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This is total BS

Go reread the article, unless you're really in pro of companies charging for what should be free.

Pro-tip: if the government thinks you owe X, it's not Turbotax that's going to change that.



No need for the hyperbole. OP's question is logical. On one hand you have a company who is taking your money and has a reasonable expectation that, as a result of using their software, you will save more money because they will help you find deductions and tax credits that you would've been hard pressed to find yourself. These companies compete in a free market for your money, both with other software companies and with CPAs/CPA firms. The "winner" (for a particular user/client) is the one who (a) has the best reputation of not getting you audited, and (b) who gets you the best price:deduction ratio.

On the other hand, you have a government entity whose sole charge is to collect revenue. Is their system going to be designed to help you get as many deductions as possible? Are they going to prompt you to deduct moving expenses (just to pick one example)? Maybe, maybe not. The question is legit though and thus causes us all to say, "Wait a minute... maybe, since there is a financial incentive for them not to show me deductions, that they will hide some of that (or make finding it as complex as the tax code)."

If Intuit/et al help you save $5000 in taxes this year by helping you deduct all that you can, Intuit/et al do not make one penny more - that money simply stays in your pocket. If the IRS helps you save $5000 that you would have otherwise paid (b/c you did not fully deduct all that you could have), then the IRS loses $5000. That in and of itself highlights the problem.


"nd has a reasonable expectation that, as a result of using their software, you will save more money because they will help you find deductions that you would've been hard pressed to find yourself."

That has a lot less to do with software and more with you knowing the allowed deductions.

Funny how I have no problem finding these deductions using the free sw provided by the government (in more than one country)

I understand this is strange, but it works because deductions are often balanced. For example, you filing a deduction for medical expenses signal a correspondent owing of taxes by the doctor/hospital, so you're helping with enforcing collections.

" Is their system going to be designed to help you get as many deductions as possible? Are they going to prompt you to deduct moving expenses"

More or less yes. There may be the case where the software is going to be completely useless (like Argentina), but then you just skip the sw and go for a tax consultant.

"If Intuit/et al help you save $5000 in taxes this year by helping you deduct"

If you really can save 5k you 1 - probably know it 2 - may get the help of a tax consultant

But most people don't have deductions and should just file the 'default' for free.




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