Sure, the H&R Block answer service is a marketing tool to advertise their services. However, browsing the web and iPhone app, you can quickly see how useful the service is, whether you need the company’s tax preparation services or not.

Both the website and iPhone app formats for the Q&A service work in similar ways, but I prefer the iPhone app as the easier and less cluttered of the two formats.

One of the features of the iPhone app is the 30-second quizzes about tax issues and common IRS tax questions. Here, try this sample quiz:

1. Can your business deduct the cost of gifts to your clients? Yes/No
2. You don’t have to live in your home when it’s sold to qualify for the capital gains exclusion? True/False
3. Capital gains tax is on the appreciated value of an asset such as stock. True/False
4. You can deduct the mortgage interest for 2 residents at a time. True/False
5. As a volunteer, is the value of your time or service deductible? Yes/No

(See correct answers at the end of this article.)

The main part of the app of course is the Q&A, which consist of three parts: Recent and Popular IRS tax questions, and questions and answers broken down into categories. The last section is for you to ask your own questions, which requires a sign-up and log-in.

Many of the questions I read were very typical and practical for most tax payers. Questions range from, “How do I fill out my taxes if my spouse passed away in 2009?” to, “I am currently buying a home. I am a first time homebuyer. Can I get the homebuyer tax credit for my 2009 taxes if I’m buying the home in 2010?”

All IRS tax questions are answered by H&R Block experts, and each answer is typically no longer than a paragraph or two. And the answers don’t end in a sales pitches to have H&R Block do you taxes for you.

Questions and answers are also broken down into categories which include: Deductions & Credits, Work, Education, Real Estate & Rentals, Small Business, Retirement, Product, Investments, and Miscellaneous.

Finally, there’s a Glossary section that defines tax terms such as Accounting Period, Annuity, Casualty Loss, Child Tax Credit, Dividend, Hardship Withdrawal, etc. Of course, the app also includes information for contacting local H&R Block offices, including locations and maps, and the tax preparation products the company sells.

In addition to Q&A”˜s, the web format includes Tax Tips & Calculations, and a few blog posts which seem pretty new to the site. There are no blog archives for years prior to 2010.

Unless you’re a business or have complicated tax return issues, most tax returns can be completed without hiring someone to do the job for you. H&R Block”˜s Q&A iPhone app and website might well be adequate for your needs.

So do you complete and file your own tax returns or do you hire someone? What resources do you use to get taxes done?

Answers to quiz: 1) Yes 2) True 3) True 4)True 5) No

To make matters worse, it’s a recession out there so work is getting thinner on the ground. Not many of us can afford to, or want to hire, an accountant to take care of the books. I struggled with ledgers and taxes until I discovered a piece of free accountancy software that does it all for me ““ TAS.

TAS Basic, to be more precise. This is aimed at self-employed people, small businesses and start-ups. It’s incredibly easy to use. And when I say “˜easy’ I mean animated instructions, pictures and tutorials that will still result in professional-looking accounts ready to be filed away.

Firstly, download TAS Books basic for free here.

When you have completed the download and the software is installed correctly, start the program for the first time. Initially, you’ll be asked for information such as your various current and savings accounts etc. (Don’t worry, the actual account numbers are not required so there is no security risk). Once you have set up these accounts and entered in the current balances you can begin using this free accounting software.

The home screen consists of basic financial information and the toolbar which runs across the top. Say for example, you just sent out an invoice to a customer. Click “˜Customer‘ in the toolbar and “˜add’ the customer. Then, select “˜Customers‘ from the toolbar again and enter in the invoice. TAS will record them as a creditor.

When they have paid the invoice, simply click on “˜Bank‘ and select “˜Moneys in‘ and enter in the invoice number. The amount is then added to the bank and taken away from the creditors account. Simple. Your current financial information is recorded on the homescreen as seen below.

This basic process of entering in information is also applied to suppliers where you owe them money. It works right across the board by using basic reference numbers to keep track of invoices, bills, payments and interest rates.

VAT (and its equivalent in other countries) which many self-employed people and businesses are required to keep track of is also accommodated for. This can be set up very easily by entering in the percentage rates after clicking “˜VAT’ in the toolbar. From then on in, any purchases and sales made will have their VAT recorded so you can claim it back from the tax authorities and also pay your own VAT bill accurately.

What I liked most about this free accounting software was how all this simplicity of entering in basic numbers into easily identifiable forms with pictures and explanations, is transformed into good accounts that wouldn’t look out of place on the desk of an accountant. From the screenshot, you can see that by simply selecting which kind of account you want to see such as “˜Profit and Loss‘ or “˜Trial Balance‘, TAS will take all the information on its database and creates your accounts in seconds which can then be printed out.

For me, this software has saved me time, money and has significantly brought down the amount of errors I make during the year doing accounts (which as anyone who is self-employed will tell you happen a lot). There is nothing more frustrating that sifting through a year’s worth of paperwork to find one misplaced digit or decimal point!

One other thing I feel I have to add is that the TAS team are the best I have encountered. A few days after I downloaded their software I was relaxing when I got a call. I answered and a friendly woman introduced herself as being from the TAS team. She wasn’t calling to ask me to upgrade ““ rather she wanted to know how I was doing. A smile erupted on my face and I was really taken aback by this. Never, in my lifetime, has customer service called me to ask if everything was going okay and if I needed assistance with anything at all.

If you need software for free, to do high-quality accounts for you and your business then look no further than TAS.

The only piece of advice I feel compelled to give is to breathe deeply in the beginning and take it slow. When creating customers or suppliers for TAS, do so with care as you’ll have to use them in the future. The first couple of days using the software should be done so slowly ““ but after that you’ll surely haven gotten to grips with it and be easily creating great accounts for yourself. And if you do mess up, you can always use the “˜Restore’ function under the “˜File’ menu.

What free accounting software do YOU use and why do you prefer it?

TaxACT offers you the choices for filing your federal return. You can either do it online or with a free downloadable version. To file tax return online, just visit TaxACT and click the Start Free Return button.

If you would rather download the program and do it locally on your computer, you can visit the TaxACT 2008 software page. The downloadable version is only available for Windows, so if you are on OS X or Linux you’ll have to use the online version. The downloadable version is about a 12.6MB download.

The online and downloadable versions of TaxACT work very similarly. Both will go through a simple, albeit lengthy interview process. US tax forms tend to read much like computer programming languages, but TaxACT simplifies the process by asking simple questions in plain English.

If you do happen to be a computer programmer or perhaps you still prefer to do things the old fashioned way, you can directly input information into the actual tax forms with the downloadable version.  Just click on the Forms button just below the menu bar. You’ll see a list of every tax form in a tree on the left side, and you can select which ever one you want to use.

The online version also has a forms button, but it works a little differently.  When you click the Forms List button on the online version, you’ll see a tree similar to what you see in the downloadable version.  Once you select a form, you have the option to print it or review it.  When you click Review, TaxACT online takes you to the point in the interview that pertains to that particular tax form.

Both the downloadable and online versions offer a free e-File option. e-File is a safe, fast, and easy way to file your tax return. I’ve been doing it pretty much as long as it has been offered and have since never done it any other way.  Using e-File and requesting your refund via direct deposit is the fastest way to get your refund.

If you prefer not to e-File, you can simply print out the tax forms and mail them in.  One thing I find somewhat odd is that the free downloadable version will allow you to print the return, but it will not output to a PDF (the downloadable pay versions will output to PDF).  However, the online version generates a PDF for you to print out.  If you want a PDF of your return and you’re using the free downloadable version, you can use PDF Creator or some other cool PDF tools to save your return to a PDF.

TaxACT also offers pay versions (Deluxe for $9.95 and Ultimate for $16.95).  If you want to use it to file your state return as well, you’ll have to purchase the Ultimate version.  If you’re like me and are fortunate enough to live in a state without state income taxes, you don’t have to worry about filing a state return.

So what’s the catch?  Well, when you’re ready to file your federal return next year, TaxACT will offer you the convenience of importing your info from the previous year’s return. I used TaxACT for free the first year I used it.  However, in subsequent years my apathy for doing my taxes got the best of me and I have since been paying to import my info from the prior years.

TaxACT is a great and simple way to do your own taxes for free. What free software do you use to fill your tax return?