Using Tax Software for First time?

I been thinking about using Turbo Tax or some other software to do my taxes but I'm not sure if it's something that is for me. I bought my first home in July '09, I did get my 8000 first time homebuyer credit already last year. I do have mortgage insurance and had to pay an upfront insurance premium when I bought the home. It is an FHA loan. I go to school and have student loans but make very small payments usally only 100 bux a year. The loans are still deffered. I have 401k. and some small investments in my own fund. I am a W2 employee. That's about all I have. Will these tax softwares be a good thing to use or should it still to paying 150-200 for the agent I go to?

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  • Eric
    Lv 6
    10 years ago
    Favorite Answer

    You don't need to buy the software, it's online. Do people still buy the software? WHY?????? If you like TurboTax, go to turbotax.com and start a return. Go through the questions one by one and input the relevant data. Then see what it came up with in the summary section. It will cost you only a portion of what you'd pay a tax preparer, it may even be fre if you meet the requirements.

    Here is a list of online tax preparation sites: http://apps.irs.gov/app/freeFile/jsp/index.jsp?ck

  • 10 years ago

    Don't be fooled into thinking a software program will magically turn you into a tax expert.

    Just look at all the posts on this board about people using free or cheap software, "Big mess, I have no idea what I'm doing, how do you enter this stuff, why is my refund being delayed?"

    No, professional tax preparers don't use the cheap or free version of TurboTax. That's just another myth. Tax professionals have the equivalent of an expensive riding mower because they need that to get the job done. Don't look at your old mechanical push mower and say "It's the same kind of machine."

    I know some of the big box stores are way too expensive for what they do. Call around to independent shops. EAs are a good bet. They're tax experts and they generally charge much less than CPAs.

    You have first-time homebuyer credit issues, mortgage insurance premiums, student loan costs, investments. Unless you can explain all the possible tax ramifications of each of those items, you're putting your financial life in the hands of a novice (you) by trying to do the returns yourself.

    Don't be fooled into thinking tax law is about how to enter numbers into a free or cheap computer program.

  • 10 years ago

    Yes Yes Yes Turbo Tax will guide you through everything and I mean everything. This was the best tax decision we made when we chose to go online and use Turbo Tax instead of paying an un real amount to a tax preparer who actually is using the same type of program. They also have audit check and they check everything. This was our 5th year using them and no problems.......

  • 10 years ago

    I used Turbo Tax Deluxe edition. It does a wonderful job of walking you through all that stuff. Save your money because an "agent" will just be using Turbo Tax and charging you too much. Turbo Tax is cheap at Amazon.com too. Costco is another good place to pick up the software.

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  • Anonymous
    10 years ago

    TurboTax Deluxe can handle all that. But you STILL need to have some idea of what you're doing to correctly input your information and answer the software's questions. Like with any software, "garbage in equals garbage out."

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