TaxCut 2006 Basic for Free to Some via Mail, Not Exactly Free

Yesterday, we received a copy of the TaxCut 2006 Basic edition tax preparation software in the mail from H&R Block. Perhaps we received it because we previously used TaxCut since it's not a typical NFR review copy often sent to journalists. The CD contains the Mac version as well as the Windows version. The CD also came with a $25 off coupon for tax preparation advice.

We it installed on our 15" MacBook Pro C2D just fine by copying the Mac folder from the CD to our Applications folder. A check with "Get Info" showed TaxCut 2006 to be a Universal Application so it runs natively on our MacBook Pro.

We launched TaxCut 2006 and imported our 2005 return completed last year with TurboTax for Mac since there was no TaxCut 2005 for Mac. We were pleasantly surprised that the import from TurboTax seems to be perfect.

The federal tax return forms will not be available until December 28 so we couldn't check out TaxCut 2006 further. The state forms will be out later than that.

The catch, of course, with the free TaxCut 2006 Basic edition is that one needs to pay for the state return and the eFile components separately. One state form is $24.95. Since TaxCut 2006 Premium+State edition is $29.95, the free software is essentially just a $5 discount unless one lives in a state with no income tax and does not plan to eFile.

Then, eFiling costs $15.95 per return separately for a total with the state return of about $57. Since TaxCut Premium+State+eFile costs $59.95, the free TaxCut 2006 Basic shrinks to a $3 discount if one eFiles. But the $19.95 Deduction Pro software is not included with the free Basic edition as it is with the Premium edition so its not really a discount after all. In addition, there may be even better deals for most people as the tax season proceeds, especially if one is traditionally a late filer.

Here is a preview review of TaxCut 2006 on CNET. [Bill Fox & Dana Baggett]