Why is anyone using TurboTax after it was revealed that Intuit was resorting to rootkit-esque techniques to protect their software?

You can pull that bullshit only once before I'll never trust you again.

Just go online and use a web-based tool for things like this, people.

TaxCut has always been better, IMHO...but even they have been hiking rates the last few years. But I still think it's a small price to pay (~$85-$100 for software and state/federal e-filing) for the peace of mind and electronic backup copies.

A lot of people have told me that the online version is the way to go, but I have data ownership and backup fears (probably irrational).

They're charging you to print something? Can I ask how?

I can understand why they charge for e-filing. They have to put up the servers, build the infrastructure to file tens of millions of taxes, etc. But printing doesn't use ANY of that. I spend now $60 in software that basically asks me questions and based on my answers auto-populates a PDF file. There is no additional load put on Intuit whether I file 1 or 1000 tax returns if I print them. My printer, my ink, my paper and a stamp should be the only cost after buying the software to do my taxes.

I never e-File because I'm in no rush to pay the government money faster. It looks like they'll be even more people pirating Turbotax in 09.

In 2004 or so my state let me e-file on their website for free. Now that service has been "discontinued" and they direct me to several pay services instead. Gee, I wonder what the incentive was to take away that feature?

Luckily, with Obama's commitment to bringing government services online, there could be some sunshine down the road for e-filing...

Maybe I'm odd, but I'm only 30 and I've never electronically filed. There's something oddly satisfying (yes, and masochistic) about wading through a 1040, a Schedule A, and more by hand with nothing but a pen and a calculator.

@GuJiaXian: The one big advantage to software is the ability to tweak your numbers to arrive at a desired result.

I'm NOT talking about cheating here, for the record ;)

IRA contributions are a good example, since they can be made in 2009 for the 2008 tax year. Plug in the number, see the result, and decide what you want to do.

Also, I use the software to build Excel models to predict my future tax liabilities. That way, I can tweak things throughout the year to arrive as close to break-even as possible. And since TaxCut feeds my models, I'm only a year behind any changes in tax code--and can make manual changes by reading the IRS website.

If you do more returns, you're more likely to run into a bug in their software and call their tech support lines, which costs them money. A responsible company would welcome those calls and fix the bugs, but Intuit has another view.

Costco has been systematically deleting the negative reviews of TurboTax on their site about this, but they did add info about the fee into the product description.

Even worse, though, is that the TurboTax box says that the $9.95 price is subject to change, so they can jack it up even higher later.

@chris_l:

The online places I have e-filed with have allowed you to choose a date to pay the goverment if you owe. So you can still file it in February and pay in April.

Try H&R Bloch's software, its comparable on price and utility, plus our local company needs all the help it can get.

I was a Turbotax user for a number of years, until my first cross-country move. I've found Turbotax to be incapable of properly calculating my tax break by miles driven, whereas H&R's Taxcut program handled that aspect very well. There was a difference of ~$60 between the two. It paid for itself that year.

Just something to watch out for.

I for one see their pricing as good. But then again, I always efile and do not SHARE my copy with others.

Long live Turbo Tax! (imo, I just like it better)

@YeaYuh: True. I always file on time but pay the Feds on Apr 15. And claim my state refund immediately (usually early Feb).

@GuJiaXian: Hey, nothing beats the feeling of working out something by hand by yourself. Speaking as an engineer, here.

I used to use turbo tax. It just hit my ceiling for not using it anymore. There is a place on the web where you can do his for free.
Am I wrong?

So they're getting what they deserve. Customer ratings don't lie.

Governments love e-filing because its cheap and efficient, and should be free, except of course for the stupid corporates who lobby against it.

[www.npr.org]

I used to manage the TaxCut database. The stories I could tell....

When I finally paid upwards of $90 to file with Turbotax.com a few years ago, got less automation than I had received the previous year (in the form of automatically loading brokerage transactions), and learned that a local accountant charges $100 to do it for me, I said good-bye to Turbo Tax.

Pigs get fat, hogs get slaughtered.

Also of note: Turbotax has (or had, not sure if it's still available) a free web-based option for those serving in the military, located deep in the bowels of Intuit's website.

I filed with Turbotax's normal online program the last year I was in the army.(2006) Even though I was checking all the boxes that said "active military", this free option was never presented to me while using their program. Kinda pissed me off, but to their credit they did end up issuing me a refund after I called and whined about it.

Can anyone tell me a good reason to actually BUY tax prep software anymore? The only reasons I can see are:

1. You want to utilize the "deduction manager", if applicable.

2. Your state doesn't offer free e-file.

3. You have some odd bank accounts or whatever that free state/federal/turbo-tax applications can't handle.

I use Turbo Tax on the web version but honestly, it's getting just as expensive to go to H&R Block!

I have to go web based as I am not installing software and I am on Linux. (If I have to mess with WINE to do my taxes, forget it.)

This year I will probably switch to TaxAct.

@Rhayader:

Sure they do! When a group of people react off the cuff and are irrational, ratings lie. Seems like in this case, they are only seeing the rate hike and not doing the math and seeing that it's really still not that bad.

I don't use them though, so maybe I'm missing something.

Well, at least I can e-file now since I'll be paying for it in advance. I've used Turbotax the past few years but just print and mail the forms, since I refused to pay extra. (And I owed... So mailing it on April 15th was the best way!)

So it's $60 plus another $20 or $30 for the State version? I think I paid $175 to my accountant last year and he saved me thousands of dollars. Why would anyone pay that much to do-it-yourself? That's kind of self-defeating.

@blackmage439:

The reason to buy TurboTax (for me, anyhow) is that it can automatically import all investment transactions from Fidelity.com and calculate all the ridiculous details required on Schedule D. That, alone, is worth the $90 or so it costs to avoid retyping and checking all those dates and values.

I always go to a CPA. For $60 I have to sit and chat with her for an hour and I'm E-Filed. I don't know what could be easier than that.

@chris_l: I don't get it either. I've always sent paper returns, as has everyone in my household. When I was living at home (this is a few years ago), my dad would buy one copy of Turbo Tax and use it to file returns for him/mom, me and my sister. Three paper returns - no e-filing. I don't think that's an egregious overuse of the software.

The only thing I can think is that they're charging for extra returns because of piracy, but how exactly do they track how many returns the software has run and how do they bill the additional $9.95? (If you're paper filing, you might be doing so because you're not techie enough for e-filing, so online payment is out.)

Too many unanswered questions...

You can use H&R Block's TaxCut Free File if your AGI is under $54k and you're under 50 years old.

I used that all 4 years while I was in school, and I'm just barely making it this year (I think) because I lost my job while I was in school from March to May or so.

Next year I won't be so lucky! Or... wait... I will be lucky because I will be making too much and have a job? I dunno...

@HIV 2 Elway Resurrected: Or, if you're really down with supporting local business, just find a local tax preparer. Simple filings with just a 1040 are comparable to the price of turbotax.

Do your taxes for free.

The FreeFile link links to places that will allow you to file for free if you meet certain standards.

(As an aside, this provision was brought to you by Intuit and others, who cried "unfair!" when the federal government wanted to offer free e-filing to all taxpayers. They then proceeded to overcharge customers who thought they were filing for free. You can read the court case brought against them for this practice of deception.)

In the State of Wisconsin I can file my state taxes online for free by going to their website. Many other states have the same provision.

Since I became a homeowner I've had to abandon my free e-filing. I've decided instead to use TaxAct. They were my choice for free e-filing and now I just pay like $8 for doing my own taxes. Like Intuit and H&R block they'll try and fee you here and there for some things but they're not invasive and pretty easy to ignore.

I've used HR Block Taxcut in the past, but I was really planning on using TurboTax this year. Why? Because for over 1 month, HR Block took down their website (from Oct-Dec), and you weren't able to access your account. They said it was to upgrade for this year's taxes, BUT you have NO access to your information during this time. I vitally needed some tax information for student loans back in October, and they wouldn't lift a finger to help me. There was no online help at all (no way to contact ANYONE about the product), and if you called them, they merely said the website was down and will be back in Dec. Now, their website says your information is available to you for 3 years after using the product, not "between these months". So I consider it false advertising with extremely poor customer service to boot.

I've been using a free online service from one of them turbotax or HR Block for 3 years. Haven't paid a dime and its not got me in trouble with the IRS.

I go to an accountant. My taxes are somewhat complex, and I like the piece of mind that a competent CPA gives me.

@Avery: California still let's you file on their website for free. I use that and TurboTax's Federal for 100% freeness.

@citking: I've used TaxAct for the last two years, and plan on using them again this year. You can't beat $8 for filing everything and as long as you have your stuff organized in front of you, the whole process usually doesn't take more than an hour or so. I rarely get spam or useless emails from them.

@ToniRockyhorror: I agree. I've been nothing but happy with them.

On a lark I just logged in to check on it. I forgot my password, and even getting that reset was a breeze. Their UI is nice too.

Now if only I could get my W-2s early for once :)

I just got a copy of TurboTax in the mail, unsolicited but probably because I've used it in the past. I'm self-employed, so the Home & Business version I need is $99.95 (plus another $10 to file w/the state). But the weird thing is that the mailing includes a coupon that gives me a $10 rebate if I don't use the disc they sent me and instead buy the exact same version in a B&M store. If I'm gonna spend $100, I might as well give it to a local accountant and save myself the time/grief.

@crashedpc:

Do you use your trusty slide rule for your taxes as well?

When I was a young buck, I got pwned by an old engineer and his slide rule. That was a big cup of STFU I had to swallow...

And sadly I will still be purchasing it again this year. TurboTax gets me so much tax money back, it's worth it in the end. I have used it for the last 3 years with great success.

@DeanOfAllTrades:

Yeah, for awhile I thought tax software was a great deal, but as my finances became more complex, I found it had diminishing returns. I have a rockstar accountant now and for the money he charges to do my taxes, he always seems to save me tremendously more than if I did things myself. He also discounts his service to us, as we submit our first crack spreadsheet of deductions and expenses, and all our receipts are organized to coincide with the spreadsheet.

@TheSpatulaOfLove: I wish there was a clear tutorial on how to USE a slide rule... and a place to get one. I want to wow those that shout at me to get off their lawn that, yeah, I too can play with the big boys.

@m4ximusprim3: Yeah, but then I'd have to tell the local tax preparer about my writeoffs for hookers and blow.

@Applekid: Whoo, I'm not old enough for a slide rule. I have my TI-86 that I used in high school that's at least 8 years old. For taxes, I use an abacus and lamb entrails.

@GuJiaXian: You know whats more satisfying? Doing, Filing and receiving your return in a week because you did it all over the internet.

That's satisfying.

@chris_l: I want to know how they can charge for printing also. my mom does all this tax stuff for a living. She uses turbotax at home (away from work) and does the entire family's, friends, among others. so does she now have to relay a cost to everyone? what next? microsoft is going to start charging for every word document i create? nero charges for every cd i burn? it makes absolutely no sense. I can understand a charge for efiling but for using my own printer, paper, stamps and energy to mail it? cmon now...that's just stupid.

@bravo369: I also might add that since she does taxes all the time, she flies through returns like an expert. For someone simple like me (no house, no big purchases, no big investments), she can do my return in 10-15 minutes. she has all my info from previous years so she just has to import it, update, print and mail. does that really warrant $10 for 10 minutes of work?

@Avery: What state? I remember in MA we had free state filing at first too, then sure enough, gonzo and we were "invited" to file via turbo tax for free the first year. The free part meant the omission of the $9.99 state filing fee, we still had to pay $40 for turbo tax. That was only one year, then after that they started charging again to file.

It's getting out of hand, I'm spending more on tax software than I'm getting back these days. I might as go back to the old Tele file which is still free I believe. Unless turbo tax's board has lobbied washington to get rid of that.

@GuJiaXian: Just hope you never have to deal with AMT. Then you'll be doing multiple returns at the same time to see which one you have to use.

@blackmage439:

4. Because it is fast and easy. Time is money.

5. It prints out clean file copies & also a convenient pdf file.

Good Ship Intuit: Prepare yerselves, scallywags, for a boarding afit for a right buxom dame! Batten the hatches, prepare for BOARDING!!! HAAARRRRRRRRRRRRRGHGHGGHH blah.