Doing my Taxes Online

March 13, 2010

This year I decided to do my taxes entirely online. I used H&R Block‘s internet service for doing taxes and overall it worked very well. I don’t know how complex of a tax operation their service can complete, but my taxes are still fairly simple as I don’t have many deductions and own very little. More frequent readers of my blog might be surprised to learn that I used such a service. After all, they have to store lots of personal information about me in order to complete the tax return!

It is true that I had to put a lot of personal information into this service, and I was quite nervous about that. Sure, they use SSL, but so what. If there’s one thing reading security news has taught me it is that a dedicated enough hacker can essentially get any information they desire. The sad reality I came to terms with is that as long as I am submitting electronically, I will already have to send important data over the internet.

Additionally, how handy the service is partially convinced me to take such a risk. It is true that they sell software which can be installed on my local computer and in theory, if I mailed in my return, I could keep all of my data roughly within my possession. In fact, I am still considering doing it that way, but I am not sure if that is really that much more secure. However, the ability to just a open a web browser and pick up where I left off is not something to leave out of this equation.

At any rate, the damage is already done, so to speak, and overall I was happy with the process. I still feel a bit uncertain as to whether this will come back to bite me or not, but I suppose we’ll see. At the heart of the matter is the fact that organizations use one’s social security number in exactly the wrong way (credit card companies, banks, etc). It’s true that’s it’s a great unique identifier for a database, but there are other and better ways to do things.

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