This review really sums up my experience last year. The tax software I used was confusing, poorly explained, un-documented, and you always felt like they were trying to scam you out of a couple bucks.A very big change from the experience that many of today's software startups (yes (sigh), many of them are "web2.0" startups) are trying to provide (free, comforting, easy, super intuative). Guess there's an opportunity here, and eventually people will get sick of being treated poorly by the larger companies. I'm seeing an average price of 40-60$ on the packages that include a state filing, and I've heard from some of my friends that they paid $75 to have someone in Brooklyn do it for them. Doesn't seem like a great deal?
For what its worth, Top 10 reviews covers what they think are the best apps here and a whole section devoted to it here. I used Taxcut last year because I thought it was the easiest to use of the 2 or 3 that I tried (can't remember what the others where). In the end, though, I still clicked the "submit" button with my fingers crossed just hoping I did everything right.
Other Reviews of Tax Software:
Top 3 from About.com http://financialplan.about.com/od/software/tp/TPTaxSoftware.htm
Cnet.com (not very complete, but has news sources, etc) http://www.cnet.com/tax-guide/
Turbo Tax Review http://www.associatedcontent.com/article/582003/turbo_tax_online_online_tax_software.html