Intuit TurboTax Online 2007 is extremely similar to its thorough desktop tax software, which earned our Editors' Choice award. However, TurboTax Online comes in many editions, each tacking on an extra $30 for state filing. The free edition should be good enough for 1040EZ filing, although 2nd Story Software's TaxAct is a better deal as it includes the state return for $17, total.
The Good
The Bad
The Bottom Line
We reviewed the $29.95 TurboTax Deluxe Online, which adds the Deduction Maximizer tool to help you get money back on charitable contributions, mortgage interest, and so on. The step-up $50 Premier Investments should suit those who earn substantial profits from stocks and bonds. TurboTax Home & Business costs $30 more for help with Schedule C business items. Additionally, if you like to do some work yourself but need some advice, Intuit's $100 Personal Pro service offers telephone and online chat with a tax adviser, who also helps prepare and e-file your return.
Like its Web-based competitors H&R Block TaxCut Online and 2nd Story Software's TaxAct, Intuit TurboTax Online runs in a browser window. For Windows versions 98 through XP, Firefox 1, Internet Explorer 6, Netscape 8, and AOL 8 are supported. You'll need at least Firefox 1.5, IE 7, Netscape 8, or AOL 9 if your operating system is Windows Vista. Mac users will need only a PowerPC or better processor running OS 10.2 for Firefox 1 or higher only, or else Safari 2 for OS 10.4 or Safari 3 for OS 10.5. TurboTax Online stores your return on its secure servers, using industry-standard SSL encryption to transmit your data. Filing your taxes at work? Fear not. If you step away from the computer and forget to close the browser window, TurboTax Online saves and ends your online session after 20 minutes of inactivity.
Intuit TurboTax Online Deluxe 2007 has the same straightforward interface and easy-to-understand interview as its installable counterpart. The tabbed layout lets you jump between sections and pick up where you left off. Intuit shies away from accounting jargon and provides concise, well-written instructions that are simple to grasp.
On nearly every screen, TurboTax Online displays a running tally of your tax refund or taxes due, depending on your situation. To spare you from re-entering data, TurboTax Online can import your 2006 TurboTax return, your W-2, and data from Intuit Quicken 2005 and up. The included Deductions Maximizer checks for 350 ways you could lessen your tax burden. To keep you from missing something, TurboTax forces you to choose the "None of the Above" option if something in this section doesn't apply to you. And you can opt for a quicker path if you're familiar with the process.
We liked TurboTax's interview, especially for Schedule C items, such as for a home-based business. TurboTax Online's Deductions Maximizer also did better than it competitors with regard to explaining what portion of our entered expenses were deductible. Intuit's Its Deductible, a utility for itemizing noncash charitable contributions, is handy if you make a lot of donations.
For support, Intuit offers a searchable knowledge base and user forums on its Web site. Online e-mail technical support is available for free with a 24-hour response time. Live Tax Advice Online chat is open Monday through Sunday from 7 a.m. to 7 p.m. PST, but it wasn't working during our tests. TurboTax Online users get free chat and e-mail support for setup and usage questions. Phone support is free for installation queries, but calls for other questions--such as how to print or file a return--charge a hefty $40 per incident.
We found TurboTax Deluxe Online to be the most thorough and seamless browser-based tax service. However, its price is a drawback. You'll do fine with the bargain 2nd Story Software TaxAct if you're only grappling with a simple W-2 or 1040EZ. Filers with complex returns that include income from investments, businesses, and rental property, as well as numerous deductions, may consider one of the higher-tiered flavors of TurboTax Online--or else the desktop tax software, which we endorse if you're filing returns for the whole household.