Comments on: Free E-File Is NOT Free

By: TFB

TFB — Fri, 30 Jan 2009 03:53:07 +0000

indexfundfan – I’m waiting for my W-2 and 1099s before I enter them all into the two programs. I don’t think TaxACT imports TXF files (generated by Microsoft Money?). Maybe you can ask TaxACT customer service and see what they say.

By: Bob Meighan

Bob Meighan — Wed, 28 Jan 2009 21:29:32 +0000

indexfundfan… Here is my understanding of TaxAct’s import capabilities with respect to stock/fund transactions. Transactions tracked through Gainskeeper can be imported. Gainskeeper tracks stock prices, splits and other historical data. It is also, for most, a fee-based service. While Gainskeeper doesn’t automatically manage your stock transactions like your broker would, they do a great job based on their offering.

One of the many things that differentiates TurboTax from TaxAct is the fact that TurboTax directly imports financial transactions (like stocks, bonds, funds, W-2 info, etc.) from over 120 financial institutions. That means you press a button and all your stock transactions are automatically imported into TurboTax. Plus, if you don’t know what your cost was for a particular stock, TurboTax’s Cost Basis Calculator determines historical information (including the effect of stock splits, dividends, spin-offs, etc.) to do that for you.

While TurboTax may be slightly more expensive than TaxAct, it offers so much more to save you time, money and aggravation. In the end, the choice is yours.

I hope this information helps.
Bob Meighan
VP, TurboTax

By: indexfundfan

indexfundfan — Wed, 28 Jan 2009 20:19:08 +0000

Looking forward to see your TaxAct review. Do you know if TaxAct will import from TXF file for stock / mutual fund transactions?

By: indexfundfan

indexfundfan — Fri, 26 Dec 2008 15:51:41 +0000

Data security is certainly one big concern. Despite all the assurances, hiccups happen. The most recent one which I can recall was from last year:

http://www.indextown.com/archives/2007/04/11/private-information-exposed-at-turbo-tax-online/

Note: The link to the news article has apparently expired but the you can still read the Bogleheads discussion.

By: TFB

TFB — Fri, 26 Dec 2008 15:17:17 +0000

@Bob Meighan – I disagree with your statement saying there is insane competition in tax preparation software. At least in the desktop products, there is not much competition. There are practically two players. The 3rd player TaxACT does not even have distribution in retail stores. Neither TurboTax nor TaxCut imports TaxACT files from the previous year. Why? Because its customer base is too small to be worth the effort.

I understand the convenience of e-filing. I also care about my data security. Between convenience and data security, I choose data security. I will not e-file until I have a direct connection with the IRS.

By: DJ

DJ — Fri, 26 Dec 2008 11:04:27 +0000

It was hilarious to see TaxCut and TurboTax market spins here. I am completely with TFB. I have zero confidence in data security afforded by corporations. Convenience is nice, but not if your own identity information is on the line.
I guess I’ll just do my tax manually this year, as I did each year anyway, even with tax software. Honestly, I always found tax software failed to accommodate my modestly complicated tax situation and I have to tweak the software printouts anyway. The extra cost is yet one more reason to dump TurboTax and embrace, gasp, Microsoft Excel. I also believe each individual should do their tax anyway, just to understand all the nuances, but I guess I am in the minority.

By: Bob Meighan

Bob Meighan — Wed, 24 Dec 2008 04:14:00 +0000

TFB… The tax preparation software/service environment is insanely competitive today. We see three significant players in the software (CD) side and almost 2 dozen in the online tax space. Competition is indeed driving prices down. Already, from the start of the season, we’ve rescinded our fee for additional returns and also increased to five (from one) the number of efiled federal returns included free. Intense competition and feedback from our customers play a huge role in driving prices down.

As for those who believe e-filing is only for those who get a refund, let me offer my own perspective based on my experience. For me, e-filing is all about eliminating the hassles of printing, copying, signing, stapling W-2s, mailing, etc. When it comes to filing and paying (as I always seem to have to do), I can file anytime prior to April 15, BUT schedule my payment for April 15– all automatically from within TurboTax at no additional cost. To me that’s convenience, peace of mind, and fewer hassles. With federal e-filing now included in TurboTax, I encourage you to try e-filing.

Bob Meighan
VP, TurboTax

By: indexfundfan

indexfundfan — Tue, 23 Dec 2008 06:05:47 +0000

I don’t e-file too. Hell, if the government wants me to encourage me to e-file, they should pay me; afterall they are saving time and money on data entry.

By: TFB

TFB — Mon, 22 Dec 2008 22:40:19 +0000

David – Yes I agree that for people who are willing to use and pay for e-file anyway, TaxCut’s price this year is cheaper than last year. I still would like to see you bring back the option of federal + state without e-file. I believe there are enough people like me who don’t e-file. If TaxCut has a package option which TurboTax doesn’t have, people like me will use TaxCut.

By: David James

David James — Mon, 22 Dec 2008 22:27:32 +0000

I just saw your posting and wanted to respond. Yes, the cost of TaxCut Fed+State+e-file for 2008 is $49.95. However last year TaxCut Federal+State+e-file was $69.95. This year we eliminated the inclusion of state e-file and lowered the product price as many people choose not to e-file their state return. For those people, they actually save $20 from last years price.

Also the Federal+State+e-file product this year now includes 5 free federal e-files and it includes a 1-1 consultation with an H&R Block tax professional, should you have questions.

The TaxCut product line-up also includes Basic for just $19.95 which also includes 5 free e-files.

David James
H&R Block TaxCut