Sunday, March 20, 2011
Musings on Filing Taxes Electronically
Don't get me wrong, I am a big fan of TurboTax. When I buy software for $70-$80, however, I don't usually expect to pay that much again for all the functionality that I want to use in that software. Lets assume we had a word processor, how would you like to type up a full document, but then be asked to pay extra so you could print it? Absurd, right? Yet, when you purchase tax software, there seems to be this unwritten rule that the software company can gorge you for more money, because after all, they just got you $X back on your return. You buy their software, and then after they taunt you with your expected return amount, they tell you that if you want it 2-3 weeks faster, you have to pay them an extra $20-$40 to file it electronically. Additionally, if you are one of those rare people who happens to have earned money in more than one state (and thus, have to file in more than one state), (translated, about 80% of the known population), than they want to charge you another $40 or so for the additional 10% functionality that is required to add on the additional state you need. Anyway, I don't think that is a very nice way to run a software company. What do you think?
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I think tax software is a complete rip off. If I'm going to pay that much for the software, I might as well hire an accountant... or get Dad to look it over for me. XD Right now our taxes are straightforward enough to not really need tax software to do the work, and when they get too complicated for me to do myself I will likely just hire someone. Either way, I don't particularly feel like paying $100+ for something I can do myself. And paying to do e-file is rediculous - I can do that myself for free through the IRS website.
ReplyDeleteDitto! It's a total rip off. It was much better when we had a friend who could get us turbo tax for $10, at least then by the time all the extra costs added up it was about market price for the software. Not a good business practice.
ReplyDeleteRip off though it may be, it is still easier than trying to sort out which 20 forms (of the thousands of tax forms) I actually need to file in 2 states and federally. Once you have children, a house (which you may or may not be currently living in) and a decent paying job, things get more complicated.
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