Originally Posted by AHS_Wrestler
How come you have to buy a new Tax Software each year?
Technically you don't have to buy software. Just use a pen, a calculator, the forms, and some stamps.
Assuming you want to use software, last year's program can't calculate this year's tax accurately. There will be changes in the schedules. Also the forms themselves will be noted as being for Tax Year 2005. Last year's program will show them as being for Tax Year 2004.
Could the software companies sell you a plug-in that updates last year's program for less than the price of a new program? Maybe, but why would they want to? As it is they do already encourage sticking with the same brand by importing a lot of the data from last year's tax file, assuming that you have saved it.