TaxACT Deluxe Online

By Kathy Yakal

2nd Story Software has had the distinction over the last several years of being the only personal income tax-prep provider that offers a free version that is the same as its paid version in terms of actual tax preparation tools. The free version of TaxACT Deluxe Online only lacks some found extras found in the paid version, such as an import tool, donation tracker, and calculators (none of which I even used in my evaluation). But if you don't need to file a state return, you can prepare and print or e-file your IRS 1040 forms and schedules absolutely free.

It's for this reason that I said last year and will say again this year: The TaxACT site should be your first stop when you're getting ready to endure your annual tax ordeal. Jump to the topics that you think are the most complex in your return and see how the site handles them. If the forms you need are supported?TaxACT includes all of the most common and many that are used less frequently?and the depth of guidance is acceptable, you don't have to look any further.

Lest you think this is a gimmick designed to market a lot of other products and services to you, or that TaxACT is a second-rate site published by a fly-by-night company, know that it's neither. TaxACT has been around for as long as its competitors, though in its earlier years it was known as Personal TaxEdge and published by a different company (some of the principals moved forward with the product and kept it going under a new name). There's no catch. TaxACT Deluxe Online is a solid rival for the other sites reviewed here. It just happens to be free.

Almost a Carbon Copy
Like its competitors, TaxACT looks and works much like the 2011 version did, with one big difference: TaxTutor Guidance, which comes from renowned tax resource J.K. Lasser, has been rewritten to be clearer and simpler. This was one of TaxACT's weaknesses, so the change was welcome. Beyond that, the company is now offering an audit insurance plan ? similar to competitors' ? for $39.95. And 2nd Story Software is branching out a bit; it will produce an inexpensive service for creating your own will.

TaxACT Deluxe Online does practically everything TurboTax Deluxe Online?and H&R Block At Home Deluxe Online?do. Besides supporting a comparable number of forms and schedules and incorporating new tax laws since last year, it walks you through an interview-like process ("Q&A") rather than making you enter data on IRS documents. It asks you simple, clear questions about everything that needs to be on those official forms. There are often several questions on each screen, and you simply enter information in fields or select options from lists or check boxes to answer them.

You advance forward and backward by clicking buttons. TaxACT doesn't force you to complete the screens in order like H&R Block At Home Deluxe Online does. And when you come across particularly complex topics, all of these sites offer the option of taking a more directed, simplified route.

In the background, TaxACT transfers those responses to the correct lines on the 1040 and its assorted forms and schedules. When you're done, TaxACT combs through your return and alerts you to anything that's missing or seems incorrect. After you've fixed anything necessary, what comes out when you click "Print" is the actual IRS forms filled out with the information you provided. You can also file your return electronically at no cost.

Source: http://feedproxy.google.com/~r/ziffdavis/pcmag/~3/AEsUWegQR40/0,2817,2414608,00.asp

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