Review: TaxCut 2009

Since I use a CPA to do my taxes, last year I had a friend do a write-up of TaxCut software for me. We did the same thing again this year, and here is his review.

I reviewed H&R Block’s TaxCut 2008 last year and was pretty impressed since it found a calculation error in state taxes that I had made.  So I thought it would be good to see what the 2009 TaxCut had to offer and to see how easy it was to bring over the previous year’s data. After all, part of the reason for buying a tax program is so you do not have to re-punch all the family data in again.

First, let me say that my review might be slanted since the computer that I was loading this tax program on did not have an internet connection. (You can determine that after you read though my review.)  I wanted to use the machine in my home office which is the same machine that I used the previous year and had all my 2008 TaxCut information was on it.  Therefore, I loaded the CD onto the desktop with no problem. Right away it wanted the latest updates from the TaxCut website and tried to connect to the web. I then went to a laptop that I have a semi-high speed cell phone card installed on. I went to the TaxCut website and downloaded the federal and state of Michigan updates. I transferred these files to a USB memory stick and then installed them onto the desktop. The federal update went without a hitch, but the Michigan update kept giving me an error code. After trying to install the update several times I decided to call their customer support for guidance. I was told to uninstall everything and reinstall it. This is not good news, but I did it, and the same problem occurred.

So it was back to the phone for customer support, round 2. The second person told me it was because the state form was not loaded and that I had to connect to the internet to do this. I said the computer was not on the internet but I had an internet connection on another compute, so he then sent me an email with a different link to download the state form. This link was not on their standard website page. He then said to load the state form and then install the update. I completed the task in about 15 minutes, but I continued to get an error when I tried to load the update. I then looked for the version number of the state form by selecting the help menu, then selected “about TaxCut”.  I called the customer service number for the third time if anyone is counting, and asked if this version number 4101 was the latest version. After several minutes of waiting she came back and said it 6201. I said that was the federal number the state starts with a 41. So back on hold I went. She then came back and said it was the 4001 is the latest version. Therefore, I didn’t need to load the update since the manual download was the most current. So, 3 hours later and 3 calls to customer service I finally had TaxCut on the desktop and updated. To be fair, if I had a high speed internet connection I might not have had this problem. But then again, not everyone has high speed internet in their home so maybe this is a fair gripe. I checked the software box and I do not see that a high speed connection is a requirement, but it should be. The federal update was something like 30 mb and the state was around 2 or 3 mb which is way too large of a file for simple dial up connecting.

Anyway, that was over and I am a wiser man, so let’s talk about the program. TaxCut brought over the previous year’s tax information without a hitch and then started to ask if there were any changes to my family member’s data. I was then able to start responding to the questions and logging in my income. What it did was show the previous year’s 1099int, 1099 div accounts, my bank accounts and assumed that I had income from the same accounts as the previous year. You can add or delete the accounts as need and then change the amounts. The same thing happens for the deductions. It assumed that I was giving to the same charitable organizations and that my mortgage was with the same mortgage company.  Though you can add and delete which is what I did. I guess this is faster than logging all new information in. After about a half hour of answering questions I was done with the 1040 federal return. (I had all my information already compiled and in order.) I was then able to print out and review my 1040. A nice feature was a comparison printout of the 2009 verse 2008 year income, deductions and final taxes.

I then went to the state form and answered the questions and plugged in the numbers and was done with that form in about 15 minutes.

I then printed out the forms with the schedules and worksheets, reviewed them. Everything was in order, so I printed selection the finial filing forms for signatures, which give you all the attachment plus instructions and mailed them off. Since I did not have an internet connection on the desktop machine I was not able to e-file.  One thing I noted on the instructions for the state form. It gave a different address than what was on the actual Michigan instruction booklet that I received in the mail. I figured that the booklet from the state was probably correct and thus changed the mailing address from what TaxCut was telling me.

All in all, the program was easy to use once I got the proper updates installed.  My beef is the way they make you go out to the website and get the state forms. It sure is a hassle, even for someone that is computer savvy. Maybe everything is seamless with a high speed internet connection, but that should not be the case. Not everyone has a high speed connection in their home. ( I can’t get one since cable and dsl are not available in the “boonies” where I live.) The TaxCut programmers should be able to figure out a way to include the state forms on the CD and then you download only the updates from any computer transfer the updates to your computer containing the program, and then the update will verify that you have the correct software licensee and then update your federal and state forms accordingly. The software should also note how many returns you are filing and limit that number if they are worried about someone setting up a tax shop with a $40 software package or doing the taxes of all their friends and family members. Then again, who is going to let their neighbor do their taxes or a family member that is beyond their son or daughter? None is my answer.

Comments

[Blaine Moore]

From someone that used TaxCut this year and that does have an internet connection, it worked fine. Load the software, automatically updates, answer the questions, download state information (again automatic once I selected the state) and it then e-filed and printed out the forms that I needed to still mail in manually.

Very easy.

[TaxCut fan via dialup]

I have used TaxCut for the last 6 years and never had any issues. I still have dial up (so I can't be that tech savvy, right) and it always worked fine for me downloading the updates. Sure it takes a while, a half hour or hour at most, but just walk away from the computer and do something else. And you refer in doing your 2008 and 2009 taxes but here in March 2009, you really mean to say your 2007 and 2008 taxes.

[Maria]

Tax Cut user since 1999. Prior to that Turbo Tax from 1991-1998. Turbo Tax was less user friendly. I re-tried Turbo Tax last year and was very dissapointed. As far as updating goes, that is optional. Call customer service first, ask them is you have the latest version and, if there are no updates needed, most of the problems you refered to would not be an issue. Regarding your comments about downloading a state vs getting it on CD, I dont think anyone sells a CD that is state specific. They all require a download. Turbo tax used to, but for 2008 it is downloand only, so the download issue isn't specific to Tax Cut alone. Tax Cut is a consumer version of the professional sofware used at H & R Block offices. It is accurate, has excellent tutorials, and in functionality is no different than the other available interview based programs. If online is a problem count out any web based app.

[Phil]

Tax cut is very easy to use. I changed computers I used Tax Cut with from an aging laptop to a new desktop and just carried the old files with me on a USB flash drive. I transferred the '07 file to new computer. Tax cut had no problem finding those files and away I went. I feel that criticizing a software package for requiring web based updates is irrelevant, and does not detract from the utility or quality of the program.

[Darin H]

A few points:

1. It would have been a whole lot easier to just copy the .T07 file over to the computer with internet access and installed the new program there. We bought a new laptop this year and that's what I did.

2. State CDs have gone the way of the dinosaur.

3. I've used both TT and TC (TC for the last 6 or 7 years) and I much prefer TaxCut.

4. Copy the .T08 file (and the .pdf file of the full return) and all other information that you might have (I use quicken, so there is a lot from there, including exported excel files) to a CD and put it away with your return. In case your computer ever blows up, it's nice to have a backup of all that info.

5. This was the first year I did efiling. WOW, highly recommended. It took minutes, gave a confirmation number and status updates. I had our state refund in 3 days and the federal one in 2 weeks. Plus, we didn't have to send in a single paper to either state or fed.

[Mark]

I bought TaxCut for the first time this year after using TurboTax for many years. I only did it because TT got the bright idea that you could only print ONE return, and would have to pay another $10 to do a second one. (I do my daughter's very simple return.) TT has now backed down on this by the way.

TC was fine for the simple return. Imported TT data from last year, and everything worked fine.

Went to do mine (which includes foreign income from 2 countries, AMT, investments, and stock options) TC claims they bring in TT info from last year, but didn't bring it all. After retyping A LOT, I found the handling of stock transactions so poor that I went out and bought Turbo again.

Maybe it's just personal preference after all these years, but even after they annoyed me so much that they lost me as a customer, I ended up back with Turbo. I found their interview clearer, and much preferred their way of showing me forms and allowing me to modify data when I needed to.

In both cases, I used their Premier packages.