Choose income tax preparation software targeted to your needs

Not everyone's taxes are the same. Single taxpayers with one source of income and no itemized deductions need very little in the way of tax prep software support, while married filers with multiple income sources, dependents and who donate to charity on a regular basis have more complex needs.

I recommend: TurboTax comes in Basic, Deluxe, Premier and Home and Business editions. (Deluxe is for filers who donate to charity or have significant childcare or medical deductions, while Premier is for rental property owners or estate and trust beneficiaries.) TaxCut also offers several levels of features, including bundles of its Premium level for filers who do and don’t have to file state returns. TaxACT offers business tax software bundles targeted to business partnerships, S-corporations and C-corporations for both home-based and office-based businesses.

Choose income tax software with outstanding features and support

Great tax software comes with powerful features such as interoperability with other software packages and an easy-to-use interface. When that isn't enough, technical and educational support provide answers to problems and instruction on getting the most out of the software package.

I recommend: The computer software and online versions of both TurboTax and TaxCut allow users to import data from previous editions of their own and competitor’s products. In addition, TaxCut offers audit support for e-filers from an experienced H&R Block agent. In professional tax preparation software, Lacerte’s products integrate with QuickBooks and other Intuit products; the company offers training as well as links to Intuit’s online accounting website. GreatTax offers detailed, customizable reports and the backing of industry leaders with a half-century of experience.

Go with online income tax preparation software for greater convenience

Web-based tax preparation software offers many of the same features as disc-based software, without the hassles of having to purchase discs and download updates before you can complete your return.

I recommend: FreeTaxUSA offers its services free to taxpayers who meet its income and state of residence requirements and charges a nominal fee to those who don’t; most returns can be filed in half an hour. TaxExact divides its online services into Gold, Silver and Bronze levels according to the complexity of the return, but offers free filing of state income tax returns. TaxACT also offers an online filing site.