I am not too familiar with turbotax, but I assume it can handle 95% or more of all tax computations and those they can't do, they probably advise the buyer. I assume they have prompts to ask you various questions to optimize various things like first year expensing of property for faster write offs, luxury auto rules, which apply to all cars, small trucks, etc, etc, ad nauseum.

The question about using canned software is how much the user knows about the law, what is income, what is deductable, etc.

Keep in mind that Congress passed a bill late in the year which extended the
life of some provisions which had expired at 12/31/05. (various deductions)
Only problem was, the IRS had to put the forms to print before the law was passed! Now, they are playing catchup to inform the world about how to code deductions onto certain lines to claim the re-inststed deductions.

Don't forget the telephone tax credit--for personal & possibly for Sch C also.

Brian is correct: lost or uncollected income from customers is not deductable by cash basis taxpayers, (you're not a doctor are you?)

Single member LLC's are disregarded entities for federal income tax purposes, meaning it (the LLC) files a Sch. C, E or F on the member's 1040.


Under no circumstances would I advise you to file your return manually, meaning doing it by hand. Way too many chances for error.

For those who want to efile and don't want to use a paid preparer or buy a canned program, the IRS and commercial software vendors developed a freefile program for taxpayers to use. It's free filing if your income is below a $$ 52,500 level and there is a charge for filing if income is higher.
Info on that program is here.

http://www.irs.ustreas.gov/efile/article/0,,id=118986,00.html

Good luck.