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(Even the IRS offers free online tax filing, for some taxpayers.) Here's what you need to know about them: Each offers a version that's free to use for preparing your federal tax return, with the free version supporting the 1040EZ form, sometimes supporting the 1040A form, and not typically supporting the full 1040 form. Without further ado, following are the main tax-prep software packages you're likely to run across. The 1040A still requires taxable income below $100,000, but it will accommodate a slightly more complicated tax profile, such as if you have made contributions to retirement accounts and are only claiming certain credits and deductions. The 1040EZ form is the simplest, as you might have guessed, but you can only use it if you meet certain criteria, such as filing as a single person or married and filing jointly, claiming no dependents, having taxable income below $100,000, and not claiming any adjustments to income (such as contributions to a traditional IRA or 401(k), self-employment taxes paid, and alimony paid). Don't know how they cojuld fix this in advance.For example, your situation will dictate which version of the 1040 tax form you'll need to use. However, whichever version you select, the program you select will let you know if and when you need to upgrade. Unless you are on top of your tax situation you may have difficulty deciding which ver sion to use. The depletion deduction was not enough to justify claiming the percentage deduction from the gross amount received. I could have upgraded for $30 and it would have provided additional forms to claim State depletion allowances. Internally I had some problems with the version I selected, but I was able to overcome the problem based on past experiences. In a nutshell let me say that they have fixed the problems. This year, based on Turbo Tax advertising, I decided to try it again. For this reason I gave it up and used others. It became to difficult at the end to file on line and direct refund payments to my bank. I have used Turbo Tax in the past, but had found it increasingly difficult to use.
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