The winners of the 2 TurboTax Deluxe codes, worth nearly $90, are Paul and Deanna. The winners were drawn randomly using the integer generator at Random.org. They have until tomorrow, Friday, at 5pm EST to respond to collect their prize. If anything changes, I’ll update this article!

Thanks again for entering!

I previously used H&R Block TaxCut Online for about 4-5 years until I got fed up with their system; I never quite knew if I was answering the question correctly. So I tested out TaxCut, TaxAct and TurboTax at the same time two years ago, and found that I liked TurboTax the best, by far. That year I used the desktop version, but the last 2 years I used the online version…and it’s just as good as the desktop version (without all the worry of saving the files locally and losing them).

First, do you need TurboTax Premier

Even with my side income from my blog, Deluxe is good enough for me. However, check whether you can file for free through the IRS to save yourself the hassle of all the questionnaires in the higher editions. Just be sure to check out the income restrictions for that program.

Next, if you can’t file for free through the feds, but you only need to file a form 1040EZ, then you can use the TurboTax Online Free Edition. State filing is still extra, but I have my own ways around that, at least from experience in MD and VA, but your state may differ. I like let the tax software complete my state taxes, but then I go to the state website and plug in my numbers and file for free! Yes, I even told the TurboTax VP this secret, and they’re fine with it, but we both agreed most people won’t go the extra step when they can just file from within the software.

Alright, can’t file for free through the IRS or TurboTax? Then I guess you can enter below 

How to Enter to Win One of Two Copies of TurboTax Premier Online

I’m actually going to give you a few ways to enter this contest, and that means you can enter more than once (but only once with each method).

Method 1: Leave a comment on this post. Simple. Easy.

Method 2: If you use Twitter, tweet this exact phrase (without the quotes):

“Win TurboTax Premier Online from @cleverdude!  http://tinyurl.com/CDFreeTrboTx to enter and retweet this!”

I’ll choose the winners from all the entries after 5pm, Sunday, April 3rd and announce on Monday, April 4th. I’ll contact the winners via email/twitter and they will have 48 hours to reply or else I will draw a new winner.

So as I am preparing this year’s taxes, I realize I made a little more money, although it surely didn’t feel that way. My expenses also increased, namely for daycare. I am a single mom of 2, receiving NO child support. I don’t make bad money in IT. Anyway, I realized that I paid almost 22k for daycare this past year and all the gov’t is giving me is a 1600 tax credit for daycare. This is insane. So, what I would like is some of your advice about ways to diminish my taxable income. What ideas do you have to cut down my income with before-tax deductions, yet after taxes being able to bring home a decent amount. I know I should contribute more to 401k and my HSA, but do you have any other suggestions for me to research? Uncle Sam is killing me.- By the way, I’ve been reading yor blog for a few years and you’ve done a great job.

How Renee can save on her taxes

First off, I’m going to put out there that to save on taxes, generally you need to either make less money or spend more money on things like pre-tax or tax-deferred investments, so there’s no easy way to just get rid of taxes and keep your existing quality of life, but here are some tips:

1. Max out your 401(k) – While investments aren’t guaranteed to go up, at least put in as much as is needed to get any company match, if your company offers it. Whatever you contribute, up to the max you’re allowed, will come right out of your taxable income.
2. Contribute to a Traditional IRA – This is something I’m lazy at doing, but you can still contribute to your 2010 Traditional IRA if you haven’t yet and reduce your taxable income. Yes, it’s spending money to save money, but again, it’s investing in your future.
3. Contribute to a Dependent Care Flexible Savings Account (FSA) – It will just make a small dent in your $22k/year daycare bill, but if your employer offers the benefit and you can work out payment with the daycare (this is where my experience and knowledge fall short), then do it. It’s another way to reduce your taxable income.
4. Donate to charity – I know, it’s yet another way of spending to save, especially when you’re not getting the direct benefit of the money spent, but what do you think the rich do to lower their taxable income? The Gates Foundation isn’t there just because Bill Gates is extremely generous! If you have causes you want to support, then support them dangit! And get a little bit back from the feds in return. You can also look into donating non-cash items, but make sure you understand all the related rules and restrictions.

Those are the quick tips that come to mind, and I know each of them mean that you have less money in your paycheck at the end of the day, but the reality is taxes suck and we just need to plan for them properly by hedging with pre-tax and tax-deferred options and available tax deductions.

What do my other readers have to say? I’d love your input because I’m sure your collective intelligence is far greater than mine!

1. Due date this year is April 18. Thanks to Emancipation Day being a District of Columbia holiday and falling on the usual filing deadline of April 15, you get an extra three days this year. Still no excuse to procrastinate though, unless you owe money and want to eek out a few extra cents of interest from the bank before paying off your tax debt.

2. Phase-out worksheets have been phased out. Itemized deductions and exemptions can be written off in full. Previously these would dwindle away as your income increased.

3. Max adoption credit increased to $13,170. This is definitely great news for anyone looking to adopt due to the high costs of adopting.

4. Self-employed allowed to deduct health insurance premiums when figuring out self-employment tax bills on Schedule SE

5. If you bought a home in 2008, you may have to repay part of the Homebuyer Credit

6. No real estate tax deduction if you don’t itemize your deductions. If you CHOOSE not to itemize, but your deductions are over the standard deduction minimum, then you’re a bit of a fool. Get every last cent back that you can!

7. No deductions for sales taxes on buying a new car

8. 100% of unemployment benefits will be taxed. In 2009 your first $2,400 was tax-free.

Restricting Tax Benefits for Parents

For you parents out there, you know there are tax benefits for having kids (aka “dependents”). Generally, they come in the form of deductions, and sometimes credits, that can save $thousands at year-end.

Well, what if you had to go to classes before you could claim those tax deductions and credits?

Here’s my idea of a very basic curriculum for classes. I don’t have a method or structure for how to dole out money, but that’s why we pay our legislators $millions every year to come up with this, right? (*snicker*).

Some of these items come from my wife who is a pediatric dietitian and sees tons of families who simply don’t know where to get started with their children:

• Feeding your infant/child: breastfeeding (and alternatives), switching to solids, feeding complications
• Caring for your child: bathing, illnesses (when to call physician), basic needs (sleep, attention, discipline)
• Safety: child-proofing your home, CPR, car safety, etc.
• Finances: this is where it gets complicated because you’ll have students of all ages and income levels (including no income), but there are basic principals every person should know, especially those with dependents as the kids can’t fend for themselves. I would want to be careful not to teach people to manipulate the system (welfare and food stamps), but to educate enough to know what’s available and how to access it. Even middle-income parents can benefit knowing what programs are available to help them.
  • Budgeting for your child (what to consider and average costs)
  • Banking (interest, types of accounts)
  • Handling credit and debt
  • Government and local programs to help new parents

This is just my own short list of need-to-knows for any parent, without getting too much into interfering with religious or cultural issues. Keep it simple to the things that are common knowledge across most doctors, nurses, dietitians, certified financial planners, safety groups (fire, police, etc.) and, this is the tricky part, child psychologists. I say this last part because no, your kid probably isn’t ADD, ADHD or bi-polar, and trying to blame a mental or physical disorder on their behavior is avoiding the bigger issues of being a good parent. But that’s an argument for another time and place.

You’re not going to please everyone. You’ll have many people against parts of the curriculum, against the government “enforcing” a curriculum, or just the fact that we made it harder to get tax deductions. I’m sorry, but I know one too many people in my life (one is enough) who simply pops out kids to stay on welfare and get as much tax lenience as possible.

I’m not proposing making it impossible to get tax leniency when you’re having a child; rather, I’d like to know that the people at most need of this information (parents) have access AND incentive to get it.

Auditing the Process

How can we ensure parents are truly earning their deductions/credits? We certify educators and require proof of identity at class registration AND attendance. The educators submit the attendance roles through an electronic system straight to the IRS.

There’s always room for fraud with any system, and again, it’s not my call on the best way to implement these ideas; it’s for the legislators (and lobbyists I guess). Ultimately my goal is to educate parents (of your first, second or tenth child), and provide an incentive to learn basic topics. You can go to class, sit in the back and tune out the teacher, but you can’t catch ‘em all, right?

Your Thoughts?

Thanks to Lauren (via the TurboTax PR office) for letting me repost this article from the TurboTax Blog. Funny thing is, as of the posting of this article, I haven’t gotten around to filing our own taxes yet!

I’m not going to be able to file my taxes in time. What should I do?

If you can’t make that April 15 deadline, you are in good company. The Internal Revenue Service says it received requests for 11 million extensions in 2008, which amounts to about 8% of all tax returns. (I was one of them!) Taxpayers who ask for an extension get an extra six months to file—your new deadline in 2010 will be Oct. 15.

You can get some extra time without any hassle. Simply e-file for a Personal Tax Extension of your federal tax return using TurboTax Easy Extension. You can also file for an extension on the IRS website.

But there a few important things to remember when you request an extension. First, a federal extension does not automatically extend the deadline for your state income tax return. To find the extension guidelines for your state, click on this list of state tax websites compiled by TurboTax.

Also, an extension to file your federal taxes does not give you an extension to pay your actual tax bill. You still have to figure out your taxes and make an estimated payment.

Estimating how much money you’re going to owe can take time, so please do not wait until April 15 to get started. Last year’s tax return could be a good starting point if you haven’t experienced any major life changes. If that is the case, you can probably pay the same amount in taxes for 2009 that you paid in 2008. But if you lost your job, purchased a new home with the first-time homebuyer’s credit, or had a baby, you’ll need more information to determine your tax bill.

Why is it so important to come up with this ballpark estimate? You will pay a penalty if you underpay your taxes by more than 10 percent. Thankfully, TurboTax takes the guesswork out of calculating your estimated payment.

If you are expecting a refund, file your taxes as soon as possible if to get that payment. You risk losing your refund if you fail to claim it within three years of the return due date.

Here is a rundown of why people file late…or not at all.

What do I do if I can’t afford to pay my taxes?

I posed this question to the IRS, and the No. 1 thing to do—even if you can’t pay all the taxes you owe—is to file your return. “If there is one message to get to consumers, I cannot emphasize enough how important it is to file your return,” says an IRS spokesman.

My advice: File your return as soon as possible, preferably before midnight on April 15. Why? Failure to file your taxes is a federal offense that could have significant legal ramifications. And if that isn’t reason enough, another incentive to file your taxes on time is a financial one. That’s because the IRS can impose a penalty of 5% of the tax you owe for each month you do not file your return. The maximum penalty is 25% of your tax bill.

Try to pay as much of the bill as you can. But if you don’t have the cash, you may be able to work out a payment agreement with the IRS. In the past few years, the IRS says it set up installment agreements for 2 to 3 million returns. It should take less than 10 minutes to figure out if you are eligible for an installment agreement on the IRS website.

You can also call the IRS at 1-800-829-1040 to discuss your payment options.

Filers who pay the IRS via an automatic installment plan typically owe less than $25,000. Also, if you are interested in a payment plan, you should be in good standing with the IRS, and you should expect to pay off your bill within five years.

Installment agreements can be costly, so think before you leap. The IRS charges a one-time fee of $105 for setting up the installment plan, or $52 if you have the payments debited directly from your bank account. The interest rate fluctuates, based on the amount you owe. For a sense of how these payment plans work with sample scenarios, look at this IRS page.

If I haven’t closed on my new home yet, can I still claim the first-time homebuyer credit?

Yes. You still have time to get that credit, but you need to act fast. The Worker, Homeownership and Business Assistance Act of 2009, signed into law on Nov. 6, 2009, has been extended. According to the IRS, “an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010.” No wonder you are seeing more “For Sale” signs around town.

So who is eligible? You qualify as a first-time buyer if you have not owned a primary residence during the three years up to the date of purchase. You must also meet certain income restrictions: The credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers. If you qualify, you may be eligible for a maximum tax credit of $8,000.

If you don’t fit the criteria for the first-time homebuyer credit, you could be eligible for a long-time resident credit of up to $6,500. Buyers must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence. In addition, you must buy your new home before May 1, 2010. Or, if you sign a binding contract on or before April 30, 2010, you must purchase or close on the new home on or before June 30, 2010, according to the IRS website.

There is a significant amount of documentation required if you want to receive either of these credits, which is why the IRS doesn’t let you e-file.

The homebuyer credit is a hot topic for 2009. The IRS offers extensive information about the ins and outs of the homebuying credit on its website.

If I was unemployed for part of 2009, is any of my income tax free?

Unemployment benefits are taxable, but you don’t have to pay taxes on the first $2,400 you receive. If you and your spouse are out of work, you can both exclude that first $2,400 in benefits. You should have received a Form 1099-G reporting what you’ve been paid.

If you end up with a big tax bill from your unemployment benefits, consider changing your withholding status for 2010. Fill out Form W-4V to have 10 percent of your benefits withheld for federal income taxes.

There are a bunch of education tax breaks available. What’s the difference and which one should I take?

I hear this question a lot. In fact, I recently got it from a listener on National Public Radio’s All Things Considered. While a tax deduction of up to $4,000 can be claimed for qualified tuition and fees, tax credits usually result in bigger tax savings.

For many people, the American Opportunity Credit will provide the most bang on a tax return because it offers the largest tax break ($2500 for qualified tuition and expenses). It is an expansion of the Hope credit, and it is tied to the economic stimulus package. The income cap for the American Opportunity Credit is higher than other credits, too. The credit can be claimed for tuition and certain fees you pay for higher education in 2009 and 2010. Books and required course materials count as a qualifying expense. Plus, the credit can be claimed for four post-secondary education years instead of two.

If you have brushed up on your career skills, use the Lifetime Learning Credit. It provides a credit of up to $2,000 to cover qualified education expenses, such as job training. And it is applicable for you, your spouse or your offspring. The credit is based on your income—joint filers can’t claim it if their income exceeds $120,000.

If you want to delve into the nuances of the various education-related incentives, this Q&A from the IRS does a terrific job of explaining the differences. I also like this education tip sheet.

Finally, to figure out which educational tax break makes the most sense for you, use TurboTax to compare the impact on your tax return.

Is there anything I can still do to lower my tax bill?

One of the best options to lower your tax bill is to maximize your 2009 retirement savings. For 2009, you can stash up to $5,000 in an IRA ($6,000 for those over age 50). But there are income hurdles to be aware of. You can also buy a new house (above) or contribute to Haiti and Chile relief (below).

I made donations to support relief in Haiti and Chile this year. Can I deduct it on my 2009 taxes?

Yes, assuming you made those donations before March 1 to help Haiti and Feb. 26 for Chile. But pay very careful attention to the news. Pending legislation, which already passed the House of Representatives, is now awaiting approval in the Senate. (It is considered to be a slam dunk, but Congress has been a little tied up with healthcare reform.) There is a good chance Congress will extend the deadline for charitable contributions to Haiti and Chile through April 15. And if that happens, you should be able to use the deduction for 2009 returns.

If I need to amend my tax return, does that need to be done by April 15?

If you sent in your tax return already and realized you forgot to claim something, you can amend your return. (It happens to the best of us: Last year we forgot to include our 529 savings plan contributions on our 2008 tax return.)

Use Form 1040X (PDF), Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040 (PDF), Form 1040A (PDF),Form 1040EZ (PDF), Form 1040NR (PDF), or Form 1040NR-EZ (PDF). If you used TurboTax to file your return you can follow these instructions to amend your return. To avoid any penalties and interest, you need to file Form 1040X and pay the tax by April 15 of the following year.

If you are filing for an additional refund, the IRS advises you to wait until you have received your original refund.

• In honor of April Fools Day, the TurboTax blog has posted 12 of the Most Foolish Tax Write-Offs Ever Attempted, and the ludicrous reasoning behind them including arson and witchcraft.
• Career Overview writes about the 10 Most Famous Tax Evaders of All Time. I bet you’ll be surprised at who is listed.
• Are you a user of TurboTax, Quickbooks and/or Quicken? If so, and you’d like to organize your receipts better for next tax season (or just for personal or business reporting), check out the NeatDesk Desktop Scanner and Digital Filing System. I’m working on getting a sample to review, so stay tuned if you’re interested. It’s a bit pricey, so I’m going to take that into account too.
• Here’s an interesting and informative graphic on the “Health Care Reform”.
• And if you have a beef against some of the big corporations, now is your chance to vote for the Worst Company in America over at The Consumerist. Here’s the bracket and you can see all the different matchups here. My vote would be for Cash4Gold, or any of thousands of “we buy gold” shops out there.

And from Prosper.com on the $1000 Giveaway:

Prosper.com has just launched the Talk Taboo campaign http://talktaboo.prosper.com/, which encourages people to open up and share their own personal stories about how finances have shaped their lives. Perhaps they invest their tax rebate every year to save enough for a down payment on a house, or are planning to give up their daily latte to pay for night school? We think talking about it is a great way of helping people make some smarter decisions, simply by feeling less isolated in their financial situation.

We’re asking people to share their personal stories with us on the TalkTaboo site, and in return, can enter to win a $1,000 sweepstakes: http://talktaboo.prosper.com/share-your-story/

1. $8,000 to New Home Buyers

Those who purchased their first principal residence (not a vacation or rental property) during 2009 are eligible to utilize an $8,000 tax credit on your 2009 federal income tax return.

2. Making Work Pay Credit

A new payroll tax credit (called Making Work Pay) was established in 2009 in the amount of $400 for individuals and $800 for couples filing jointly. Beginning in April 2009, employees began having less money withheld from their paychecks to reflect the amount of their credit. The justification for this credit was essentially populism. That is, roughly 95% of working families are eligible to claim it and will directly benefit from the money exempted from taxation. Fortunately, this credit is automatically put into place at the payroll level, and you would actually have to adjust your withholdings manually to avoid taking it (not that you ever would.)

3. Unemployment Income Exemption

Another credit that took effect in 2009 exempted from income taxes the first $2,400 of an individual’s unemployment benefits. It was a timely credit, given the recession and how many more people are consequently on the unemployment rolls. Be careful however, as Uncle Sam is not known for pointing out such deductions if you do not explicitly declare them. If you have received unemployment benefits in any amount during 2009, be sure the allowable $2,400 (or however much you received prior to that amount) is accounted for on your return, so that there is no doubt you can deduct it from your total income at filing time.

4. New Car Deductions

In an attempt to stimulate America’s stagnant auto industry, buyers of new cars were extended some serious tax relief from Uncle Sam last year. Anyone who bought a new car from February 17, 2009 through December 31, 2009 is eligible to deduct the state and local taxes of the transaction (up to $49,500 of the purchase price) from their federal income taxes. Admittedly, this credit does not solve the arguably larger problem of getting financing to buy a car in the first place, but it is certainly a write-off that no new car buyer should ignore this April. If you have not yet done so, gather your receipts and paperwork to determine the applicable taxes that you paid in 2009 so that you can ensure that they are written off on your federal return.

5. Student Loan Interest Deduction

If you paid interest on any student loans during 2009, you are permitted to deduct up to $2,500 of what you paid on your federal income tax return. As About.com explains, your lender will send you a Form 1098-E stating the amount of interest you paid last year. You, in turn, must then report that amount on Form 1040, Line 33 or Form 1050A, Line 18. Unfortunately, this deduction is restricted to certain income limits. If you earn over $70,000 per year (or $145,000 as a married couple filing jointly) you may not deduct any of your student loan interest whatsoever. If your income is between $55,000 and $70,000 (or $115,000-$140,000 married), the amount of your allowable deduction will be prorated.

6. Residential Energy Property Credit

EnergyStar.gov spells out several energy saving home improvements that entitle homeowners to substantial federal income tax deductions. The installation of new, Energy Star-approved biomass stoves, HVAC systems, insulation, roofs, non-solar water heaters, windows and doors equate to a 30% tax credit up to $1,500 of the costs of installation. The credit is good until December 31, 2010, and applies only to principal or secondary residences of the individual claiming the credit. New constructions and rentals do not qualify for the credit. The two energy-related credits below, however, do apply to newly constructed homes!

7. Alternative Energy

Another portfolio of tax incentives is available to those who install alternative energy sources into their principal or secondary residences. According to EnergyStar.gov, those who install approved geothermal heat pumps, small, residential wind turbines and/or solar energy systems are eligible to deduct 30% of the cost with no upper limit. In theory, you could spend a million dollars on such systems and deduct $300,000 from your federal income taxes. While that is taking it to the extreme, the potential deduction here is huge nonetheless and should be taken into account by anyone with the ability to utilize it. New construction homes do qualify, while rentals still do not.

8. Fuel Cells

A separate deduction unto itself is reserved for individuals who go so far as to install residential fuel cells or microturbine systems in their personal residences. Those who install such systems are eligible to deduct 30% of the cost, up to $500 per .5 kW of the power capacity. Admittedly, most people probably do not have the resources to make such a dramatic change in how they power their homes, but for those who can, it would be difficult to find a deduction better suited to their circumstances with the potential to save more money.

9. American Opportunity Tax Credit

As the New York Times reported in November 2009, Congress “expanded and renamed the Hope Credit so that more taxpayers qualify for it.” Now called the American Opportunity Tax Credit, the break offers qualifying taxpayers the ability to deduct the first $2,000 spent on tuition and books, as well as 25% of the next $2,000 spent on the same expenditures. The credit is now applicable to the entire first four years of undergrad school, rather than two, as before. Taxpayers who make less than $80,000 per year (and couples filing jointly who make less than $160,000) can utilize the credit, which can be claimed during tax years 2009 and 2010.

10. Low-Speed Electric Vehicles

The New York Times also reveals a $2,500 tax credit available to buyers of “certain low-speed plug-in electric vehicles” such as the one pictured above, as well as “two or three-wheel vehicles” in 2009. The credit is good for 10% of the vehicle’s cost – again, up to $2,500 – and applies only to purchases made between February 17, 2009 and Jan 1, 2010 2012. If you have purchased any such vehicle (perhaps for convenient transportation within a large workplace or recreational area) this is yet another way to reduce your taxable income before April 17 rolls around. As always, we suggest that you check with a tax professional to make sure that your low-speed electric vehicle is what the IRS had in mind for this particular deduction.

11. Hybrid Cars

Still another credit available to car buyers, the Times reveals, goes to the buyers of plug-in and hybrid vehicles “designed for highway use” and bought during 2009. This credit is good for anywhere between $2,500 and $15,000 “depending on battery capacity and gross vehicle weight rating.” According to Erik Lammert, a tax researcher with the National Association of Tax Professionals, vehicles purchased in 2010 will be eligible for a maximum credit of $7,500. Therefore, if you bought a qualifying vehicle in 2009, there will literally never be a more lucrative time to utilize this tax credit, at least given the laws currently on the books. Of course, be sure to check with a tax professional if you are unsure about whether (and for how much) of a credit your hybrid entitles you to.

12. Lifetime Learning Credit

While the American Opportunity credit offers tax relief to college students directly, the Lifetime Learning Credit extends relief further. According to MoneyZine.com, the Lifetime Learning Credit is a tax credit for $2,000 of eligible student expenses that you can deduct if you personally, your spouse, or one of your dependents (say, an adult child) has incurred qualifying expenses. Those expenses include tuition itself, books, lab supplies, and equipment. Admittedly, the rules for qualifying are a bit complicated. For one thing, you are only allowed to take the credit on “expenses paid for an academic period that begins in the fall through the first three months of the following year” – that is, the expenses follow a “typical academic calendar year.” A full credit may be claimed by those who earn “less than $48,000 or $96,000 if you file a joint return.” Qualifying institutions include non-profits, private and public institutions, trade schools or “any other kind of post-secondary educational institution.”

In total, this was close to $250 in prizes!

And now here are the winners. Mind you, they each have 48 hours to respond, or else I pick a new winner. That’s about 11pm EST on Monday night (Feb 8, 2010):

1) Shawn - entered by comment and Twitter – winner of TurboTax Premier

2) P Johnson – entered by comment – winner of TurboTax Premier

3) Miss Snippity – entered by blog post – winner of TurboTax Deluxe

The clock starts now. Get those replies back so I can send you the codes, or else! MUWHAHAHA (evil laugh)!!!

Update #2: I’m adding a Turbotax Deluxe Online code to the giveaway!

Actually, I have 2 copies of TurboTax Premier Online to give away! I attended a happy hour sponsored by TurboTax a few weeks ago and got some swag to give away to my readers. I’ll actually have a couple copies of the Deluxe Online version to give away later, and I’m currently using a copy of Deluxe for my own taxes.

I previously used H&R Block TaxCut Online for about 4-5 years until I got fed up with their system; I never quite knew if I was answering the question correctly. So I tested out TaxCut, TaxAct and TurboTax at the same time two years ago, and found that I liked TurboTax the best, by far. That year I used the desktop version, but last year I used the online version…and it’s just as good as the desktop version (without all the worry of saving the files locally and losing them).

First, do you need TurboTax Premier

I’ll admit that Premier is for a small subset of tax filers. Even with my side income from my blog, Deluxe is good enough for me. But free is free, and you can use Premier even if you would normally just use Deluxe. However, check whether you can file for free through the IRS. There’s certain income restrictions for that program.

Next, if you can’t file for free through the feds, but you only need to file a form 1040EZ, then you can use TurboTax Online Free Edition. State filing is still extra, but I have my own ways around that, at least from experience in MD and VA, but your state may differ. I like let the tax software complete my state taxes, but then I go to the state website and plug in my numbers and file for free! Yes, I even told the TurboTax VP this secret, and they’re fine with it, but we both agreed most people won’t go the extra step when they can just file from within the software.

Alright, can’t file for free through the IRS or TurboTax? Then I guess you can enter below

How to Enter to Win One of Two Copies of TurboTax Premier Online

I’m actually going to give you a few ways to enter this contest, and that means you can enter more than once (but only once with each method).

THE CONTEST HAS ENDED. CHECK BACK TO FIND OUT IF YOU WON!

Method 1: Leave a comment on this post. Simple. Easy.

Method 2: If you use Twitter, tweet this exact phrase (without the quotes):

“Win TurboTax Premier Online from @cleverdude! http://tinyurl.com/CDturbotax to enter and/or retweet this!”

Method 3: (worth 5 entries) Write a blog post about the giveaway. Just include a link to this article and SEND ME AN EMAIL WITH YOUR POST URL! If you don’t send me an email, you don’t get entered as I can’t rely on pingbacks consistently.

There you have it, three ways to enter and get up to 7 entries. I’ll choose the winners from all the entries after 5pm, Feb 5th and announce on Saturday, Feb 6th. I’ll contact the winners via email/twitter and they will have 48 hours to reply or else I will draw a new winner.

Even More TurboTax Giveaways!

I’m not the only one giving away copies of TurboTax. A few of my fellow bloggers who attended the TT Happy Hour are giving away their copies this week. Go to the links below to enter their contests. More to come later this week:

• Mapgirl at TurboTax Free Giveaway!
• Brian from My Next Buck at It’s Tax Season – Free Turbo Tax Giveaway
• Bible Money Matters at TurboTax Giveaway
• J Money from BudgetsAreSexy

Now enter the giveaways!