But the deluxe editions may be worth the price because of their extra features, which generally include preparation of at least one state return. It's typically not economical to buy a low-frills federal package and separately purchase state tax software as the combined cost may exceed that of a deluxe version. An online benefit is that you don't pay until you finish a return and are ready to transmit or print it, so you can try before you buy. Web sites also can keep up on late tax changes and include forms released by the IRS at the last minute. But online sites may offer fewer tips and less guidance than the software programs, and a slow connection while doing a return can be frustrating.
Some people also are wary of storing their tax data online.
Tax preparation by computer has been getting easier and more reliable each year, and all the major programs and sites get the job done. Repeat users, though, often make the same choice each year because learning how to run a program is as important as following the tax rules, so familiarity is a virtue. Turbo Tax runs smoothly, comprehensively covers tax issues, integrates guidance so it is relevant to the area of the return you're working on, and doesn't leave you wondering where you are when navigating the program. Enter that you are in the military, for instance, and the program suggests specific deductions, such as for uniforms. A state tax refund that you report will be flagged to determine if it's taxable.