TurboTax vs. TaxCut vs. TaxAct: pricing- part 5

February 11, 11:14 AMGadgets ExaminerDan Appleman

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Though one of these is less expensive, the
best value depends on your situation

As mentioned in the first article of this series, there are numerous free options for filing simple returns, so this series focuses on the higher end of the tax software packages.

TurboTax Home & Business

Software: $99.95 (street price $76.97) with up to 5 Federal eFile.

State eFile: $19.95 each

Live tax advice (online): $29.95 for 20 minutes + $19.95 for each additional 20 minutes

Audit defense (help if you get audited): $40

Review by a tax pro: $39.95

Extras: Audit support center (software gives step by step instructions on handling audits). Prepare W2 and 1099 misc forms. ItsDeductible online tracks and helps calculate deductible expenses and donations. Online community (self-help tax questions)

TaxCut Home & Business

Software: $79.95 (street price $59.99) with up to 5 Federal eFile.

State Efile: $19.95 each.

Live tax advice (phone): $19.95 – one session included. Each session covers one question on one topic with no time limit.

Worry free audit support: Included.

Extras: Prepare W2, 1099 misc and K1 forms. DeductionPro software maximizes deductions on donations. Includes Business software (1120, Trusts, partnerships). Home and business attorney software included.

TaxAct Ultimate

Software: $19.95. First Federal eFile free, up to 4 additional at $7.95 each.

State Efile: $7.95 each ($13.95 with the free edition).

Tax advice: Free via phone or email

Audit support: No

Extras: Donation assistant

Obviously, you’ll need to review your own situation to determine your actual cost. Also, you should not forget to take into account the cost of your time – staying with software you are familiar with can reduce learning time, but switching to software that offers navigation you like better or does a better job importing your data can save time. The actual cost of the software should not be the deciding factor.

That said, there are two clear conclusions one can draw from this pricing. First, that TaxAct will be the least expensive choice for many users. Second, that TaxCut, by leveraging the fact that it is published by H&R Block, offers excellent value for those who need extra support, want additional audit protection, or also need to file returns for businesses or trusts.

TurboTax vs. TaxCut vs. TaxAct reviewed:

• Part 1 - Introduction
• Part 2 - The interviews
• Part 3 - Look & feel
• Part 4 - Forms
• Part 6 - Conclusion