Tax software for 2020

Finance
21

Four. :rofl::rofl::rofl::upside_down_face::dizzy_face::skull_and_crossbones:

22

I donā€™t qualify for Active Trader but receive the free Premier I believe through Fidelity Private Client Group ā€“ not sure what the criterion is.

Also, it is hidden a little, but it also gives you the free download of Premier.

1 Like
23

I wish they had as clear a table for who qualifies for Premium services and for PCG based on assets held in what accounts, trading activity, etcā€¦ itā€™s like the deliberately obscure something that should be advertised to get people to leave more assets at Fidelity. Itā€™s really counter-intuitive to me why theyā€™d keep it secret, especially when you compare it to Vanguard which has a clear scale of how to qualify for Voyager status all the way to Flagship Select status.

2 Likes
24

NewEgg has all H&R Block 2019 software on sale. 50% off ends this Sunday. Requires promo code in email from NewEgg. Check your inbox and spam folders.

25

The 2019 tax year version of excel1040.com is already up with more forms and tabs than ever before.

2 Likes
26

I just saw TurboTax w/state for ~$30 at Costco.

1 Like
27

Thanks for the heads up. Just to confirm, that was physically at a Costco store? Online is still $40, at least for me.

28

In store. I believe it was $40 with an instant rebate. Something to look for next time youā€™re there. I just saw it in passing, so please donā€™t make a special trip to the store just for that

1 Like
29

Thanks. I was going to order for someone. Itā€™s not worth a 20+ minute drive to save $10, but it is the best price Iā€™ve seen this season.

30

I usually use Free File Fillable Forms, but they donā€™t support Form 8889 (HSA reporting) for this this tax year yet. Since I had everything ready to go, I opted for FreeTaxUSA.

They were fine and perhaps a little less prone to error than FFFF since I didnā€™t have to fill out some of the worksheets manually by hand (for instance, the QDCG tax computation sheet, amortization of refinance points, etc). I submitted it and got an acceptance from the IRS about 15 minutes later. Iā€™m in an income tax free state, so I have no experience with them on the state side.

I still like doing my taxes by hand first, as it forces me to read through the publications and instructions so that I learn whatā€™s new or changed and it keeps my mind sharp with respect to income taxes. However, I like the math and reading comprehension verification that these interview-based services provide and I will probably use FreeTaxUSA again next year over FFFF.

3 Likes
31

FYI - Free Fillable Forms has now added form 8889. Not that I think youā€™ve been waiting 3 weeks for it, but for others reading this.

Iā€™ll give my annual endorsement of Free Fillable Forms, as an easy method of e-filing while retaining complete control over how/where dollar amounts are entered on the forms. I never got along with the TurboTax/etc ā€œQ&Aā€ methodology, where they ask for something then decide the correct line to list the amount on (maybe I gave up too easily, but I quickly got frustrated trying to get certain amounts listed where I wanted them).

5 Likes
32

Good to know. Yes, I already filed my taxes for this year.

FWIW, Intuit runs Free File Fillable Forms: https://www.freefilefillableforms.com/static/privacy_statement.html

The cynic in me wonders whether they delayed availability for Form 8889 to push people to their paid products. There werenā€™t any meaningful changes from last year aside from the increase in annual contribution. Turbotax didnā€™t have delayed availability for this form, so why was FFFF late?

That said, I agree with you that I like the free-form ability to fill in the lines without having to conform to the interview process. For instance, we used to live in a zip code with two sales tax rates. The interview-y products always forced us to take the lower rate, even though our address was in the higher rate zone. FFFF allowed us to override this more easily.

1 Like
33

I have always used the ā€œforms modeā€.

2 Likes
34

I used Turbo Tax twice several years ago. Each year they made an error in where they reported the employer HSA contribution, which caused me to have to file an amended form. I know that Turbo Tax is the go-to software for many people, but that experience left me soured on them. Granted, they probably fixed the programming error before the tax filing deadline, but still, the same error 2 years in a row? I donā€™t know if they had a forms only option at the time.

Iā€™ve used Free Fillable Forms since, until this year, due to increasing complexity of our taxes. This year I used FreeTaxUSA and Iā€™m a happy convert! It definitely saved me some time over FFF and I snagged a $500 tax credit that I would have overlooked using FFF. Most of the process involved using simple data entry of the info from W-2, 1099s, etc. Near the end they do ask some questions and thatā€™s how I got the tax credit I would have missed otherwise because of installing a new Energy Star roof last year. And not having to manually fill out the Qualified Dividend and Capital Gains Worksheet to compute the tax liability? Or the long version of the AMT form just to determine we donā€™t owe the AMT anyway? Priceless!

2 Likes
35

Complexity is definitely a factor. Most of my time is wasted entering bank interest, bank by bank - which Iā€™d have to do no matter what. And as complex as my finances are, my taxes are pretty simple and straightforward - so unless thereā€™s a new tax credit simply for being Glitch, Iā€™m confident thereā€™s nothing Iā€™m missing :slight_smile: .

State tax can also be a factor, since Free Fillable Forms is unrelated to state tax. But my stateā€™s income tax form merely asks for federal AGI, then uses a straight % to determine tax due. Thereā€™s barely even any math involved, let alone data entry, so it took longer to print the finished form than it took to fill it out. Something more involved on the state level could easily make a different software program more attractive, since you only need to enter stuff once for both returns.

1 Like
36

I usually file my state taxes for free at Ohioā€™s website. This time though, I opted to pay FreeTaxUSA for doing that as well, because I was so grateful for the software finding that $500 for me. It cost me $12.95 plus tax, well worth it to not have to start the state from scratch, which would have taken me up to another half hour. I do have some adjustments to make on my state taxes due to some municipal bond income and Treasury interest, which isnā€™t a big deal to do manually. However, while inputting the numbers for federal, FreeTaxUSA did ask if I had some of those state relevant income/deductions, with a field to input that info. It took literally less than 5 mins. to have them file the state as well.

37

Will be using FreeTaxUSA for the second year this year. I was very pleased last year.

Thanks for mentioning the Energy Star deduction. I need to pay attention to that section as I think some appliance purchases may qualify.

1 Like
38

Thanks for introducing me to FreeTaxUSA.

I make out my sonā€™s taxes & for several years Iā€™ve used TurboTax. It seems that they have raised the price every year. Iā€™m really impressed with FreeTaxUSA, got both Federal & State done $12.95.

What a bargain!! :relaxed:

3 Likes
39

Does FreeTaxUSA have downloadable software, or do you have enter all of your information into their database online?

40

This was my first time to use FreeTaxUSA.
Yes I had to enter all the information into the database. But next year when I do my sonā€™s taxes the info will be there & ready to go.