Purchase a new version of Tubo Tax each year?

Question

I've read that you must buy a new version of turbo tax from one year to the next. Is there another tax software product on the market that allows you to import the latest tax laws and deductions for a minimal fee each year?
I think it is ridiculous that Turbo Tax charges you for a whole new product each year. I know accountants that charge $50 to file a tax return for an individual. What benefit is Turbo Tax if you can get better service and quality from an actual person.

Answer 1

If you are using the software to do your taxes.. you can easily use the online free version of Turbotax for your federal if you know what you are doing.. or you can pay additional fees for guidance. I wouldn't purchase the new software every year, because I agree, it is a waste of money. Like said above, no software offers just downloadable updates.. tax laws change every year and tax calculations, exemptions and credits are different amounts.. so new software would need to be purchased.

I prepare taxes privately and charge $50, but that is only for clients that use 1040-EZ.. otherwise, my fee is $100.. still VERY low. Most charge around $150-$200 per return.

Best Wishes to you.

Answer 2

All of the tax prep software requries a new version every year. That's not unique to TurboTax; all of them are that way.



While it's possible from a technical standpoint to simply publish an update each year as tax laws change, the cost of those updates would be the same as buying a new version of the software. The software companies have to pay their programmers and turn a profit. There would be little or no difference in their costs publishing an update or releasing an entirely new version. In fact, given the complexity of software and the tax code, publishing an update could easily cost MORE than simply releasing a new version every year.



An accountant who only charges $50 to do a tax return is probalby doing an extremely simple return for a long-time customer. Most start at around $125 for the simplest returns and go up from there as the returns become more complex.

Answer 3

Only high-end tax softwares offer periodic or annual updates (ie: Lacerte, Gosystem Fasttax, Insource and CCH prosystem). The initial purchase price for those softwares are in thousands or even tens of thousands with subsequent annual subscription fees. Therefore, the companies that make those softwares can afford to send updates quarterly or annually because they have already pocketed a hefty payment upfront and continue to receive payment on a yearly basis. Unlike turbo tax, those softwares are for professionals and are written to handle complex transactions. The tax laws are changing every year and one minor change may affect how data flow from one form to another tremendously.



For turbo tax to make money and be able to pay the high salaries of programmers and the people to interpret the tax laws, they have to charge consumers for a new product each year, rather than a small fee to get a patch to update.

Answer 4

Depending on your tax situation, you might not need all the services that an accountant brings to the table.



If you're like the majority of people whose tax situation is fairly straightforward then, a tax software package is all that you need.



And, the reality is, you don't have to use TurboTax or any other software package. Just print out the forms and do it by hand. Or, use one of the many online free packages.



That's what's great about having choices. You can choose the one that best fits your situation.

Answer 5

As far as I know, all tax software charges you for a new product every year. Tax forms and laws change every year, and these companies have to update their products to make them accurate.



If you can find a tax accountant to prepare a return for $50, that's a great price. Doesn't necessarily mean he will be more accurate though.

Answer 6

I don't know of any software that just allows you to download updates. Selling new ones each year is how they make their money, you know.



And good luck finding an accountant to do your return for $50.