Whether or not you're ready, tax time is coming. You can tell by the city, state, and federal forms that started arriving in your mail shortly after January 1. This year especially, with all the changes in tax law, there's good reason not to wait until March or April to tackle them. If the task seems daunting, you can tap into a vast array of standalone and Web software solutions ready to guide you through the process.
Last week, Microsoft introduced its MSN Tax Center on the Web. The site includes news stories, commentary on tax laws, instructions for locating IRS forms, and many free tools for estimating refunds and finding deductions. For a charge of from $24.95 to $79.95, H&R Block also provides filing services on the site for state and federal taxes. The highest fee includes inspection of your return by an accountant. Among the specific tools available for free are Decision Centers, which let you evaluate specialized tax strategies, Tax Estimator, and Deduction Finder. The site also features a Tax Corner message board where, for specific guidance, taxpayers can trade messages with tax attorney and author Jeff Schnepper.
"Recent tax law changes are further complicating the process for this year's returns," Schnepper said in conjunction with the announcement of MSN Tax Center. "Since many folks don't have a CPA or tax attorney to turn to, resources like MSN Money can provide much-needed information, step-by-step filing resources, and peace of mind."
Intuit, maker of TurboTax software, offers many online resources for taxes. One popular service is an online version of TurboTax you can use to draw up your return. You pay (from $29.95 to $49.95) only if you print or e-file your return.
Of course, many of the existing financial Web sites have active message boards where CPAs and tax attorneys actively participate. The sites also feature articles on taxes. The Motley Fool, for example, offers several message boards with titles such as Tax Strategies, Tax Seminar, and Tax Reform. The Tax Strategies board is the most popular. One thing to remember about such message boards, though, is that many amateurs participate, and bad information can mingle with good.
PC Magazine recently covered standalone tax software packages, including 2nd Story Software's TaxACT, H&R Block's TaxCut, and Intuit's TurboTax. This year's offerings have less jargon and more specific information on various topics than did previous generations. The products include what you need to complete federal and state tax returns, do all required calculations, and more.
In addition to the products covered there, there are many customized tax applications available from companies such as CCH Inc., which also offers an online tax preparation and filing service for $29.95 called CompleteTax. CompleteTax allows online filing and has some nice extras such as a Tax Projector for predicting next year's taxes.