TaxAct versus TurboTax

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steve r
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TaxAct versus TurboTax

Post by steve r »

I have been a user of TurboTax (TT) for years ...

This year ... and last ... I had trouble on TT with my backdoor Roth conversion. Literally, when I imported my 1099-R (distribution) it added nothing to my tax bill, but adding my wife it did. I have no clue why, but somehow solved the problem. Other threads discuss Backdoor Roth issue. One such thread (early 2013) said to try TaxAct and compare ... it will save you money next year. So I did.

Anyways, TT allows you to download all 1099-DIV, INT, and R directly from Fidelity and Vanguard. TaxAct does not. TaxAct allows you to download trades through CSV files. I do not trade, this is of no value to me. Also, with TT I could download my work's W
(ceredian is my employer's service). I could not do this with TaxAct.

TaxAct allowed you to import data from last years taxes if saved as a PDF. (That made trying it easy).

I got bored doing taxes twice. May or my not finish up. It is a good deal of manual entries and I am concerned about mistakes.

Curious what other Bogleheads think.
"Owning the stock market over the long term is a winner's game. Attempting to beat the market is a loser's game. ..Don't look for the needle in the haystack. Just buy the haystack." Jack Bogle
chaz
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Re: TaxAct versus TurboTax

Post by chaz »

TurboTax works great for me (retired).
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placeholder
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Re: TaxAct versus TurboTax

Post by placeholder »

Neither because I have always used TaxCut/HR Block as it is generally cheaper for the desktop version and is functionally equivalent to TT.
froman118
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Re: TaxAct versus TurboTax

Post by froman118 »

Transitioned from TurboTax to TaxAct 3 or 4 years ago. Pretty much no difference to me besides price. Pay $13 each year for Deluxe Fed and State with e-filing. TurboTax state e-file is $20 by itself.
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Toons
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Re: TaxAct versus TurboTax

Post by Toons »

TaxAct excellent for me, I just download all 1099 Divs,etc. from Vanguard and other Sites I have accounts with then open on computer along with TaxAct in Browser.I just highlight each point of data in the 1099 then "copy and paste" the data into TaxAct.No problem at all,,especially for 7.95 :happy
I use Deluxe Online
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steve r
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Re: TaxAct versus TurboTax

Post by steve r »

Toons wrote:TaxAct excellent for me, I just download all 1099 Divs,etc. from Vanguard and other Sites I have accounts with then open on computer along with TaxAct in Browser.I just highlight each point of data in the 1099 then "copy and paste" the data into TaxAct.
Is this cut and paste line for line?
"Owning the stock market over the long term is a winner's game. Attempting to beat the market is a loser's game. ..Don't look for the needle in the haystack. Just buy the haystack." Jack Bogle
Call_Me_Op
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Re: TaxAct versus TurboTax

Post by Call_Me_Op »

I like TaxAct.
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dratkinson
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Re: TaxAct versus TurboTax

Post by dratkinson »

Just did my draft fed/state return this morning using TaxACT online.

Importing data. While it doesn't give me the option of importing tax forms from third parties, it does import my tax forms as submitted last year. I then review each and change the numbers in the boxes using the "quick look, whole form" feature. So it doesn't take long to edit the forms if my banks/funds are unchanged from last year.

~3 hours to do both returns, request I bonds, print draft returns, and fill-out 4868 to mail in to fund the I bond refund game. While I'm waiting for my check to clear, I'll clear my mind and then review my draft return against the fed/state instructions.

Think I've finally broken the code on how to quickly do tax returns. (Knock wood.)
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steve r
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Re: TaxAct versus TurboTax

Post by steve r »

So ... I finished my taxes on both TurboTax and TaxAct.

TaxAct handled my backdoor Roth much more easily. I do not recall TT asking if my IRA contribution was non deductible.

but, entering (book) royalties was painful on TaxAct. It asked me if I wanted to do them as schedule E or C rather than asking questions then making a suggestion. Not being able to download my Vanguard data took a little time. Likewise with my W-2. I like to itemize my charitable deductions, TaxAct seemed to ask for the total. Tubotax walked me through the deductions more methodically. That was good. I may have missed one on TaxAct if I did not know what to look for.

TurboTax was $39 at BJs (desktop version is my preference). TaxAct was $20 downloaded to desktop. Both are cheaper online (particular if you buy TT via Vanguard.

I wish TurboTax simplified the process by asking if the 1099-R was for a non-deductible IRA. Seems easy enough.

Oh yeah ... both came up with the same answer. But again, I may have missed a deduction on TaxAct if I didn't know I needed to enter some things like car tax.

Personal preference is to stay the course on tax software! (not really minimizing cost though)
"Owning the stock market over the long term is a winner's game. Attempting to beat the market is a loser's game. ..Don't look for the needle in the haystack. Just buy the haystack." Jack Bogle
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tractorguy
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Re: TaxAct versus TurboTax

Post by tractorguy »

Does TaxAct handle a 1099 Misc for a small business properly? I do a little consulting on the side & have some income I need to report for this activity.

This "business" pushes me into the "Home & Business" version of turbotax. Even with Vanguard's discount, I think its $50.00 for the online version of Federal only. It looks like tax act might be free for Federal.

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Kevin M
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Re: TaxAct versus TurboTax

Post by Kevin M »

1099-DIV and 1099-INT aren't a big deal to do manually, and I do them manually in some cases, but if one has a number of security sales, not being able to download 1099-B would be a real pain.

On that note, the TT download of Vanguard 1099-B this year was perfect for me. I didn't have to make a single change or enter any additional numbers, but I use average basis for all non-covered shares which is what Vanguard tracks. In previous years I had to enter basis myself. I assume someone using specific shares or FIFO would have to change the basis numbers for non-covered shares.

Regarding the non-deductible IRA issue, I think TT should asked you about basis in IRAs or if you have ever made any non-deductible traditional IRA contributions. I believe TT indicates that "this is not common", so maybe you skipped it?

I did a Roth conversion this year--not a backdoor Roth since I made no tIRA contribution, but I received a 1099-R for the tIRA distribution, just like you did. Since I have made non-deductible contributions in the past, TurboTax asked the appropriate questions to fill in form 8606, and it properly calculated the taxable portion of the tIRA distribution (i.e., no tax on the prorata portion of the distribution allocated to my basis).

One area where I think TT is lacking is in the questions it asks about inherited IRAs. It asks me the same questions every year, and some of the "advice" it provides is misleading. I think one year I just said "no" to "did you inherit this IRA?", and it asked me fewer irrelevant questions, but I already know I need to take RMDs from these IRAs, how much to take, and how much is taxable. This year I answered "yes", and just ignored any irrelevant advice, and it worked OK.

Kevin
If I make a calculation error, #Cruncher probably will let me know.
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tfb
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Re: TaxAct versus TurboTax

Post by tfb »

placeholder wrote:Neither because I have always used TaxCut/HR Block as it is generally cheaper for the desktop version and is functionally equivalent to TT.
That's the sweet spot. The desktop/download version isn't that much more than TaxAct but it works better.
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Re: TaxAct versus TurboTax

Post by placeholder »

HR Block is even better this year since they sent me a free Deluxe copy with state.
SGM
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Re: TaxAct versus TurboTax

Post by SGM »

I use HR Block Tax Cut software and have been doing so for over ten years. I have received some free personal TurboTax and it is okay, but prefer paying for HR Block. I get 1040, 1120s,W-2s,941 and 940s with HR Block and would have to purchase additional business tax software with Turbo Tax anyway.

Also Turbo Tax lost my business when they required too much personal information one year to activate the program. I don't recall the exact details, but there were a significant number of others balking at the change also and Turbo Tax backed off on requesting the information.
arkerr123
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Re: TaxAct versus TurboTax

Post by arkerr123 »

I tried switching from Turbotax to Taxact this year. I did not find Taxact as "easy" to navigate (Not that TT is easy to navigate at all).

I ended up staying with TT.
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Blues
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Re: TaxAct versus TurboTax

Post by Blues »

We switched from TT to TaxAct about 10 years ago or so and have never regretted the change, the service or the savings.
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damjam
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Re: TaxAct versus TurboTax

Post by damjam »

steve r wrote: I like to itemize my charitable deductions, TaxAct seemed to ask for the total.
In TaxAct you can link to a detail sheet on almost any entry. This way you can itemize all you like. It is not sent it into the IRS but you will have a record of what you did. Also, you can check your addition, as the sheet will add up the individual items and transfer the total to the linked line.

I think it's hand with a pencil icon when in a field in forms view mode.
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Hexdump
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Re: TaxAct versus TurboTax

Post by Hexdump »

Do any of you filers have anything to do with a K-1 from a Low Income Housing investment, or a K-1 from some other investment, especially one that generates a tax credit ?

The reason I ask is that I tried TaxAct yesterday for the 1st time. I was trying to project the impact of a Roth conversion as recommended by ORP.
Before that I have mostly used TurboTax and it works fine though it just seems to take longer.

TT handled the K-1 properly and the tax credit flowed thru to the 1040.
For some reason TA did not, so I will have to check and make sure that I got it entered correctly.

I hope it was my error because TA seemed pretty painless.

thanks
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tadamsmar
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Re: TaxAct versus TurboTax

Post by tadamsmar »

I use HR Block's Tax Software (no longer called Tax Cut)
froman118
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Re: TaxAct versus TurboTax

Post by froman118 »

tractorguy wrote:Does TaxAct handle a 1099 Misc for a small business properly? I do a little consulting on the side & have some income I need to report for this activity.
The TaxAct Deluxe I get for $13 every year handles my Schedule C for side job income just fine. Calculates your SE taxes for you and then deducts half of it. I've never dealt with deducting business expenses if you happen to have any, but it should handle them fine.
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dratkinson
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Re: TaxAct versus TurboTax

Post by dratkinson »

Data point. Several years back, I discovered an error in TA's CO state return. (It wasn't deducting an allowed amount from retirement income---since corrected.) I called TA and was able to make the manual correction. However I needed to submit two amended state returns and TA at the time did not support that---had to do it by hand. While annoying, it proved to be easy enough to do.

Don't know if TA has changed and now does support amended state returns.
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Tinkerbelle
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Re: TaxAct versus TurboTax

Post by Tinkerbelle »

arkerr123 wrote:I tried switching from Turbotax to Taxact this year. I did not find Taxact as "easy" to navigate (Not that TT is easy to navigate at all).

I ended up staying with TT.
I did not find TaxAct as easy to use as TurboTax either. I only made the switch because I was fed up of waiting for TurboTax to let me submit my taxes (I guess they are still working on form 8960 - the net investment income form).
feitao
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Re: TaxAct versus TurboTax

Post by feitao »

Backdoor Roth conversion should add no tax, unless you have IRA with non-zero balance.
To do it in TT: http://thefinancebuff.com/how-to-report ... botax.html
fareastwarriors
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Re: TaxAct versus TurboTax

Post by fareastwarriors »

I use both to help check/confirm numbers. But I file with TaxAct
darrvao777
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Re: TaxAct versus TurboTax

Post by darrvao777 »

Bumping an old post, does taxact still not allow for direct import of 1099 documents from financial institutions like Vanguard?
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