Our experts answer readers' tax questions and write unbiased product reviews (here's how we assess tax products). In some cases, we receive a commission from our partners; however, our opinions are our own.
Life is too short to make tax filing more complicated — and expensive — than it already is.
The majority of Americans qualify to file their taxes for free (or at a very low cost) through the IRS free file partners or other commercial tax software providers. Tax preparation may cost more if you have complex income or deductions, but it shouldn't break the bank.
With that in mind, we placed extra emphasis on cost while reviewing this year's best tax software contenders. We also considered user experience, value, and the cost of accessing experts — because getting help shouldn't be a luxury.
The Best Tax Software of April 2023
- TaxAct: Best overall tax software
- TaxSlayer: Best budget pick
- H&R Block: Best free-file option
- TurboTax: Best comprehensive tax software
To choose our winners, we started with a list of online tax preparers included in the IRS Free File Alliance. About 70% of US taxpayers qualify for free tax filing, but many don't realize they do, so we gave preference to tax software with a free option that's easy to find and doesn't have income limitations. However, we also considered several tax preparation software options not currently on the IRS Free File list, with an emphasis on their DIY online filing options.
The Best Tax Software
Methodology
We realize that if you're searching for the best tax software, you're probably either willing to spend time filing your own return or you're looking for a more affordable option than hiring a tax professional.
Several of the tax software companies we reviewed offer full-service packages, where you can pay an expert to do your taxes for you. We didn't consider these offerings in our evaluation because they're comparable to hiring a CPA. But taxes can be confusing, and it's valuable to have an expert on hand should you need help.
With that in mind, we considered five factors when reviewing each platform, as outlined below with their corresponding weights. Each of these factors was rated on a five-point scale. We then calculated the weighted average to determine an overall editor's rating.
- Cost (30%): Is there a free filing package? How does the cost of the paid tax preparation software compare to similar offerings from competitors?
- Value (20%): Does the cost justify what you get? Can you get the same features elsewhere for a lower price?
- User experience (20%): Is the tax prep software easy to use? Can you seamlessly upload or import documents? Is the guidance clear and non-jargony?
- Expert help (20%): Can you chat, email, or call a tax professional when you have questions? Is this feature included with the standard packages or does it cost extra?
- Support (10%): Is there an accuracy guarantee or audit support? Is customer service reachable and helpful?
We also considered the breadth of tax forms included in the various packages offered by each tax software company, with an emphasis on what's available at no cost. Finally, we consulted other experts to make sure we weren't missing any major features or drawbacks of any of the services.
Best Tax Software FAQs
According to our research, TaxAct is the best tax software for income tax returns during the 2022 filing season, thanks to the ability to file online yourself for a decent price and check in with a tax expert at no extra cost.
As a more expensive tax software option, TurboTax is probably worth it if you plan to itemize personal or business deductions or if you have gig economy income, and want to pay for TurboTax's seamless data import features from QuickBooks, Square, and rideshare platforms.
Insider's pick for the best cheap tax software is Tax Slayer, which is free to file taxable income under $100,000, W-2 income, interest income that doesn't exceed $1,500 student loan interest deduction, and education credits. If you have a more complicated filing option, Tax Slayer might not be free — but it will still be some of the best value you can get for your money filing taxes.
TaxAct is better tax software for most filers, thanks to its reasonable pricing and the expert access included. People with bigger budgets or more complicated tax situations might find it worth paying more for TurboTax, which provides easy data import for small businesses and freelancers.
Best Overall Tax Software
TaxAct
Editor's rating: 4.7/5
Cost of DIY online filing: $0 - $64.95 + state return fee
Free version covers: W-2 income; unemployment income; retirement distributions; tuition and fees deduction; earned income tax credit; child tax credit; education credits; stimulus credit
The pros of TaxAct:
- Expert help is available with every filing package
- Free federal and state filing covers student and child tax credits
- Pay less than H&R Block and TurboTax and get a comparable experience
- Efficient and streamlined interface
- Tax document upload and import for easy data entry
- Handy "double check" tool flags common errors
The cons of TaxAct:
- State returns aren't free, even when you qualify for free federal filing
- Middle-of-the road option when it comes to cost
The bottom line: TaxAct has added free live CPA and tax expert assistance to all of its packages. That's a huge value-add, especially since prices for its tax software are already lower than the industry heavyweights.
Read our full TaxAct review »
Best Budget Pick for Tax Software
TaxSlayer
Editor's rating: 4.6/5
Cost of DIY online filing: $0 - $64.95 + state return fee
Free version covers: For taxable income under $100,000: W-2 income; interest income not exceeding $1,500; student loan interest deduction; education credits
The pros of TaxSlayer:
- Strong option for self-employed filers
- Low price — comparable self-employed packages at H&R Block and TurboTax are more than 2x the cost
- All packages include phone and email support
- Self-employed package includes on-demand access to a tax professional
- Simple and clean interface
- Ability to set up reminders to pay estimated quarterly taxes throughout the year
- Filers with any type of tax situation who meet AGI limits can use the IRS Free File program to file a federal return, and maybe a state return, with TaxSlayer at no cost
The cons of TaxSlayer:
- Free version advertised on its website does not include earned income tax credit or child tax credit
- Interface isn't as intuitive as H&R Block or TurboTax
The bottom line: For experienced self-employed filers looking for a budget pick, TaxSlayer can't be beat. Its user interface is more function than flair, but it has everything you need to get the job done, including clear instructions, responsive customer support, and an excellent free filing option.
Read our full TaxSlayer review »
Best Free File Option for Tax Software
H&R Block
Editor's rating: 4.5/5
Cost of DIY online filing: $0 - $114.99 + state return fee
Free version covers: W-2 income; unemployment income; retirement distributions; interest and dividend income; tuition and fees deduction; student loan interest deduction; earned income tax credit; child tax credit
The pros of H&R Block:
- Seamless data entry when you upload tax documents (PDF or photo of paper document)
- Interface is modern and easy to navigate
- Instructions are clear and helpful
- Company doesn't try to upsell you while preparing a return
- Ability to save your spot and return later
- Offices in all 50 states where tax professionals can prepare your return in person or virtually
The cons of H&R Block:
- Cost
- Free version does not include itemized deductions
- Free version does not offer on-demand chat or phone support
The bottom line: H&R Block has something for everyone, wrapped in a modern and easy-to-understand package. These aren't the lowest prices you'll find for tax software, but the quality of the overall user experience justifies the cost. Whether you're filing online yourself, looking for some expert help, or want to hand it off to a professional, H&R Block will deliver.
Read our full H&R Block review »
Best Comprehensive Tax Software
TurboTax
Editor's rating: 4.2/5
Cost of DIY online filing: $0 - $129 + state return fee
Free version covers: W-2 income; unemployment income; retirement distributions; interest and dividend income; earned income tax credit; child tax credit
The pros of TurboTax:
- You'll find anything you need if you're willing to pay top dollar
- Best for itemizing deductions
- Interface is easy to navigate and provides helpful graphic explainers
- Ability to save your spot and return later
- Quick data entry when you upload tax documents
- Seamless data import from QuickBooks, Square, and Uber and Lyft
The cons of TurboTax:
- Cost
- Free version for simple tax returns does not include itemized deductions and not all taxpayers qualify
- Free version does not include deductions for students or student-loan borrowers are
- Frequent offers to upgrade
The bottom line: TurboTax is ideal for filers who want to itemize personal or business deductions, or have gig economy income. You'll find everything you need, but it won't be cheap. The platform offers unique features, including seamless data import from QuickBooks, Square, and various rideshare platforms.
Read our full TurboTax review »
Other tax software we considered
- FreeTaxUSA: Despite its name, state returns cost extra at FreeTaxUSA. To get quicker responses from the customer support team and audit help, it's an additional $7.99. If you're looking to spend the least amount of money possible on tax software, this is your best bet — just know that the user interface is lacking.
- 1040.com: Easy to navigate and provides live customer support via chat, but a flat rate of $25 means even people who qualify for free federal filing elsewhere must pay. Worth considering, though, if you only qualify for the highest tier packages at H&R Block or TurboTax.
- Cash App Taxes: Formerly known as Credit Karma Tax, this tax prep service's strongest selling point is that it's completely free. However, there are no tax experts on call and you have to download a mobile app before you can prepare your return on a desktop computer.
- Jackson Hewitt: This platform is simple and easy to use, but offers no access to tax experts. And there's no free version, even for simple tax situations. But if you file with Jackson Hewitt this year, you'll lock in the low $25 federal and state tax prep fee for two more years.
- Efile.com: A good budget option for tax preparation, but it doesn't offer on-demand access to experts or quick customer support, and the interface is rudimentary and too busy.
- Liberty Tax: This tax software has a starting rate of $34.95 for basic tax returns, which are free elsewhere.
All of the tax software options we reviewed offer do-it-yourself online filing services and a few, H&R Block and TurboTax included, also sell downloadable software for your computer, which you can use to fill out your tax return without an internet connection. Here's more detail on how they stack up:
| Tax software | Editor's rating (out of 5) | DIY federal return cost | DIY state return cost | Full service tax prep online?
|
| TaxAct | 4.7 | $0 - $64.95 | +$39.95 - $44.95 | Yes |
| TaxSlayer | 4.6 | $0 - $64.95 | +$0 - $39.95 | No |
| H&R Block | 4.5 | $0 - $110 | +$0 - $37 | Yes |
| TurboTax | 4.2 | $0 - $129 | +$0 - $59 | Yes |
| FreeTaxUSA | 4.1 | $0 | +$14.99 | No |
| 1040.com | 3.9 | $25 | +$0 | No |
| Cash App Taxes | 4 | $0 | +$0 | No |
| Jackson Hewitt | 3.7 | $25 | $0 | No |
| Liberty Tax | 3.7 | $45.95 - $85.95 | +$36.95 | No |
| Efile.com | 3.7 | $0 - $39 | +$32 | No |
How to choose a tax software
If you're overwhelmed ...
If you're easily overwhelmed by taxes, the best tax software is going to be one that does most of the work for you. H&R Block and TurboTax are wildly popular for this reason, but TaxAct and TaxSlayer get the job done for a lower price.
All you have to do is upload the relevant tax forms and answer a few questions along the way to account for deductions and credits. These tax software companies have multiple options for filers with any and every type of income, as well as individualized help from a tax expert (sometimes for an additional fee), if you need it.
If saving money is the most important ...
If your main objective is to save money, check out FreeTaxUSA, which offers free federal returns for every tax situation (state returns are $14.99), or H&R Block's free version of its tax software, which supports more tax forms than competitors and offers an excellent user experience.
If you don't qualify for a free version, consider Jackson Hewitt or 1040.com. These companies offer tax filing for a flat fee of $25. If you can afford to pay a bit more and think you may need expert help, TaxSlayer and TaxAct charge a fraction of the price of H&R Block and TurboTax and many still permit document uploads for easy data entry and provide plenty of guidance.
If you care most about a big tax refund ...
If getting a big tax refund is most important to you and you have time to spare, you may want to fill out a tax return with a few different online tax software options. Each of the companies on our best tax software list allows you to begin a tax return for free and pay only when you're ready to submit the return (you will need to set up an account, though). Before payment is required, you should be able to see your tax refund amount and cancel any filing application that doesn't give you the biggest refund.
Why you can trust our recommendations
At Personal Finance Insider, we strive to help smart people make the best decisions with their money. Filing taxes can seem like a frustrating task for many of us and we want to help make the process easier and more affordable.
But "best" is often subjective — there's no single tax software that will work for everyone. Not only are taxes highly personal, but there isn't one universal user experience. That's why we reviewed 10 of the most popular online tax preparers to identify their top strengths and weaknesses.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.