Turbotax redux

OK, so I've posted a few times about the virtues of the free online version of TurboTax here before. Well, no more. The free version this year appears to only be able to handle 1040-EZ type tax issues. As soon as I indicated that I have capital gains, I had to go into a paid version (hey, they had to make money off me eventually, I've been using their product free for a few years now).

However, I discovered that the interface for this year's version has become incredibly clunky and non-intuitive. After completeing the interviews and performing an automated error check (which caught a few things) I was able to view my 1040. It appeared to be incorrect, but to check it thoroughly, I needed to see all my various other forms and schedules. But to get a look at those, I had to pay up the ~$100 for the paid version I selected. I declined to pay the fee since my return looked incorrect anyway (by a lot).

As a side note, I responded to an ad in my newsreader tonight for a free online version of TaxAct. Its interface is much better and more intuitive than that for Turbotax. However, when I got to vehicle depreciation for my wife's business, it came up with a drastically different deduction than I did. I need to research further to ensure that I've got the right value, but I'm pretty certain that TaxAct got it wrong. I suspect it's confused because I used standard mileage for this vehicle in the past and I want to switch to actual costs this year. It didn't ask me if this was the case. But I still can't see how it got the value for this deduction, and I can't see the details of its calculation unless I upgrade to a paid version.

Anyone know how TaxAct makes money off of their free version? Even e-filing is free. That's how the free version of Turbotax got you, they charged for e-filing. Anyone have any other thoughts on the online version(s) of TaxAct?

Reply to
Will Trice
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Not a clue. I'm guessing it's a teaser to get you to buy the other versions of their product (including state versions). There were some rumors in the past about the IRS allowing tax preparers to sell your personal information to 3rd parties. I'm not sure that ever went through. If it did, maybe TaxAct makes money that way.

I used it this year and last. I agree with you that the interface is a lot better than TurboTax. But I think TaxCut trumps both. My taxes are pretty simple, so they're not a real test of TaxAct's robustness. That being said, I did my taxes using TaxCut both years, too, just to make sure they come up with the same number. For me, the bottom line is that TaxAct is free and includes free e-file. That sealed the deal, right there.

--Bill

Reply to
woessner

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