Cutting TaxCut

I've been a user of TaxCut software for the last few years. I had an accountant for many years, and the guy did an excellent job. One day he decides to sell the business to some youngster, and it was a disaster. The guy shows up with his notebook computer, then loses all the data and has to start again. His printer wouldn't print, and when it was all done, there were a dozen mistakes in the return. The one thing I learned from the experience was that he used TurboTax, and the next year I decided to just do it myself.

For the last few year, TaxCut has been the less painful alternative. Somewhere along the line, I registered the product as it does need some updates to have all the final tax codes incorporated. In previous years, they send me a reminder to pick up the software, like I could forget to pay my taxes.

About two weeks ago, the TaxCut folks send me a CD with the upcoming year's tax software on it. I hadn't requested it, but when I opened it I figured out that I needed to pay $39.95 to unlock it and use it. This got me curious, and wondering if this was a special deal for their loyal customers as I might expect. I comparison shopped for TaxCut Premium with State, which is what I had used in previous years.

I headed over to the TaxCut website. If I order the CD, it's the same $39.95 so that's the standard fee. I thought about it, and noticed that the software can be downloaded. Now with no CD and package, that should save some money, right? For whatever silly reason, it's the same price as well. Care to guess if I use the software online (which I don't recommend as it's way too much personal info to put into any website)? For this privilege, the cost is a not too saving $44.95, although it does include some useless extras, like a tax advisor session.


Now completely confused as to the pricing, I jumped over to Wal-Mart. The same TaxCut Premium & State I was sent can be purchased for $34.95! Clearly this is the best deal on this, and confirms why they are such a popular retailer. Holy falling prices Batman!

So, if they really want me to toss out the copy I was sent, and go and repurchase it to save a fiver than this is what I'll do next time I venture into Wally Mart. I just think this is another example of mismarketing, hardly builds product loyalty, and doesn't make any sense. When millions of TaxCut CD's are piled into landfills alongside the AOL CD's, there's no wonder why. Wouldn't it just have been more cost effective for the company to send out emails with the download link, and put the package costs towards a discount?

Jonas