Tax season is upon us, and the iPhone is here to take the sting out of Uncle Sam’s April chore. The current arsenal of App Store software is useful for both simple and complex tax processes, and is generally cheaper than desktop equivalents.
While there are a variety of tax-related apps by independent developers, the major players in the App Store market are also the star gladiators vying for dominance in the e-commerce market: Intuit (TurboTax) and H&R Block.
Below is a run down of the three most sophisticated tax apps we found for the iPhone.
1. H&R Block Tax Answers
For many filers, a simple W-2 won’t suffice. H&R Block offers free, human guidance for even the most complicated
questions via its iPhone app, Tax Answers. To give it a test run, I asked a question about educational exemptions for Social Security taxes (something I’d been trying to figure out for a long time) and received an answer only a short while later (though estimates are up to 24 hours). Tax Answers also has an index of previously asked questions. While these questions are not searchable, I was able to find what I was looking for in their predefined categories (work, education, small business, etc).
Unlike the other software on this list, I’ll probably keep this one on my iPhone for its glossary. On occasion, I run across financial terms that I’d like immediately defined. It should be noted that H&R Block also offers these service on its website, but as more users, especially younger ones, move to mobile browsing, this will surely be a useful application.
Cost: Free
2. TaxCaster
Want an estimate on your tax return ASAP, but you’re either not ready to file or don’t have your W-2 handy? Intuit’s TaxCaster is a quick-and-dirty tax calculator that takes about five minutes to use, and doesn’t require exact numbers to give an estimate.
For those with more complex needs, TaxCaster can take a range of exceptions into account: Education, family, rental and housing -– even alimony and new vehicle deduction. The subtle genius of TaxCaster is its targeted advertising at the bottom of the screen, which dynamically updates itself based on your input. As soon as you input a number for “Annual Mortgage Interest,” the ad fades from “Turbo Tax Free” to “Turbo Tax Deluxe.”
Cost: Free
3. TurboTax SnapTax
Intuit’s SnapTax, which automatically completes tax forms from a snapshot of a standard W-2, should be the iPhone’s showcase application in this category. After the W-2 is uploaded, users answer a few key questions about dependents, education, etc., and the information is whisked away to Uncle Sam. So far, the application is rated very well (4 of 5 stars). My experience, however, was much rockier.
Unfortunately, SnapTax is only available for Californians, and the App Store reviews are littered with users who clearly did not understand this limitation. Additionally, if you require any other forms but a W-2, 1099-INT, 1099-G or 1098-E, SnapTax will offer you its heartfelt apologies with an online $10 discount at the TurboTax website.
Like many employed students, I had a 1099-MISC, and therefore discovered I could not complete my return using this app. Other omissions include medical expenses, charitable donations, and vehicle registration fees.
Out of pure geek-driven curiosity, I tried my hand at the “snap” feature to see how well the photo automation worked. Again, I was disappointed. I tried for an hour, but the only thing it ever accurately picked up was the Employer Identification Number.
For all its shortcomings, it’s certainly a move in the right direction and a much cheaper alternative considering state income filing software is often more expensive than $10. So, for brave experimentation, SnapTax earns a place on our short list.
Cost: $9.99
Conclusion
As April 15th nears, we might see more options available in the App Store. Until then, iPhone users will be able to get a quick estimate on their return, receive answers from a certified expert, and automatically file their taxes from a mere picture. Taxes may still be a pain to file, but technology is making it increasingly more convenient
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