OnLine Taxes (OLT) is an online tax preparation service that offers free 1040EZ and simple tax filing, and flat-fee state and 1040 federal filing. They can file state returns for all states that have individual income tax, and they only charge a low $7.95 for state returns regardless of what kind of federal return you file. We did not notice any significant changes in the layout and presentation of the tax software from last year.

Luckily, this year did not cause major problems for online tax software providers like last year. Last year the IRS did not release all the new tax forms until the middle of February. This year was much easier on the tax services and we did not notice significant problems. OLT was able to manage our typical tax scenario and it caught simple entry errors. However, unlike many taxpayers, we tested the software knowing exactly what credits and deductions we could claim. Our higher ranked products are much better at helping the taxpayer know what credits or deductions they are owed through a simple life events questionnaire. Using OLT, you will have more success if you have a good idea what credits, deductions and income you should claim.

Though OLT relates on their website that you can review your federal and state forms before you file, they do not display a refund/owe meter and you do not know how much you will get back or how much you owe till you go through the eFiling process. We also encountered a few other issues. For example, while we were preparing our test return the website froze up twice and we had a hard time logging out. We had to exit the website entirely to log out. We could not get the logout button to function.

OLT online tax software has the basics covered – it can check for errors and has a guided interview-style interface. It can help you prepare 1040EZ and 1040 forms, as well as small business, self-employed, farm income and other tax statuses. You can also import prior year tax information if you used them previously, and they let you amend your return free.

OnLine Taxes does provide some good support options, including telephone and chat support during the tax season, January 14 through April 20. They also provide email support with a usual response time of one to two days, and they post FAQs, a searchable knowledgebase and federal error code help on their website. While preparing your return you can access help pages through help buttons, and most pages have a brief list of instructions or clarifications to assist you.