How to Compare Tax Software

Tax prep software makes filing taxes easier.

Tax preparation software can make filing your taxes faster and easier, but it is important to choose the right package. Not all tax software will provide support for all the tax forms and schedules you use. Understanding your tax needs and seeking out the packages that support those needs will help you find the best tax preparation software for your needs.

Instructions

1. Review copies of your recent tax returns and make a list of the schedules and attachments. Check the specifications for each tax software package to see if the software includes support for those schedules. For instance, a basic tax software package might not include support for Schedule C and C-EZ, which are used by self-employed individuals to report their income.

2. Compare the online and offline support options for each tax software package. Some software packages provide online support only, while others also offer telephone support.

3. Check the tax filing options the tax software supports. Look for a software package that allows you to file your taxes electronically at no additional cost.

4. Look for audit support as well as help with your current tax preparation. Some tax preparation software provides professional support in the event of an audit or question about your return.

5. Compare the support for state tax preparation on each tax preparation software package. Some tax preparation software includes free preparation and filing for state taxes as well, while others charge extra to file your state tax return.

References

• PC World: Tax Software - The Online Options
• Illinois Department of Revenue: File Using Tax Preparation Software
• PC Magazine: Tax Preparation Software Roundup