Why is TaxAct free ??

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I always use TaxCut but I have seen that TaxAct is free and the efile is included.
Why?? How does TaxAct make any revenue? What is the catch.
I do not qualify for the free irs filing requirements and I do not file state taxes.
Thanks

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nvm.

Imacyco (Mar. 31, 2008 @ 9:10p) |

actually I think the situation with TaxAct.. and for that matter the free TurboTax and TaxCut options that seem to pop u... (more)

Derffie (Mar. 31, 2008 @ 9:41p) |

I don't see that happening anytime soon. Think of the people you know over the age of 60.

Also, even for someone as in... (more)

beethovengirl (Mar. 31, 2008 @ 10:27p) |

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the basic version is free, But then they hope you will pay for some of the upgrades they offer

They want to collect your income data along with your SSN, employment info, bank accounts, brokerage accounts, family demographic data, mortgage info, along with all the other sensitive info on your tax return, and mass it in a huge databases for resale to information companies like Choicepoint.

Just kidding.

50 years ago that would of been illegal, immoral and improbable for a US citizen. Today it could be true.

I paid $13.95 for the convenience of e-filing my state return through their website. 13.95 to efile fed & state is a good deal in my book.

82 cents to mail in my state and fed returns is an even better deal in my book.

Because it is no good?

clampuke said: raringvt said: I paid $13.95 for the convenience of e-filing my state return through their website. 13.95 to efile fed & state is a good deal in my book.
82 cents to mail in my state and fed returns is an even better deal in my book.

Yup, and now you only need to wait 2 months to get your refund instead of a week or two.

Incarnate said:
Yup, and now you only need to wait 2 months to get your refund instead of a week or two.

Actually, getting a refund means you've been overpaying your taxes for a whole year. Reduce your waiting time to zero by filing an accurate W-4 with your employer and get your refund in each paycheck. I don't quite understand the concept of needlessly overpaying your taxes for a full year and then suddenly having to pay fees to get a rush refund.

Incarnate said: clampuke said: raringvt said: I paid $13.95 for the convenience of e-filing my state return through their website. 13.95 to efile fed & state is a good deal in my book.
82 cents to mail in my state and fed returns is an even better deal in my book.

Yup, and now you only need to wait 2 months to get your refund instead of a week or two.


Uh...you do realize if you are getting a refund you are waiting a lot longer then a week or two, right? You probably gave away your money at 0% for 1-15 months.

I generally owe a little bit so an extra two months is a good thing.

So let me get this straight...

1) you loan out money at 0% voluntarily
2) you pay extra money to get that money back faster

Yeah, that is definitely the FWF way. Why don't you just go ahead and get a refund anticipation loan? I hear the rates are very reasonable.

clampuke said: 82 cents to mail in my state and fed returns is an even better deal in my book.

0 cents to file both federal and state online is the best deal.

062703 said: clampuke said: 82 cents to mail in my state and fed returns is an even better deal in my book.

0 cents to file both federal and state online is the best deal.


Maybe I'm missing the deal, but that is generally for people with extremely simple tax returns (1 job, no stock purchases or sales, no side business, etc) only which excludes many FWFers.

asdf9876 said: 062703 said: clampuke said: 82 cents to mail in my state and fed returns is an even better deal in my book.

0 cents to file both federal and state online is the best deal.


Maybe I'm missing the deal, but that is generally for people with extremely simple tax returns (1 job, no stock purchases or sales, no side business, etc) only which excludes many FWFers.

While I do use an accountant I have used TaxAct for years just to see how close I can come, always came up very to close even back when I was trading a lot. You should give it a shot and just try it the free version, You don't have to use it to file after

clampuke said: Incarnate said:
Yup, and now you only need to wait 2 months to get your refund instead of a week or two.

Actually, getting a refund means you've been overpaying your taxes for a whole year. Reduce your waiting time to zero by filing an accurate W-4 with your employer and get your refund in each paycheck. I don't quite understand the concept of needlessly overpaying your taxes for a full year and then suddenly having to pay fees to get a rush refund.

Yes, I understand that. I had to pay last year. I'm assuming the OP was getting a refund. I also did not e-file last year because I owed. I used snail-mail so it would take a while longer for them to cash their check. Although.. I may get a refund this year because of the addition of another child.

BradMajors said: Because it is no good?

I don't use their online service, but I do use their packaged software. It's pretty good. They're the same guys who used to do Parson's Tax Edge before Intuit bought Parson's out, killed off Tax Edge and sold the rest to Broderbund.

even if you owe tax you still can e-file, and then just send a check by mail.
The benefit - usually, no paperwork is needed to be mailed except the voucher and the check.

asdf9876 said: 062703 said: clampuke said: 82 cents to mail in my state and fed returns is an even better deal in my book.

0 cents to file both federal and state online is the best deal.


Maybe I'm missing the deal, but that is generally for people with extremely simple tax returns (1 job, no stock purchases or sales, no side business, etc) only which excludes many FWFers.


I had 2 jobs and stock purchases/sales and still got the free version.

asdf9876 said: 062703 said: clampuke said: 82 cents to mail in my state and fed returns is an even better deal in my book.

0 cents to file both federal and state online is the best deal.


Maybe I'm missing the deal, but that is generally for people with extremely simple tax returns (1 job, no stock purchases or sales, no side business, etc) only which excludes many FWFers.



I have a fairly extensive filing with all sorts of schedules, many 1099 and around 1000 equity and forex trades per year(used to be 10,000+). I've filed online for years. Paper and physical mail for documents is so last century.

clampuke said: I don't quite understand the concept of needlessly overpaying your taxes for a full year and then suddenly having to pay fees to get a rush refund.
Perhaps you don't quite understand the concept of uncertainty. Not everyone can perfectly predict every bonus, interest rate increase, or dividend payout that they get. While you get about a thousand bucks in leeway, really, you want to try to be right on the button -- because that's a lot better than being well short on withholding.

There's nothing wrong with lending Uncle Sam $10 a month for free. Just don't be lending him much more than that.

atobias said: asdf9876 said: 062703 said: clampuke said: 82 cents to mail in my state and fed returns is an even better deal in my book.

0 cents to file both federal and state online is the best deal.


Maybe I'm missing the deal, but that is generally for people with extremely simple tax returns (1 job, no stock purchases or sales, no side business, etc) only which excludes many FWFers.



I have a fairly extensive filing with all sorts of schedules, many 1099 and around 1000 equity and forex trades per year(used to be 10,000+). I've filed online for years. Paper and physical mail for documents is so last century.


Where can I file my federal and three state forms for free?

Please tell me where I could have been doing this for free.

If it isn't free, why should I pay $20 when I can do it for $1 of paper/ink and $1 worth of postage?

sechs said: clampuke said: I don't quite understand the concept of needlessly overpaying your taxes for a full year and then suddenly having to pay fees to get a rush refund.
Perhaps you don't quite understand the concept of uncertainty. Not everyone can perfectly predict every bonus, interest rate increase, or dividend payout that they get. While you get about a thousand bucks in leeway, really, you want to try to be right on the button -- because that's a lot better than being well short on withholding.

There's nothing wrong with lending Uncle Sam $10 a month for free. Just don't be lending him much more than that.

You get a lot more than a thousand bucks in leeway. As long as you pay 100% (or 110% in some cases) of last year's liability you are good to go penalty free.

062703 said: asdf9876 said: 062703 said: clampuke said: 82 cents to mail in my state and fed returns is an even better deal in my book.

0 cents to file both federal and state online is the best deal.


Maybe I'm missing the deal, but that is generally for people with extremely simple tax returns (1 job, no stock purchases or sales, no side business, etc) only which excludes many FWFers.


I had 2 jobs and stock purchases/sales and still got the free version.


For how many states? 0? Ok I guess if you live in a tax free state.

Forget TaxAct free, RAL is the way to go, you get an instant refund, after all 9 million people can't be wrong

By Cordell Whitlock

An estimated 9,000,000 taxpayers received refund anticipation loans or Ral's in 2006. Tax prepares offer the loans as a way for customers to receive instant cash against the balance of their tax refund. "With that loan comes incredible fees," said Tasha Kay Warren.

Warren is with the Association of Community Organizations for Reform now also known as Acorn-an advocacy group for low and moderate income families. Because the annualized interest rates for the RAL's can be as high as 60% some are calling for an end to the practice. "It's something that organizations like Acorn have been trying to combat for years because it seems to be targeting low income people," Warren said.

The state of New York filed civil complaints against 2 tax preparation firms claiming the companies aimed refund anticipation loans at low income families.

The IRS is considering a proposal that would prohibit companies from using taxpayer return information for the purpose of selling RAL's. Taxpayers filing online can get their return from the irs within 10 days at no cost.

The IRS is accepting public comment on refund anticipation loans through April 7th.

H and R block sent us a written statement saying the average cost of their RAL's is 2.1 % of the loan.

asdf9876 said: 062703 said: asdf9876 said: 062703 said: clampuke said: 82 cents to mail in my state and fed returns is an even better deal in my book.

0 cents to file both federal and state online is the best deal.


Maybe I'm missing the deal, but that is generally for people with extremely simple tax returns (1 job, no stock purchases or sales, no side business, etc) only which excludes many FWFers.


I had 2 jobs and stock purchases/sales and still got the free version.


For how many states? 0? Ok I guess if you live in a tax free state.


Kansas has free state filing. It takes about 5 mins.

Kansas represents less than 3% of the US population. We can talk about niche cases all day. Actually we can't because I'm done.

asdf9876 said:

Where can I file my federal and three state forms for free?

Please tell me where I could have been doing this for free.

If it isn't free, why should I pay $20 when I can do it for $1 of paper/ink and $1 worth of postage?

TaxAct.com - either a free download of their Basic version, or can prepare your return online. Both offer a free Federal e-file.

State Farm customers can use TurboTax for free online (through StateFarm.com) with free e-file. I believe, one free State e-file is included also.
Some states offer free preparation and e-filing on their state DOR web sites.

For two years now I have used Taxslayer (and I used it back in around 2004 as well) as it is only 9.95 to do both state and fed and efile it... I have no problems with them.

I am very careful with my money, but with getting some money back at the end of the year I DO have a weak spot. I understand that it is an interest free loan to the government, but in the grand scheme of things it is a small amount of money and gives me some "extra" cash to start the year off with.

TaxAct is not free for everybody

Your gross income should be less than 54K for free service

See the link below

https://www.taxactonline.com/s_online_tax2007/index.asp?sc=0750302

I used TaxAct basic to file my federal this year. It's basically nagware, where it wants you to upgrade every time you start the thing up, mostly for useless calculators and planners and such. That said, it did what I needed. I can't efile (I need to add a couple of weirdo foreign reporting forms that no consumer tax program will include) and did my state taxes at the state tax online site based on the federal. There's a list of the states that have online filing in the main tax thread.

Stop misleading people, please

TaxAct is not free for everybody

Your gross income should be less than 54K for free service

See the link below

https://www.taxactonline.com/s_online_tax2007/index.asp?sc=0750302

fleetwoodmac said: Stop misleading people, please

TaxAct is not free for everybody

Your gross income should be less than 54K for free service

See the link below

https://www.taxactonline.com/s_online_tax2007/index.asp?sc=0750302

This income restriction apparently is for online preparation only.
Download version has no restriction, AFAIK. Last year I e-filed FREE - my AGI higher than that limitation.
This year I plan to e-file again - at no charge.

The urls I found showed no income restrictions for standard online and download copies:

http://www.taxact.com/products/standard_overview.asp

http://www.taxact.com/products/online_s_overview.asp

The only fees they charge are for deluxe/ultimate versions where they offer more help and for state returns.

It looks like an old url where they charge you for e-file.

mapen said: They want to collect your income data along with your SSN, employment info, bank accounts, brokerage accounts, family demographic data, mortgage info, along with all the other sensitive info on your tax return, and mass it in a huge databases for resale to information companies like Choicepoint.

Just kidding.


Actually, you may be correct.

The one and only time I used the TaxAct.com, I signed up for it and used an email address -only- used by TaxAct. IE: MyNameForUseByTaxAct.com@MyDomain.com . Sure enough, I started getting spam from it. I went so far as to write them and complain about this, questioning the legality, and got a response from PR promising that they do not sell email addresses and that perhaps I gave it to someone else myself.

Right.

For me? I stay away from them. Any company with my __SERIOUSLY PERSONAL__ information that appears to sell customer data can go bankrupt while I dance in glee.

nvm.

actually I think the situation with TaxAct.. and for that matter the free TurboTax and TaxCut options that seem to pop up every day is this...

I think in the next year or so the feds are going to REQUIRE that all taxs be electronically filed.online.. and all these companies are trying to build a customer base of sufficient size so that they get to be one of a limited number of federally approved filing conduits into this mandatory online filing process... once a company gets locked into this process.. itll be an oligopoly situation wirh a guaranteed and growing customer base....

given that eventuality.. Im thinking TaxAct might be trying to position themselves for an eventual buyout by one of the other two dominant players...

it wouldnt be an unheard of situation for the irs to award near monopoly control to companies... just look at the limited number of companies you can use to pay your taxes via credit card.... only like 2 or 3 of them and they charge ridiculous fees ...

anyways time will tell...

Derffie said:
I think in the next year or so the feds are going to REQUIRE that all taxs be electronically filed.online..

I don't see that happening anytime soon. Think of the people you know over the age of 60.

Also, even for someone as internet-savvy as myself, I had to file our MA taxes on paper b/c we had an unusual situation where taxes were erroneously withheld in MA, and we had to attach supporting documentation to prove this.



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