Why is the online deluxe more expensive than the Cd?

[xmasbaby0 · Accepted solution]

TurboTax sets its pricing policies that way.  You pay separately for federal and state when you use online software.  For many users, desktop software is more cost effective, especially if they have multiple returns to prepare for various family members.  And retailers can set their own prices for the CD--often cheaper than the TT prices.  Beware of purchasing from online retailers offering deep discounts--they may be selling pirated software full of malware or be trying to scam your credit card information.  If you purchase from a retailer, stick with familiar reputable ones like Costco, Amazon, Best Buy, Walmart, Target, Staples, etc.

When you use Online TurboTax, you get one return per fee.  Each return needs its own account and user ID.   If you use the same account and user ID for a second return, you overwrite the first one and lose it forever.

 When you use Desktop TurboTax, which you install from a CD or download to your own hard drive, you can prepare and e-file multiple returns for the cost of the software.  You can e-file up to 5 Federal returns—more if you mail the additional ones.  If you have multiple returns to prepare for family members, Desktop is more cost effective.

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[BillM2]

XmasBaby0 - You did a fair job of confirming there are different pricing structures for the Desktop vs Online versions of TurboTax. However, you did not answer the user's question - "Why is the Online version more expensive?"  Again, I find simple questions go unanswered by the TurboTax support.  Further... For sure, this pricing structure is counter-intuitive.  I would expect the Online version to be cheaper.  Thus, I have the same question - "Why?"

[BillM2]

Upon further thought, I believe I have an answer to "Why?"... 

TurboTax is playing the old "Bait and Hook" method of fleecing the customer's pockets.  The OnLine version lures the customer with the possibility that their tax return will be prepared and filed for free.  But, once the customer commits, they most often find that they cannot file for free.  Rather, there is a cost for both the Fed and State returns.  And, if they did not do adequate research before hand, they will get ripped-off by TurboTax.  Potentially, paying much, much more to use the Online version rather than the Desktop version.