Turbo Tax 2009 Online - Review

TurboTax Online

Its another tax year come April, but most savvy people start early with Turbotax and get their taxes done early especially if you have money coming back to you in the form of refunds.

For 2008, Turbotax is offering  5 different turbotax online packages.  Each one is suited for a different type of individual.

The basic versions like the Turbotax Online Free and TurboTax Basic is for people with very basic tax return filing requirements. Typically this would be singles, people who do not itemize their deductions, no children or income is below a certain level.

TurboTax 2008 is packaged in 5 different versions.

• Turbotax Free
• Turbotax Basic
• Turbotax Deluxe
• Turbotax Home and Business
• Turbotax Premier

Turbotax Online Free Edition

Turbotax Online Note: The FREE edition is for the Federal tax return only. If you live /work in a state where you pay state income taxes you are  required to file a state tax return as well. The majority of the 50 states have state income taxes, only a few states like TX and WA do not.  Turbotax will automatically determine whether you need to file state income taxes and advice you accordingly.

Turbotax Online Deluxe Edition

This edition is ideally suited if you have income from investments (stocks bonds etc) or own a home and have mortgage expenses. Turbotax automatically looks for deductions that apply to you.  In fact Turbotax deluxe is the version you want to start with if you itemize your deductions. More on deductions later.

ItsDeductible : This is a great piece of software that comes included with Turbotax deluxe  online. If you are wondering why this software s this useful  - here is why :
If you want to take a deduction for household items that you donated to charity, you are required to deduct only the fair value of the item.  So for instance, you donated your used suit which was in pristine condition to Salvation army or Goodwill, you could take a deduction for the fair market value of the suit  on your tax return. But do you know how to figure out the value of that used suit ?  This is where ItsDeductible comes in useful.  ItsDeductible will determine the fair market value of the item you donated and automatically transfer it to the tax forms.

Turbotax Online Premier

What distinguishes Turbotax Premier and Deluxe is the extensive investment advice available. Ability to import your investment transactions from major financial firms directly into Turbotax (eg. Fidelity, Schwab etc). This is a great timesaver. Whats more, the profit/loss, and capital gains (short term or long-term) are automatically calculated and entered directly on the tax form.

TurboTax Online Home & Business Edition

If you own a small business as sole proprietorship, you would need to prepare and file your business income and expenses. Turbotax Home & Business should be your starting point. The other editions can also do a schedule C, but the detailed help you need for your business deductions are available only in the Home & Business edition.

See a detailed comparison of Turbotax versions.

In conclusion, Turbotax is excellent for anyone looking for detailed help and guidance in their tax preparation. The context sensitive help is outstanding - the best of any tax sites out there.