Good question. We no longer qualify for the 'free-file' system, which allows free e-filing if your AGI is less than $52k.

But here's the money quote.

Under a 2005 agreement that lasts for four years, certain tax preparers, including the two big tax software companies, agreed to take part in the Free File program as long as the I.R.S. did not allow direct filing.

In other words, this is a giant scheme to make yet more money from people. First you pay the price of the software (every year), then you pay the price to e-file. J did our taxes by hand this year, it's inconvenient but far cheaper than getting software to do it. Plus she enjoys math (go figure).

There is hope: "Senator Schumer (D,NY) said he would like to see a system in which taxpayers would fill out the tax forms online and then submit them directly to the I.R.S." (Just like we do for paper returns). Gee, that would make too much sense, wouldn't it? Makes me wonder what would happen if there was a democrat in the white house (and both house & senate controlled by dems.).