Cutting Down On Tax Cut

by Patrick on March 9, 2009

0308092344So tonight I sat down to start my taxes. I usually get them done in February so I felt like I was a little behind on filing them. Of course as I gather my materials I realized I didn’t have the latest copy of TaxCut, the program I’ve been using to prepare my taxes since I had to start filing taxes.

It was 11:00 PM  so I quickly made my way to the Wal-Mart in Alexandria that was open til midnight. Everything was fine til I walked up to the software aisle in the electronics section. I found the latest copy and I experienced a little sticker shock.

$45 for tax preparation software!?!? It almost feels like a tax just to prepare your taxes! Of course it was for the premium version that included the state filing- and that’s how they get you. They charge less for the plain federal return but if you need the state (and most of us do) we have to pay extra.

Now the cost of TaxCut has gone up year after year- I may have paid $30 last year for the software; but $45 is a ridiculous price and it’s where I draw the line. At least they give you free e-file. I’ve always wanted to e-file my taxes but that was usually a costly additional charge in the past.

So I walk out of the store empty handed and I make my way back home, angry that I’ve wasted gas to go 12 miles and back. Back at home I go online to see that while Amazon has cheaper prices, they aren’t that much better. I also see that if I was angry over $45 for TaxCut- I should be livid if I wanted TurboTax Premiere- which goes for $89.

I think the guys over at H&R Block and Intuit should know that there’s a recession going on- people aren’t going to pay increased prices to prepare taxes. I’d feeling sorry for the people that pay more money only to end up owing the government more.

Luckily my sisters had answers to my problem. It appears that if you go online to either TaxCut or TurboTax you can prepare your taxes on their websites and file your federal return for free. The cost for a state return is much cheaper on their website.

So it appears that while prices skyrocketed for their software, they modeled their online tools as a cheaper alternative. While I’m happy to find a price point I can afford, I still think that the many who will go to the store, see their options, and settle for their prices are being disenfranchised. Of course I understand it’s cheaper to put the program on a website, but the cost for the software on a CD shouldn’t be that much more expensive. I can’t wait to see $50 TaxCut on shelves next year. Good thing they do have cheaper solutions or else I’d really be angry. Like The Rock Obama angry.

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  • melanie

    I’m surprised you didn’t know about the free software, that’s the way Jim and I have always done it. If you go to irs.gov they link to lots more free online systems.

    • http://www.dmbosstone.com Patrick

      I’ve always known about some of the free sites but now I’m paying more attention to it!

  • Mike Chiasson

    I used TaxAct.com I had a promo code I found online and got it for like 11.99 or something. Of course I got like 3 more random tax forms in the mail a few weeks later that I didn’t even know of so i am going to have to file an amendment, dammit!

    • http://www.dmbosstone.com Patrick

      I think I have my Tax prep plan now- I just didn’t like the fact I couldn’t get it done when I wanted to last night!

      I’ve had to file extra forms when I filed the return without signing it- it’s a bitch!

  • Amanda

    Oh Pat, $45 is not a big deal. Can’t you use it again next year anyway? (Or do you have to get a new one each year?) I am going to get my taxes done in two weeks at a private insurance agency and will probably have to pay $80-$100. But it’s totally worth it since I don’t have to do anything!! And this year is going to be very difficult since we got married and have to merge everything.

    • http://www.dmbosstone.com Patrick

      That’s where they get you- Tax preparation software are pretty much one-time use deals cause they only have the current year’s forms built in. If you think about it, with changes every year they really can’t make one you use for more than one tax year. Luckily I am lonely and single so I don’t have a complicated tax situation like you :-)

  • melanie

    @Amanda

    I also got married this year. We used TurboTax free edition, and the switch to filing jointly was actually very simple. You could save the $80-100 and have a romantic dinner instead!

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