Do-it-yourself tax-preparation software costs from zero to $130 and higher.
There are no-frills programs for basic tax returns and complex software packages for tax payers with businesses and investments.
“Just make sure you select the right product and the right version of the product,” said Bob Meighan, vice president of TurboTax.
Here are six tips for getting the most from tax preparation programs:
_Download updates: Most tax programs are shipped to stores in late November or early December, but last-minute tax law changes can occur after shipping dates. For example, in the current tax season,
Congress passed new federal tax legislation in mid-December after most tax programs were already on the shelves. Therefore, you should download updates from the manufacturer before you start entering data into the program, Meighan said. Most programs, he said, offer onscreen reminders about downloading updates.
_Enter with care: Make the most of tax software package by carefully reading onscreen prompts, directions and questions, including the preliminary “interview” section of the program, Meighan said. Incorrect and incomplete answers could increase your tax bill, reduce your refund check or lead to a tax audit.
_Find help: Tax programs are bundled with multi-media support, including articles, videos, blogs, chat rooms and telephone assistance. TaxSlayer.com offers an online Help Center, with tax tips and information about the IRS.
TurboTax provides an extensive library of short online videos. H&R Block runs a tax blog called On the Ledger, which is written by Leigh Mutert, a CPA. With its tax preparation software, Jackson Hewitt offers a pull-down menu with industry-specific tax information based on job title.
_Take the default: After reviewing your data, tax programs provide default options for tax scenarios, including tax deductions and credits. For example, after you have selected itemized education expenses, the software might recommend that the standard education deduction would give you a better tax…