Services offer tax help for do-it-yourselfers

By Sandra Block and Thomas A. Fogarty
USA Today

Filing your taxes ranks high on the list of Chores We Hate, but unlike bathing a smelly dog or scouring the oven, this task comes with a big payoff. Last year, the average refund was close to $2,000. That's a powerful incentive.

And if you file electronically, you can get your refund in as little as 10 days. Competition among do-it-yourself tax-preparation companies is as fierce as ever, offering a wide range of services and prices. Here are reviews of some of the best-known providers:

Intuit TurboTax

TurboTax is the leader in tax-preparation software, and it's determined to stay that way. So this year, it installed anti-piracy features aimed at preventing users from sharing or selling its product. The move has irked some longtime users who view the ID-checking software as an electronic Peeping Tom.

Some customers have also claimed that the software slowed down their computers or caused them to crash. We didn't encounter that problem when we installed TurboTax Premier on our PC. But TurboTax's update program — which updates tax changes implemented since the software was manufactured — was so sluggish that we began to fear we'd miss the April 15 filing deadline. We were able to complete the updates on a high-speed line, but most TurboTax users don't have that option. Users with slow dial-up connections may find it easier to use TurboTax's Internet product.

What we like: Intuit has hooked up with more than 50 companies, banks and brokerage firms, allowing users to import information directly from W-2s, 1099s and other documents to the program. This saves time and reduces errors, moving users toward Intuit's ultimate goal of the 10-minute tax return.

What we don't like: The key to finishing a tax return in 10 minutes is finding fast answers. When we tried to figure out whether we qualified for a Roth individual retirement account, we had to go through TurboTax's time-consuming IRA Analyzer. At one point, we were dumped into a Web site for Wells Fargo's IRA products.

Information on mortgage refinancing was thin, a significant omission considering how many homeowners refinanced in 2002.

TurboTax's desktop product leaves promotions for other products and services, such as Quicken Brokerage, on your desktop, where they'll remain long after you've finished your taxes. We've grown accustomed to annoying pop-up ads and promotions on free Internet sites. But customers who shell out close to $50 for software have earned the right to be left alone.

• Web site: www.turbotax.com
• Web: $19.95. Includes federal e-filing.
• Basic: $19.95. Federal e-filing free after rebate.
• Deluxe: $29.95 after rebate. E-filing and one state product free after rebates. State e-filing: $8.95.
• Premier: $49.95 after rebate. E-filing and one state software free after rebates. State e-filing: $8.95.

TaxCut from H&R Block

H&R Block is playing catch-up with industry leader Intuit in the competition for do-it-yourself taxpayers. And it's doing a pretty good job. The company has renewed its emphasis on its electronic tax products over the past two years. The result: Reliable tax-preparation programs that exploit the firm's traditional strength — a nationwide staff of professional preparers available to step in and help after the tax code gets do-it-yourselfers flummoxed.

What we like: Easy navigation and a clean look that has not changed from last year. Good tax references built into the program. More expensive versions contain informative videos on tax issues.

What we don't like: Desktop software includes an intrusive marketing questionnaire that presents itself right after installation. The opt-out boxes to block further sales pitches are easy to overlook. On one dial-up modem, it took 25 minutes to update desktop software. With the huge tide of mortgage refinancings in recent years, the software could have been more assertive in highlighting potential deductions.

• Web site: www.taxcut.com
• Web: $19.95 ($29.95 in April). Includes federal e-filing.
• Standard: $9.95 after $5 rebate. Federal e-filing: $14.95.
• Deluxe: $19.95 after $5 rebate. Includes e-filing for a federal and one state product. State e-filing: $9.95.
• Platinum: $29.95 after $10 rebate. Includes e-filing for federal and one state product. State e-filing: $9.95.

TaxBrain

TaxBrain is the new retail brand of Petz Enterprises, a California tax firm whose services to professional tax preparers are well-established. Its program for do-it-yourself e-filers is Web-based only.

What we like: This is a dependable, no-frills program. Among the small tax firms in the IRS' free filing initiative this year, TaxBrain has done the most to expand eligibility, offering free service to anyone age 50 or older.

What we don't like: Although the company has tried to put the promotion code needed for free filing under the taxpayer's nose, it hasn't done a good enough job. (The code is FDE479.) The company says paying and non-paying customers are using the same program, and the promotion code is the only economical way to separate the groups.

• Web site: www.taxbrain.com
• Price: $39.95, includes one federal return and e-filing.