Which Tax Software Would You Recommend?

[No Nicolaitans]

I used to do our taxes, but for the last 10 years or so we had them prepared for us, because of itemizing, 2 different State taxes, and a 1099.

 

This year, we only have one State tax, but I still have the 1099 to deal with plus itemizing.

 

Which tax software has worked for you? I looked at both Turbo Tax and H & R Block's software at Walmart. The H & R Block was cheaper, but after looking at reviews for it, it appeared that a lot of people had some type of problem with it updating "something".

 

I'm also unsure if I would need to purchase the Deluxe or Premium software since I have a 1099 to deal with. I couldn't really tell just from looking at the packaging. Any help would be appreciated.

 

Also, I have "Other" listed as an option in case someone is aware of something other than Turbo Tax and H & R Block. If there is another one, please let me know.

 

Thanks!

[Bro K]

I thought that the IRS provided on-line filing??

[No Nicolaitans]

I thought that the IRS provided on-line filing??

 

You're right; they do...but I'd rather use something other than them.

[candlelight]

I don't blame, you No Nicolaitans. 

We have our taxes done.  My husband is self employed and I am retired from teaching.  He gathers all the information for our tax consultant.  He still does the work, but we have someone we trust to get all the paperwork filed.

My husband just said, that Turbo Tax is the best that he has heard of, from friends who do their own filing.

[PreacherE]

I have used Turbo Tax every year I've had to file except for two years where I lived in different states.  Those years I had them prepared by a tax professional.  I find Turbo Tax is very easy to use and walks you through step-by-step of entering in your information including things you might not have thought of on your own.

[beameup]

Tax Act

http://www.taxact.com/

[whisperingsage]

    "An income tax is neither a property tax nor a tax on occupations of common right, but is an excise tax...The legislature may declare as 'privileged' and tax as such for state revenue, those pursuits not matters of common right, but it has no power to declare as a 'privilege' and tax for revenue purposes, occupations that are of common right."

  

    “The right to engage in an employment, to carry on a business, or pursue an occupation or profession not in itself hurtful or conducted in a manner injurious to the public, is a common right, which, under our Constitution, as construed by all our former decisions, can neither be prohibited nor hampered by laying a tax for State revenue on the occupation, employment, business or profession. ... Thousands of individuals in this State carry on their occupations as above defined who derive no income whatever therefrom. But, where an income is derived from any occupation, business, profession or employment, then the Legislature may lay thereon a tax...”

 

Sims v. Ahrens, 271 SW 720 (Ark. S. Ct. 1925) (emphasis added)

 

Definition of employee;

 

[1] 5 U.S.C. Sec. 552a (13). the term “Federal personnel” means officers and employees of the Government of the United States, members of the uniformed services (including members of the Reserve Components), individuals entitled to receive immediate or deferred retirement benefits under any retirement program of the Government of the United States (including survivor benefits).

See also 26 C.F.R. 301.6331-1 further identifies the federally privileged persons as “(4)(i) Federal employees, (ii) State and municipal employees and (iii) Seamen”

See also enforcing regulation for 26 U.S.C. Sec. 6331 – Levy and distraint, which is found under Title 27 Part 70  (Intoxicating Liquors), to identify federally privileged persons found under Title 27.

 

Definition of Employee

 

IRC  3401 (c )

 

For the purposes of this chapter, the term “employee” includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing.

 

Definition of income

 

“Income”:

•       Remuneration (either immediate or deferred) paid by the federal government including-- but not confined to-- “wages” (see below);

•       Benefits paid by the federal government;

•       The proceeds of, and from, federal ("United States") corporations or instrumentalities such as national banks, railroads, etc.;

•       The proceeds of, and from, the conduct of a "trade or business" (the performance of the functions of a public office).

('Proceeds' means any form of related payment or gain, including, for example, dividends paid to stockholders, etc..  To invest in an activity is to engage in that activity.)

 

“Wages”:

•       Remuneration of any kind, and by any name (including ‘salary’, ‘fee’, etc.) paid to any “employee” (see below), and to others in positions in the federal civil or military services.

“Employee”:

•       A federal government worker or office-holder;

•       Workers and office-holders of the local governments of the District of Columbia and the territories and possessions;

•       Workers and office-holders of any federal, D.C., or territorial or possessions government agency or instrumentality;

 

 

 

 

     "[Although the Legislature may declare as privileges and tax as such for State revenue purposes those pursuits and occupations that are not matters of common right], the Legislature has no power to declare as a privilege and tax for revenue purposes occupations that are of common right."

 

    

 

    “The right to engage in an employment, to carry on a business, or pursue an occupation or profession not in itself hurtful or conducted in a manner injurious to the public, is a common right, which, under our Constitution, as construed by all our former decisions, can neither be prohibited nor hampered by laying a tax for State revenue on the occupation, employment, business or profession. ... Thousands of individuals in this State carry on their occupations as above defined who derive no income whatever therefrom. But, where an income is derived from any occupation, business, profession or employment, then the Legislature may lay thereon a tax...”

 

    Sims v. Ahrens, 167 Ark. 557, 271 SW 720 594, 595 (Ark. Sup. Ct., 1925);

 

    

 

    “The right to follow any of the common occupations of life is an inalienable right,…”

 

    and,

 

    “It has been well said that 'the property which every man has in his own labor, as it is the original foundation of all other property, so it is the most sacred and inviolable. The patrimony of the poor man lies in the strength and dexterity of his own hands, and to hinder his employing this strength and dexterity in what manner he thinks proper, without injury to his neighbor, is a plain violation of this most sacred property’.”

 

    Butcher’s Union Co. v. Crescent City Co., 111 U.S. 746 (1883);

 

    

 

    ”Included in the right of personal liberty and the right of private property- partaking of the nature of each- is the right to make contracts for the acquisition of property. Chief among such contracts is that of personal employment, by which labor and other services are exchanged for money or other forms of property”.

 

    Coppage v. Kansas, 236 U.S. 1 (1915)

 

 

 

So, the receipts subject to the federal excise (the "income" in the federal income tax) are those produced through the exercise of certain federal privileges. Just like the name says, it’s a federal income tax.

 

 

Definition of Employee

 

IRC  3401 (c )

 

For the purposes of this chapter, the term “employee” includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing.

 

Definition of income

 

“Income”: 

• Remuneration (either immediate or deferred) paid by the federal government including-- but not confined to-- “wages” (see below);
• Benefits paid by the federal government;
• The proceeds of, and from, federal ("United States") corporations or instrumentalities such as national banks, railroads, etc.;
• The proceeds of, and from, the conduct of a "trade or business" (the performance of the functions of a public office).

('Proceeds' means any form of related payment or gain, including, for example, dividends paid to stockholders, etc..  To invest in an activity is to engage in that activity.)

 

“Wages”:

• Remuneration of any kind, and by any name (including ‘salary’, ‘fee’, etc.) paid to any “employee” (see below), and to others in positions in the federal civil or military services.

“Employee”:

• A federal government worker or office-holder;
• Workers and office-holders of the local governments of the District of Columbia and the territories and possessions;
• Workers and office-holders of any federal, D.C., or territorial or possessions government agency or instrumentality;
• Officers of any federal corporation.

 

 

'The terms "excise tax" and "privilege tax" are synonymous. The two are often used interchangeably.' (American Airways v. Wallace 57 F.2d 877, 880)

"An income tax is neither a property tax nor a tax on occupations of common right, but is an EXCISE tax...The legislature may declare as 'privileged' and tax as such for state revenue, those pursuits not matters of common right, but it has no power to declare as a 'privilege' and tax for revenue purposes, occupations that are of common right." (Simms v. Ahrens, 271 SW 720) (1925)

"We are of opinion, however, that the confusion is not inherent, but rather arises from the conclusion that the 16th Amendment provides for a hitherto unknown power of taxation; that is, a power to levy an income tax which, although direct, should not be subject to the regulation of apportionment applicable to all other direct taxes. And the far reaching effect of this erroneous assumption..." (Brushaber v. Union Pacific Railroad Co. 240 US 1) (1916)

This ruling has been referenced more than 50 times in later rulings. Later the court also wrote:

"The Sixteenth Amendment, although referred to in argument, has no real bearing and may be put out of view. As pointed out in recent decisions, it does not extend the taxing power to new or excepted subjects, but merely removes all occasion, which otherwise might exist, for an apportionment among the states of taxes laid on income, whether it be derived from one source or another." (Peck v. Lowe, 247 U.S. 165) (1918)

The court made a number of decisions about the income tax in the first decade after the 16th Amendment, including this:

"...there should be no room to doubt that the word ['income'] must be given the same meaning in all the Income Tax Acts of Congress that was given to it in the Corporation Excise Tax Act [of 1909], and that what that meaning is has now become definitely settled by decisions of this Court." (Merchant's Loan & Trust Co. v. Smietanka, 255 U.S. 509) (1921)

[ASongOfDegrees]

Turbo Tax has done me well. Just be aware that they charge for State Taxes.