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Tax Software - Online vs Desktop
Compare Online vs Desktop/Disk Tax Software Versions
Tax Software - Online vs Desktop
With online tax preparation products, you create a log-in and password on the vendor's web site and start completing your return. With the desktop products, the software needs to be installed on your computer either from a download or a CD. Here are a few pros & and cons we've discovered for each:
Online, Web-Based Tax Preparation Software
- Ability to access your data from multiple computers & locations, so you can work on your return anywhere there's Web access. Useful if you don’t have a computer at home, or want an accountant to be able to log in to check the numbers.
- Great if you don't want to bother installing software and downloading updates or patches. With Web-based products, any software updates are immediately posted to the Web server, so you always have access to the most up-to-date version of the product. Online programs are updated automatically to reflect changes in the tax laws.
- It's not necessary to pay until you print your return or e-file, so unlike installed versions you can have a try of the different products on the market before paying, to find the best tax software for you.
- Browser-based options use the same security measures and latest encryption technology as online banks do. Your account is password protected.
- Your records are kept safe online up to 7 years, so this actually safeguards your information. If your home computer crashes, you could lose your data.
- You can add to and amend your return as new information becomes available to you. Any unfinished work is stored on firewall protected servers.
- Online software is less expensive than Desktop, with e-filing generally included in the purchase price.
- Online software doesn't use up your computer disk space.
- Installed software can handle a bigger household. So if you do multiple returns for people who live with you, parents, children, sibling, etc., you can use a single desktop copy. Permitted by the software license.
- If you used a desktop version last year you can make a copy of your data and run “what-if” analyses and projections throughout the year. This isn't possible if you used an online version, as there’s only one copy on the vendor's server.
- Flexibility to switch vendors in the future. If you used TurboTax last year and want to try TaxCut this year, TaxCut's desktop software can import your prior year's TurboTax file. But if you used TurboTax Online, there is no file to import. You would have to re-enter your data.
- Not restricted by the need for an internet connection.
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