Taking TurboTax, TaxCut and TaxAct for a test drive

— -- Time flies, unless you're circling O'Hare Airport, stuck in traffic or waiting for your tax software to install. But taxpayers who persevere can prepare taxes for a fraction of the cost of hiring a tax preparer. And if you file electronically, you can get your refund in about 10 days.

How much you'll save depends on the software program you buy. Prices range from more than $80 to less than $20. The doggedly thrifty can even prepare and file a federal tax return for free (see box).

Many do-it-yourself taxpayers stick with the same software program for years. But in these tight-fisted times, it's important to weigh the virtues of software programs against the costs. In our annual test drive of tax software, TurboTax was again the winner, offering superior navigation, clearer instructions and more useful import features. But its competitors are worthy of consideration, because they do a competent job at a lower cost. Here's what we found:

TurboTax

TurboTax is the Lexus of tax software programs, with legions of longtime users. The program is easy to navigate and allows users to import W-2 and investment information from more than 100,000 participating employers and financial institutions.

Users who want a lot of hand-holding can get line-by-line assistance by selecting "Guide Me." Experienced users can shorten their journey by clicking on "Select Specific Topics."

Some users may be annoyed by frequent suggestions that they should upgrade to a more expensive version. One of our testers said the Premier program was so comprehensive — it helped him calculate depreciation on a computer, for example — that he saw no need to upgrade to TurboTax Home and Business, despite repeated reminders that he should.

In the past, some users were surprised and dismayed to discover, after they finished their return, that they had to pay an additional fee to e-file. This year, the price for TurboTax's desktop products includes the cost of e-filing your federal return. However, you may still need to pull out your credit card if you want to e-file your state return. For example, with TurboTax Deluxe, you can prepare your federal and state return, and e-file your federal return, for $59.95. However, e-filing your state tax return costs an additional $19.95. That brings the total cost of preparing and e-filing federal and state tax returns to nearly $80.