Signal vs. Noise pointed out a terrific comparison of cost of various methods of do-it-yourself electronic tax preparation. This article is excellent because it attempts to compare the so-called out the door price of doing your state and federal taxes. Out the door pricing is defined as the total cost of tax preparation and electronic filing of both a Federal and a single-state tax return.
There are a number of electronic tax preparation options that I was unaware of before reading this article. The major tax preparation brands TurboTax and TaxCut have both packaged software and on-line tax preparation and filing services. These are delivered in several different bundles, each at different prices. In addition there are several smaller competitors included in the review.
My brother Scott has been touting the benefits of on-line tax preparation and filing for several years. This comparison proves that this option is worth trying, because the on-line versions of the major tax preparation and filing services are sometimes noticeably cheaper than their packaged software equivalents.
With two and a half weeks left until the personal tax filing deadline, a lot of people still have to buckle down and do the work. I hope that they can benefit from this handy comparison.