This year, TurboTax made the same changes to the software it sells in stores. Loyal customers started complaining, loudly, when they realized they'd bought the wrong box. Almost 1,500 negative reviews were posted on Amazon, and H&R Block saw its opening: it made its tax prep software free to anyone affected.
TurboTax apologized and is offering deluxe buyers $25. “While we made the best long-term decision, our good intent was not matched with good execution," says Julie Miller, a spokeswoman for Intuit Inc., which owns TurboTax.
Comparing Online Free Editions:- What it didn't apologize for was the fact that the reclassification simply makes it harder to compare prices. The three major players online – TurboTax, H&R Block and low-cost TaxACT – each divide their tax prep services into different buckets. Here's how it breaks down.
TurboTax does offer one bargain. For a limited time, people with very simple taxes – using 1040A or 1040EZ forms – can file for free. That includes a state return, which competitors' "free" options charge for. This is an effort to grab more share in the slow-growing tax prep market, Oppenheimer & Co. analyst Scott Schneeberger says.
Comparing Download Editions of TurboTax, H&R Block, and TaxAct
Just when you thought things couldn't get more complicated, each company offers a downloadable version of their software. This is designed for people who want to do their taxes while NOT being online. This is a more expensive way to go, and the pricing is very different from the online versions for many of the companies.
An in-person preparer, meanwhile, will cost $200 or more. Last year, the U.S. Government Accountability Office went incognito to 19 tax prep offices. In one scenario, a “waitress” was charged fees ranging from $160 to $408. A fictional “mechanic” was charged $300 to $587.
Comparing Online Premium Editions
One more tip: File early. The earlier you file, the cheaper it tends to be. (The IRS started accepting returns Jan. 20.) Early filers tend to be lower-income Americans getting big refunds, and special offers aimed at them, like TurboTax's entirely free returns, often disappear by late February, Mr. Schneeberger says. Prices jump again in the last week of March. Procrastinators, don't say we didn't warn you.
Once again, TaxAct is the lowest priced option when it comes to small business editions - and the increase in savings keeps growing with each version! If you are looking to file a small business return, check out TaxAct Freelancer as the lowest priced option.
COMPARING PRICES OF TURBOTAX, H&R BLOCK, AND TAXAC
TurboTax apologized and is offering deluxe buyers $25. “While we made the best long-term decision, our good intent was not matched with good execution," says Julie Miller, a spokeswoman for Intuit Inc., which owns TurboTax.
Comparing Online Free Editions:- What it didn't apologize for was the fact that the reclassification simply makes it harder to compare prices. The three major players online – TurboTax, H&R Block and low-cost TaxACT – each divide their tax prep services into different buckets. Here's how it breaks down.
TurboTax does offer one bargain. For a limited time, people with very simple taxes – using 1040A or 1040EZ forms – can file for free. That includes a state return, which competitors' "free" options charge for. This is an effort to grab more share in the slow-growing tax prep market, Oppenheimer & Co. analyst Scott Schneeberger says.
Comparing Download Editions of TurboTax, H&R Block, and TaxAct
Just when you thought things couldn't get more complicated, each company offers a downloadable version of their software. This is designed for people who want to do their taxes while NOT being online. This is a more expensive way to go, and the pricing is very different from the online versions for many of the companies.
An in-person preparer, meanwhile, will cost $200 or more. Last year, the U.S. Government Accountability Office went incognito to 19 tax prep offices. In one scenario, a “waitress” was charged fees ranging from $160 to $408. A fictional “mechanic” was charged $300 to $587.
Comparing Online Premium Editions
One more tip: File early. The earlier you file, the cheaper it tends to be. (The IRS started accepting returns Jan. 20.) Early filers tend to be lower-income Americans getting big refunds, and special offers aimed at them, like TurboTax's entirely free returns, often disappear by late February, Mr. Schneeberger says. Prices jump again in the last week of March. Procrastinators, don't say we didn't warn you.
Once again, TaxAct is the lowest priced option when it comes to small business editions - and the increase in savings keeps growing with each version! If you are looking to file a small business return, check out TaxAct Freelancer as the lowest priced option.
COMPARING PRICES OF TURBOTAX, H&R BLOCK, AND TAXAC
- H&R Block is one of the best price to value ratios on the market. We especially like that they expanded their More Zero option to include some itemized deductions, and they made their free edition truly free. This could help a lot of people who itemize. Read our full H&R Block Review.
- TaxAct changed their self employed level to be called Freelancer, and added in a Premium level that includes audit support for the first time. Read our full TaxAct review here.
- TurboTax Free Edition is still one of the easiest to use options, but they are the highest priced software this year, and their free level isn't as good as H&R Block. Read our full TurboTax review here.
Next, let's look at the online "basic" editions of each product. It's important to note that this is a really strange tier. I really hate this product because it typically is what gets people who think they qualify for free file, but actually have to itemize. In many cases, H&R Block More Zero is a great choice for people who might fall into this tier because it's actually free.
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