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Comparison between the Cost of TurboTax and other Online Tax Services

It is finally the right period of the year for tax filing, and therefore time for individuals to decide how they want their taxes filed. A person who prefers to prepare their tax return rather than use an accountant or a tax preparation chain like H&R have most likely come across TurboTax 2014. This is among the most desirable online tax services so definitely many users will be using TurboTax2014 software. But how does its prices compare to those of other online tax services?

TurboTax 2014
Whether a customer wants to file a 1040EZ or is interested in something more complex or to file for their little businesses, TurboTax 2014 has a solution. It offers free federal tax preparation for simple returns and three other additional packages. Those other packages are the deluxe, premier and home and business at $29.99, $49.99 and $74.99 respectively. In addition to this, their customers also get free online and phone chat.

As much as TurboTax 2014 and 2013 Taxes deluxe version costs slightly more than twice compared to similar services by their competitors, they offer a refund bonus for customers to make up for the extra cost. They offer the customers an option to get all or part of their refund back on an amazon gift card.

TaxACT
TaxACT undercuts TurboTax by at least half in terms of the software prices. A person using TaxACT will not pay nearly as much as one using TurboTax if they have to file an additional state. TurboTax costs $36.99 per state while for TaxACT only $5 is paid for an extra state is added. Although TurboTax is better if an individual is expecting the amazon gift card bonus and also if they want a large return, if the deductions are calculated in the beginning of the year so that they have to pay a little then TaxACT will certainly save them a significant amount of money. It also has applications on Google play store and apple app store that help check the status of the returns.

TaxSlayer
TaxSlayer is much cheaper than TurboTax and offers two paid services namely the classic edition and the premium edition at $12.95 and $32.95 respectively. With the most expensive choice, a customer is able to receive live tax advice but all the other services inclusive of the free edition offer free phone support. As much as TaxSlayer is cheaper than the TurboTax service, it is slightly more expensive than TaxACT at $14.95. It does not have a policy that gives back additional money.

IRS Tax Adjustments

IRS Tax Adjustments and the Pickle Salesman Photo by Michael Vadon

Taxes in 2014 are set to undergo various adjustments, affecting more than 40 tax provisions. The Revenue Procedure 2013-35, published on 18 November 2013, provides detailed information of each adjustment.

A tax rate of 39.6% will affect singles whose annual income exceeds $406,750 and married couples with joint returns exceeding $457,600. This is up from the current amounts of $400,000 and $450,000 respectively. The Revenue Procedure describes the rates that apply to other thresholds.

In terms of standard deductions for singles or married couples filing separate returns, the amount rises from $6,100 to $6,200. For married couples filing joint returns, it rises from $12,200 to $12,400. On the other hand, the standard deduction that applied for heads-of-households has risen from $8,950 to $9,100.

Both the personal exemption and the alternative minimum tax exemption will also rise. Couples who file jointly and have three or more qualifying children will qualify for a maximum earned credit of $6,143, which is up by $99 from the 2013 amount.
Among the amounts that remain unchanged, include the annual exclusion for gifts, which stands at $14,000, and the annual dollar limit for contribution to an employer–sponsored healthcare FSA, standing at $2,500.

The Revenue Procedure contains other adjustments on the 2014 taxes.