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Doing Your Taxes on the Doing Your Taxes on the ComputerComputer
Donald Burgard, CPADonald Burgard, CPA
Smoker Smith & Associates Smoker Smith & Associates PCPC
Hershey, PaHershey, Pa
Why Use The Computer?Why Use The Computer?
• Accuracy of Math Calculations (?)Accuracy of Math Calculations (?)
• Ease of Use (?)Ease of Use (?)
• Reduce Complexity of the Tax Code (?)Reduce Complexity of the Tax Code (?)
• Simple (?)Simple (?)
• ““it depends” – everyone’s situation is it depends” – everyone’s situation is differentdifferent
Pro’s and Con’sPro’s and Con’s
• Math AccuracyMath Accuracy
• PrivacyPrivacy
• Tool to be used to Tool to be used to reduce complexityreduce complexity
• Quality of return is Quality of return is a function of a function of software used software used answers to answers to complexed complexed questionsquestions
• Lack of privacyLack of privacy
• Hardware/software Hardware/software conflictsconflicts
Your OptionsYour Options
• Canned Off the Shelf SoftwareCanned Off the Shelf Software
• Examples: Turbo Tax and Tax CutExamples: Turbo Tax and Tax Cut
Second OptionSecond Option
• Online Web Based ProcessorsOnline Web Based Processors
Free OptionFree Option
• Free File by IRSFree File by IRS
Off the Shelf SoftwareOff the Shelf Software
• Turbo Tax (Intuit) and Turbo Tax (Intuit) and Tax Cut (H&R Block) Tax Cut (H&R Block) are the leadersare the leaders
• Quality of return is a Quality of return is a function of your function of your understanding of the understanding of the questionsquestions
• Both very goodBoth very good• Both try to sell other Both try to sell other
products and servicesproducts and services
• Pro – Privacy – data Pro – Privacy – data stays on your computerstays on your computer
• Pro – Carry-forward Pro – Carry-forward data between yearsdata between years
• Con – will need to Con – will need to download updates from download updates from earlier releasesearlier releases
• Costs $19.95 for Basic Costs $19.95 for Basic to $69.95 for Premierto $69.95 for Premier
• State filing costs State filing costs more..up to $29.95 more..up to $29.95 moremore
Online Web Based Online Web Based ProcessorsProcessors
• Turbo Tax Online Turbo Tax Online http://http://www.turbotax.comwww.turbotax.com
• Tax Cut Online Tax Cut Online http://http://www.taxcut.comwww.taxcut.com
• Complete Tax – by CCH is very good Complete Tax – by CCH is very good http://www.completetax.comhttp://www.completetax.com
• Tax Net – x Turbo Tax employees Tax Net – x Turbo Tax employees http://www.taxnet.comhttp://www.taxnet.com//
• Tax Act Online –great for simple Tax Act Online –great for simple returns returns http://http://www.taxactonline.comwww.taxactonline.com
Online Web Based Online Web Based ProcessorsProcessors
• Pro – updated software – no need to Pro – updated software – no need to downloaddownload
• Pro – got an internet connection – you Pro – got an internet connection – you got what you needgot what you need
• Con – Privacy – data is on their servers Con – Privacy – data is on their servers - overseas outsourcing issues- overseas outsourcing issues
• Pro/Con – speed – really need high Pro/Con – speed – really need high speed internet connectionspeed internet connection
Online Web Based Online Web Based ProcessorsProcessors
• Con – they try to sell you more Con – they try to sell you more products and servicesproducts and services
• Pro – costs – usually cheaper than Pro – costs – usually cheaper than canned off the shelf versioncanned off the shelf version
Free OptionFree Option
• IRS Free File site IRS Free File site http://www.irs.gov/http://www.irs.gov/
• Check out the qualifications – usually Check out the qualifications – usually need AGI below $50,000need AGI below $50,000
• Complete Tax option is the best – AGI Complete Tax option is the best – AGI must be below $29,000must be below $29,000
• Free is not always Free!Free is not always Free!
Pa State Return OptionsPa State Return Options
• Pa.direct.file - Pa.direct.file - www.revenue.state.pa.uswww.revenue.state.pa.us
• Very good optionVery good option
• Can also purchase state product of Can also purchase state product of off the shelf software and online off the shelf software and online productsproducts
