Making April 15 Less Taxing

This year, more than 12 million Americans are expected to file their tax returns electronically, according to the IRS. According to HomePC magazine, it's not a bad idea: Electronic returns are processed more quickly and with fewer mistakes than those filed by traditional methods, the average wait for a return is just 21 days, and it's hard to find an accountant who can match the cost, which can be as low as $9.95.

So, what's the best software for preparing an electronic return? In its feature article, "Making April 15 Less Taxing," in the March issue of HomePC (and online at http://www.homepc.com/), the publication features reviews of four top-selling tax preparation software titles to see how they rate for filing '96 returns, and throws in some money-saving advice to boot -- or better yet, to boot up!

"It's a myth that electronic returns are more likely to be audited. The IRS actually prefers returns prepared with software, because they're neater and contain fewer errors," HomePC's Financial Adviser Section Editor Mark Roberti said. "The rep I spoke to at the IRS assured me that the agency selects returns for audit mainly by flagging entries that contradict the paperwork it receives from banks and employers, or amounts that differ greatly from the national average for a particular income level." Roberti pointed out that three of the four programs he reviewed -- Kiplinger TaxCut, Personal Tax Edge, and Turbo Tax (the fourth is Simply Tax) -- allow users to compare their entries to that average, thereby giving filers a warning of a potential problem.

HomePC's article features reviews of each program based on the following criteria: Is it easy to jump from one section of the form to another? How clear are the help instructions and explanations of IRS terms? Are the interview questions well-organized? How good and how plentiful is the tax advice? In addition, the article shares money-saving tips he uncovered while reviewing the tax-return software. For example:

-- You can deduct 12 cents per mile for any traveling you did while providing a service for a qualified charitable organization -- Turbo Tax

-- Last year, Congress made the tax break for self-employment health insurance permanent. If you're self-employed, you can deduct 30 percent of the cost of health insurance for you and your family. -- from Kiplinger TaxCut

-- Married couples usually benefit from filing a joint return, but you and your spouse may do better filing separately if it enables you to claim more deductions. -- from Personal Tax Edge

-- Any home improvements you've made for medical reasons, such as installing air-conditioning to relieve emphysema, are deductible medical expenses. -- from Simply Tax

"Money-saving tips, a fast, accurate return and a decreased chance for being audited," Roberti said in summing up the advantages of using tax preparation software and filing electronically. "What more could a tax-payer ask for?" Published monthly by CMP Media Inc., HomePC provides easy-to- understand information about home computers, and each issue is packed with engaging features, trouble-shooting tips and first-hand product reviews. The magazine's editors and columnists are the foremost experts in education, entertainment, and productivity products for home computer users. CMP Media Inc. provides publishing, marketing and information services to the entire high-technology spectrum -- the builders, sellers and users of technology -- through print and electronic media. All of CMP's publications and online products can be accessed through the company's TechWeb+ site on the World Wide Web (http://www.techweb.com/). Print titles include NetGuide Magazine and Windows Magazine.

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SOURCE: CMP Media Inc.

CONTACT: Leslie Dunbar of CMP Media, 516-562-7040 or ldunbar@cmp.com