While tax prep isn't for everybody, a vast majority of Americans have simple tax situations: W-2 and 1099(s) - and that's it. It's a basic fear of math that keeps people from doing it themselves. If you have even a slightly complex situation, some of the software might not work.

Starting this year, I'll need an accountant to do my kid's taxes as TurboTax doesn't have the forms we need - at it isn't that complex. We set up trusts and trust accounts for their money. That requires different forms so it will end up costing us a bit.

What ticks me off about them is what they refuse to print on their boxes, namely the kinds of taxes they are NOT suitable for, such as returns for the estates of deceased taxpayers, military reservists claiming for their duty related travel, etc. Add to that Intuit's stunning lack of free support (if I wanted to pay $35 to as a tax advisor a simple question such as "How do I make TurboTax do this?" I would have a CPA do my forms for me.

By the way, did you know WAPOST's computer is still on EST? The time is now 12:10PM.

One Saturday in January I sat down with my W-2s, 1099s, and a 1040, and the itemized deductions worksheet. Spent an hour with receipts and a handheld calculator determining that my itemized deductions were about $500 below the standard deduction. Another half hour filling out the 1040. By hand.

I had no problem with the instructions at any step of the way, and the math certainly isn't hard.

Got the refund in the mail yesterday.

I've been using Turboxtax for approximately 10 years now. I've never had a problem with it and my situation has gotten increasingly complex, so I don't believe it is just for people with simple returns. My current situation includes the issues listed below. Turboxtax handles them all quite well, and I am knowledgeable enough to know what it is doing and why:

1. Wife is self-employed with 2 different businesses

2. Wife has home office

3. Wife has depreciable property in her businesses

4. Purchased a house this year

5. Non-cash contributions to charity that must be itemized

6. Alternative minimum tax applies

7. Investment income (including loss carryover from the 2001 stock market debacle)

8. Business-related travel expense not reimbursed by employer

9. Income earned in two different states (non-resident income for one)

10. Simplified employee pension contributions

Turbutax is not without problems, but it sure beats pulling out the pencils.

I've used Taxcut for many years - I think it is great. My taxes are more complex due to having depreciable real estate, capital gains, losses. The best thing about this software is I can import from last year's return and just edit the changes. It probably took me less than an hour to get through it.

Tax question: I'm thinking of putting my fiancee's name on my bank account. Do I have to report this to the IRS?

Zona, It's not the wisest idea to take tax advice from strangers on the internet, but I would say that if you are already married when you do this then there should be no problem. If you do it before you are married, and you have more than $24000 in the account, then in theory your fiancee may have a taxable gift, which she in theory should she report on a gift tax form, although she wouldn't even owe tax at this point.

Doh makes a good point to not take tax advice from strangers on the internet, especially his or hers. Gift tax liability does not rest with the recipient, it attaches to the donor (giver). Yes, I am a CPA of 30+ years experience, and I have yet to see a completely correct return prepared on tax software by a "normal" taxpayer. Most common error is deducting homeowners association fees as a tax.

Thank you for mentioning an alternative software for those people running the linux operating system--yes we are out here!

An irony of the tax code is that it is pretty simple to prepare a return for a 20-something with W-2 wages, a couple of 1099s, and a standard deduction. Now fast forward to the 70-something with minimum distribution rules for IRAs, partially taxable social security, bunches of 1099s, a 1098, perhaps large medical expenses, and maybe a K-1 or two. Of course the 20-something is also more likely to be computer literate so that using tax prep software is far easier.

As a taxpayer and salary earner, I resent the fact that criminals and some self-employed people who underreport their income and over-report their expenses, among other people, can get away with paying less tax than I do on the same income. I think that a Federal sales tax is long overdue. This tax could be deducted by those of us who pay our fair share of taxes on income. I hope that people in the media like Mr. Pegoraro can advocate for this reform, since no one else seems to be doing so.

Well, Rob, Have you found out yet whether one or both of the tax prep programs was bad, or whether you threw in the wrong numbers (Garbage in, garbage out)? Hope you aren't going to stop reporting on this with the story only half-done.

I have used TurboTax (previously MacInTax) for about 15 years. One year I boycotted TurboTax because of Intuit's policy on using software on multiple computers (used TaxCut that year, which I disliked), but then Intuit backed-off so I switched back.

My taxes are moderately complex since my wife is a member of the clergy. I'm pretty proficient at arithmetic and understanding the relevant portions of the tax code, but would never go back to pencil&paper.

My comment/question: I can't understand why one must pay for the privilege of electronic filing. I will print mine on paper as I do every year, and mail it. There must be a financial incentive for the IRS to underwrite this filing, but until they make the price comparable to printing+mailing, I won't be doing it. Clearly there's also a potential privacy/security problem with submitting your financial information via a third party (in this case, Intuit).

Jonathan, Actually the IRS wanted you to be able to prepare and e-file for free. However, the commercial services, (taxcut, taxact, turbotax, etc) all complained that they could not compete with free, so they all came to a comprimise. The majority of people doing simple taxes, with incomes below a certain amount could e-file for free. in a few years, I would not be suprised if the IRS actually charged to file on paper rather then electronically. E-filing speeds up the process, cuts down on errors, and requires less seasonal employees.