Several unique terms and phrases describe the features of software we review on this site, some easier to grasp than others. This list briefly defines terms relevant to Online Tax Software.

Ratings

Intuitive Navigation

Whether the product easy to use or time-consuming to understand, if entering tax-related data is a confusing task or self-explanatory and if the service makes it is easy to navigate through the pages and reports.

Novice-Friendly

Whether the product offers clear explanations of recent changes to tax laws and new regulations and provides error-proofing capabilities and instructions written in clear terminology free of jargon. Also considered is whether the product guides the filer to all of the tax forms needed and provides alerts to possible deductions and other money-savers that may have been overlooked. Some services also offer professional, live tax advice online, which can helpful for new users of tax software.

Ease of Sign-up

Whether the service easy to setup, if any errors occur during the process and if they are easily fixed.

Feature Set

Whether the product offers useful, time-saving features and the ability to quickly find answers to questions quickly within the program. If the completed tax form is easy to transmit to the IRS and simple to copy for the filer’s records. Also considered is whether tax planning tools are available to strategize for planning future tax filings.

Help/Documentation/Search

Whether the company offer live customer support, a toll-free number or email and is quick to respond to questions.

Purchase

Federal Return Price

This is the price to purchase the service so that it may be installed on a personal computer or used online. The cost for the electronic filing is sometimes not included in this price.

State Return Price

This is the price to purchase the state tax service, if it is not already included with the original product.

Features

Box/Download Version Available

The software is available in a box version to install it on a personal computer, in case the filer doesn’t want to submit personal information online.

Error Checks or Alerts

The service checks for common errors on tax forms. Some software applications automatically check for errors throughout the process are and run a final check before the file is competed or the return is printed.. Other applications may only check for errors before the file is submitted.

Tax Data Import

The service imports tax data such as personal information so the filer doesn’t need to re-type information that is used every tax year. Some applications also import tax data to compare results from previous years. With a few applications, filers can also import data from financial applications such as Quicken to save time.

Refund Owe/Meter

This feature enables filers to see how much is owed or how much will be received as a refund at any given time in the tax preparation process.

Guided Interview Interface

This feature guides filers through the entire process of completing their taxes.

Final Tax Review

The last review of the return before the filing process begins.

IRS Publication Library

Whether the service comes with a library of publications from the IRS concerning tax laws or tax law changes.

Tax Planner

A feature that provides instruction or advice on how to maximize taxes for future tax years.

Audit Defense

In the case of an audit, the manufacturer will defend the filer if there is an error due to their service.

National Averages Comparison

This service will compare a filer’s completed tax numbers to the average taxpayer in their tax bracket.

Year-to-Year Dedu. Comp.

The program compares deductions between the current year and the previous year.

Joint vs. Seperate Filing

The site will display a side-by-side comparison of what the taxes would be if the filer were to file "Married filing Jointly" or "Married filing Separate".

e-Filing Features

Mulitple Tax Return Prep.

The service allows the user to prepare multiple returns, but additional fees may be charged.

Electronic Filing

The service allows the user to send completed tax filings directly to the IRS via the Internet.

Received by IRS Acknowledgement

A number provided by the IRS confirming receipt of an e-file submission.

Tax Return Status Check

This option enables users to learn the status of a tax filing.

Ability to Deduct eFile Fee from Refund

The service will automatically deduct the electronic filing fee from the filer’s tax refund.

Direct Deposit Refund

This feature will allow the IRS to deposit a refund directly into a bank account.

Tax Assistance

Tax Consultant Available

Whether a live tax consultant is available for any tax planning or assistance needed. This service may cost extra.

Small Business

Some Web sites offer tax information and assistance relating to small businesses. A few examples of this type of assistance include: Schedule C Interview, Home Office Assistant, Benefits Expense Assistant, etc.

Retirement Planning

This type of assistance may include an IRA advisor, Inherited IRA accounts, Retirement Age Planner, 401k Maximizer, Retirement Savings Forecaster, etc.

Home Ownership/Rental

This type of assistance may include Vacation Rental Assistance, Mortgage Advisor, Depreciation Assistant, Rental Property Assistance, etc.

Investment

This type of assistance may include Restricted Stock, Capital Gains Assistant, Investment Income, Calculator for stocks, bonds and mutual funds, etc.

Family Tax Strategy

This type of assistance may include Childcare Credit Review, Tuition Assistance, Tax Law Assistance, etc.

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