H&R Block At Home (formerly TaxCut)

Last week, I received a copy of H&R Block At Home (that is the new name for TaxCut) tax preparation software in the mail. I have noticed that if you register your copy of either TaxCut or TurboTax with the manufacturer, they will automatically send you a CD-ROM with their software for the following year. H&R Block did this again. If you get one of these package in the mail, don't be fooled into thinking that you are getting something for nothing. Usually, you aren't aware of the cost of the software until you insert the CD-ROM into your computer and read through the fine print. This time, H&R Block was a little more transparent about the pricing. It printed "Only $34.95" on the front of the DVD case that it came in. But, for most people the $34.95 version of the software will not be adequate for their needs. Expect to spend at least $45 if you plan on filing a state tax return.

The H&R Block At Home (formerly TaxCut) CD-ROM that I received in the mail did have a $10 rebate coupon for purchases from certain stores (specifically Amazon.com, Best Buy, Target, Office Depot, Microcenter, Staples, and Fry's Electronics). So, it usually ends up being cheaper for me to buy this tax software through a retail store rather than installing the version I received in the mail. In the past, I've noticed that some retailers offer a free movie DVD with purchase of Taxcut, so I will usually hold out until I see a similar deal.

As a side note, H&R Block used to offer a rebate for certain financial software (e.g., Microsoft Money) with the purchase of TaxCut. But, MS Money has been discontinued by Microsoft. The 2008 version (Microsoft Money Plus) was the last planned version of this financial software. (I might consider converting everything over to Intuit's Quicken in the future.)

As far as tax software is concerned, I have always used the Premium "desktop" version of the tax software, which includes the state version of the tax preparation software. This year it looks like H&R Block At Home has adopted the TurboTax naming calling their product "Deluxe" rather than Premium. An online version is available for both TurboTax and TaxCut, which I have not used. I also haven't tried using e-file yet, but I might consider it this year.

One last thing that I wanted to bring up is that TurboTax is offering to answer tax questions for free. Here is a link to the Intuit offer from TurboTax. My main criticism that I have about this offer is that it is only good until the end of January 2010. I would guess that the average person doesn't even get started with their taxes until February or March. By that time, they will be too late to take advantage of this free advice.

So, what tax software do you use?

Note to Commenters: If you represent a company such as Intuit, H&R Block, Microsoft, etc., please leave your contact information or send me an Email (my Email address is listed in the sidebar) to let me know that you left a comment. If I cannot determine that your comment is authentic, it will be deleted.

DC

Tax Questions Answered

It is that time of year again when you should start thinking about your 2009 taxes. I have been using computer tax software to prepare my taxes since 1996, and I plan to do so again this year. Once again, the two main contenders are TurboTax and H&R Block At Home (formerly known as TaxCut). I have not yet decided which of these software products I will use, although I have been using the H&R Block product for the last several years.

Anyway, the point of this post is to mention that TurboTax is once again offering to answer personal tax questions for free. They have IRS-Enrolled Agents and tax preparers available to help you with your tax question. To get started, you need to submit your question through their website: www.freetaxquestion.com. A tax advisor will research your question and give you a phone call to discuss your tax issue. Questions about this offer should be directed to TurboTax; contact Alexandra Cuccias (Alexandra@outcastpr.com) with any questions.

There are a couple of catches to the offer. First, it appears you that can only submit a question between the hours of 8am and 5pm PST, Monday to Friday. Second, this free offer is only valid through January 31, 2010. So, you need to be organized enough to know what tax question you want to ask before then. My criticism here is that the average person doesn't even get started with their taxes until February or March. By that time, it will be too late to take advantage of this free service. After January 31, TurboTax will charge $23.95 for this advice. In the past, H&R Block had a similar free offer, but I have not heard if they will be offering that service again this tax year

Getting back to tax preparation software, I have usually chosen TaxCut because it is generally cheaper than TurboTax. Also, I have usually been able to get a free copy of Microsoft Money Deluxe with the purchase of TaxCut. However, MS Money has been discontinued by Microsoft, and H&R Block is no longer offering any free financial software with the purchase of their tax software. Some retailers are offering a free copy of Quicken Starter Edition 2010 with the purchase of TurboTax, but that version of Quicken would be too underpowered for my circumstances.

Note to Commenters: If you represent a company such as Intuit, H&R Block, Microsoft, etc., please leave your contact information or send me an Email (my Email address is listed in the sidebar) to let me know that you left a comment. If I cannot determine that your comment is authentic, it will be deleted.

DC

Money Market Rates 12/09

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

1.95% Shorebank Direct Online Savings
1.59% Ally Bank Online Savings
1.35% HSBCDirect Online Savings
1.30% ING Direct Orange Savings
1.15% Citibank Ultimate Money
1.15% Citibank Ultimate Savings
1.10% Umbrellabank Pot O' Gold Money Market
0.55% Western FCU Money Market
0.53% Chase Online Savings
0.50% E*TRADE Complete Savings
0.06% PayPal Money Market*

NOTES: *The PayPal Money Market fund is NOT FDIC insured.
Rates are believed to be accurate as of 12/3/09. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list.

So, there is the latest list. Please let me know if you know of any higher interest rates.

DC