This is a relatively long review of TurboTax 2012 Online, software for completing tax forms and submitting them to both the federal and state authorities. I’ve updated the review to reflect the changes to the software in 2012 (for filing 2011 tax returns).
Recently, the IRS began accepting federal tax returned filed electronically. Even before the IRS began accepting returns, you could still have completed your tax forms online through software. Programs like TurboTax, H&R Block, and Jackson Hewitt have been accepting customers and holding off on filing until now. This delay affected those who had itemized deductions, claimed the tuition and fees deduction, or claimed the sales tax deduction.
Many taxpayers are just getting started with their 2011 federal returns now. I’ve been using the services of an accountant for the past few years, and he was able to cut through the more confusing tax consequences of owning a business, saving me $15,000. Before my tax situation was complicated, however, I completed my taxes online using various software. Following a series of questions, completing and filing my 1040 form was easy.
Every year, the companies that provide tax e-filing services like TurboTax and H&R Block tweak their products, not only for the latest tax laws, but to improve features, making the process of tax filing easier. I took a look at TurboTax to see what changes the newest edition has to offer.
The first thing I noticed with TurboTax is the wide variety of products they have available. There is an option that is completely free for filing federal returns, but it is limited. This free version is for taxpayers whose returns can be completed using the 1040-EZ form, a simplified version of the 1040 form. If you have deductions, investments, a mortgage, or self-employment income, or if you want a step-by-step hand-holding guide to completing the forms, you will not be able to take advantage of the TurboTax Free Edition.
TurboTax offers several flavors in addition to the Free Edition, including Deluxe, Premier, Home & Business, and Business, each to handling more complicated tax situations above and beyond the lighter editions. The Deluxe Edition focuses on capturing all of your deductions. The Premier Edition does deductions, as well, but also includes the forms you need for investments like stocks, mutual funds, and rental properties. Home & Business covers all of the above as well as self-employment income, and the Business Edition is for anyone who is a partner in or owner of a corporation.
The editions are flexible; start with the Deluxe Edition, and as you come across features you need, TurboTax will ask if you’d like to upgrade — without charging you yet — to the edition that takes all of your needs into account. I started the Deluxe Edition to see how far I could go. I saw that for the most part none of the upgrades are needed if you are confident about your tax accounting abilities and are willing to enter your information directly into forms rather than have the software hold your hand through every decision.
For the last few days, I’ve been testing the new version of Quicken Home and Business. While most people who track their finances have moved to online services like Mint.com, some of us are holding out until the online software offers the same advanced features as the desktop Quicken software. I enjoy my ability to track my investments, create and customize reports, export information into Excel, and look into the future with planning tools.
Quicken 2012 is set to be released on October 10, 2011 and offers several new features, particularly in that last category. The programmers at Intuit have refreshed and improved the Budget Planner and the Debt Reduction Planner, available in all flavors of Quicken 2012.
Quicken 2012 Budget Planner
The new Budget Planner is a combination of the budget planner from previous versions of Quicken and the spending planner. When creating a new budget, you have two choices. The “Automatic Budget” looks at your recent spending to determine the five most important categories for budgeting. Quicken estimates the amount for each category on a monthly basis and presents its suggestions to the users for customization. The “Advanced Budget” invites the user to select the categories to be used in the spending and income plan.
Each line on the budget is configurable by period. You could, for example, assign a budget of $300 a month for Food and Dining (overall, which includes specific categories like Groceries and Restaurants) and set a budget of $10,000 per year for Property Taxes. If your annual salary is $60,000, you can enter this. Automatically, Quicken will assign the average monthly budget in this category to $5,000, but if you are paid bi-weekly, you don’t receive the same amount of income each month. You can edit the individual months if you like.
One drawback to Quicken’s budgeting tool is that it does not include a rollover feature. For example, if you budget for an expense of $200 in groceries each month, but you only spent $150, the extra $50 is lost. In real life, and in other budgeting software, that $50 would be available to add to the following month’s spending on groceries, but Quicken does not automatically handle surpluses. Rather than focus on these details, you could change the budget view in Quicken from monthly to quarterly to get a better overview of how you spend when expenses cross months. This is also helpful for those infrequent expenses that are often forgotten when you look at a budget on a monthly level.
Each Quicken file can contain multiple budgets, so you and your spouse could maintain separate measurements of spending, even including the same accounts.
If you’re just getting started with budgeting, consider these resources:
The new Debt Reduction Planner in Quicken 2012 has been completely redesigned. The focus here is on credit card repayment, but the planner can be easily configured to include student loans, a mortgage, and any other debt that is destined for elimination.
If your credit card issuers support it, Quicken downloads the interest rate and minimum payment information directly through the internet. If all the information isn’t available for automatic download, users will need to enter it manually from the latest statement or by accessing the account online. The interest rates and minimum payment amounts are important because Quicken needs this information to calculate the payoff plan.
Quicken’s programmers have decided that the Debt Avalanche method of paying off debt is the most appropriate philosophy for prioritizing debt. This means that the Debt Reduction Planner advises users to pay minimum payments to all debts, and any left over cash available for debt repayment should be directed to the one loan or credit card with the highest interest rate.
This is the fastest, cheapest, and most efficient way to pay of debt. The Debt Reduction Planner creates a chart and reminders to keep borrowers focused on paying the correct amounts to the appropriate debts.
Although Quicken defaults to prioritizing debt by interest rate, any user who prefers to follow the Debt Snowball approach, where debt is prioritized by size to payoff the smallest debt first, taking advantage of the psychological “quick win,” can apply this philosophy with one click. Furthermore, if there is a reason to customize the order of debt accounts due to some other reason, such as the desire to eliminate a low-interest loan from a family member before tackling an otherwise important credit card debt, users can easily manipulate the list.
Once users and the software agree on priorities, Quicken uses a visual approach to illustrating the debt payoff plan. This slider can be moved back and forth to represent the total cash available to pay off debt. While moving the slider, Quicken updates the target date for complete debt repayment and the total amount of interest paid over time.
The screen also includes a monthly chart to show the payment amounts that should be directed to each debt to stay on track. I’ve included a video capturing how the new Debt Reduction Planner feature in Quicken 2012 works, in action.
Quicken 2012 bugs
Since upgrading to Quicken Home & Business 2012 from the 2011 version, I’ve noticed that the “One Step Update” frequently doesn’t complete without causing the application to become unresponsive. This was an occasional problem with all prior versions of the software, and forcing the application to close and restarting the program usually solved the problem despite the inconvenience. With Quicken 2012, more often restarting the program does not fix the problem.
I can avoid this problem by avoiding the One Step Update function and downloading transactions for each account separately. I’ve always liked the convenience of downloading transactions across all accounts at once, so I would like to see this fixed in one of the many patches Intuit is sure to release.
If you discover any additional problems with Quicken 2012, such as calculations that don’t seem correct, let me know by leaving your comments below.
Other questions
In addition to the above, Intuit has been busy adding more financial institutions to the “Direct Connect” or “Express Web Connection” features, so transaction information can be downloaded directly into the software with as little manual entry as possible. With Quicken 2012, I’ve found that the software much more intelligently assigns categories to new transactions.
Quicken 2012 offers a new feature, good for users with high-definition screens. A toggle allows users to switch to a larger font, making the information much more legible. This follows the design trend leading towards larger text on the web. You may find the large text more appealing. Also, the account bar now features new icons, supplementing the familiar red flag. The new icons help to identify whether there are downloaded transactions to accept into the register, upcoming reminders or bills, or any other issue needing attention.
The latest development of Quicken is available only for computers running the Windows operating system. Apple users with the Mac OS will need to continue using Quicken Essentials for Mac for the near term, or use the Windows version in a virtualization.
This is a relatively long review of H&R Block’s online tax preparation and filing service. H&R Block has provided Consumerism Commentary with six coupon codes for H&R Block Premium Edition, the most complete service offered by the company.
If you haven’t filed your household’s tax return yet, chances are taxes are on your mind. If you believe you’ll owe money to the government, it makes sense to put off filing as long as possible, up to this year’s filing deadline. If you expect to receive a refund, however, file your taxes early to receive your money faster.
Previously, H&R Block offered a product that allowed customers to get their refund even faster than the few weeks the IRS takes to process, but this year, they are not offering refund anticipation loans. The least expensive and quickest way to receive a refund is to allow the IRS to deposit your refund directly into your bank account, but H&R Block does offer a refund anticipation check, which for a small fee, will provide you with your refund sooner than the IRS will.
Regardless of how you receive your refund, if you don’t visit an H&R Block location, you can file online using their software. Here is what you need to know.
I’ve been using Quicken for six years, and I have eight years’ worth of financial data in my files.
I had the opportunity to take the beta version of Quicken 2011 Premier for a test drive. After uninstalling my current version (2010 Home & Business) and installing the new version, it took less than two minutes to convert my data file from 2010 to 2011. Some of the business-related features are not available in the Premier flavor of the software, so if I decide to keep the upgrade, I would take the opportunity to “unlock” the Home & Business features. To be careful, I converted a copy of my regular data file rather than the “real” Quicken 2010 data. This will let me return to Quicken 2010 and consider buying the new version at a later date.
First impressions
I was surprised to see that the new version of Quicken now supports Direct Connect functionality with more of my banks. It looks like Quicken is using some of Mint’s technology acquired to increase compatibility with more financial institutions.
One great improvement that I’ve been waiting for since I first started using Quicken pertains to the interface. Quicken users have become accustomed to register screens that update slowly, particularly in investment accounts with a large number of holdings or transactions. My 401(k) falls into this category. I’m happy to report that there are no longer any delays in the register screen. The interface has been streamlined in addition to the increased speed. The account information for investment accounts is the biggest example of this. In Quicken 2010, each screen offered far too many navigation options.
The “Spending” and “Income” overview pages have been improved as well. I have about 60 active accounts in Quicken. Prior to 2011, the cash flow overview pages have not been close to accurate, and that could be due to the complexity of my data and I may even have some accounts categorized incorrectly. However, the new version seems to track my real spending and income much more accurately.
Here is my spending screen, with some of the numbers obscured with PhotoShop.
One of the more interesting features is a register view that presents all your transactions on one page. By default, this view lists each transaction across all your accounts, but you can customize the options to display each account type individually, such as only asset accounts, only checking accounts, or only liabilities. You can also customize this view.
Here’s what my net worth overview page looks like in Quicken 2011. Click on this image to zoom in.
Should I upgrade?
Here is the bottom line. If it’s been several years since you’ve upgraded Quicken, or if you’ve never owned Quicken and you’d like a powerful piece of software for managing your personal finances when free options like Mint are not enough for you, then Quicken 2011 is an obvious choice. If you are happy with a recent version of Quicken on your desktop, you might not want to pay for the upgrade. (You could win a copy for free; keep reading this article to find out how.)
Consider, however, that as far as yearly incremental upgrades go, this is the best annual improvement I’ve seen in Quicken for a long time.
I am giving away four copies of Quicken 2011 Premier. Here is how you can win one of these copies. Each of the following will provide you with one chance to win, so you have a maximum of three chances. I was originally planning to give away two copies of Quicken 2011 Premier but Intuit has agreed to chip in two copies at their expense as well. Your chances for winning have just doubled!
Pls RT! Win a copy of Quicken 2011 from @flexo! http://t.co/shu1Yms
You must be over 18 years old and must have an address in the United States in order to qualify. The winners will be chosen using the random number generator at random.org. Thanks and good luck! The giveaway will end Thursday night, October 14, 2010, at 11:59 pm.
You can have even more opportunities to get Quicken 2011 for free! Investor Junkie is offering a 1 in 100 chance to win. Read his review for another opinion about Quicken 2011 from the pre-release version.
Intuit provided Consumerism Commentary with a copy of the beta version of Quicken 2011 Premier prior to this review and giveaway but have had no influence on the content of this review or form of this giveaway. Of the four copies of Quicken 2011 Premier, Intuit is providing two to give away to Consumerism Commentary readers. The others will be given away at our own expense.
After a three years of operation and the acquisition of a competing product, Quicken Online will be completely replaced by Mint.com on August 29, 2010. Both Quicken Online and Mint.com have served the same purpose. These website applications help people save more money by tracking their financial accounts and offering suggestions for improvements. At the ... Continue reading this article…
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If you heard about it at all, you heard right: it’s no longer illegal to jailbreak your iPhone. That means you can install any app you want on it, regardless of whether it exists in the official App Store. But according to Apple, this will void your warranty, so proceed with caution. I’d recommend looking ... Continue reading this article…
Last year was the first year I abandoned my own tax return preparation, deferring to a professional to do the dirty work. I’m glad I did; he suggested I restructure my business retroactively, resulting in a savings of about $15,000. I still haven’t seen most of this; the IRS is still processing my amended 2008 ... Continue reading this article…
Today, Intuit officially launched the first new version of Quicken for Mac in years. I do not own an Apple computer, so I have not seen this software for myself. I do know from reading many reviews that the Mac versions of Quicken in the past have lagged in quality behind the equivalent Windows-based software. ... Continue reading this article…
In February, Intuit will release a long-awaited update to the Mac desktop version of Quicken. The new software has been renamed again. When it appears on shelves with the retail price of $69.99, it will be labeled “Quicken Essentials for Mac.” You can pre-order Quicken Essentials for Mac now and receive $10 off the full ... Continue reading this article…
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Are you looking for the latest version of Quicken? Here is my review of the newest version, Quicken 2012. Downloads of Quicken 2012 are available today. Note: This is a long article containing an in-depth review of the new version of Quicken. If you are just interested in the giveaway of Quicken 2010 Deluxe, scroll ... Continue reading this article…
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My accountant has strongly suggested I move my business-related financial accounting out of my personal Quicken file and into QuickBooks. It has been a slow process so far, and I have determined that I have not done a great job of separating my business finances from my personal finances. QuickBooks 2010 was released yesterday. The ... Continue reading this article…
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The news in personal finance today is that Intuit, the makers of Quicken and TurboTax, purchased internet start-up Mint, a service that has come into its own in the past few years. The two companies offer competing products: Quicken Online and Mint are both free web applications that aggregate your financial information across a wide ... Continue reading this article…
Until now, I never paid much attention to the different companies and providers, but I’ve learned that not all GPS devices are equal. I’ve recently been tempted by the TomTom app for the iPhone, especially in connection with the car kit. Turn-by-turn directions, as well as charging my phone, and playing music through the car’s ... Continue reading this article…
For the increasing number of Mac users in the audience, today’s the day to start deciding whether you want to upgrade your operating system: “Snow Leopard” is on the scene. Number-wise, this is a move to OS 10.6. It will only work on Apple computers with an Intel processor and at least 1 GB of ... Continue reading this article…
Adriel, the product manager for the new Quicken product for Apple Mac, has posted an update about the software’s development. There is good news for users of Quicken 2007 who have been anxiously awaiting an update for the software on par with the updates that Windows users receive each year. First of all, the delayed ... Continue reading this article…
I’m a previous customer of the Mac Bundle Box, and I’m always curious to see what’s on the offering block when it reappears. If you’re unfamiliar with the program, it’s one of the best ways you can save money on Mac software. Not only can you get $460 worth of software for $50, but 10 percent ... Continue reading this article…
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