H&R Block TaxCut Premium Federal + State + E-file 2008 (1 User, Box Set, Download)

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TurboTax versus TaxCut 2008

TaxCut 2008 shares many qualities with TurboTax, its mainstream rival, but a new free session of live one-on-one support makes H&R Block's tax-prep package a clear winner in the customer service department. For many taxpayers, TaxCut 2008's live tax advice, free in-person audit support, and lower sticker price will trump TurboTax's more sophisticated tax tools.

TaxCut's clear navigation goes all the way to its print and e-file instructions.

Unfortunately, TaxCut's more confusing language is evident in its tax-prep interview. Likewise, without TurboTax's tool to import your 2008 W-2 and investment income information, it will take you longer with TaxCut to fill out your return. Regardless of its simpler toolset, TaxCut is a sturdy do-it-yourself tax prep app that guides you through your tax return one step at a time.

Which desktop version?
This review covers the desktop version of TaxCut Premium + State + E-file. TaxCut 2008 has three other versions for the desktop and several more online that are not listed below. This year, free federal e-filing for up to five returns is included in all of the following desktop versions.

• Free Federal Edition + E-file 2008: If you're filing a 1040-EZ, you'll do better with this free online version, added just this year.

• Basic Federal + E-file: Avoid this desktop version of the 1040-EZ, which will cost you $19.95, and use the Free Federal Edition (above) instead. State will still cost you an extra $30 either way.

• Premium + E-file ($34.95): If your state doesn't require you to pay taxes, this version covers most taxpayers' needs.

• Premium + E-file + State ($49.95): This versions adds a state review to TaxCut Premium.

• Home & Business + e-File ($79.95): Small business owners will receive one federal interview and unlimited state reviews for their business. This is TaxCut's only Windows-only app.

Setup and interface
Like most tax-prep apps, TaxCut 2008 installs in about 5 minutes, then takes approximately 5 more minutes to download updates. Most changes are midseason modifications to the tax law that are important for getting you more deductions, so it's worth it to just sit tight.

TaxCut's logical FAQs change with every screen, and pop out explanations in a separate window.

TaxCut's tabbed, money-green interface has a lot going for it. The tabs are easy to navigate if you want to skip ahead or refer back to part of TaxCut's interview. On average, the tax return process works best if you let TaxCut guide you. We're not big fans of the pop-up windows you get when you click a help topic, but the content is useful for the most part. In some cases, the FAQs and other topics should be bolstered with clearer language or more commonplace examples to help explain the theme.

New Features
New features for TaxCut Premium + State + E-file 2008 were few and far between, but some stand out. The best is the one free session of help with a tax representative that H&R Block will now give you. After sending H&R Block a synopsis of your problem in a short online form, you can choose to resolve it with a live person--either over e-mail or over the phone--until you've got your head around your sticky concern. This live support perk is included for TaxCut's Premium and Business products, with additional help costing $20 per topic. The free session of support is a great deal for TaxCut users. In contrast, TurboTax charges $30 for the first 20 minutes of phone time, and $20 for each additional 20-minute block. A button marked "Ask A Tax Adviser" appears on the upper right corner of every page of the tax interview and kicks off the assistance process.

For repeat TaxCut users, an autolookup tool saves you some hassle when e-filing your 2008 return.

Another feature we like in TaxCut 2008 is an e-filing convenience. This year, the IRS needs to know the exact adjusted gross income (AGI) or PIN from your 2007 review in order to accept your e-file. On this page of the tax interview, TaxCut has the ability to look this number up for returning TaxCut users. With TurboTax, by contrast, manually searching for that number was a much more time-consuming process than with TaxCut's importing method.

The last notable enhancement to TaxCut 2008 bulks up the context in the Life Events section. If you got married, had a child, or bought or sold a house, TaxCut will find more ways that your life changes may affect your taxes, especially in claiming deductions or avoiding penalties. For instance, if your new spouse has a child with another parent, you may be able to claim a child tax credit. If you moved to a new house for your spouse's job, you might get to deduct unreimbursed moving costs. Like TurboTax, TaxCut has screens that walk you through the process of claiming disaster relief for certain Midwestern storms. They were useful, but less complete than TurboTax's disaster scenarios.

Other features
TaxCut 2008 can import the previous year's tax return, which will save you from having to fill out your name and employer year after year. Unlike TurboTax 2008, TaxCut only searches for 1040 forms prepared with TaxCut when you tell it to import a former return. That won't stop you from importing into TaxCut a return you created with TurboTax, TaxAct, or any other tax document, simply by pressing a browse button in the interview, but it does add an extra step.

Speaking of importing, TaxCut 2008 continues to be the only mainstream solution that can import data from Microsoft Money in addition to Intuit Quicken and other TXF files. This is undoubtedly helpful to some. However, we think more folks would benefit from TurboTax's ability to import W-2, 1099-DIV, and 1099-B details for wages and investment income. On TurboTax, downloading payroll and brokerage records saves you considerable time. With TaxCut, we wondered if we might have accidentally flubbed our return when copying information from a paper document to the computer program.

Free, live audit support lets TaxCut leverage its live tax professionals against TurboTax. In the event of an audit, H&R Block will let you speak with an agent at a toll-free number, or at one of H&R Block's retail offices. Sure, waiting your turn in line could take some time, but the upshot is getting personal advice. TurboTax's giveaway, on the other hand, is an automated support center you can download from TurboTax.com. In the competitor's defense, the majority of IRS audits are the same, and TurboTax's audit support center provides templates and instructions on how to respond to the IRS.

Service and support
TaxCut includes very detailed and searchable help menus, FAQs, and topical videos, some of which needed an extra dose of clarity. Customer support via chat is available 24 hours daily. By phone, you can reach someone--for free!--from 5 a.m. until 10 p.m. PST on weekdays, and until 6 p.m. on weekends.

Clicking this button from any screen gets you one free session with a real-life tax pro.

H&R Block continues to offer live technical support with tax advisers, as well as free audit support should the IRS come knocking. Beyond your first free tax topic, TaxCut 2008's "Ask A Tax Adviser" button (on every page of the tax interview) will connect you with an H&R Block tax representative by phone or e-mail for an additional $20 per theme.

Conclusion
While TaxCut 2008's lack of advanced tax tools, like the option to import wages and investment income, will drive some taxpayers to TurboTax, its slightly lower price and live-support freebies will win many users back. TaxCut's interview and time-saving features aren't quite the best on the market, but they're steady; new and returning users looking for a middle ground between self-prep software and a CPA's office will be well-served. If you're interested in the fastest, most-straightforward return out there and feel comfortable with automated or community support, TurboTax is well worth considering.

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