I am using TurboTax Online - Premier. It's got a great interface (so far) and I'm really happy with it. The best feature, however, is the price. By going through Fidelity's site, I received the Premier version for only 19.95! I was planning on paying $50+ at Costco. If you are a Fidelity customer (including 401k), you should strongly consider TurboTax on-line.

Early Riser: http://republicanUU.blogspot.com

I am also a TurboTax online user -- the basic version, which starting this year is called "Deluxe". I also go through Fidelity to get the 50% discount, and I know other companies offer similar deals -- USAA, for instance, offers a 20% discount. I switched from the CD-ROM version of Turbotax a few years ago, for several reasons:

1) I am not limited to using one computer, or one operating system -- I can switch back and forth between my laptop (Windows) and desktop (Mac)

2) I don't have to worry about my computer crashing and losing all of my data -- the information is stored on TurboTax's server

3) I don't have to download updates, which is a pain for people like me who are on dial-up.

4) The online version is cheaper than the CD version -- last year I paid about $40 for federal and state filing and fees, compared to about $55 when I used the CD-ROM.

5) If you used the online version the previous year, you don't have to re-enter all of your information when you re-logon.

But I would be interested in hearing from people who are using other tax software, especially TaxCut. Also, I don't import data from Quicken or other financial packages. Can anyone describe how that works?

Is there any reason to be concerned about your tax information being out on turbo tax's servers?

Hello D-Man. Do you mean, worried because someone might hack into the TurboTax servers? While they have safeguards in place, there is that risk that the TT servers might be compromised. But frankly, I'd be more worried about the IRS' giant servers getting hacked, or the IRS losing data. There is no way around that problem -- everyone's data ends up in the IRS computers at some point.

Also, trusting the USPS with paper forms is questionable. How many times have there been stories of postal employees opening Christmas cards to steal the contents? Just this week the USPS "lost" a package of mine in transit. I am sure that among the millions of people that still file paper returns, there are some that are lost or stolen. Others are damaged. If this happens to you, there is a risk of identity theft, and you have to submit a new return.

Yeah, I guess I never really thought about the fact that the IRS computers can be just as easily hacked.

With all the pieces of personal information floating around in so many different hands (how many hundreds or thousands of business have your credit card details and do who knows what with them, throw the paper in the garbage or whatever) it really seems like retaining control of your sensitive financial and personal information is increasingly beyond our own ability to control.

I have been using TurboTax since 2000. I am very satisfied with the software. I always buy TurboTax Basic on CD and have no complaints.

I've also used Turbo Tax online for the past 5 years now. My favorite features: The ability to save your work and come back later, the running estimate of your refund/bill as you go, and having information imported in from previous years. Quick, easy and as thorough as I need.

I use the downloadable fill-in PDF forms for both my federal and state returns. I have to check the math, but I can type the numbers into the PDF form and it looks nice when it prints. I can also save the completed forms to my hard drive. I just don't think I should have to pay to file my taxes. If it's cheaper and easier for the IRS to process electronic returns, why not make it free (for everyone).

That's a good point, Plants. I have noticed that other federal agencies have also started making smart PDFs, which allow you to type information into the PDF while it's on the screen, instead of waiting to print it out and filling it in with a pencil or pen. The main problem with this approach, which you alluded to, is you have to do the math on your own. There's also the issue of knowing which tax rules apply -- which I think TurboTax does a good (but not perfect) job of figuring out by asking simple, plain-English yes/no questions.

One thing about PDFs and Turbotax: On my Mac, I am able to generate and save PDFs of my returns right on my hard drive from Turbotax online; it's an option in the print window ("Save as PDF"). I am not sure how this works for Windows, however.

One of the main problems with using the online version of any tax software is what happens to that data. I'm not talking necessarily about hackers, although a concern too, but about what happens if say Oracle buys out Intuit and decides to scrap all that data? What if you need to revisit the steps you took to come up with the tax return you submitted for an IRS audit? And lastly, I have a suspicious that TurboTax will eventually sell the data to marketers - they'll have your income, dependents (ages too), expenses, etc. I'm sure within a year or two they'll even offer to do your taxes for "free" if you'll just let them sell your data. Or perhaps you'll be automatically Opted-in unless you clearly Opt-out by calling a toll free 800 number, wait 2 hours, hand over more personal info, etc.

Someone will probably point out that Intuit's privacy policy states they will never do that blah..blah...blah... the only problem with that is that a new acquiring company can pretty much ignore that and implement their own.

I knew there was a reason beyond hacking why I didn't feel the greatest putting all that personal tax and financial info out there on private company servers. I am sure none of the SPAM email I get comes from companies that have promised not to sell my email either. (BTW - the email used here is not my real email. I don't put that out on public boards, period.)

TaxCut, use H&R Block's TaxCut!

I use H&R Block's TaxCut software. I've been using it for 4 or 5 years now. It works very well.

I used to use TurboTax; but, about four or five years ago, Intuit decided to secretly install anti-piracy software along with TurboTax. I immediately removed the c$#p from my PC and have been using TaxCut ever since. The end results have been exactly the same as TurboTax; but:

1. I do not give my money to a company that believes they have a right alter my property without my knowledge.

2. I do not give my money to a company that does not respect my privacy (the anti-piracy software reported back to a central monitoring server).

Intuit lost a lot of business back then and has not done this since; but, once a company tips its hand with such an unscruplous act, it's wise to stay away.

Use H&R Block's TaxCut software.

Regarding Guest's comments about data being sold to marketers: That's a concern, especially considering the data we send to TurboTax or Taxcut contains income information, which marketers LOVE to have.

On the other hand, if TurboTax, or some future owner, decides to break the contractual agreement promising customer privacy and sell the information to marketers, not only would the company be subject to prosecution, but it would also lose the trust of its existing and new customers. Any sane management team should recognize these risks aren't worth short term gain.

FO,
Have you actually read the TurboTax privacy Statement?
It is here http://www.turbotax.com/privacy.html?source=ttcommain

But I will copy and paste a small section below that illustrates my concern:

Should we sell, merge or transfer any part of our business, part of the sale may include your personal information. If so, you will have the opportunity to ask not to receive promotional information following any change of control.

Now here's the kicker-You may opt out of RECEIVING promotional information. Cleverly worded but it doesn't say anything about you opting out of having your information sold to another party.

Then here's this little gem about using third party providers:

Because Intuit does not control the information policies or practices of these third parties, you should review their privacy policies to learn more about how they collect and use personal information.

Intuit doesn't have a list anywhere of third party that it currently uses yet somehow YOU are supposed to review ALL THOSE THIRD PARTIES PRIVACY POLICIES and make an "informed" decision.

What bull!

I did read the statement, Guest, and note the following statements by Intuit:

"We do not make your tax return information available to anyone, including anyone at Intuit, for any marketing purpose."

"We do not sell or rent your personal information to anyone."

"We do not share your personal information with anyone outside of Intuit for their promotional, including marketing, use."

I also stand by my previous statement that any buyer of Intuit who decides to abuse customer lists will immediately lose the trust of its existing and new customers, and probably their business as well.

I was a religious turbotax user through this year. However, this year Intuit decided to screw me out of my rebate, so I won't buy any Intuit products in the future. It's a shame, because Quicken and Turbotax are good products in my opinion, but I've gotta fight back in the only way I can. Microsoft Money and TaxCut should do me fine, we'll see...