Do I Have To Buy New Versions Of Turbotax Every Year?
The purpose of this article is to address a commonly asked question regarding the popular do-it-yourself tax preparation software; Turbotax. The question is whether their version of Turbotax from 2008, for example, could be used in 2009.
The $49.95* Answer
The answer to the question that is the central focus of this article is that Turbotax cannot be reused from year to year to file taxes. It is important to note, however, that a previous version of Turbotax can be used as a model to estimate future tax liability or overpayment assuming only minor changes in the tax code. Other than the proposed use, though, any previous version of Turbotax has no functional value in future tax years (Note: The retail price of TurboTax Deluxe is $49.95).
Reason (s) Why Turbotax Cannot Be Reused
Federal tax laws have a long history of being changed. Between new bills passed in Congress or new government regulations, the tax code, which encompasses tax rates, brackets, credits and deductions, or simply the forms used to file, often changes from year to year? Thus, the developers of Turbotax must spend a considerable amount of time each year tweaking the software to account for changes in the tax code.
Produced By A For-Profit Company
Intuit, like any other for-profit company, generates income through sales and/or services. In this case, profit is made through the sale of its flagship software; Turbotax. The effort required to ensure that the software correctly reflects the current tax code in its calculations each tax year is the reason why a new version of Turbotax must be purchased.
While it may seem like a waste to have to purchase a new version of Turbotax each year, the ever-changing tax code, along with the fact that Turbotax is produced by a for-profit company, mandates that the software be purchased new each year by the consumer.
- Will Turbotax Catch all My Errors?
- If I Owe Taxes From Last Year, Can I Still Get A Refund This Year?
- Do All The New Tax Laws Take Effect This Year?
- Do Government Tax Tables Change Every Year?
- What Are The Government Tax Changes For This Year?