Monday, April 14, 2014
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Pros
New for 2012: Can claim dependents, Earned income tax credit (with limitations). Excellent user interface. Easy W-2 import via smartphone camera. Online FAQs; can email support. Operationally sound.
- Cons Price. Form and schedule limitations. Can't download data for 1099-INT.
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Bottom Line
If it's worth roughly $30 to be able to prepare and file your 1040EZ on your iPhone or Android, SnapTax should be your choice this year. It offers more preparation options than H&R Block 1040EZ, has better support, and performs well.
I remember filling out my 1040 when I was just out of college and had my first real job. It seemed silly to me that I had to complete this big, scary-looking form when all I had to claim was some W-2 income. No dependents, no home, no investments and no other deductible expenses. My friends shared my dismay. Today's young taxpayers—as well as older ones who have very simple financial situations—can now complete what used to be an unnecessarily time-consuming task by using Intuit's SnapTax on a smartphone; I tested on an iPhone, and the app is also available on Android, as well.
You can use SnapTax if your 2012 income was under $100,000 ($120,000 if married). It supports some of the most common tax topics:
• W-2 income,
• Interest income (1099-INT),
• Unemployment income (1099-G),
• Student loan interest (1098-E),
• Dependents (only your own children who lived with you all year),
• Child Care Credit,
• Earned Income Tax Credit (some limitations here).
There are many tax situations, of course, that SnapTax doesn't support, like home ownership, medical expenses, retirement income, and investment transactions. There are references in the app to the forms required for these, so if you need to complete one of them, you can easily transfer any data you've already entered into TurboTax Online and complete your return there (fees required).
Simple, Self-Explanatory Interface and Navigation
When you first open SnapTax, you can create a new account, enter an existing TurboTax Online user ID and password or just jump in and start looking around. You don't have to enter data in the prescribed order like you do with H&R Block 1040EZ. You click on links to progress and the "Back" or "Cancel" buttons (and sometimes, your smartphone back key) to back up. Simple app, simple navigation.
The home page consists of five separate elements. The toolbar at the top gives you access to security information; FAQs and an email link to Intuit (neither of which H&R Block 1040EZ offers); and a basic utility page. Below that is a running tally of your current Federal and state tax liability.
Three horizontal bars below the toolbar contain the app's three primary functions. When you click on the first, "Snap Photos," you see a list of the tax situations and forms supported: W-2, 1099-INT, 1099-G (new for 2012 in SnapTax), and 1098-E. Select one, and a submenu of options opens. The latter three ask for information like the names of related financial institutions and provide fields for your answers.
Easy Entry
The first, "Income From a Job," gives you the option of taking a picture of your W-2 with your smartphone camera. The app helps you position it, and when it's done correctly, the data from the form is automatically entered in the correct fields on the W-2. H&R Block 1040EZ offer the same input method. Unfortunately, neither of them connects to financial institutions for 1099-INT download, though this is usually a matter of a name and number.
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If your 1099-INT has numbers in boxes beyond the first one, SnapTax recommends that you import your data into one of the TurboTax Online sites. It makes this suggestion throughout the app to let you know when something in your financial situation warrants a more sophisticated solution.
To complete the last step before filing, you click on the, "Tell Us About You," bar on the homepage. If you've already entered data or snapped a picture of your W-2, a lot of the information required there will already be available, but you'll have to answer a few questions for the IRS. New this year: You can also report on dependents and childcare providers to get tax breaks for them, and SnapTax will calculate your earned income tax credit (with some limitations; you may have to switch to an online product). H&R Block 1040EZ doesn't offer this.
Performs Well, But Pricey
That's it. Once you've entered everything necessary and clicked the "Approve" button where required, you can preview your return and e-file. SnapTax tells you everything you need to know to get your return into the hands of the IRS.
Would you pay $24.99 for a mobile tax app, or $29.99 if you file after March 22? Seems excessive, considering you can get the Deluxe version of TurboTax for either the iPad or Web browser for $29.99. Still, if you want the "cool" factor and the convenience and speed of filing a 1040EZ on your smartphone, it's clearly the one to buy for the 2012 tax year.
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