll have DH put them on our old laptop that had fried but now sort of works. (He's the only one that uses it, so he can be the guinea pig)!

If I had to pick up from each category, I would choose the following:

Antivirus
Avast

Firewall
Zone Alarm

Spyware
Windows Defender

I have used all of them and would recommend them all. I currently only use Avast for antivirus. I really like it for a free antivirus software. I currently do not use Firewall or Spyware software though.

[heyaheather]

Thanks for your input. I appreciate it :)

[gettinrevvin2007]

Great thread!

We did ours thru Turbo Tax for 2 years.
I saw someone post that they had bought the program.
I was seriously wondering whether it was better to buy it, or just use the Free Online version. W/ them adding new changes each year, wouldn't you be better off to Not Buy?
When you buy the TT software, do you still have to pay to file them/receive refund electronically?

Heather-saw your piggy bank, and am wondering-
Does your piggy contain your 2009 rebates, savings, or ??? Just curious. Thought that was cute!