Turbotax

This year, honest, we're going to get organized. We're going to get a head start on preparing our 1991 taxes while we can still do something about them, instead of waiting until after Jan. 1, when it's too late.The first batch of "head start" tax preparation packages have arrived in stores.These early-bird programs cannot be used to file returns, because Congress and the Internal Revenue Service are still, shall we say, fine-tuning the laws and forms.However, the head-start programs are very useful for organizing and forecasting.

Before I realized it, I was done filling out our 2006 income tax return. Rather than tackle the whole thing at once, I did it bit by bit, entering the information as I received it (for example, how much my wife, Georgina, and I made in dividends from our mutual funds and how much of it qualified for a preferred tax rate). By using tax-preparation software, I could work on any part of the return I chose without getting confused. The program makes all the computations and adjusts any previous entries based on new information.

So you think you have it bad this tax season? Don't cry on this shoulder, pal. I've had to do my returns three times this year, but such is the life of a software reviewer: Sometimes you play games, sometimes you do your taxes. Again, and again, and again. That's because this year the two heavyweights of personal tax software -- Intuit's TurboTax and Block Financial Corp.'s TaxCut -- finally have some competition. To round out its personal finance titles, Microsoft has launched TaxSaver, a surprisingly robust first effort from a company that usually doesn't get things right until Version 3.0. (Macintosh users still have only Intuit's MacInTax or Block Financial's TaxCut for Mac.)

How can anybody keep up? In the past year alone, the tax code grew by more than 5,000 pages, with major congressional legislation revamping the bankruptcy process, offering tax incentives to conserve energy and providing tax relief to hurricane victims. Changes stemming from previous laws, such as higher contribution limits to retirement plans, continued (and will continue) to be phased in. Debate without resolution keeps swirling about the alternative minimum tax (AMT) and whether to extend lower rates for qualifying dividends and long-term capital gains beyond 2008.

Antonius Kusuma isn't a novice with computers. He maintains them for a living for the brokerage giant Merrill Lynch & Co. Inc. So when he popped the tax-preparation software TurboTax into his computer at his Bordentown, N.J., home recently, he expected to complete his federal 2002 return without a problem. Three hours later, he abandoned the effort in exasperation -- and his choice words didn't even include the letters "IRS." "I was not able to activate my TurboTax even though it was the first time I installed it," Kusuma, 37, wrote in a complaint he posted to amazon.

Groundhog Day, Tuesday, was also the unofficial start of income tax preparation season.The final versions of the major 1992 federal income tax preparation programs have arrived in the stores. (If the groundhog emerges from his burrow and sees the shadow of an Internal Revenue Service agent, winter will last until April 15.)Just as the groundhog's fame is fleeting (What does he do the other 364 days of the year?) so, too, is the attention brief for personal computer tax programs. Anonymous programmers race all year to add new features to make tax preparation easier, all for a program that has at most 10 weeks of optimum use.As in years past, the choice for most PC owners ultimately comes down to two packages: Turbotax, the perennial best-selling program, and Andrew Tobias' Taxcut, the challenger.

The "simplified" 1990 tax laws almost demand a computer. Luckily there are more than a dozen personal tax-preparation programs available to make the ordeal easier.This week we recommend two programs for the more common DOS-based personal computers: Andrew Tobias' Taxcut and Turbotax.Both Turbotax ($75), the best-selling tax program in years past, and Taxcut ($89.95), from the same people who produce the popular Managing Your Money personal finance program, are strong enough to handle all but the most complex personal returns, yet gentle enough to comfort the individual taxpayer in this time of trial.

Filling out a tax return is not my idea of a good time. But if you must -- and you must -- you may as well make the best of it. One option is to turn it over to a professional. Another is to enlist the services of a good tax preparation program. My two favorites are TurboTax (IBM and Macintosh) from ChipSoft and Andrew Tobias' TaxCut (IBM only) from Meca. I'm not alone. The programs share this year's "Editor's Choice" award from PC Magazine.Any tax preparation programs will calculate your taxes and fill out your return.

How can anybody keep up? In the past year alone, the tax code grew by more than 5,000 pages, with major congressional legislation revamping the bankruptcy process, offering tax incentives to conserve energy and providing tax relief to hurricane victims. Changes stemming from previous laws, such as higher contribution limits to retirement plans, continued (and will continue) to be phased in. Debate without resolution keeps swirling about the alternative minimum tax (AMT) and whether to extend lower rates for qualifying dividends and long-term capital gains beyond 2008.

You'll love the latest version of Quicken. Known as Quicken 2000, the $90 package for Windows 95/98 is designed to take us across the great divide into the millennium with some major and quite appealing enhancements, particularly in the area of personal financial planning for today's bodacious bull market.Added to standard Quicken modules for tracking spending and investments are powerful Internet tools that bring such features as constant stock price updates, the ability to calculate "what if" scenarios about possible stock buys, asset-mix changes and a fascinating net worth module that lets you use Internet databases to find the market value of your home based on comparisons with your neighbors' properties.

Antonius Kusuma isn't a novice with computers. He maintains them for a living for the brokerage giant Merrill Lynch & Co. Inc. So when he popped the tax-preparation software TurboTax into his computer at his Bordentown, N.J., home recently, he expected to complete his federal 2002 return without a problem. Three hours later, he abandoned the effort in exasperation -- and his choice words didn't even include the letters "IRS." "I was not able to activate my TurboTax even though it was the first time I installed it," Kusuma, 37, wrote in a complaint he posted to amazon.

My friend and I each have substantial amounts of cash. My balances are in the five digits, while my friend has more than $100,000. Our problem is that we owe substantial amounts to the IRS and other tax agencies. We want to park this cash someplace where it will be safe and we have access to it, but where the IRS can't find it. Please don't advise me to resolve my tax problems. I tried, and it's impossible! Baloney. Your issues - whatever they are - can be resolved, as soon as you abandon the idea that you can somehow hide your assets from the IRS. Find an attorney who specializes in solving tax problems and hire him or her. Your local bar association can offer referrals.

So you think you have it bad this tax season? Don't cry on this shoulder, pal. I've had to do my returns three times this year, but such is the life of a software reviewer: Sometimes you play games, sometimes you do your taxes. Again, and again, and again. That's because this year the two heavyweights of personal tax software -- Intuit's TurboTax and Block Financial Corp.'s TaxCut -- finally have some competition. To round out its personal finance titles, Microsoft has launched TaxSaver, a surprisingly robust first effort from a company that usually doesn't get things right until Version 3.0. (Macintosh users still have only Intuit's MacInTax or Block Financial's TaxCut for Mac.)

You'll love the latest version of Quicken. Known as Quicken 2000, the $90 package for Windows 95/98 is designed to take us across the great divide into the millennium with some major and quite appealing enhancements, particularly in the area of personal financial planning for today's bodacious bull market.Added to standard Quicken modules for tracking spending and investments are powerful Internet tools that bring such features as constant stock price updates, the ability to calculate "what if" scenarios about possible stock buys, asset-mix changes and a fascinating net worth module that lets you use Internet databases to find the market value of your home based on comparisons with your neighbors' properties.

Groundhog Day, Tuesday, was also the unofficial start of income tax preparation season.The final versions of the major 1992 federal income tax preparation programs have arrived in the stores. (If the groundhog emerges from his burrow and sees the shadow of an Internal Revenue Service agent, winter will last until April 15.)Just as the groundhog's fame is fleeting (What does he do the other 364 days of the year?) so, too, is the attention brief for personal computer tax programs. Anonymous programmers race all year to add new features to make tax preparation easier, all for a program that has at most 10 weeks of optimum use.As in years past, the choice for most PC owners ultimately comes down to two packages: Turbotax, the perennial best-selling program, and Andrew Tobias' Taxcut, the challenger.

If you're tired of breaking pencils and running out of ink on your calculator ribbon at tax time, consider the electronic alternative: tax preparation software for your personal computer.The programs aren't a substitute for professional tax advice, and, although most can churn out a 1040A or a 1040EZ form, the programs aren't going to save too much time for people with simple returns. Instead, they are for taxpayers with modestly complex returns who want to do the job themselves or want to take a first cut at it before visiting their accountant.

If you're tired of breaking pencils and running out of ink on your calculator ribbon at tax time, consider the electronic alternative: tax preparation software for your personal computer.The programs aren't a substitute for professional tax advice, and, although most can churn out a 1040A or a 1040EZ form, the programs aren't going to save too much time for people with simple returns. Instead, they are for taxpayers with modestly complex returns who want to do the job themselves or want to take a first cut at it before visiting their accountant.

Before I realized it, I was done filling out our 2006 income tax return. Rather than tackle the whole thing at once, I did it bit by bit, entering the information as I received it (for example, how much my wife, Georgina, and I made in dividends from our mutual funds and how much of it qualified for a preferred tax rate). By using tax-preparation software, I could work on any part of the return I chose without getting confused. The program makes all the computations and adjusts any previous entries based on new information.

This year, honest, we're going to get organized. We're going to get a head start on preparing our 1991 taxes while we can still do something about them, instead of waiting until after Jan. 1, when it's too late.The first batch of "head start" tax preparation packages have arrived in stores.These early-bird programs cannot be used to file returns, because Congress and the Internal Revenue Service are still, shall we say, fine-tuning the laws and forms.However, the head-start programs are very useful for organizing and forecasting.

The "simplified" 1990 tax laws almost demand a computer. Luckily there are more than a dozen personal tax-preparation programs available to make the ordeal easier.This week we recommend two programs for the more common DOS-based personal computers: Andrew Tobias' Taxcut and Turbotax.Both Turbotax ($75), the best-selling tax program in years past, and Taxcut ($89.95), from the same people who produce the popular Managing Your Money personal finance program, are strong enough to handle all but the most complex personal returns, yet gentle enough to comfort the individual taxpayer in this time of trial.