SnapTax makes it easy to prepare and file simple tax returns via your iPhone. Distributed by Intuit, publishers of the popular Turbotax software, this iPhone software will be available January 15, 2010 exclusively for California residents. It uses advanced optical character recognition software to allow
taxpayers to prepare and file their federal and state returns (California only for now) from their iPhones.

The procedure (as outlined below) is amazingly simply. Use your iPhone to take a photo of your W-2. The software uses OCR (optical character recognition) to import data from your pay form. Then it asks you a series of questions until it computes your refund (or payment due).

For the initial release ($10 download fee and due out 1/15/10) you’ll only be able to file California returns and only for simple tax returns like a 1040 or 1040EZ. You must have an iPhone 3G or 3GS in order to run it.

If the program is not able to file your return because your tax status is too complicated then you can take the $10 fee you paid for the software and apply it toward the full Turbotax software.

via: Macworld