Doing Your Taxes on the Computer

1
Doing Your Taxes on the Computer

• Donald Burgard, CPA
• Smoker Smith Associates PC
• Hershey, Pa

2
Why Use The Computer?

• Accuracy of Math Calculations (?)
• Ease of Use (?)
• Reduce Complexity of the Tax Code (?)
• Simple (?)
• it depends everyones situation is different

3
Pros and Cons

• Math Accuracy
• Privacy
• Tool to be used to reduce complexity

• Quality of return is a function of software used
  answers to complexed questions
• Lack of privacy
• Hardware/software conflicts

4
Your Options

• Canned Off the Shelf Software
• Examples Turbo Tax and Tax Cut

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Second Option

• Online Web Based Processors

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Free Option

• Free File by IRS

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Off the Shelf Software

• Turbo Tax (Intuit) and Tax Cut (HR Block) are
  the leaders
• Quality of return is a function of your
  understanding of the questions
• Both very good
• Both try to sell other products and services

• Pro Privacy data stays on your computer
• Pro Carry-forward data between years
• Con will need to download updates from earlier
  releases
• Costs 19.95 for Basic to 69.95 for Premier
• State filing costs more..up to 29.95 more

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Online Web Based Processors

• Turbo Tax Online http//www.turbotax.com
• Tax Cut Online http//www.taxcut.com
• Complete Tax by CCH is very good
  http//www.completetax.com
• Tax Net x Turbo Tax employees
  http//www.taxnet.com/
• Tax Act Online great for simple returns
  http//www.taxactonline.com

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Online Web Based Processors

• Pro updated software no need to download
• Pro got an internet connection you got what
  you need
• Con Privacy data is on their servers -
  overseas outsourcing issues
• Pro/Con speed really need high speed internet
  connection

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Online Web Based Processors

• Con they try to sell you more products and
  services
• Pro costs usually cheaper than canned off the
  shelf version

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Free Option

• IRS Free File site http//www.irs.gov/
• Check out the qualifications usually need AGI
  below 50,000
• Complete Tax option is the best AGI must be
  below 29,000
• Free is not always Free!

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Pa State Return Options

• Pa.direct.file - www.revenue.state.pa.us
• Very good option
• Can also purchase state product of off the shelf
  software and online products

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Thanks!

• dburgard_at_smokersmith.com
• 717-533-5154 x 123