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Author: mathetes Big red star, 1000 posts Old School Fool Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Re: Turbo Tax Date: 11/26/2001 12:21 PM
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I will be using Turbo Tax again this year. I usually buy the basic package. This year I thought I'd ask the board and see if there might be a good reason to get the deluxe package.

I do not have to file a state income tax return.

From reading their website, the one item that struck me was "Alternative Minimum Tax". I do not think I will be subject to that tax this year, but next year I might. It appeared as if, if AMT was an issue I'd be better off with Turbo Tax deluxe. Is this an illusion?

Any comments about either package?


I've been away from this particular message board for a couple months, but just came back to check on topics of interest.... your lonely message caught my eye, and you happen to have hit on two hot buttons.

I've used Turbo, in no small part because of AMT, for several years now. I can tell you that it handles some of AMT (as incurred for the exercise of Incentive Stock Options) quite well; on the other hand, it totally mis-handles the situation that arises when you ultimately sell some of the stock acquired through that method. This mis-handling has been confirmed by tax experts far more knowledgeable than I; it's been discussed on the www.fairmark.com message board and with Kaye Thomas, the tax attorney who manages that site.

The problem is that AMT is so very confusing that it befuddles even experts from time-to-time, so it perhaps should be no surprise that TT doesn't handle it either. It is disappointing, however, that they to date have not acknowledged a number of attempts by various people, including Kaye Thomas, trying to get them to address it and fix it.

Bottom line: if you are going to be in an AMT situation, you might be best off getting a really good CPA in addition to Turbo Tax. What I've done is to prepare my own return, and then have a CPA review it. In my case, the CPA does my two (!) state returns [I live in one state and work in another, both of which require tax returns] and bases those on a review of my federal. In the process, he will let me know of any refinements needed to the federal. That's how I learned of the AMT error with Turbo.

mathetes

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