I've used TurboTax on the web every year for the last 11 years. It is a really powerful solution that works with all the situations a person who is not a bazillionaire is likely to encounter. It asks yes/no questions to cover everything including self employment, foreign taxes, and a lot of other stuff. My mom, the CPA, always tells people to just use TurboTax.

The thing I like about the web version is that TurboTax stores my tax returns and prepopulates applicable thing s into this year's return from last year, which saves time. TT will also, as noted, import from a variety of employers and financial institutions.

This year, TT saved me about $3000 in taxes by informing me that Illinois allows the deduction of 100% of my Roth IRA conversion - I ordinarily would do the Illinois taxes by hand since they are so simple.

You can start a tax return for free - you only pay when you choose to print the forms or e-file.