Personal Finance 1st Edition by Jack R. Kapoor

Exercise 28

Comparing Tax Services. Using Sheet 21 in the Personal Financial Planner, obtain information from two different tax preparation companies about the services they offer and the costs of their services. (Obj. 4)

Step 1 of 2

Turbo tax is a popular tax preparation software and online company that offers following services.

• Turbo Tax has a free online version if you qualify for the 1040EZ form. You can go to IRS.gov and find out if you qualify for the free federal tax preparation and filing.

• Turbo Tax guarantees they will get you the maximum return.

• If they are found wrong in their calculations, they will pay interest and penalties to the IRS.

• Free live tax advice.

• Easy to use web site.

• Turbo Tax will file an extension for you if needed.

• Their web site has a list of all of the changes in the tax laws.

• Free audit support if you are audited.

Pricing/Costs:

• The Deluxe package costs $29.95 for the federal tax preparation and filing. The Deluxe version is good for those with kids, investments, medical expenses and charitable donations, finding you every deduction you are allowed to take.

• The Premier version costs $49.95 for the federal taxes. This version is suited for those with investments and rental property.

• A Home and Business version that costs $74.95 for the federal tax preparation and filing. This version will do your personal and business taxes all in one package.

• The Business version costs $129.95 and should be used by those who own corporations or partnerships.

• With all of these packages, the state tax preparation and filing costs an additional $36.95.

• All packages do include free e-filing.