As a new year arrives, some people are thinking about one thing: their taxes. Gathering income-related documents, choosing the proper forms, and completing your tax application are all aspects of filing your taxes. Understandably, many people find this process to be time-consuming. It's also confusing.
Thankfully, tax software exists to make completing and filing taxes more effortless than ever. However, you don’t need to search long to find a lot of tax software out there. So, what is the best tax software? SoftwareCW has the answers.
Our Top Picks for the Best Tax Software
What tax software should I use? What software do tax preparers use? Having questions is understandable. Get answers by checking out our top picks.
1. Intuit TurboTax: Best for Individuals
There’s a reason why TurboTax has become a brand synonymous with tax time. This extremely popular and long-lasting program lets people nationwide confidently complete their taxes. TurboTax offers several options for customers. Here’s more information about what each one offers.
- Free: If you don’t take itemized deductions and report your income using Form 1040, TurboTax offers a free filing option for federal and state taxes.
- Deluxe: The Deluxe option is for those who itemize deductions and can claim several credits and deductions. This choice is excellent for those who earn business income. It costs $39 for federal taxes and $39 per state.
- Premium: TurboTax Premium allows for investment reporting, rental income, and other tax savings opportunities for freelancers and self-employed individuals. TurboTax Premium costs $89 federally and $39 per state.
2. H&R Block: the Best Tax Software for Small Businesses
While personal taxes can sometimes feel stressful and confusing, completing business taxes can feel even more complex. If you need a helping hand during tax season, H&R Block offers professional assistance with all its paid tax packages. However, a potential drawback exists. You must pay an additional fee for a final review of your completed taxes.
H&R Block uses a tiered service system that’s similar to TurboTax. A free option exists but is only suitable for those filing Form 1040 plus limited Schedules 1, 2, and 3, giving its free program a slight edge over TurboTax’s free offering.
Here’s a closer look at H&R Block’s paid tax services:
- Deluxe: $35 for federal and $37 per state
- Premium: $65 for federal and $37 per state
- Self-Employed: $85 for federal and $37 per state
3. TaxSlayer: A Great Option If You’re on a Budget
TaxSlayer may not have the same name recognition as TurboTax or H&R Block. However, this brand is quickly making a name for itself as a budget-friendly tax service. One reason is due to its low pricing structure. TaxSlayer also offers all forms, credits, and deductions at its lowest-price option, which is something you won’t find among most software that tax preparers use.
This company offers help from tax professionals. However, this assistance is only available when purchasing TaxSlayer’s Premium package, which costs $42.95 and $39.95 for each state tax filing. TaxSlayer also offers a service specifically for self-employed individuals that costs $52.95 and $39.95 per state.
4. TaxAct: When Accuracy Is a Must
Sometimes, answering the question, “What is the best tax software?” involves an accuracy guarantee. Whether you’re completing personal or business taxes, wanting to know that everything’s correct is understandable. If you want the peace of mind that your taxes are accurate and ready for filing, consider choosing TaxAct.
TaxAct’s stellar guarantee offers coverage of your legal fees up to $100,000 if you encounter any tax-related problems.
A drawback of TaxAct is that it’s not the most budget-friendly tax service. This company’s free service still charges $39.99 per state filed. Here’s more information about TaxAct’s paid options:
- Deluxe: $29.99 for federal taxes and $39.99 per state filed
- Premier: $49.99 for federal taxes. $39.99 per state filed
- Self-Employed: $69.99 for federal taxes and $39.99 per state filed
5. FreeTaxUSA: Ideal for Budget-Conscious Customers
As this company’s name implies, FreeTaxUSA is an ideal tax service for anyone wanting to avoid the higher prices of the competitors mentioned earlier in this list. For instance, FreeTaxUSA offers free federal tax returns while only charging $14.99 for state returns, nearly half the cost of most of the best tax software.
FreeTaxUSA primarily earns revenue through its Pro Support service and by offering assistance with state tax returns. It also offers four plans, each suited to specific tax-related needs:
- Basic: Step-by-step tax guidance
- Advanced: Maximum credits and deductions
- Premium: Ideal for those with rental and investment income
- Self-employed: Suitable for freelancers, contractors, and small businesses
You’re unlikely to find this program on a list of software that tax preparers use (yet). However, that could change shortly.
What Is Tax Software?
You have several options for completing your tax return. These choices include completing your taxes on paper, using tax software, or having them completed by a tax professional (such as a CPA).
The best tax software benefits everyone. Instead of spending hours looking over income tables and solving manual calculations, these programs automate the often time-consuming process of getting your taxes finished.
What’s the Best Tax Software for You?
From employees to companies and the self-employed, many different tax situations exist. Finding a program that caters to how you earn income is a great way to find suitable tax software.
- Individuals: Intuit TurboTax
- Small Businesses: H&R Block
- Budget Filers: FreeTaxUSA or TaxSlayer
- For Accuracy: TaxAct
Before choosing tax software, consider your filing status, the complexity of your finances, and your overall budget. Those with simple 1040 forms can utilize nearly any of our previously mentioned tax software. If you have more complex tax concerns or want software that tax preparers use, consider H&R Block or TurboTax.
We hope our look at the best tax software helps you find an ideal software or service. Utilizing tax software can help you complete and file your taxes confidently, ensuring you receive every possible tax deduction or credit while maximizing your refund or minimizing how much money you owe the IRS.