Industry Analysis & Industry Trends
The Tax Preparation Software Developers industry experienced minimal overall growth over the past five years. When consumer incomes fell during the recession, they became less willing to pay for tax preparation software, and industry revenue fell in 2008 and 2009. But then revenue returned to growth as the economy stabilized thereafter. Growth in the next five years will come from an expanding consumer base and greater trust consumers will place in the security of tax preparation software. To a lesser extent, improving consumer incomes will encourage more consumers to pay for prepackaged tax preparation software over free online counterparts.... purchase to read more
Industry Report - Industry Products Chapter
The industry's products can be segmented based on the type of tax return they help prepare (e.g. federal or state) as well as their targeted user. Consumers with average income levels have much simpler tax returns than businesses or wealthy consumers, who generate income from a variety of disparate sources. Notably, because some firms offer tax preparation software for free, the industry's product segmentation may not entirely reflect product usage patterns.
Consumer federal tax preparation software
Federal tax preparation software offered to consumers accounts for an estimated 34.0% of industry revenue. Firms typically offer this software online or via download or CD. Usually online versions of tax preparation software are offered for cheaper prices... purchase to read more