9 Best Tax Preparation Software (2024)

When filing your taxes, you want to ensure you’re using the best tax preparation software available. There are many options, so how do you know which one is right for you? To help you make the best decision, we’ve compiled a list of the top nine tax preparation software programs. When making our selections, we considered factors like ease of use, price, and features. So, whether you’re a seasoned tax pro or a first-time filer, check out our list of the best tax preparation software programs before completing your return.

Upfront Conclusion

The best tax preparation software right now is TaxACT and Turbotax.

9 Best tax preparation software

TaxACT – Best Use to Prepare and File Taxes
Turbotax – Best Software Package for the Preparation of Income Tax Return
Block Slayer – Best to File State or Federal Returns Electronically
Jackson Hewitt – Responsible for Preparing Federal, State, and Local Income Tax Returns
Free Tax USA – Best Use to E-File Federal Tax Return
E-File – Best Use to File Income Tax Returns over the Internet
Liberty Tax – A Company that Prepares Individual Income Tax Return
1040.Com – An IRS Tax Form Used for Personal Federal Income Tax
Cashapp Tax – Fast and Free Way to File Federal and State Taxes

1. TAXACT – Best Use to Prepare and File Taxes

PRICING: $46.95

TaxACT is a program designed to make tax preparation easy. It is an online tax software that provides all the traditional and advanced options of professional tax preparation at an affordable price.

KEY FEATURES:

Data Import
Company Data
Deduction Finder
W-2 Import
Refund Estimator
Year-end summary report
Step-by-step interview questions
Help options

REASONS TO BUY:

Customer support
Estimates the tax liability
Step-by-step interview process

REASONS TO AVOID:

Offers additional services fee
Does not offer a free audit support service.
Limited free e-file submissions per tax season.

2. TurboTax – Best Software Package for the Preparation of Income Tax Return

PRICING: $59

TurboTax is one of the most popular online tax preparation software programs. It has great security features and keeps your information safe from any hackers or identity thieves that might try to access your account.

KEY FEATURES:

Up-to-the-minute tax information
Debt and credit counseling
Free multi-state tax filing
Live help option
Free Tax Software updates
Simplified tax planning and preparation

REASONS TO BUY:

Compatibility
Users are in control of their return
Good support
Customer support
Free Tax software updates

REASONS TO AVOID:

Difficult to use for novice
For the tax return to be electronically filed, it can take a long time.

3. Block Slayer – Best to File State or Federal Returns Electronically

PRICING: $24.95

Block Slayer is a next-generation tax software developed specifically for small business owners. It includes various advanced tax tools such as time-tracking and receipt printing.

KEY FEATURES:

File 1040EZ & 1040A and also file Schedules C, D, E, and F
A clear breakdown of each deduction on the Federal return
Friendly reminders
Multi-file capability
Free e-filing
Multi-step interview

REASONS TO BUY:

Taxes can be prepared with the basic 1040EZ or 1040A forms
Live help option
No technical problems
Audit support and insurance
It does not require you to have scanned copies of your W2s or 1099s

REASONS TO AVOID:

It can be difficult to use for beginners
A high-speed internet connection is required

4. Jackson Hewitt – Responsible for Preparing Federal, State, and Local Income Tax Returns

PRICING: $25

Jackson Hewitt is a tax preparation and payroll processing company. It is an information technology company that offers a comprehensive range of tax preparation software and other services.

KEY FEATURES:

Tax return preparation
Deduction maximizer
Compatible with Windows computers
Free e-file
Business tax option
Fast

REASONS TO BUY:

Easy to use
Great features
No extra charge.
Customer support

REASONS TO AVOID:

Internet connection
Payroll service is needed for payroll taxes preparation
It does not provide the multi-file capability

5. FreeTaxUSA – Best Use to E-File Federal Tax Return

PRICING: $6.99

FreeTaxUSA is a tax preparation software and payroll processing company. The software walks you through all the steps, including entering your income and business expenses and you also get a free tax filing status indicator.

KEY FEATURES:

A clear breakdown of each deduction
Multi-step interview
Audit support and insurance
Free e-file

REASONS TO BUY:

Help you maximize your deductions.
User-friendly interface
Allows you to prepare up to 5 federal tax returns
Allows you to choose the state option that suits your needs
You can check for updated rules and tax laws regularly
You can get your taxes done from the comfort of your home

REASONS TO AVOID:

Payroll service is needed for payroll taxes preparation
FreeTaxUSA has a small user base

6. E-file – Best Use to File Income Tax Returns over the Internet

PRICING: $22.49

The e-file company offers both federal and state e-files. It is a great option if you don’t have a lot of complicated tax issues, such as stock trades, and if you don’t have a lot of deductions to take.

KEY FEATURES:

Free E-File
Receive My Refund option
Software is compatible with major devices
Direct deposit and offline payment methods

REASONS TO BUY:

Can print more than one federal return at a time
You can submit refund claims
Easy to use
Free credit report and free insurance
Audit support option

REASONS TO AVOID:

Multi-file capability
Direct deposit and offline payment are available only for federal tax returns, not state returns.

7. Liberty Tax – A Company that Prepares Individual Income Tax Return

PRICING: $55.95

Liberty Tax is a great tax software solution for small and medium-sized businesses. It provides users with a simple, accessible interface.

KEY FEATURES:

Option to print
Audit support
User-friendly interface
Multiple prints at a time
Direct deposit and offline payment methods

REASONS TO BUY:

Can calculate refunds
You can get your taxes done from the comfort of your home at no extra cost
You can print more than one federal return at a time
Free credit report

REASONS TO AVOID:

No discounts for multiple users
Small user base

8. 1040.com – An IRS Tax Form Used for Personal Federal Income Tax

PRICING: $25

1040.com is a company whose main focus is to help simplify and reduce the amount of paperwork that needs to be completed by users for their taxes.

KEY FEATURES:

Customized user interface
Compatible with all major browsers.
Works on multiple devices
Amended tax return option
Go Free File option

REASONS TO BUY:

Offers direct deposit as a method of tax payment
Multiple filing
It has a refund option
Can print more than one federal return at a time
Free audit support option

REASONS TO AVOID:

I cannot guarantee taxes will be audited
It has no tracking features

9. Cash App Tax – Fast and Free Way to File Federal and State Taxes

PRICING: free

Cash App Tax is one of the fastest-growing services for electronic tax filing. The company believes it should be easy to file taxes online and wants you to enjoy the process.

KEY FEATURES:

Simple user interface
Unified account system
Interactive and click-and-print format
Free federal and state e-file services

REASONS TO BUY:

Refund option
Multiple filing
A streamlined process for filing taxes
Compatible with several browsers
Free audit support option
Has user support
Tracking feature
No hidden charges

REASONS TO AVOID:

A newbie cannot operate
No discounts for filing multiple returns
Small user base

Frequently Asked Questions

Do Forms have to be filled out before filing?

It is NOT required to fill out any forms or documents before filing tax returns online. All you need is the most recent tax return to file. When you submit yourself for e-filing, your data is automatically added to the available system of the IRS.

Can I attach any Form with my tax return?

It is NOT required to attach any form or document with your federal tax return when filing online. You can upload as much or as less as you want and only have to fill up a few fields of your Form 1120 Tax Return.

Can I use any software or system to file my taxes?

There are several software out there that provide services for electronic tax filing. The IRS only works with specific companies and software products to ensure the most secure way of filing.

What do I do if my software gets corrupted or my computer crashes?

We recommend you back up your tax return information and restore it to a different computer. Then, complete your tax return using the backup file.

How many times can I amend my tax return?

You can amend your federal and state tax returns any number of times, provided you meet the filing requirements of the appropriate IRS office in charge of that particular state.

Can I file my federal tax return online?

If your state allows you to file your state tax return online, you can do so also. You can even file both the federal and state returns online at the same time.

How long does it take to receive my refund?

The IRS processes tax returns during tax season and after that period, you should receive your refund in about 21 business days. However, some taxpayers may experience delays depending on the type of return filed.

Resources & Links

https://www.nerdwallet.com/article/taxes/best-tax-software
https://www.cnet.com/personal-finance/taxes/best-tax-software/
https://money.com/best-tax-prep-software/
https://www.pcmag.com/picks/the-best-tax-software
https://www.usnews.com/360-reviews/technology/tax-softwares