Filing your taxes online can be quick, easy, and affordable with the right tax software. What tax app is best for you will depend on a number of factors, including cost, your filing status and the complexity of your returns. We break it all down with the 5 best online tax software options available today.
Overview of the Best Tax Software
| Brand | App | Free Version | Basic Package Cost* | |
| TurboTax | X | X | $60 | |
| H&R Block | X | X | $29.99 | |
| TaxSlayer | X | X | $24.95 | |
| TaxAct | X | X | $44.95 | |
| Cash App Taxes | X | X | No Cost |
Our List of the Best Tax Software
TurboTax
TurboTax offers three service options: DIY, live expert advice, and complete service tax preparation. To file your taxes, TurboTax walks you through the process step-by-step and offers access to video tutorials and an online community of other users if you have questions. If you prefer live expert advice, you follow the same path as the DIY preparation, but you have access to a live professional at any time. TurboTax full service provides you with a licensed professional who does your taxes for you.
Pros
- Plenty of options to file
- Provides a simple walkthrough if you decide to do your own taxes
- You can start with the cheapest option and easily upgrade as you go if necessary
- Excellent customer service
Cons
- Pricing is higher than competitors
- No option for face-to-face assistance
Unique Features
- TurboTax is user-friendly and easy to navigate, even for beginners
- Provides an audit support guarantee allowing you to speak with a tax professional to answer any questions you may have if you get audited
Cost
- Free version for those with only a 1040 and the standard deduction – $0
- Deluxe for those who don’t qualify for the free version – $60
- Premier for those with investment properties and investments – $90
- Self-employed for those that own their own business – $120
- TurboTax Live costs up to $200 depending on the tier
- TurboTax Full Service costs up to $390 depending on the tier
TurboTax – Best for Easy Filing
TurboTax is excellent for anyone that wants to do their own taxes. If you qualify for the free filing, it’s a no-brainer. You can always upgrade to the TurboTax Live option if you feel more comfortable having immediate access to a specialist for help.
H&R Block
H&R Block makes it easy to switch to their program even if you used another software last year. Drag and drop last year’s return into the program, and you’re ready to prepare your taxes. They offer various options for taxpayers, including investors, business owners, or taxpayers looking to maximize deductions.
Pros
- It’s easy to import last year’s tax return if you used another service
- Plenty of affordable options
Cons
- No phone or live chat support if you use the free version
- There are a lot of add-ons that for many people are necessary, making the cost higher
- Your online professional won’t necessarily be a licensed CPA
Unique Features
- You can add online live assistance and screen sharing to any plan for $40 – $60
- In-person assistance is available at H&R Block locations
- The free plan is open to more people including students or anyone with a 1040 and Schedules 1 and 3
- You can receive your refund on an H&R Block Emerald Card that works like a debit card at most retailers
Cost
H&R Block offers four pricing tiers:
- Free version for simple tax returns – $0
- Deluxe for those that don’t qualify for the free version – $29.99
- Premium for investors and real estate owners – $49.99
- Self-employed for anyone that owns their own business or freelancers – $84.99
H&R Block – Best for Experienced Filers
H&R Block is Turbo Tax’s largest competitor, but it’s not as user-friendly as Turbo Tax. If you don’t need the simplified walkthrough that TurboTax offers, H&R Block is a good option, and the pricing tiers are more affordable.
TaxSlayer
TaxSlayer offers lower prices but at a cost–there’s less support throughout the process. If you’re confident in your ability to file your taxes, you might find TaxSlayer good enough for you. If you’re a freelancer or self-employed, you’ll also find TaxSlayer’s Self-Employed version is the most affordable option on this list.
Pros
- Its free version works for students
- Lower cost than most competitors
- Free version includes a free state tax return
Cons
- More complicated to follow if you are not confident in filing your taxes
- It will require more work since uploading or importing documents is not available with the free version
Unique Features
- Phone and email support is available for the free version
- Offers the most affordable option for self-employed individuals out of the competitors in this list
- Active duty military can file for free
Cost
TaxSlayer has four pricing options:
- SimplyFree for simple tax returns including students – $0
- Classic works for anyone except the self-employed – $24.95
- Premium works for any situation except self-employed and includes live chat, skip the line phone support, and email support – $44.95
- Self-employed is for anyone that owns their own business or freelancer – $54.95
TaxSlayer – Best for Military and Self-Employed
If you know what you’re doing, TaxSlayer is the best option for active-duty military since it’s free and for self-employed individuals since it’s affordable. You’ll pay lower fees than competing tax preparation software companies and get what you need to file your taxes on time.
TaxAct
Despite being a great program, TaxAct doesn’t get nearly as much recognition as its competitors. The program offers many great features and lower prices than TurboTax and H&R Block. It may not be as fancy as the others, but it gets the job done and leaves more money in your pocket.
Pros
- You can import last year’s taxes even from other programs
- Has a ‘double check’ tool that ensures you didn’t miss anything
Cons
- The free plan is very limited and students with student loans don’t qualify
- It doesn’t offer step-by-step guidance like its competitors
Unique Features
- You can pay an additional cost ranging from $64.95 – $79.95 to file with an expert for live step-by-step support (This is free if you file before March 31, 2022.)
- You can pay for a CPA to completely file your taxes for you with prices ranging from $99.95 – $279.95
- Offers pro tips throughout the process to help you make the most of filing your taxes
- Provides personalized advice for next year’s taxes to make it easier on you
- Offers audit defense, not just support
Cost
TaxAct offers four programs to choose from:
- Free – Only for taxpayers with very simple tax returns – $0
- Deluxe – For most other taxpayers with itemized deductions – $44.95
- Premier – For stock and real estate investors – $69.95
- Self Employed – For freelancers, contractors, and business owners – $79.95
TaxAct – Best for an Affordable Full-Service Option
TaxAct can be a great program if you’re sure of how to file your taxes and don’t need a lot of help. If you do need extra support, you’ll want to file before March 31, 2022, so you can take advantage of free expert assistance! It does offer full-service tax preparation for a lower cost than TurboTax, but most people opt for TurboTax or H&R Block since their names are better known.
Cash App Taxes
Cash App Taxes was formerly Credit Karma tax. It’s still a 100% free tax software platform, just with a different name. It’s best for people with basic tax returns, but it can be used by those who itemize their deductions or are self-employed.
Pros
- It doesn’t cost anything for anyone
- Provides free audit defense
- Easy to use – most people file in a short time
- Access to your refund up to five days faster if you deposit it in Cash App
Cons
- Doesn’t work for all tax situations (most complex situations)
- Less support than other programs provide
- You’ll need to download the Cash App first and then file with your phone or computer
Unique Features
- No paid tiers – everyone files taxes for free
- Cash App Taxes mentions most users can file their taxes in minutes
Cost
Cash App Taxes is 100% free for federal and state tax filing.
Cash App Taxes – Best for Free Filing
If you’re somewhat comfortable filing your taxes and don’t have any highly unique circumstances, Cash App Taxes can be an excellent option for you, and it’s completely free!
Ways to File for Free
Beyond the tax software above, there are ways to file your taxes for free.
IRS Tax Volunteers VITA and TCE
VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly) are reliable and trusted sources for preparing tax returns. All VITA/TCE volunteers must take and pass tax law training that meets IRS guidelines. To use the program, though, you must meet specific eligibility requirements.
Eligibility Requirements
- Earn $58,000 or less per year
- Have a documented disability
- Don’t speak English as your first language
- Be over 60-years old
Pros
- Free access to qualified tax help
- Helps you understand your tax rights
Cons
- Only certain people are eligible
- The program isn’t operated by the IRS (although they manage it)
Unique Features
- You get 100% free tax help
- You can file your own taxes and just ask for their guidance if you prefer
- You can e-file for free
Cost
The program is entirely free.
VITA and TCE – Best for the Elderly and Low-Income Filers
You must meet the eligibility requirements to use the program, which means you must be elderly or have a low income to qualify.
IRS Free File
The IRS Free File offers a couple of options to file your taxes for free. To qualify, you must make less than $73,000 a year for guided tax preparation online. For free fillable forms online, though, you can use the program no matter your income.
Pros
- It’s free
- There’s no income limit to access the fillable forms
Cons
- You must be able to file your own taxes without help if you make more than the income limit
- Doesn’t provide error checking
Unique Features
- You get access to all tax forms for free
- There are line-by-line instructions available
- You’ll receive confirmation when the IRS accepts your form
Cost
It’s free for everyone.
IRS Free File – Best for the Thrifty Filer
If you’re comfortable filing your taxes and don’t need any support, you could file your taxes free, saving yourself money.
What Is Tax Software?
Tax software helps DIY filers. Each program has different features. Some walk you through each step slowly, while others leave you on your own but offer the option to pay for live support. The best tax software for you helps you file your taxes with confidence and with the guarantee you need for peace of mind, including audit defense if you’re concerned about an audit.
How to Choose the Best Software for You
Look at the features of each tax program to decide which is the best tax software for you. Each program has different features, different tiers, and of course, different pricing.
Think about your tax situation, what forms you’ll file, and what level of support you need. If you don’t need a lot of support, you can choose a less expensive option.
If you need more help, though, there are plenty of programs that offer one-on-one support or at least a thorough walkthrough to help you file your taxes correctly.
Should I Hire a Tax Professional?
Not everyone can file their own taxes even with the support offered by some of the best tax software programs. If you have a complex situation, own a small business, or don’t know the first thing about filing taxes, it’s best to hire a tax professional.
Our Research Methodology
We carefully researched and chose each of the best tax software companies listed in our article based on their features, cost, reliability, and suitability.
Final Thoughts
TurboTax is a program that makes itself one-size-fits-all due to its many available choices. It offers tiers for every possible situation, provides audit protection, and walks everyone through the process at their speed. You have the option to chat with a representative or even get live one-on-one help if you need it. Even though it’s pricier than other programs, TurboTax is our top choice for the best tax software program.