H&R Block puts tax software on USB thumbdrive

Yes, it's that time of year again. No, we don't mean the post-holidays, post-CES, post-Macworld winter of discontent (well, we do, but that's another story). It's tax time! Or at least it's almost tax time. Chances are you've already started receiving tax documents in the mail, and have shoved them in a drawer, where they'll languish until April 15th. At that point, you'll frantically download forms from the IRS web site and try to get everything done before it's too late. The tax specialists at H&R Block and the memory makers at Kingston think they've found a better way. For a mere $49.95 ($39.95 after rebate), they're willing to sell you a 256MB USB thumbdrive preloaded with H&R Block's TaxCut Deluxe software. Why a USB drive, instead of, say, a CD-ROM or a downloadable file? According to Kingston and Block, it's a "unique way for us to meet our customers’ needs and provide value beyond the tax season." We tend to think of it as a unique way to charge more for software that's available on CD-ROM for as little as $19.99. Of course, a 256MB thumbdrive will also run you about $20, so if you really want Block's software and need a relatively low capacity thumbdrive, this is something of a wash. Otherwise, stick to the CD. Or follow our example and download those forms on the 15th and race the clock.

[marco @ Apr 2nd 2006 1:44AM]

Well said Joshua !
I like your point. Better keep things organized.

http://www.taxsenior.com

[Jason @ Jan 26th 2006 7:14PM]

The USB drive version of the software includes the state tax software. The equivelant CD-ROM is actually $29.99 so the thumb drive is actually only $10, which for a 256MB drive isn't too bad.

[Tim @ Jan 26th 2006 7:26PM]

Hm. No comments on the IRS's new "freefile" system that is subcontracted to vendors that make it anything but free?

H&R Block is one such vendor, and they will let you file for free... as long as you collect your refund on a prepaid visa card that "may or may not be subject to fees"

[John Hughes @ Jan 26th 2006 7:48PM]

Good for HR Block, this shows that they are thinking about innovation. Alot of people don't know about portable software, this maybe their first program.
http://www.portablefreeware.com/

Also, someone could work on their taxes on the home computer, and then take the thumdrirve to work and work on their taxes there.

[Joshua Penix @ Jan 26th 2006 8:11PM]

I think the biggest convenience point would be that you can store your year's tax data, plus the software needed to view/modify it, on one key. After you're done, drop that key in a file folder for seven years and you're covered, no searching for lost CDs or wondering which hard drive had 4-year return data on it.

[Slaven @ Jan 26th 2006 10:54PM]

Kingston is one of the U3 licensee's, so this could be a really powerful solution. Unfortunately, when I read their press release I didn't notice any mention of U3 - if that device has no U3 support it would not be quite as functional. I started a blog on these types of topics (that's a nice site too, John), it's at

http://portableapps.blogspot.com/

[Spy Hunter @ Jan 27th 2006 1:37AM]

It makes a lot of sense if you consider they're probably testing out a new type of DRM. It's a dongle with the program built-in. If it works I'll bet next year's software will come only on dongle-drives.

[John Stracke @ Jan 27th 2006 3:18PM]

I saw these at Micro Center this morning, and spotted one advantage over CD distribution: shelf space. They're on a standard blister pack display, meaning that the store can put them at the corner of an aisle. They take less space, so it's easier to get stores to stock them; and they're more visible to customers, so they sell more. Add in #4's point about storing your program and data on the stick for later, and it's a win-win as far as I can see.