Here are some reasons why you are seeing that high $263 quote ($15 off) online compared to a $85 CD version, and how to make sense of it.
1. Per-Return Cost vs. License Cost
- TurboTax Online ($263ish): You are paying for a single, hosted service.
- CD/Download ($85): You buy a license that lets you file one federal return + state software for yourself. You can also file up to 5 federal returns for others (like children or parents) for free.
2. State Filing Fee Misconception
- Online: You pay for the federal product, and then you are charged a separate, high fee (often $50-$60+) for the state return.
- CD/Download: The software usually has one state program (the forms). You still have to pay an extra fee to file your state taxes online (approx. $25-$30).
3. Convenience vs. Control
- Online: Intuit will host your data, offer cloud accessibility, and guide you through a wizard without installing software.
- Desktop: You retain total control. You can see the actual tax forms (Forms Mode), run "What-If" situations, and save your own data files.
4. Triggered Upgrades (The "Hidden" Cost)
The high cost ($263) suggests your return triggered the highest-tier Online product (e.g., Premium/Self-Employed).
- Online: As you enter investment income, small business income, or complex deductions, the online software automatically upgrades you to a more expensive version.
- Desktop: All desktop versions (Deluxe, Premier, etc.) share the same tax forms. You can often buy the cheaper Desktop Deluxe and still get the forms you need, whereas online forces a higher-tier purchase.
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