The latest release of the popular tax prep software includes a new automated tax return feature, which retrieves common tax information, such as wages, interest, dividends and stock transactions, from participating companies, and automatically enters the information in the correct forms in TurboTax. In addition to cutting the time it takes to prepare a return, Intuit claims the automated return feature helps reduce data entry errors.

Intuit estimates that 15 to 20 million W-2s and 1099s will be available for import directly into TurboTax forms this season. Participating W-2 and 1099 providers for tax year 2000 are: Ceridian, PeopleSoft, ProBusiness, Cititrade, Fidelity Investments, Salomon Smith Barney, TD Waterhouse, T. Rowe Price and The Vanguard Group.

Consumers can also import prior year tax information from other tax preparation software. TurboTax 1040 products (Windows only) automatically transfer last year's tax information from H&R Block's TaxCut and Microsoft's TaxSaver.

"Now that we have the technology in place, we're very focused on expanding the scope of ATR so that our vision of the 10-minute tax return becomes a reality for every consumer," said Bob Meighan, vice president of Intuit's Consumer Tax Group.

This year's version of TurboTax offers new financial management tools, such as Tax Advisor, a referral network of professional tax experts users can contact while preparing their taxes. For a fee, users can discuss their tax situation with a professional by phone, email or instant messaging.

Other features include deduction assistance to give consumers opportunities to reduce their tax liability by setting up and contributing to an IRA or by making a tax-deductible charitable contribution through links to participating organizations. Through DonateTo.com, located at www.DonateTo.com, TurboTax users can donate money to over 600,000 nonprofit organizations. Through Charitygift, found at www.charitygift.com, TurboTax users can donate to charity, or honor a friend or family member by sending a personalized Charitygift card that gives the recipient the chance to choose which charity receives the donation.

Also new this year is Quick Cash, a refund anticipation loan for tax filers who want a loan on their refund (up to $5,000 less applicable fees) in as little as two days. Fees range from $29 to $89 depending on the amount of the loan, Intuit said.

TurboTax users can file their state tax returns electronically with 38 states and the District of Columbia. Last tax season, TurboTax customers e-filed more than 5.8 million federal and state returns, accounting for more than 70 percent of federal returns e-filed by consumers via the IRS's online filing program, Intuit said.

The automated tax return feature is also included in Intuit's Quicken TurboTax Home & Business, designed for sole proprietors, and its online software, Quicken TurboTax for the Web.

Intuit said it is expanding its Quicken Tax Freedom Project this year by raising the adjusted gross income cap for free tax prep and filing to $25,000, up from $20,000 last year. Eligibility for the program is determined by users' actual tax information entered into TurboTax for the Web. The free program, accessible from www.quicken.com/freedom, applies to both state and federal individual income tax returns.

For tax year 2000, TurboTax Deluxe for Windows, which includes, via rebates, one free state program and one free federal e-file, costs $29.95 after a $10 mail-in rebate. A stand-alone state product is $29.95. TurboTax for Windows costs $14.95 after a $5 mail-in rebate. TurboTax Deluxe for Mac is $49.95. TurboTax Home & Business for Windows is $59.95 after a $10 mail-in rebate, including one free state and one free e-file via rebates. TurboTax for the Web is $6.95 for federal 1040EZ returns filed by April 1, 2001, or $9.95 for those same returns filed after April 1, 2001. The corresponding state 1040EZ return is free. All other 1040 returns are $14.95 if filed before April 1, 2001 and $19.95 thereafter. Corresponding state returns are $9.95. Electronic filing for federal and state returns is included at no additional charge.

All TurboTax 1040 software products are available now on CD-ROM and include approved IRS tax forms, which can be filed electronically or by mail. TurboTax for the Web will be available in mid-January 2001 at www.turbotax.com, the company said.

-- SmartPros News Staff

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