With tax season upon us, many people are currently in the market for tax software. Such software can save countless hours in tax preparation and is the option most people with computers prefer. Tax preparation can be a hassle because of all the complicated paperwork involved, and hiring a tax professional can get pricey. Take a look of our comparison of the two most popular tax software products after the jump.

There are a lot of tax software products out there. This site has a good overview of all the different choices available. For the sake of keeping things nice and simple. this review will only take a look at the two most popular: TurboTax 2007 and H&R Block’s TaxCut 2007.

TurboTax 2007

There are several versions of TurboTax out there. The one most people need is TurboTax Deluxe Federal + State 2007, which takes care of your federal and state tax preparation. It works on the PC and Mac, and is available in both boxed and download form. It will fill out all the common tax forms for you, and help you identify situations or events that might change your tax payment. For instance, if you sold your house or donated to charity, the software would figure that in. It might even find exemptions you didn’t know you qualified for. The interface has been improved in this year’s TurboTax, and if you wish to e-file, will now do that for you also.

Price- $39.99. It can be bought here.

H&R Block TaxCut 2007

This tax software is a bit less expensive than TurboTax and has many of the same features. The most popular version is H&R Block TaxCut 2007 Premium Federal + State. It is available for PC & Mac, and can be bought in a box or downloaded for the same price. TaxCut is more geared towards novice users, while TurboTax is preferred by people who are more familiar with filing taxes. Either piece of software will suit the average user. One issue with TaxCut is you must pay to update it yearly if you wish to continue using it.

Price- $34.99. It can be bought here.

Conclusion

Either product works fine. Both handle the same forms, work on the same operating systems, and can be downloaded over the Internet if need be. If I had to pick one, it would be TurboTax 2007. Taxes are important things you shouldn’t skimp out on, so don’t skimp out on your software. The idea of having to pay yearly to use TaxCut isn’t very appealing, and TurboTax has been around longer. When choosing between the download and box versions, get the boxed version. If something ever happens to your computer, you’ll already have a backup ready to go.