Use of Computer Resources

• Create and log in to your account to use the online version of TurboTax. Every time you need to stop, you can save the information entered up to your stopping point and continue later. Your tax info is stored on TurboTax servers, and if there are updates to the software while you were logged out, they will be applied to your account automatically.
  
  The desktop version of the software must be installed on your computer, whether you download it or buy a CD; ensure that you have enough free hard disk space. All the information you save is stored on your hard disk as well. New updates are installed (provided you are connected to the Internet) to your computer every time you get back to filing.
  
  

E-Filing

• Nowadays it's much faster to e-file your tax returns than to do it the old-fashioned way by sending it via U.S. mail. TurboTax online offers free unlimited e-filing for federal returns (the cost of e-filing is included in the purchase price), while the desktop version offers five free federal e-files. The online version of the software also provides up to three state e-files for free, and the desktop version charges $19.95 as of January 2011 for each state filing. You can also print your returns and mail them if you do not wish to e-file.
  
  

Collaboration With Other Tax Preparation and Money Management Software

• TurboTax online imports your tax information from previous years (provided you used TurboTax online before) so that you do not have to waste your time re-entering it. The desktop version provides the same feature, and also uses information from other software, such as TaxCut or TaxAct. This is useful if you were unsatisfied with the other software and decided to switch to TurboTax. If you use Microsoft Money, QuickBooks or other similar products to help you with your business, the desktop version of TurboTax can import information from these programs. TurboTax online collaborates with Quicken 2007 or later and ItsDeductible.
  
  

Payment

• You can complete all of your taxes, both federal and state, and pay before you e-file only if you decide that TurboTax online works for you. You must pay upfront for the TurboTax desktop version, either downloaded or on CD-ROM.
  
  

Conclusion

• If you have decided to try a tax preparation software as opposed to using a tax professional, it does not hurt to check and see if this way of filing taxes works best for you. TurboTax online offers you the opportunity to try its services before you e-file; this gives you a chance to try other tax preparation software as well, compare the results and ease of use, and then make the best decision in filing your taxes.