Best Tax Software for Tax Season

When it comes to getting your taxes done this season, it’s easy to get stressed out and confused about how you’re going to tackle them, what your return will be, and how to avoid a dreaded audit. Online tax software permits individuals and couples who have little to no knowledge to effectively file their taxes. But how do you know what software to use? What if you’re not very “techy”?

A quick online search will reveal many different companies offering online tax services at a variety of prices. But how do you know which one is the right fit for your needs? To help you out, we’ve rounded up the best options on the market to help you make a decision.

H&R Block

H&R Block might be the best tax software option available to consumers. It’s certainly become one of the most popular, recording an unprecedented online filing growth of 10.6% in 2020. The company offers online tax software along with with in-person tax preparation services at more than 12,000 locations around the globe, giving you lots of options.

Pros

• Excellent free filing option, perfect if you’ve had a straightforward tax year
• Professional online support
• Easy to use interface
• Accuracy check scans for errors and missed opportunities

Cons

• Detailed explanations and guidance not available
• Additional services (such as an audit report) cost extra

Plans

• The Free Plan – No cost
• The Deluxe Online Plan – $49.99 + $44.99 per state filed
• The Premium Online Plan – $69.99 + $44.99 per state filed
• The Self-Employed Plan – $104.99 + $44.99 per state filed

TurboTax

TurboTax, which is owned by Intuit, offers a popular tax software that is available in online and downloadable formats, as well as by well-reviewed Apple and Android apps. Since they’re owned by the same company, this software also has Quickbooks integration – ideal if you already use Quickbooks for your small business or if you’re self-employed.

State filing fees are a little higher, but the company offers an option to pay your filing fee with your refund (for a $39.99 fee) if you’re a little strapped for cash – something unique to TurboTax.

Pros

• Simple online questionnaire helps you choose the right plan
• User-friendly experience is great for “non-techy” consumers
• Downloadable software options for those who prefer
• Small military discount of $5 off any plan

Cons

• High state filing fees
• No option to follow up with questions in-person
• You won’t know exactly what you owe until you’ve completed your return, to account for any add-ons you select during the process

Plans

• The Free Plan – No cost
• The Deluxe Online Plan – $60 + $50 per state filed
• The Premier Online Plan – $90 + $50 per state filed
• The Self-Employed Plan – $120 + $50 per state filed

TaxAct

TaxAct offers affordable online DIY tax software that focuses on simplicity, opting out of developing a flashy interface and features. This is perfect if you’ve had a simple tax year or all more knowledgable about taxes than the average person. They know what they’re doing, after all they’ve helped 80 million people e-file their federal returns since 2000!

Pros

• Very affordable plans, even at the top tier
• Regular promotions may reduce price even further
• Offers Xpert Help for one-on-one online support

Cons

• Clunky, less modern user experience
• Poorly rated mobile app

Plans

• The Free Plan – No cost
• The Deluxe Online Plan – $44.95 + $44.95 per state filed
• The Premiere Online Plan – $69.95 + $44.95 per state filed
• The Self-Employed Plan – $79.95 + $44.95 per state filed

Should You Do Your Taxes or Hire a Professional?

The efficiency of online tax software may make it more convenient to file your taxes yourself, especially if it’s not easy to get into see a professional this year. However, a scenario in which it may be beneficial to send your taxes to a pro is if it’s been a complex financial year. Events such as getting married or divorced, buying your first house or investment property, receiving an inheritance, adopting or fostering a child, or living or working in multiple states or countries might warrant getting some help and saving the DIY option for another, less complicated year.

Choosing your ideal software for tax season may seem overwhelming. But with a bit of research online, you’ll be well on your way to getting that refund.