TaxCut 2004 Premium

Rating:
Summary: Bilking you for every penny....
Review: I purchased the Premium version of TaxCut for $39.99, and I would not employ the term satisfactory, let alone Premium, (and I'm a Software Engineer). One can't imagine what "Premium" features could possibly be missing from a "Deluxe" or "Basic" version, and still provide you with an accurate tax return.

I've typically filed my taxes with H&R Block's incredibly user friendly online service, but I saw this while in line at Best Buy (kudos to whomever strategically placed those TaxCut kiosks) and thought it might more thoroughly assist with deductions and credits available to homeowners. Unfortunately, to get into detailed deductions you need to purchase the H&R Block TaxCut Deduction Pro for another $19.99. Doubly unfortunate is the software's uselessness. Deduction Pro's only functions are a) a spreadsheet where one might track contributions made to charity (a service a pen and piece of paper could perform equally as well); and, b) to find out what the exact tax value is of those sneakers you donated to the Salvation Army or those magazines you donated to the library. What most people do not realize is that you need to contribute several thousand dollars to charity or have several thousand dollars in medical expenses before these are tax deductible, and people who fall into these categories more often than not are having their taxes prepared by an accountant. For the rest of use, Deduction "Pro" will advise you to take the Standard Deduction, rendering the program a waste of time and money.

TaxCut "Premium" does not include state tax software either-- you need to purchase TaxCut State separately for $24.99. Because I work in New York and live in Connecticut, I needed to file state taxes in both states. Unfortunately, the $24.99 only affords you access to one state of your choosing. People like myself need to pay another $24.99 for the second state (and second TaxCut State purchase is not rebatable).

Then of course, there is the convenience of E-filing, for which TaxCut charges $15.95: $15.95 for Federal and another $15.95 for State. E-filing is definitely worth it, so I coughed up the surcharge. Unfortunately, I could not E-file my New York state return because TaxCut will not permit you to E-file Partial Year or Nonresident returns, which means you need to print everything (printing a simply copy of your completed return is another area of the program that proves less than simple) and mail it in yourself with all supporting documents.

Here's the kicker, folks. After spending over $116 on poorly executed, user-UNfriendly, and in a few instances, inaccurate TaxCut software and e-filing, when TaxCut repeatedly gave me an error message and refused to open my file, I was forced to call Customer Support for which they charge $9.95 per call, not for tax advise, but for tech support when their software runs amuck!! If you surf around the TaxCut website long enough, you eventually discover there is a free number. When I phoned the "free" number (not toll-free, just free from credit card charges), I was on hold for 29 minutes before I was able to speak to a customer support agent. I explained my tech problem and was then placed on hold for another 8 minutes while he discussed with his senior tech supervisor what the problem could be. Ultimately the problem could not be resolved, and Mr. TaxCut's resolution was that I uninstall and reinstall the three software programs.

While I remain a big fan of preparing your own taxes with tax software and E-filing, DO NOT LET TAXCUT BE YOUR SOFTWARE OF CHOICE!!!!!

Rating:
Summary: TaxCut should be called TaxHIKE!
Review: Last year, a bug in TaxCut caused by W2 to be entered twice in an e-filed return. Instead of getting a healthy refund, the IRS thought I owed them several thousand dollars in back taxes, penalty, and interest. Speaking of interest, HR Block showed NO interest in helping me with the problem that their bugware caused. It took me several months, several nasty letters from the IRS, and a long stream additional forms (not supported by TaxCut) to get the TaxCut problems straightened out.

I'm giving this product one star only because I can't give it zero. I heartily advise you to do whatever you need to do to avoid this product and this company. Use TurboTax, calculate by hand, or hire a CPA, but do NOT trust TaxCut.

Rating:
Summary: Where are the reviews for this year?
Review: Look at the reviews and you'll find that those who gave this product a poor rating have never used the most recent addition. I really don't care what someone may think about an old product because it has nothing to do with THIS product. One reviewer ever calls it "KTC"... sorry but they have not used the name Kiplinger's since the 2000 version.

Get a clue.

THIS product does as good a job as any, is easy to follow, imports Quicken data just fine (if you have it set up correctly to begin with), has the features that mean the most and does it as a cost far less than TurboTax.


Rating:
Summary: Recommended Only for Simple Tax Situations
Review: Quick and easy tax preparation, with just a few drawbacks for complex tax issues. For simple tax returns, I rate TaxCut very highly. If you have to depreciate any assets at all, don't bother with TaxCut unless you know depreciation inside and out.

Pros:
I was very surprised by the amount of time it took me to prepare a tax return using TaxCut. In just 20 minutes, I prepared a simple tax return, from start to finish. Starting over with a new tax return, it took me only 30 minutes to prepare an especially complex tax return. TaxCut's clean interface and keeping questions short all helped speed things along. Various tips are easily seen on the data entry screens, with H&R Block's trademark green square with the words "Smart Find." TaxCut can import data from last year's TaxCut or TurboTax software, and can import brokerage information from GainsKeeper, which can help eliminate repetitive data entry. TaxCut Premium does a good job handling the data entry for the sale of business assets, as it prompts you to choose with section of the Internal Revenue Code applies to the sale of the property (in this example, it was Section 1244).

Cons:
TaxCut did not catch a typo I made when inputting my W2 (I transposed two numbers on my wages). This is something that software should notice and ask you to double check. The worst part of TaxCut Premium is how it handles depreciation. Depreciation is one of those things that you buy software for. It's something I don't really want to think too hard about. To start off with, TaxCut's "smart alert" for depreciation was practically meaningless. TaxCut also requires that I know which IRS-approved asset class, useful life, and depreciation method is appropriate for my business property. Not even I memorize this stuff. I had to pull out my other tax books to figure out that my computer is a 5-year, 200% declining balance, half-year property. It would have been easier if the software had just asked me if this asset was a computer.

Very Minor Problems:
The software nicely opens a window for selecting a business code when preparing a Schedule C. There are little "select" icons next to the various business codes. I assume that clicking select makes that business code transfer to the Schedule C. Not so. You have to copy & paste the business code yourself.

Glitches:
Not all IRS or state tax forms were updated at the time of testing.

Test Cases:
Simple return: Single taxpayer, no dependents, one W-2, some bank interest, and one state return. I used TaxCut Standard for this return. Complex return: one W-2, Schedule A with itemized deductions, Schedule C, Schedule D, Schedule E with rental property, Schedule E with K-1 from S-Corp, Section 1244 Small Business Stock Loss, and one state return. I used TaxCut Premium for this return.

Rating:
Summary: Rebate applies to both versions
Review: Thanks, but...

"TaxCut Premium/TaxCut Premium for Macintosh" means that it appies for all versions (including the Macintosh version)...not just Macintosh.

I've used the product the last three years, and I think it's great!!!

Rating:
Summary: Another disappointment
Review: This is the second time I've tried KTC and the second time I've been disappointed. I'm a loyal Turbo Tax user who believed the box of this product when it said "seamless transfer from last year's Turbo Tax." Didn't happen like that.

Did not transfer as advertised; the screens look like they're out of an old DOS program; the navigator is much better in Turbo Tax; there is no bar on the videos to tell you how much longer you have to endure it; and it wouldn't recognize Dept of Defense as an employer for W-2 download.

These are just a few of the reasons I'm taking advantage of the 60 day money back guarantee. I guess that's what i get for trying to save a buck.

Better luck next year Kiplinger's Tax Cut.

Rating:
Summary: Mediocre Software!
Review: This software disappointed on several straightforward tasks:

1. The Employee Stock Option interview is terrible: it performs NO actual calculations. It gives some vague advise about how to handle Stock Options and Employee Stock Purchase Plan situations rather than directly calculating the tax impact. I had to refer to the guides given to me by the broker, AND the TURBOX TAX website to figure out how to calculate the cost basis for these situations. The software, especially software labeled PREMIUM, should have this functionality built in and I should not require a trip to a competitor's website and the use of a hand calculator! That's why I buy tax software. TurboTax actually performs calculations when you input data.

2. The download "feature" for W-2, 1099, and 1098 forms is humerous. I have used this feature in TurboxTax for my W-2 form from a major Fortune 500 company and the 1099-DIV form from the Vanguard Group. Apparently, Taxcut has no agreement with these major corporations--the list of supported employers, brokers, and mortgage companies is tiny.

3. Printing-there seems to be some formatting issues with the worksheets when printed out. It seems to print outside the printable area of a standard printer.

On the plus side, the software is relatively cheap and is probably OK for simple tax situations. Its laid out logically and imported my 2003 tax data from TurboTax competently. But I would purchase TurboTax if you have a more "complex" tax situation (although I hardly classify Employee Stock Options and Purchase Plans as complex in 2004).

I tried it because it is cheaper than TurboTax and I was curious to compare the two, but I'll be using TurboTax again next year!