TSC's Guide to Online Tax-Filing Sites

Like everything else on the Web, the number of online tax sites is multiplying at a feverish pace.

The Internal Revenue Service's list of sites approved for electronic filing contains nine new names this year, out of a total of 23 services.

An interesting wrinkle this tax season is the comparatively low-tech option of using the Internet to deliver your return to a live preparer. Two sites, Taxes4Less and e1040.com offer a live-preparer option for taxpayers willing to pay a little extra for the security of having their returns prepared by human experts.

We added Taxes4Less to the chart below, even though its site is not on the main IRS list. The company is IRS-approved, but is listed in a separate section of the Web site called "e-file Taxes Using a Web Based Tax Professional."

Gone from last year are Securetax.com, acquired by Intuit (INTU) (previous users can transfer data into Intuit's TurboTax), and Onetax.com, whose site appears to be no longer operating.

The chart below includes IRS-approved sites except for a few that are not yet operating or didn't respond to requests for information.

A quick explanation of two column headings:

• Interview, Forms or Live Preparer?: Most products guide you through an online interview, then fill in the appropriate forms according to the answers you give. Some sites simply offer electronic versions of the standard tax forms. You'll need to know your way around a tax return to use these products. We'll tell you which sites offer forms, interviews or the aforementioned live preparers.

• Software Download Required?: Most sites offer a Web-based product. A few offer the option of downloading tax-preparation software to your own computer. The advantage of downloading software is that your tax information remains on your own computer until you file it. We'll tell you which sites offer (or require) software downloads.

TSC Guide to E-Filing
Name	Interview, Forms or Live Preparer?	Software Download Required?	Cost	State Returns	Comments
Preptax.com*	Forms	No	$14.95, includes 1 state return	All states available	Targeted at experienced tax preparers.
e1040*	Interview or live preparer	No	Live preparer $49.95 for 1040, schedules extra, includes 1 state return, $19.95 additional to e-file; $19.95 for online return	All states available for live-preparer option; $20 additional states. State returns not available for online version	Live preparers do the numbers crunching. See previous story for details.
FileYourTaxes*	Forms	Yes	Software free; $14 to e-file or print return	California only, $14; free for EZ filers.	Targeting WebTV users. Will mail you paper copy if you don't have a printer
CompleteTax*	Interview	Yes	$7.50, includes one state return	26 states available; $7.50 additional states	Fill out "organizer." Return generated within 24 hours. CCH is one of the biggest names in the professional tax biz.
esmart TAX	Forms	No	$10 to e-file; $5 for EZ form; print and mail return for free	California only; free	EZ and 1040A forms only; 1040 and state forms not yet available; forms are Microsoft Word files that calculate your tax bill
Taxes4Less	Live preparer	No	$35 for 1040, schedules extra; $50 extra for "shoebox" option	All states, available; $15	Will mail you "shoebox;" you throw in paperwork; live preparers crunch the numbers. See our story.
H.D. Vest	Interview	No	Free	35 states available, free; adding 10 more states within a week	Free financial analysis emailed after you complete your return.
TurboTax	Interview	No	$9.95; free for EZ form and filers with AGI under $20,000.	All states available; $9.95	Most-used online filing service. Straightforward interview. Reliable service and online help.
TurboTax software	Interview or forms	Yes	$9.95 for software (after $10 rebate); $29.95 deluxe version, includes coupon for free software for 1 state; free federal e-file included, $9.95 each additional e-file.	All states available; software $27.95 for first state, $20 additional states; $4.95 to e-file	See above
TaxCut	Interview	No	$9.95; free EZ.	28 states available; $4.95	Offers option to get refund within 48 hours
TaxCut software	Interview or forms	Yes	$7.95 for software (after $7 rebate); $24.95 deluxe version (after $15 rebate), includes free state software; one free federal e-file included, additional e-files $12.95	28 states included in deluxe version (not sold separately); free e-file	Offers option to get refund in 48 hours
hrblock.com	Interview	No	$9.95; free EZ	28 states available; $4.95	Technical and data security problems have shut down site twice. See our coverage.
eTaxsimple *	Forms	No	$9.95 to e-file or to print 1 federal, unlimited state returns	42 states available; $4.95	Targeting experienced users. E-file not available until next week.
TaxAct	Interview or forms	Yes	free to e-file and print 1 federal return, $7.95 additional returns (software free); deluxe software $9.95; $7.95 to e-file or print	Software available for all states, $12.95; e-file Calif., N.Y. and Iowa only, $5.95	Deluxe version comes with calculation guarantee.
AMTax	Forms	No	Software $39 for first-timers, $29 for return users; prepare maximum five returns; first e-file free, $14.95 each for remaining four	26 states available; software $29 each state for first-timers; $19 each state for return users; first e-file free, $5.95 each remaining return	DOS program can't be downloaded, must be mail-ordered.
UDS ELECtro TAX	Forms	Yes	Software free; $12.95 to e-file federal and state, $6.95 federal only	Maryland only	Best Value for Maryland residents
TaxSaver *	Interview	Yes	Software $4.95 (after $5 rebate); deluxe software $4.95 (after $20 rebate); includes one free e-file, $9.95 additional e-files	None available	Created by Arthur Andersen as a companion to Microsoft Money 2000
*New this year to IRS-approved list.

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