How to Update Tax Preparation Software

It might be logical to expect the IRS and state-tax agencies to finalize all pending changes in the tax codes far enough in advance to allow taxpayers to know all of their requirements by the beginning of each year. However, that's not always what happens. Therefore, it is often necessary for tax preparation guides and software to be updated after they are sold to the public. Fortunately, updating software is a snap.

Difficulty: Moderately Easy

Instructions

Update Your Tax Preparation Software to Ensure That Your Return Is Accurate

1. Note that one of the first screens you will see when you install tax preparation software will prompt you to update your software.

2. Register your tax preparation software with its manufacturer when you download or install it on your computer. Registration will allow your copy of the program to maintain contact with the manufacturer's servers.

3. Choose "Automatically check for updates" from the initial prompts and set-up options when you first set up your program on your computer.

4. Watch the information box at the center of your screen the first few times you launch your tax preparation software, making sure that it automatically checks for updates each time you launch it.

5. Initiate a manual update when you are ready to get down to work with your tax preparation software. You can find the manual "Update" command under "Tools" in most tax preparation programs.

6. Close and restart your program, if necessary, after an update to make sure you are using the updated version in your current session.

7. Make sure that your tax preparation software checks for updates after you have completed your return and before you have filed electronically or printed out your final copy. Most tax preparation software will not allow you to file your return unless you have checked for updates a final time.

Tips & Warnings

• Another form of tax preparation software update is the one through which you get future-year software for free, as long as you purchase it the first time. That kind of deal is offered by some Canadian software manufacturers, but is not widely available in the United States.
• Don't blow off the updates. Changes in tax law can be passed right up to the filing deadline, and they have the same teeth as tax laws that have been on the books for decades. Failure to respond to an update that changes the calculation for taxes you owe can lead to severe penalty and interest charges.