Tax software permits small business owners, individuals, and couples who have little to no tax knowledge to effectively file tax returns, receive owed refunds, and reduce their chance of an audit from the IRS. More so, user-friendly tax software makes filing taxes online easy by completing accuracy checks to scan for errors, optimizing each return, and calculating deductions effortlessly.
With tax season just around the corner, you’re probably getting your documents together and deciding how to handle filing. So to help you decide how to tackle your taxes this year, here’s an overview of the best tax software options on the market right now.
H&R Block
Established in 1955, H&R Block is perhaps the best tax software option available. It has risen in popularity to become one the most recognized and widely used tax preparation establishments for both personal or small business taxes, in large part of the ease of use and online in-person hybrid model.
The firm operates in more than 12,000 locations around the world offering online and in-person tax preparation, business consulting services, and payroll assistance.
Plans and Pricing
- The Free Plan – No cost
- The Deluxe Online Plan – $49.99 + $44.99 per state filed
- The Premiere Online Plan – $69.99 + $44.99 per state filed
- The Self-Employed Plan – $104.99 + $44.99 per state filed
Pros
- Best-in-class free filing option
- Professional live online or in-office support
- Ideal if you’re dealing with a simple, straightforward tax year
Cons
- Detailed information and guidance not generally available
- Additional services may require a fee
TurboTax
Intuit, which also owns Mint and Quickbooks, launched TurboTax in 1984 before becoming one of the best tax software options available, albeit a pricier one. TurboTax’s features include a slick interface, purpose-based pricing, and well-reviewed Apple and Android apps.
TurboTax provides a range of services, including four DIY plans. They also offer a unique option to pay your filing fee with your refund, although some users report that this incurs an additional charge.
Plans and Pricing
- The Free Plan – No cost
- The Deluxe Online Plan – $60 + $50 per state filed
- The Premiere Online Plan – $90 + $50 per state filed
- The Self-Employed Plan – $120 + $50 per state filed
Pros
- User-friendly interface
- Easy questionnaire helps you choose the best plan for you
- Excellent support tools
- Free expert review for simple tax returns
Cons
- No in-person option
- Costly state filing charges
TaxAct
TaxAct is another great tax software option developed in 1998 to provide well-priced online tax preparation supports to small businesses and individuals.
Since 2000, more than 80 million taxpayers have enlisted this software to file their taxes. Its highlight is its simplicity, stripping back flashy tools and features in favor of a straightforward filing process – perfect if you’re not dealing with a complicated tax year.
Plans and Pricing
- 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
Pros
- Most affordable option
- Significant promotions can get you an even lower price
- Xpert Help available for one-on-one online support
Cons
- Audit assistance through Protection Plus is an extra fee
- Less flashy, clunkier user experience
- Lowest rated mobile apps
Do your Own Taxes or Hire a Professional?
When trying to answer this question, the answer lies in how comfortable you are preparing your taxes and how intricate your tax year is. If you got married or divorced, bought a house, purchased investment properties, received a large inheritance, adopted a child, or lived or worked in multiple states or countries, consider working with a professional to prepare your taxes. Otherwise, you may be best off to DIY your taxes using one of the above online software options.
It’s good to be honest with yourself, as missing out credits and deductions could result in missed opportunity, but overpaying for a professional when you don’t actually need one takes a chunk out of your refund.