April 15th: Judgement Day. Few dates on the calendar strike as much fear into the hearts of Americans as this one. What’s all the fuss about? In case you’ve forgotten (or are new to the working world), April 15th is the day that your income taxes are due. Now listen, I can hear some of you talking about extensions, and how taxes aren’t “technically” due on the 15th. Just bear with me here, and for the purposes of this Blog, go with it! There, I’m glad that’s settled. As if Tax Day isn’t stomach churning enough, there’s a matter of finding an accountant to do your taxes for you. From evaluating credentials, to finding out what he charges, there’s almost as much preparation in selecting the accountant as there is in gathering the information to complete your tax return. If only there was an alternative! If you’re willing to do the work yourself, there is. I bring you H&R Block and TurboTax.
H&R Block has been around forever. They’re a publicly traded company with offices all over the United States, as well as Canada, Australia, Brazil, and India. The company was founded in 1955 as a tax preparation company. You can trust the name – this is their bread and butter. While they’d be happy to see you walk into their office with all of your forms, you may also download their software and prepare and file your tax return from the comfort of your own home. Four different programs are offered. There’s a Basic option which is “Best for simple returns”, a Deluxe program which is “Best for homeowners/investors”, Premium which is “Best for self-employed/rental property owners”, or Premium & Business for “Small business owners”. Since most of us have to file both federal and state taxes, I’ll include the cost for both. There’s a lesser charge when not filing for your state. Basic is $19.95, Deluxe is $49.99, Premium is $64.95, and Premium & Business will run you $79.95. Basic, Deluxe, and Premium are available in both Windows and Mac flavors. Premium & Business is for Windows users only. When you purchase and download the H&R Block software, you’re entitled to their “Maximum Refund Guarantee”, five free Federal e-Files, free unlimited advice from a tax expert, data security, and a “100% Accuracy Guarantee”. All four versions offer an extra bonus on top of your federal tax refund to be used toward the purchase of gift cards from Amazon, Target, Home Depot, and more. Basic gives you an extra 5%, while the others will hand you 10%. Not bad. One major plus for me is that the software will allow you to import your return from the previous year. If your life hasn’t changed much from year-to-year, this is a real time savor. You can import your return from prior versions of H&R Block or TurboTax.
The aforementioned TurboTax is a product of Intuit. If any of you work in bookkeeping, you’re familiar with QuickBooks. QuickBooks is also a product of Intuit. I didn’t mention before that H&R Block offers a free version. I decided it wasn’t worth mentioning, because if you have to file a state return it’ll cost you $9.99. TurboTax, however, has an honest-to-God free iteration. It costs $0 to file a state return when using it. It’s recommended for “Simple tax returns”. TurboTax mirrors H&R Block by offering Deluxe, Premier, and Home & Business versions. Deluxe is their most popular, and is helpful to “Maximize your tax deductions”. The cost is $34.99 plus their flat rate of $36.99 per state. Premier is for “Investments and rental property” and can be yours for $54.99 plus the $36.99 state fee. Home & Business is recommended for “Self-employed and small business owners”. The cost if $79.99 plus the $36.99 state fee. Both products have a similar pricing structure. TurboTax guarantees your maximum refund, they’ll double-check your return before filing it, and promise 100% accurate calculations. You can choose to fill out your return online, download the program, or purchase a CD of the software. TurboTax will also allow you to pay nothing up front, and instead allow them to use the money from your refund to pay for their service.
Tax Day is taxing on everyone. Have you ever talked to an accountant on April 14th? If so, you know how stressful it is on them too! Doing your own taxes isn’t for everyone, but these programs will walk you through the process and give you the possibility of being a do-it-yourselfer. If you’d like to save a few bucks and give it a try, I can tell you that my family and I have a long history of using the H&R Block software successfully and have never been audited (knock on wood!)