I appreciate so much about Dave Ramsey’s baby step method, but what does he think about tax preparation services?
Imagine that Dave Ramsey has something to say about tax preparation services. When it comes to tax preparation, the default response of most people is to panic, raise their two fists, and swing. If you’re part of the crowd that has a similar reaction to tax preparation, then the probability is high that you’re considering opting for tax preparation services. However, before taking a dive into the world of searching for help, it’s best to properly ruminate on the decision you’re about to take to ensure that it offers the solace you seek.
A proper way to illuminate the efficacy of Tax Prep services is by considering the opinions of authorities on the topic. A highly renowned voice on this topic is Dave Ramsey, and he expressly exemplified his support for Tax Prep Services by endorsing numerous tax preparation service professionals.
However, opting for a tax prep service puts you at a crossroad of choosing between some of the two most prominent online Tax Prep services. Two prominent options that you’ll most likely be left to choose from will be the generic TurboTax, and Dave Ramsey’s very own SmartTax.
What is Dave Ramsey’s SmartTax?
SmartTax is a technological solution created by Dave Ramsey with a method of operating that goes beyond e-filling for individuals with a straightforward tax situation. Other than assist users to accurately file their tax, Ramsey’s SmartTax also offers a highly relevant guide that can educate and empower customers on how to reach their goals.
As an inspiration to start SmartTax, Dave Ramsey says that he noted the difficulties of some individuals that don’t require the service of an endorsed local provider. As such, his company’s team of experts partnered with TaxSlayer to create an effective tool for that target market. Ramsey explains that their partnership with TaxSlayer has given his company the opportunity to guarantee their clientele optimum customer satisfaction.
SmartTax is created to assist do-it-yourself filers on how to make decisions that’ll leave their finances in a more favourable state. It’ll also enable them to enjoy the full benefit of Dave Ramsey’s wide-range knowledge of personal finance through the intuitively structured user interface.
The securities of its users are extensively considered as the platform is built to protect users’ data in the most technologically intuitive way possible. The cost of using the platform is $17 for a standard federal filing, while state filing costs $32. Premium federal filing on the other hand costs $37.
What are SmartTax reviews?
Sampling the opinions of people on SmartTax shows that it has a highly polar perception among users. While some users find the solution completely useless, a wide range of users see it as something that’s very helpful. Most users on Reddit find it highly similar to other online platforms like TaxCut, TurboTax etc., but those that desire to align their finances with Ramsey’s ideology find it appealing. This is reflective of the fact that this solution is tailored to satisfy individuals with a penchant for Dave Ramsey’s teaching.
SmartTax vs TurboTax
Dave Ramsey believes that you should first understand the difference between smart tax and turbo tax. Here are some differences he pointed out:
1. Ease
Users of both TurboTax and Ramsey SmartTax believe that it helps to simplify tax e-filing. Both are designed to guides users with a step-by-step process on how to complete their tax returns. Both software will ask you to enter mortgage information, health insurance, dependents and W-2s. Once details have been entered, both apps help to figure out your IRS figures.
You can prepare and create a W-2 form online for a more accurate result. Generating the form online will give you the ease of doing things. It helps you speed up the computation of your taxable compensation. Also, the taxes withheld from your paycheck will be easily reflected, including your other income, if you do it over the web.
The two apps will let you know the stage you are in when filing. However, SmartTax offers only three steps to complete the task. The first step is the preparation step, then the saving step. The last step is the e-file step.
2. Reliability
It’s important to have a trusted e-filing system that you can always count on for your taxes. This criterion is one that both TurboTax and SmartTax performs well at. However, the SmartTax solution goes the extra mile to partner TaxSlayer, a company that has over 50 years of experience in tax returns.
3. Affordability
Ramsey SmartTax is more affordable than TurboTax. The Federal Classic version for Ramsey SmartTax costs 17$ to file federal tax + 32$ to file state tax. The solution’s Federal Premium version on the other hand costs $37 to file federal tax and 32$ for state tax. That’s all users are required to pay.
TurboTax offers a free entry-level that’s not accessible to its majority of users due to their complicated criteria. To qualify for the free-entry level, a user should not be a homeowner, must make less than $100,000 annually, and must have a dependent and/or W-2. While that’ll be helpful to a certain group of users, a significant majority of users have to pay over $60. However, it’s not simply $60. What do I mean by that? Take a look at the price transparency comparison below.
4. Price Transparency
SmartTax is pretty transparent. Whether you opt for the Federal Classic or Federal Premium option, your payment is fixed and well communicated to you.
The real cost of e-filing on TurboTax is difficult to pinpoint. Most times, the platform won’t communicate the cost to you as extra forms are added according to your tax predicament. Most users begin at $60 and get bumped to the $80 plan after some clicks. Filing your tax is generally a complicated procedure; you don’t want to opt for a platform that further complicates things.
5. Protect your financial goals
e-filing your taxes is a delicate process as it can impact your life negatively or positively. You want to use a platform that protects your financial details from scammers and fraudsters, but it should also help reach your financial aspirations.
One demerit with using TurboTax is its lack of a full-proof system to protect customers’ data. Also, TurboTax directly sells information of its users to private lenders and credit card companies. SmartTax on the other hand does not engage in any of these.
What are tax preparation alternatives to SmartTax and TurboTax?
TaxAct is particularly designed to help file simple taxes, and it can be effective in filing complicated taxes if the user has apt knowledge of the features in the software.
FreeTax USA: This is a relatively new software that boasts of an impressive 7 million returns filed. It is easy to operate, and it contains all features that are needed to file a simple tax.
H&R Block At Home: This tax filing solution comes with audit defence services and robust customer support. The software is easy to use and is designed to help with simple tax processes.