How to Choose Tax Software

Taxes are a certainty, but a good tax program makes preparing the forms a lot easier - and could even save you some money. Helpful software includes Intuit's TurboTax, Kiplinger's TaxCut and Microsoft's TaxSaver.

Difficulty:

Easy

Instructions

Things You'll Need

• Personal Organizers
• Personal Financial Software
• File Cabinets
• Tax Preparation Software
• File Folders
• Computers
• TaxCut
• TurboTax
• Calculators

1. Check reviews in computer magazines and on the Internet to narrow your choices.

2. Compare features and prices of programs.

3. Compare charges for online filing.

4. Find out if the program generates state tax returns or if you have to pay extra for state income tax software.

5. Buy a deluxe version of a program if you want tax advice, IRS publications, and other information along with accurate form preparation.

6. See if the program will integrate with your personal financial management software (such as Quicken or Microsoft Money), if that will help you.

Tips & Warnings

• You might be able to deduct the cost of your tax preparation software from your federal income taxes.

• Some services allow you to prepare and file your return from their Web site for a fee.

• If your taxes are basic, you won't save that much time by doing them electronically.

• Make sure your computer meets the system requirements of any program you download or buy.

• You must use the current version of a tax program. It changes every year along with tax laws.