Software Review of:
Taxsaver 
for 1999 

Besides doing Susan's and my taxes I usually take the time to do my mother's. Hers is basically a small pension, some interest, some long-term gains from a mutual fund and social security. Ours is somewhat more difficult but I am still looking for proceeds from the oil well that Susan thinks we have in the back yard. 

I have been a Turbo Tax user for a number of years but this time decided to try my hand at using a new program, Microsoft's TaxSaver for 1999, Federal Deluxe. First the basics, TaxSaver requires Windows 95 or later, or Windows NT Workstation or later. 

It is available at Office Max, Office Depot, CompUSA and many other places. Street price appears to be under $25, after a $20 rebate. A stripped down non-deluxe version goes for $14.95; it doesn’t include the videos, online books or the free electronic filing. Microsoft is also making a generous Internet offer. You can download the basic TaxSaver for free at http://taxsaver.msn.com/. If you want to print or electronically file your return, $495 will buy you the key. They are also giving TaxSaver Federal Deluxe away for free with Microsoft Money 2000 Deluxe or Money 2000 Business or Personal. Deluxe also comes bundled with some extras such as a $75 E*Trade Sign up bonus, 3 free months of Internet Access and a 90 day trial edition of Money 2000 Deluxe. This is Microsoft’s first year with TaxSaver, and they are promoting it heavily. 

Prior to starting you still need to complete the first step and organize all your tax information. If you are using Microsoft Money or other personal financial management software, such as Quicken, the program will let you import that information. 

Loading the CD was simple, although the program did stop and force me to upgrade to a version of Internet Explorer that included 128-bit encryption prior to actually starting. You go through a step by step interview, and enter data from your records. The program automatically calculates your tax as you make entries and shows a running total in the lower left hand corner. Based on the information you provide, it gives to tax tips that suggest deductions that you might have overlooked. The program recognizes that most people don’t sit down and finish their taxes in one sitting, so it includes convenient booksmarks that flag unfinished sections so that you can easily come back to them after you find a missing document or pop an aspirin. 

TaxSaver uses IRS forms, publications and instructions as it walks you through the preparation process. When you have finished, the program automatically does a review of the entire return and asks questions to ensure you have provided the correct information or add information you may have left out. Before stopping, the program asks to connect onto an Internet site and updates forms and publications, thus ensuring the latest data is available. Other capabilities include 40 or so tax related videos which explain such things as capital gains, Roth IRA conversions and avoiding an audit. 

Tax Saver does not include the capability of calculating state tax returns, which could be a showstopper elsewhere but doesn’t apply to us Texans. They do let you go online and download state tax forms, although they provide no help in filling them out. 

If the videos do not answer a particular question then the program allows you to type in you own question which then is answered from Jeff A. Schnepper's, "How To Pay Zero Taxes-Your Guide to Every Tax Break The IRS Allows." 

Finally, TaxSaver provides an opportunity to look into paying less taxes through planning for this year by using J.K. Lasser's "Your Income Tax 2000." It reviews your profile and makes recommendations that may reduce your tax burden next year. I did not use the Electronic filing capability but feel that it would be just as simple as the rest of the program. Cost, ease of use through clear and simple prompts makes this program one that I would readily recommend.