Consumer Reports: Last minute tax-prep
Dragging your feet on filing your taxes this year? It might be as easy as going online or using an app on your phone - some tax-prep products are free, and even the paid versions are typically cheaper than using an accountant. But will they get the job done right? Consumer Reports took a look at the three most popular products to help you go it alone this tax season.
For tax year 2015, IRS reports show that 40% of taxpayers who filed electronically, meaning they didn’t use a paid tax preparer. Consumer Reports says using an online or mobile app can help you get the right results. They looked at the three most popular tax software products. That’s TurboTax, H&R Block, TaxAct - and we found they’re all pretty good for simple situations especially. And filing on your own has become even easier with the help of smartphones. All three allow you to automatically upload your W2 information by simply taking a photo.
If your tax situation becomes more complicated— say you’re self-employed—you’re probably going to have to upgrade. That could cost an extra 10 to 60 dollars. Did you donate some old stuff to a place like Goodwill? You can probably get a deduction if you correctly itemize your return. Consumer Reports says all three have tools to help make your itemized deductions easy. Even without having to upgrade to more expensive versions, any one of the products should get the job done for the most simple returns. And of the three, Consumer Reports says TaxAct has the best value for people who itemize, own a home, or have simple investments.
If you file on your own and run into problems, these tax-prep products allow you to contact them if you need help. They all offer tax advice from trained professionals; TurboTax's live tax advice help is available for the most hours in the day.