Turbotax online $20 vs Turbotax software $45 - what value do they get for the extra $25

Factual Questions
1

Turbotax (deluxe version) costs $20 for the online version vs $45 for the software if you download.

For me this raises a red flag, what makes up that extra $25 worth of value for Turbotax? I haven’t read the fine print (who does?) but it would seem that they claim the service is secure and that they don’t sell your info.

Assuming that the pricing accurately represents value to the consumer and the company, what else, if anything, makes up the added $25 worth of value to Turbotax that they offer the online version for so much less than the download version?

I suppose that when you’re doing the online version they can script the process of presenting you with add-ons a little more efficiently. But is that it?

2

What makes you think they want people to purchase a hard copy? If I’m a business I’d much rather have a single instance I can continually patch and store on a single server than set up a supply chain once a year to deliver CDs to 3rd party retailers.

3

Grey’s post would explain the difference-inventory, shipping, manufacture, etc would account for the extra.

Plus, you get a box.

4

I may be mistaken , but I’m pretty sure the $45 I quoted is the cost to download an executable file that you use to run the software locally. No manufacturing or distribution cost other than bandwith.

I guess I’m also assuming the coding costs are a wash, but that may not be the case.

5

Must…read…for…comprehension.:smack::smack::smack:

6

A quick hop onto the TurboTax website tells me that the online version lets you file one federal tax return, the downloadable/CD version lets you file unlimited ones. That’d be a big reason for the price difference.

7

With the online version you can prepare and e-file one return. With the downloaded version you can prepare unlimited returns and e-filing up to five returns is included.

ETA: yeah what he said.

8

In my past experience, the online Turbo Tax version charges extra for State e-filing and ends up costing about $45.00 total. If you print out your state return and mail it, it will still cost the original $20.00.

9

You didn’t ask, but I have been using Taxslayer for the past several years for both myself and my SO. It is $9.95 per filing and have never had a problem. I don’t think they even offer a box version of their software.

10

Up until last year, all the e-filing companies were free. Has that changed, or is the OP just not eligible to use the free ones?

11

I think heraldgwena has it. Check the extra cost for doing a state return. It’s included with the software but costs about $20 extra online.