The deluxe versions of TurboTax and TaxCut are better than ever at explaining and guiding taxpayers through such issues as depreciation on a business asset or the tax treatment of incentive stock options. But most people who have to deal with these situations could probably benefit from a professional tax preparer's advice. It's pretty easy, for example, to opt for the wrong method of depreciation or get confused about the alternative minimum tax when dealing with stock options. Finally, online users need to consider security and privacy issues. Some people are understandably concerned about leaving their tax information on a Web site, where it could conceivably be vulnerable to hackers.
Accessibility also can be a problem.
If you lose your printout, you have to go to the IRS to get another copy. If you're concerned about these issues, you should carefully read the tax preparation site's privacy policy. Some sites want to share your financial data with affiliates and pitch you products. Most allow you to opt out of this information sharing, but the opt-out box is often buried in the user agreement that many people speed through on their way to starting their tax return. TurboTax Deluxe has all the bells and whistles, including explanatory videos, links to IRS publications and various tax planning features.