Differences in tax software

[troyw]

So far, I have tried three different web based tax software companies for my taxes. The three were - H&R Block, TurboTax (used last year), and Free Tax USA. All three sites are computing different tax amounts for both state and federal returns. Free Tax USA is showing a state refund amount of more that $200 greater than the other two sites. I have checked and double checked my information and confirmed no mistake on my end. Has anyone else experienced this?

[cypher1]

Can't say that I have. You should also try taxact.com. I use that one.

[Shewillbemine]

That's why I use a professional accountant. To me, taxes are more art and less definition. You give me 10 different accountants and they still come up with 10 different results. Imagine the varying results with 10 different non-accountants (ie you).

[kork13]

I've noticed the same thing, and repeatedly. Up until about 4 years ago (when I got a "love note" from the IRS saying that my taxes were totally wrong), I used online tax software. I did comparisons between multiple programs that were available to me (many companies offer them free when you made as little as I did. ). They were always different, but typically all fell within a range of about $100-$200.

But as I said, once I found out that the programs were missing a couple rather key points, I totally abandoned them. The first year after that, I had a CPA friend do my taxes for me (once she also fixed my taxes from the previous 3 years). I now do my taxes on my own, taking a series of Saturdays starting around the New Year to learn about the applicable (to me) forms and regulations, and slowly build the picture of my taxes. It probably takes much longer than it should, but I understand my taxes inside and out, and I have confidence that I'm doing it right, because I don't make a single entry on any particular line of my 1040 (or whatever other form) until I understand what it's talking about and how it applies to my personal tax situation.

[elessar78]

kork, that's great. I used to do my own taxes up to three years ago (when we got married) with a pencil and calculator at that.

But the year we got married, we spent half of the year single, in different cities, in diff states, and after marriage moved to a third state for the remainder of the year. I also started a business that year. So the $100 I spent for a CPA seemed like a bargain.

[troyw]

Originally Posted by kork13

I've noticed the same thing, and repeatedly. Up until about 4 years ago (when I got a "love note" from the IRS saying that my taxes were totally wrong), I used online tax software. I did comparisons between multiple programs that were available to me (many companies offer them free when you made as little as I did. ). They were always different, but typically all fell within a range of about $100-$200.

But as I said, once I found out that the programs were missing a couple rather key points, I totally abandoned them. The first year after that, I had a CPA friend do my taxes for me (once she also fixed my taxes from the previous 3 years). I now do my taxes on my own, taking a series of Saturdays starting around the New Year to learn about the applicable (to me) forms and regulations, and slowly build the picture of my taxes. It probably takes much longer than it should, but I understand my taxes inside and out, and I have confidence that I'm doing it right, because I don't make a single entry on any particular line of my 1040 (or whatever other form) until I understand what it's talking about and how it applies to my personal tax situation.

Great insight! I have considered using a CPA as well but the desire to do my taxes myself has always won out.

[Shewillbemine]

Originally Posted by troyw

Great insight! I have considered using a CPA as well but the desire to do my taxes myself has always won out.

The $150 - $180 I spend on a CPA annually is well worth the thousands of dollars he/she successfully finds for me.

[jeffery12]

it usually varies with the handy tools offered.. at the same time its price.