I have been using TurboTax online for years.
I visit it here: http://turbotax.intuit.com/
I chose TurboTax because I found the system to be very easy to follow. Every year they update their online system to encompass the new tax laws so if you miss them, they surely won’t.
The trick is to use the right filing choice for you. If you own stocks and bonds you need to opt for the Premier edition to get out of it what you need to. Yes, it costs more to file BUT if you chose the option of allowing the system to walk you through the return by asking you questions - step by step - it will cover EVERYTHING.
Conversely, if you are well versed in the current tax law and do not want to be walked through your taxes, you can opt to select which sections you need to fill out yourself.
When I say that you will have to fill out the sections yourself, you actually may not have to fill in much. Not only does TurboTax remember what you filled in the year prior - pre-filling out all the applicable slots - but it also is able to download information from many institutions that may make it possible for you not to have to fill such things as your earnings, stock and mutual fund information, IRAs and so forth. This makes it a whole lot less likely for typing errors, plus it is just a lot less tedious - especially for those that do not take pleasure in the whole fun filled event that the IRS plans for us every year.
You should know that although TurboTax prominently lists the fees for Federal filing on their web site in many instances it costs an additional $29.95 to file state taxes - some states are free - mine isn’t. I still use TurboTax for the state because it transfers everything that was already entered into the Federal part into the State, so there isn’t a lot of input to do for the state. I feel that this also helps to eliminate errors, especially for those with lots and lots of inputting to do.
There are a few ways to use TurboTax online for less.
One way is through the Intuit Tax Freedom Project: http://turbotax.intuit.com/taxfreedom/
Currently, if your Adjusted Gross Income is $30, 000 or less ($54, 000 of less for Active Duty Military) OR you qualify for Earned Income Credit you can use TurboTax for free! Please know that some state filing may be extra (currently $9.95), so check that out at the site before you begin if this is a concern for you.
The catch is that some more complex forms may not be available and you MUST enter the site at http://turbotax.intuit.com/taxfreedom/ EVERY time you go in to do your taxes. If you start your taxes at the freedom link, save them and then in go through the regular link, you will get charged. Just go back in through the freedom link on saved filings to take advantage of this great deal.
If you do not qualify for the Intuit Tax Freedom Project there are ways to file using TurboTax online for less.
Currently if you go to http://www.troweprice.com they are offering 30% off Federal filing for BOTH customers and non-customers!
What you do is to go to http://www.troweprice.com then go to Individual. If you do not see anything on the face of the site mentioning TurboTax, check out Investment Guidance ==> Investing Planning ==> Tools & Calculators. There is also a search box at the top of the page if you have trouble locating the spot.
Fidelity currently offers 25% off BOTH Federal and State taxes for BOTH customers and non-customers here: http://personal.fidelity.com/planning/tax/tax_content.shtml.cvsr?refhp=pr
If the link above does not bring you directly to the page for the taxes, then go to the Fidelity site, click on Tax Center and then click on Do Your Taxes.
State Farm insurance also often offers a discount on TurboTax for customers only. I am not sure if they are participating this year.
I suggest that you check your personal Investment and Financial sites to see if they offer a TurboTax discount before using one of the ones I have listed above, just in case one is better than the other.
All in all I do highly recommend using TurboTax and to use it as cheaply as possible!
Happy Tax Season!