The Backup feature in ATX saves your tax return and associated data in an archive so you may access it if you have a computer failure or other loss of data. The Restore feature enables you to replace the lost data on your system, assuming the data was backed up.
It's important to know the differences between Backup/Restore and Export/Import. See Backup vs. Export.
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Using a third party back product such as (Carbonite, Mozy, Backblaze, or Amazon Glacier) may require you to change your backup location to a location the third party product can access. See Changing Your Backup Location.