H&R Block TaxCut Online Premium + State + E-file

H&R Block TaxCut Online Premium + State + E-file 2007, the Web-based version of H&R Block's venerable tax-preparation program, is a convenient alternative to its desktop sibling, although the latter has a superior interface and tools. We reviewed the $45 edition of TaxCut Online Premium + State + E-file, which includes federal and state e-filing fees. We recommend this edition unless you want to manage a state return separately, because TurboTax, on the other hand, charges up to $30 for state filing.

Other online editions include the $80 TaxCut Online Signature, which offers assistance from, and your return signed by, an H&R Block adviser, for about half the going rate of getting an accountant in our area to do all the work. TaxCut Online Office starts at $100 and walks you through most of the process with a tax professional. This year, H&R Block introduced Tango, a new Web-based tax-prep service. Although it includes 24-7 technical support, we find its $70 fee a bit steep. The Web-based tax-preparation options are a better deal for one person only. The desktop application, on the other hand, costs slightly more but can be used by multiple members of a household.

It's too bad that TaxCut Online leaves out H&R Block's $20 DeductionPro, a utility that determines the fair market value of noncash charitable contributions. TurboTax, by contrast, offers It'sDeductible. TaxCut works in most browsers, including Internet Explorer 6 and Firefox 2 for Windows 2000 or newer. Mac users can use the tools within Safari 2 and Firefox 2. Once you create a username and password, you're ready to start.

TaxCut Online Premium largely mimics the new, green-and-gray tabbed interface of its desktop counterpart. The Take Me To button jumps to a menu of topics in the order you answer them. TaxCut offers a streamlined tax interview that fills in the tax forms behind the scenes. The online version reduces the number of clicks you make by combining two related interview segments onto one page. We also like that it transfers federal data into your state return. So, what's the big deal? It saves time when you're spending hours filing a complex return. TaxCut Online logs you off after several minutes of inactivity, which is a good security feature, particularly if you're doing your taxes at work (which, ahem, we don't recommend).