Software Review of:
Tax Cut Deluxe 
Kiplinger 

Now, you may still work for someone and get a regular paycheck and at the end of the year, a W-2 and a 1099. But now, you are keeping track of medical expenses for deduction; you are saving in an IRA for your retirement; you have an educational IRA for yourself or your dependent; you may have a 401K plan; and you may have an interest as well as funds in the stock market. Suddenly, doing your income tax return is not as easy as it once was. But wait – there is help out there in the form of tax reporting software for your computer. 

Kiplinger Tax Cut Deluxe comes in a standard software box with four flat sides literally covered with information. They compare their product with their leading competitor and naturally come out ahead. Some points of interest though are: 

1. lets you prepare tax returns for any or all states with an income tax – Tax Cut lets you prepare as many different state taxes as you need while their competitor limits you to one state. 
2. lets you stretch your refund with Refund Rewards – a refund in the form of a pre-paid buying card that when used at H&R Block Partners lets you receive special savings and/or offers. 
3. a fast forms tool that creates a customized list of the forms you need to file. 
4. money saving tax advise from the experts at Kiplinger. 
5. an import feature that lets you import from Quicken, TurboTax, Microsoft Money and TaxCut. 
6. Lastly the feature that would have wide appeal is the FREE unlimited Internet access for one month; this feature allows you to obtain information regarding taxes from the Internet and allows you to file electronically even if you do not have an Internet Provider. (Naturally, the service – AT&T – would be only too happy to become your provider.)

Tax Cut requires a 486 PC or faster and Windows 3.1, 95, 98 2000, or NT4.0. It will work with 8MB of RAM but recommends 16MB and needs 30 MB of hard disk space. It also needs at least a 2X CD-ROM, a mouse, speakers, a sound card and a printer. The installation CD did not have Auto-run but it installed smoothly and quickly, as did the program updates. I often am remiss at reading the license agreement that we must all agree to before software installation. However, I read this license and feel that some items are noteworthy. The license states that you have the right to use Tax Cut provided it is installed on only one computer at a time and that you may make one copy for backup purposes. It further states that you may not allow others to use the software. One other item of interest within the licensing agreement is the Refund guarantee which states that Block will refund the full purchase price (excluding sales tax and shipping) if you are dissatisfied for any reason, when notified within 60 days. They will replace defective disks if notified within 90 days. Kiplinger Tax Cut also guarantees the accuracy of calculations and that portion of the licensing agreement should be read carefully. 

And now to prepare a return; I chose to prepare the tax return for Mom since her income is pretty straight forward and simple (?). I found a problem initially when I opened the Tax Cut program. A dialog window said that I needed to insert the CD-ROM and click on Retry. The Dialog box never recognized the CD but I was able to click on continue and use the program as installed without the CD. There are several ways to prepare your tax return including Full Interview in which tax cut asks questions and then automatically fills in the forms and does the calculations. There is also the Fast Lane Interview where you can tailor the interview to your situation, Fast Forms where you answer a few questions and Tax Cut selects the forms you need, and All forms where you select the forms you want to complete. 

I chose the Full Interview Format and the program led me through all of the possible bits of information that needed to be provided. There were FAQ’s (Frequently Asked Questions) on the right side of the window throughout the preparation so that you can find answers when needed. After I completed the preparation, the program gave me an explanation of why I needed to use form 1040 rather than one of the shorter, easier forms. It did, however, give me the opportunity to override its decision. The program took me to the Review looking for problems that may cause delays or even an IRS audit. As part of the review I received warnings about items that had not been completed. Although I filed Mom’s return as a retired person, I was warned about failure to report the name of an employer, Social Security wages, Social Security withheld, and Medicare wages and withholding. The warnings also noted that the medical expenses are higher than the latest available average, but to go ahead and report the given amount if I had support documents. Finally although Texas (a state without income tax) had already been given as the state, I was warned about failure to report income taxes paid to a state. 

My next step was to save a Backup Copy and then to file the return. Tax Cut gives you the opportunity to file electronically. I chose to file Mom’s return in the traditional printed format. I skipped the 1040PC and printed out the standard IRS form. It printed nicely with a cover sheet to remind me to attach necessary documents and where to send the return. I then printed a copy for my records with copies of the mini-worksheets and itemized lists. 

Kiplinger Tax Cut Deluxe is easy to use and I was impressed with the copy that is to be sent to the IRS. I am disappointed that it does not recognize the CD and believe that this failure prevented me from reviewing some of the tax and financial planning library. I did close all programs before installation so am not quite ready to admit operator error. I also felt that the program should have recognized a ‘retired’ person, but then on the other hand, the review does cover all the bases so that the preparer will not make a costly mistake. 

Kiplinger Tax Cut Deluxe retails for $39.99/$39.95 and has a $15.00 rebate coupon inside the box bringing the final price down to $24.99/$24.95. The rebate is good until March 25, 2000. It is available at Sam’s Warehouse, Office Depot, Best Buy, Circuit City and other businesses that carry computer software. I even found it on the other side of the world at The Electronics Boutique in Ingram Mall. Kiplinger also has a standard version of Tax Cut for $14.95 and the Tax Cut Home and Business Deluxe for $79.95. It is also possible to obtain Tax Cut from the Internet at www.taxcut.com.