9 smartphone apps to help with taxes

By Michelle Crouch

Paying Uncle Sam may be a little easier this year, thanks to a flood of new and improved tax apps for your smartphone.

You can estimate your taxes, track charitable donations, check the status of your refund, find the answer to a tax question and, yes, even file a simple tax return from your smartphone. For a second year, both H&R Block and TurboTax have apps that allow taxpayers to file a 1040EZ from their device.

Reaching on-the-go consumers has become imperative for companies, including the tax industry, as smartphone adoption has grown, said Clark Fredricksen, vice president for communications at eMarketer, a digital marketing research firm. "Many consumers, especially younger ones, are used to doing everything on their phones," Fredricksen said. "Some don't even have a desktop anymore, maybe they have a tablet instead or they only use their computer at work."

More than half of U.S. mobile subscribers owned smartphones in 2012, and two out of three Americans who acquired a new phone chose a smartphone, according to a 2012 Nielson report.

Younger consumers are especially comfortable using technology to handle financial matters. A 2011 Intuit survey found that 48 percent all Generation Y consumers already used their phones for mobile banking, and that's who H&R Block and TurboTax are trying to reach with their filing apps.

"We're targeting people age 18 to 35, who are just graduating from college or in their first job, and who are very comfortable using their phones for this type of thing," said Chris Jackman, senior product manager for H&R Block. "We expect to see a big increase this year in the number of people using it."

Even if you don't qualify for on-the-go filing, apps can still help simplify tax time.  Samson Adepoju, a public relations manager in New York City, said he used TurboTax's SnapTax to take photos of his W-2 and other tax forms, and then transferred the information to the firm's online software, which he used to finish his return. "Instead of typing everything in manually, I took a few pictures," he said. "It definitely saved me time."

Here are a few tax time tasks you can do with your smartphone, and a sampling of apps that can help:

1. File your taxes
The apps from TurboTax and H&R Block are free to download (you may pay an e-filing fee), but they're not for everyone. If your income is more than $100,000, you own a home or you plan to take advantage of credits and deductions for items such as tuition payments and charitable donations, you'll need to find another way to file.

TurboTax's app is slightly more sophisticated, and it allows you to file if you have dependents, while H&R Block's doesn't. But H&R Block's filing fee is lower.

The coolest part? Both apps ask you to snap a photo of your W-2 and then use it to auto-fill much of the information on your tax form. The tool can be a little finicky, though, so make sure you double-check the details it enters. Then answer a few questions, pay the filing fee if necessary, push a button and --  voila! -- you've filed your taxes.

TurboTax SnapTax
Cost: Free, $24.99 to e-file federal and state taxes
Platform: iPhone, Android
Details: Promises to get your taxes done in 10 minutes. Even if you don't qualify to file taxes with the app, you can still use it to take pictures of your W-2 and 1099-INT forms and transfer the information to TurboTax's online software, saving you from typing it in. 

H&R Block 1040EZ
Cost: Free if you file by Feb. 15, $9.99 to file federal and state taxes beginning Feb. 16
Platform: iPhone, Android
Details: Asks you a few qualifying questions and then walks you through the process. For $4.99, you can also import your W-2 and other personal information directly from your employer instead of taking a picture of it. If you don't qualify to use the app, you'll be directed to the firm's website, where you can find an H&R Block office and make an appointment or use the online software.

2. Estimate your taxes or refund
If you're wondering how big your refund will be or how much you'll owe this year, apps from TurboTax, H&R Block and Jackson Hewitt can give you a ballpark estimate. Before you start, make sure you know the amount of tax withheld from your pay, which you can find on your pay stub.

TaxCaster by TurboTax
Cost: Free
Platform: iPhone, Android
Details: Reviewers have found this app's estimates to be pretty accurate, and it's also among the easiest to use. Another nice feature: If you use TurboTax to do your taxes, it tells you which version you need.  

3. Track your refund
After asking a few basic questions, different apps can keep you posted on the status of your tax return and predict when you can have that cash in hand.

IRS2Go
Cost: Free
Platform: iPhone, Android
Details: The official app of the Internal Revenue Service. You'll need your Social Security number, your ZIP code and the amount you expect your refund to be. Even though this app still says to enter information from your 2011 return, reviewers say it works if you enter your 2012 information. You can also use the app to have your tax return transcript mailed to you, or to get tax tips and the latest IRS news.  

MyTaxRefund
Cost: Free
Platform: iPhone, Android
Details: Another app from TurboTax. You can use it even if you didn't use their software to file your taxes. Connect it to your online Intuit Mint account to be alerted when your refund check is deposited at your bank.

4. Find an answer
Get instant answers to thousands of tax-related questions organized by category.

AskaCPA
Cost: Free
Platform: iPhone, Android
Details: If you don't see your question in the archives, you can submit it and a local CPA is supposed to answer it for free. Unfortunately, there's no guarantee of a response. (We didn't get immediate responses to two questions we submitted.)  Still, the information in the archive alone is so thorough it's worth the free download.

5. Track your expenses
The IRS requires you to keep business receipts for at least three years, but that can add up to a lot of paper -- not to mention a mess to dig through at tax time. Instead, try an app that lets you use your smartphone's camera to take photos of receipts and create an organized digital record.

Shoeboxed
Cost: Free for up to five receipts a month; pricing plans starting at $9.95 for 50 receipts a month.
Platform: iPhone, Android
Details: Snap a picture of your receipt and Shoeboxed creates a file with the date, total, payment type, store and category. You can export the data from your smartphone directly to Excel, QuickBooks and other programs.

Expensify
Cost: Free for up to 10 receipts per month; then 20 cents each
Platform: iPhone, Android, Windows Phone, Blackberry or WebOS (Palm)
Details: In addition to scanning and digitally storing your receipts, this app also lets you track miles and hours worked. You can then email yourself or a tax professional a report of your expenses right from your phone or upload everything to QuickBooks.

6. Track and value charitable donations
Having a tough time remembering everything that was in that bag you left at Goodwill and estimating what each item might be worth? Use an app to keep a running tab.

iDonatedit
Cost: $2.99
Platform: iPhone, Android
Details: This app tracks the noncash items you give to charity, with the option to attach a photo of each item. Once you give your item a category and a grade (good, better, best), the app offers a suggested value, which can be helpful since most of us don't know how much a 3-year-old pair of pants is worth. You can also record cash donations. Then you can email your donation reports to yourself or straight to your accountant.

See related: Refund anticipation loans live on in new disguises, 11 options for filing tax returns for free

Published: February 12, 2013

	Three most recent Innovations, features, new products stories: Peer-to-peer loans catch on for credit card debt consolidation – Peer-to-peer loans -- made by individuals to other individuals -- are booming as a debt consolidation tool. Though they can be a deal, they aren't for everyone. Here's how they work, what to expect ... 10 ways to get more from your credit card through social media – Social media channels such as Twitter, Facebook and YouTube can help you resolve problems, find perks and maximize the benefits you get from your credit cards ... Carrots offered, sticks abandoned: Card issuers lure late payers – If you run a balance on your credit card and even maybe pays late sometimes, credit card issuers would like your business. To lure you, they're offering rewards for paying on time and reprieves from late fees ...

	CreditCards.com's newsletter Did you like this story? Then sign up for CreditCards.com’s weekly e-newsletter for the latest news, advice, articles and tips. It's FREE. Once a week you will receive the top credit card industry news in your inbox. Sign up now!