Computerized Tax Software

Absent the advent of true tax simplification (something that probably will not happen in any meaningful way during our lifetimes), the Federal income tax law will continue to grow in size and complexity.  Despite my best efforts to simplify the concepts for you, federal taxation will continue to be a complicated and ornery bear to live with.  Is there any computer solution to this problem?  One of the coolest things to come down the pike is the advent of incredibly user-friendly tax preparation software and computerized programs.

The one I have always personally used is TurboTax.  Go to my Web site, click on Tax Planning and then Tax Preparation Software.  TurboTax is relatively cheap, $20 or $30 depending on where you purchase it.  It is exceptionally powerful yet extraordinarily easy to use.  One of the many good things about TurboTax is the way it slowly walks tax-confused users through the return.  Also, the wave of the future is filing online even if you’re an average taxpayer.  The TurboTax software program allows you to easily file online.  The final useful thing about a computerized tax preparation program is that a lot of the information will carryover from year to year (information on you, your spouse and your dependents as well as employer information).  Repetitive information can simply be uploaded from last year's return.

NOTE:  Purchasing Goods and Services over the Internet.  Frequently you may want to purchase things you come across on the Internet, like the tax preparation software I just described.  Over time my thinking on this subject has changed.  When I first began to surf the Web and desired to purchase things I saw on it, I would not give my credit card information over the Web but would rather manually order things via any phone number given or by writing to any mailing address given by the vendor.  This can be very time consuming and actually a more complicated process than simply ordering items directly off of a Web site.

I now use a particular credit card only for my Web site orders.  Thus, I have a little "control device" to assure that there is no fraudulent use of my credit card.  In the past three years that I have used this credit card for my Web purchases, I have never seen anything out of the ordinary on the credit card bill (most Web vendors have secure services that assure the competent and safe use of credit card information).   If you use this technique and do notice something out of the ordinary, you can cut off any liability at $50 (or $0 if done promptly with many card issuers) by calling the customer service number on the credit card.