7 Best Tax Preparation Software for Tax Preparers in 2024

Feeling anxious about tax season? You're not alone. But don't worry because the right tax preparation software can make this overwhelming time much more manageable. In this blog post, we will break down the complexity and introduce you to some of the available top tax software options.

Whether it's your first time filing taxes or you want to maximize your deductions, we have all the information you need. Join us as we explore user-friendly solutions that simplify filing taxes and ensure that you receive every dollar you deserve.

ready to turn tax season from a tedious task into a triumphant experience with the perfect companion in tax preparation software.

>> Consider TurboTax >>

7 Best Tax Preparation Software

• TurboTax – Best Tax Software Preparation Overall 
• TaxSlayer – Best Affordable Software
• H&R Block – Best for Variety of Support Options
• TaxAct – Best for Accuracy Guarantee
• Jackson Hewitt – Best User Interface
• FreeTaxUSA – Best Free Tax Software
• Cash App Taxes – Best for Freelancers

TurboTax – Best Tax Software Preparation Overall

TurboTax has consistently been recognized as a top tax preparation software option for its ability to simplify and make taxes more accessible compared to its competitors, significantly increasing the likelihood of receiving a refund.

The program provides clear and easily understandable explanations for basic and intricate tax topics, adopting a conversational tone and ensuring comprehension. TurboTax offers extensive help throughout completing IRS Form 1040, providing multiple layers of help.

TurboTax stands out from other tax software due to its exceptional user experience. It prioritizes user-friendly design and functionality, ensuring an intuitive and seamless experience for users.

TurboTax understands every taxpayer is unique in their needs and preferences. As such, it offers different versions tailored to cater to specific demographics. From Gen Z individuals who handle everything on their smartphones to those with complex financial profiles requiring expert guidance from online tax specialists, TurboTax has a solution for everyone.

Pros

• Exceptional user interface
• Comprehensive and conversational interview process
• In-depth coverage of tax-related subjects
• Superb assistance resources and virtual support alternatives
• Excellent mobile applications

Cons

• Costly
• Certain assistance responses are provided by community members rather than directly from Intuit

Pricing

• TurboTax Premium: $129, state additional
• TurboTax Premium Live: $219, state additional
• TurboTax Premium Live Full Service: $409, state additional

>> File Your Taxes Online With TurboTax >>

TaxSlayer – Best Affordable Software

TaxSlayer originated as a tool only used by accountants and professional tax preparers over half a century ago. TaxSlayer has been actively involved in the online DIY tax preparation industry for over two decades. The platform provides step-by-step instructions on various Form 1040-related subjects and an easily searchable database of help resources that have been enhanced for the current tax year. TaxSlayer offers guidance throughout the entire process.

Compared to its competitors at the Classic level, TaxSlayer's pricing is notably lower, except for Cash App Taxes and FreeTaxUSA, which are completely free. The platform caters to individuals and small businesses with complex financial profiles who need help in preparing and filing their taxes. 

Specifically, TaxSlayer targets those who require Schedule C forms and seek guidance on identifying all eligible deductions and credits that can be claimed to maximize their refunds.

Pros

• Cost-effective
• Quick
• Sleek interface with user-friendly navigation
• Compatible with all primary IRS forms and schedules
• Solid data import choices

Cons

• Limited context-specific assistance on Q&A pages
• Quality improvement required for help content

Pricing

Currently, TaxSlayer is providing its Self-Employed package at an incredibly affordable price of $47, with an additional $32 for state filing.

What's even more impressive is that this rate includes access to a tax expert specializing in self-employment, support for audits, and priority-level assistance via email and phone.

Undoubtedly, the most significant advantage of choosing TaxSlayer is its affordability. While it may lack some of the fancy features its competitors offer, it provides everything necessary to complete your small business tax return at a fraction of the cost. TaxSlayer is compatible with both iOS and Android devices.

>> File Your Taxes Online With TaxSlayer >>

H&R Block – Best for Variety of Support Options

H&R Block has established itself as a reputable name in face-to-face tax preparation, and its DIY tax prep software lives up to this reputation. The various products and services offered by H&R Block are known for their user-friendly interfaces, comprehensive coverage of topics, and helpful context-sensitive assistance. The company excels at simplifying complex tax issues so that they’re easily understandable.

H&R Block's range of tax preparation websites caters to a wide audience, offering options for everyone. From the free version suitable for simple returns to the top-tier sites designed specifically for handling Schedule C (for self-employment), there’s something available for every taxpayer's needs.

The help resources provided by H&R Block are exceptional and always tailored to the specific context, which benefits those new to filing taxes and experienced filers seeking guidance on whether they owe money or will receive a refund.

Pros

• Constantly available context-sensitive assistance
• Comprehensive and comprehensible explanations of tax subjects
• Exceptional user satisfaction
• Tax professionals offer complimentary responses to tax inquiries
• Exceptional mobile applications

Cons

• Some sections necessitate excessive clicking for navigation
• The Federal Accuracy Review could consistently focus more on rectifying errors

Pricing

• Free Online: $0. Includes support for W-2 income, unemployment income, interest and dividend income, retirement distributions, student loan interest deduction, tuition and fees deduction, child tax credit, and earned income tax credit (EITC). Itemizing deductions isn’t available, which is typical for free versions of tax-preparation software providers. Notably, H&R Block's free version includes student deductions, unlike others.
• Deluxe Online: $55. Everything is offered in the free version, plus the mortgage interest deduction and health savings accounts, with the option to itemize deductions.
• Premium Online: $85. Provides support for everything included in the Deluxe version, along with rental property income and freelance/contractor income below $5,000. It also allows for importing mileage and other expenses from common tracking apps.
• Self-Employed Online: $115. H&R Block's highest-tier online package is designed for self-employed individuals, including small business owners, partners, and contractors earning more than $5,000.

>> File Your Taxes Online With H&R Block >>

TaxAct – Best for Accuracy Guarantee

TaxAct, a popular DIY personal tax preparation solution with a long-standing reputation, stands out for its simplicity. The user-friendly interface and navigation system guide you effortlessly through the intricacies of the IRS tax code. TaxAct's final review feature is highly commendable.

One of TaxAct's strengths is its ability to delve deep into your financial situation. By asking comprehensive questions about your finances, it accurately identifies all possible deductions and credits.

While TaxAct can handle complex tax returns, it’s particularly well-suited for taxpayers with simpler financial scenarios. It excels at assisting W-2 employees who wish to itemize their deductions to increase their chances of receiving a refund. These individuals may not necessarily require the targeted support provided by TurboTax and H&R Block.

Pros

• Positive user experience
• Outstanding mobile accessibility
• Easily accessible context-sensitive assistance
• Cost-effective professional tax assistance
• Exceptional final evaluation

Cons

• Certain help links redirect to IRS documents
• Search results may lack precision at times
• Costly state-specific filing fees

Pricing

• TaxAct Self Employed (+ on-demand expert help): $64.99 for federal returns, $44.99 per state return
• TaxAct Business Online: $124.99 - $159.99 for federal returns, $49.99 per state return

>> File Your Taxes Online With TaxAct >>

Jackson Hewitt – Best User Interface

Jackson Hewitt offers an online tax preparation service. However, its main reputation lies in providing in-person tax help at over 5,500 locations, with approximately 3,000 located within Walmart stores. The company's online tax service is valued for its comprehensive financial knowledge and extensive coverage of various tax topics.

Moreover, the price point is reasonable at only $25, including federal and state returns. When you cannot complete your return independently, Jackson Hewitt professionals can readily step in.

We recommend Jackson Hewitt to individuals who have previously used the product and were satisfied with their experience or those who prefer dealing with a well-known brand. 

Jackson Hewitt caters to individuals seeking a straightforward tax preparation process that comes with backup support if necessary, all while working towards maximizing their refund. However, the online help tools could be improved to assist better users who require more guidance throughout the process.

Pros

• Affordable cost
• State returns are unlimited within the price
• Can file online, at a local branch, or at select Walmart locations

Cons

• Unable to import forms
• Online platform lacks user-friendliness compared to competitors'
• Limited support for online tax filing
• Unable to file online with a tax professional unlike other services

Pricing

Jackson Hewitt offers a comprehensive tax package that caters to all tax situations and is more cost-effective than TurboTax and H&R Block's lowest-priced packages, even before any discounts are applied.

However, Jackson Hewitt doesn't provide a fee package for the simplest tax scenarios. According to the IRS, approximately 70% of Americans are eligible for free online tax preparation services, so you shouldn't have to pay if your situation falls under this category.

For just $25, Jackson Hewitt's single flat-rate bundle covers one federal return and unlimited state returns. This inclusive package is suitable for homeowners, parents, freelancers, investors, and basically anyone in between! 

In contrast, companies like H&R Block and TurboTax tend to increase their charges as your circumstances become more complex. Additionally, they impose an extra fee for each state return filed.

>> File Your Taxes Online With Jackson Hewitt >>

FreeTaxUSA – Best Free Tax Software

FreeTaxUSA stands out as the top-notch online platform for free federal tax preparation (for state returns, a fee of $14.99 applies). It boasts a polished and professional user interface that’s easy to navigate. What sets it apart is its impressive help system and associated tools, which are quite exceptional considering it's a free service. 

Additionally, FreeTaxUSA now offers a feature that allows users to directly connect with a tax professional for a fee of $39.99, further enhancing its appeal. The mobile apps provided by the site are also highly commendable.

Compared to other tax preparation websites geared towards self-employed individuals, which can be costly and eat into potential refunds- FreeTaxUSA emerges as an excellent choice for gig workers with minimal income and expenses to report but still need to file Schedule C. 

This platform benefits those on tight budgets seeking help with more complex returns because of its user-friendly interface, comprehensive coverage of tax topics, and various guidance options available.

Pros

• No cost for federal e-filing, with affordable state filing
• Compatible with all primary forms and schedules
• Many assistance avenues available
• Outstanding mobile website
• Cost-effective professional tax assistance provided

Cons

• Unable to import most 1099s
• Help pages make Q&A pages less visible

Pricing

FreeTaxUSA's tiers become redundant because their plans provide free federal returns. All the plans use the same software. Once you begin preparing your taxes, these tiers have no further references.

FreeTaxUSA only charges for the following paid products:

• State returns: $14.99 each
• Deluxe support: $7.99
• Pro support: $39.99

>> File Your Taxes Online With FreeTaxUSA >>

Cash App Taxes – Best for Freelancers

Cash App Taxes, formerly called Credit Karma Tax, stands out among the services we evaluated because they are free for federal and state tax preparation and filing. It covers all major tax forms, schedules, and most minor ones. The website has fast performance, an excellent user interface, and easy navigation. 

Its mobile apps are valued. Cash App Taxes offer nearly everything you need to handle complex returns. However, it needs a robust onsite help system and access to professional help.

Cash App Taxes is the ideal choice if your goal is to file your taxes spending no money. It works best for individuals with only W-2 income and a few deductions and credits. 

While it can handle more complicated tasks such as self-employment reporting, other tax apps provide step-by-step data entry and guidance in areas like investment sales that Cash App Taxes does not offer. Therefore, this service may not be the most suitable option if you have an intricate return with numerous forms and schedules.

Pros

• No cost
• Fast page loading
• Compatible with major IRS forms and schedules
• Straightforward UI and navigation
• Exceptional mobile applications

Cons

• Support lacks thoroughness
• Unable to import interest or investment data
• Lacks coverage for some forms and situations
• No access to expert tax assistance
• Requires a Cash App account for use

Pricing

Cash App Taxes is free and provides no paid levels or additional services.

But what's the trick? At this point, there isn't one, except that it helps Square achieve its aim of encouraging both new and existing customers to use more of its offerings. Cash App Taxes is an excellent choice for individuals seeking genuinely cost-free tax filing.

>> File Your Taxes Online With Cash App Taxes >>

How We Rate Tax Software

We evaluate tax software by assessing products against predetermined criteria. Our evaluation process involves using the software to prepare personal tax returns, scrutinizing the terms and offerings of tax products, engaging with software representatives to address queries about products, comparing feature sets, and assessing software effectiveness in common tax scenarios.

Our assessment encompasses the features and functionality of the tax preparation software, user experience, software interface, website performance, quality of help and support, and value relative to price. 

We actively search for and evaluate specific features, such as file importing or photo capture of forms, availability, and variety of IRS forms and schedules, contextual assistance, compatibility and synchronization across desktop and mobile devices, availability of professional tax assistance, guarantees on maximum refund and accuracy, live support options, and security measures.

>> File Your Taxes Online With TurboTax >>

Best Tax Preparation Software – Buyer’s Guide

What Is Tax Software, and How Does It Work?

Using online tax software can assist you in completing your tax returns by providing step-by-step guidance for a nominal fee. It ensures that you have correctly filled out all the necessary forms according to your filing status and specific circumstances.

Most tax software options offer two types of systems: interview-based filing and form-based filing. Interview-based filing involves answering financial-related questions and inputting the responses into the appropriate tax forms. 

This approach is ideal for beginners or individuals seeking assistance throughout the process. Prominent examples, like TurboTax, TaxSlayer, and H&R Block, utilize an interview-style interface.

Form-based filing can be more complex if one isn’t familiar with tax forms. However, certain programs allow users to switch between an interview format and fill out forms manually in case they wish to verify their calculations or information accuracy.

Who Should Use Tax Software?

Tax software offers a convenient solution for filing taxes and guides the process, minimizing mistakes, according to Andrew Griffith, an associate professor of accounting at Iona University and a certified public accountant.

Electronic filing offers several advantages over mailing your tax return, which can lead to unnecessary risks such as processing delays or delivery issues. One major benefit is the ability to reduce errors when entering data into the tax authorities' systems.

Different online tax software options are available, each with its own set of pros and cons. These platforms can expedite the filing process and accelerate refund processing times.

If your tax situation is relatively simple, you have a W-2 form, basic credits to claim, and no need for itemization, using tax software may prove easy and beneficial. This option also works well if you are comfortable navigating through the filing process independently and have already determined which deductions or credits you will be claiming.

Who Shouldn’t Use Tax Software?

Tax software can be helpful if you're dealing with complex tax returns that involve things like self-employment income, itemized deductions, multiple real estate properties, and other investments. However, even the most user-friendly software can sometimes be challenging to navigate.

In situations like this, it's a good idea to consider seeking help from a CPA or visiting a tax preparer in person. This option may also end up saving you some money.

Most CPAs and tax professionals are available right up until the deadline for filing taxes. To ensure that your taxes get filed on time, it's advisable to schedule an appointment as early as possible.

"It’s highly advisable to involve a certified public accountant (CPA) whenever a person's tax returns go beyond standard W-2 and 1099-INT forms," advised Griffith. "If an individual possesses assets or earns income from multiple states or countries, it’s strongly recommended to engage a CPA for preparing their income tax returns during those years."

Before purchasing tax software, check if you qualify for free filing options. If your tax return is straightforward, online software may allow you to file your taxes at no cost. 

Some examples of such software are FreeTaxUSA and TaxSlayer, which offer free filing options for simple returns. If your adjusted gross income for 2023 falls below $79,000, you may also be eligible for free tax filing through the IRS Free File program.

Besides these options, certain individuals may qualify for free filing services through programs like Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE). This includes seniors as well as those who have limited English proficiency or disabilities.

When Tax Preparation Software Is Worth It?

Tax preparation software operates in a manner akin to an interview, wherein it prompts you for details regarding your income and expenses. This data is then compiled into a digital tax return that can be submitted to the IRS electronically.

Using such software can streamline the filing process and save you money, especially when hiring a CPA or tax professional. However, experts advise that it’s most beneficial for individuals with relatively uncomplicated tax situations.

According to Rob Burnette, CEO and professional tax preparer at Outlook Financial Center, "If your return involves only wages from Form W-2 and you take the standard deduction, utilizing tax prep software is typically a sound decision."

>> Visit TurboTax >>

What's the Best Tax Software for Cryptocurrency Transactions?

Looking for the optimal tax software to handle cryptocurrency transactions? Determining whether you're required to report any activity associated with Bitcoin and other digital currencies can be quite a challenge. 

In a nutshell, if you've engaged in using, selling, exchanging, receiving as payment, or mining cryptocurrency during the previous tax year, these actions need to be reported. This holds true regardless of whether you receive a Form 1099.

Out of all the platforms we put through our testing process, TurboTax offers unparalleled support when it comes to reporting cryptocurrency transactions. However, all the sites we evaluated allow this functionality. 

What sets TurboTax apart is its comprehensive guide on how to handle cryptocurrency in your taxes. So if you want top-notch assistance in navigating this complex area of taxation, TurboTax should definitely be your go-to solution.

Read more on the best crypto tax software.

Can I Do My Taxes From My Phone?

Most of us have become accustomed to the idea of completing our tax returns using our computers, but other options are also available. All the tax services we assessed this year also allow you to file taxes using your phone.

In the past, filing a 1040EZ form was all you could do from a mobile device, but that's not the case anymore. The top-notch services now allow you to handle complex returns without ever needing a full-sized computer.

So, how do these tax services adapt to smaller devices? Well, they have developed dedicated apps for Android and iPhone users. TurboTax, H&R Block, TaxSlayer, and Cash App Taxes offer user-friendly mobile filing apps. In addition, FreeTaxUSA, Jackson Hewitt, and TaxAct offer mobile versions of their websites.

Now, you can conveniently prepare and file taxes with your smartphone or tablet!

>> File Your Taxes With TurboTax >>

How Can I Keep My Tax Data Secure?

It's crucial to remain cautious whenever you transmit confidential data through an external network. This applies especially when filing taxes from public places like coffee shops or airports. In fact, it’s advisable to avoid doing so altogether.

Thankfully, safeguarding your online activity can be easily achieved by utilizing a VPN (Virtual Private Network). First-rate VPNs establish a secure pathway that encrypts your information, rendering it indecipherable to any potential eavesdroppers.

How to Choose Tax Software

If you lack knowledge about your requirements or the cost involved, it could be beneficial to analyze online tax filing providers separately and their services. Delve into the following aspects:

• User experience: Tax software that adopts an interview-style approach, probing about income and relevant life events for potential deductions, provides more guidance than a basic fill-in-the-blank method. Importing forms like W-2s is preferable to manual data entry.
• Support Options: Most tax software platforms offer searchable FAQ sections or knowledge bases, with some including video tutorials or user forums for assistance. While audits are rare for most taxpayers, those seeking protection should understand the support their chosen software provides.
• Tax Pros for Assisted Help: A significant advancement in recent years has been the availability of one-on-one help from human tax professionals, accessible live on-screen. Depending on the provider, these professionals can offer tax advice or review entire tax returns before filing, often at an additional cost.
• Availability of Tax Forms: After identifying a provider that excels in the areas above, selecting a package that encompasses all necessary tax forms and schedules is essential. While individuals with straightforward tax situations may only require a basic 1040 package, those with multiple income sources, itemized deductions, business, investment, or rental income typically need access to additional schedules and forms, necessitating a higher-tiered package.

>> Start Using TurboTax >>

Best Tax Preparation Software – FAQs

What Is a ‘Simple’ Tax Return?

Filing a single W-2 from an employer qualifies as a straightforward tax return. This return type doesn't involve itemizing deductions, reporting investment income or rental property, declaring freelance income, or including business expenses like a home office.

Intuit and H&R Block outline the increased complexity associated with their top-tier products. Reviewing their lists before purchasing is wise if you're unsure about your specific needs. You can often begin filing for free and upgrade your service level if necessary.

When Should I Pay Extra to Get Live Assistance From Online Tax Software?

Well-crafted tax software offers the advantage of not requiring additional payment for professional help. The necessary information is conveniently accessible with just a click or two.

If you frequently need human guidance from a tax expert, or if your tax situation is complex, choosing tax software that includes expert support may be more beneficial, or hiring a certified public accountant independently.

How Much Does It Cost to Hire a CPA? Is It Worth It?

Although software programs can be effective for complex tax returns, consulting with a human expert is often best. According to the 2020-21 Fees Practices Survey published by the National Society of Accountants, hiring a CPA for your tax filing can range from $200 to $500 depending on factors such as your return's complexity and location. Additional rental income or investment gains schedules may cost around $100 each.

Paying extra for an expert is likely worth it if you have self-employment income, itemized deductions, or investments. Knowing that a professional is caring for your forms provides peace of mind. 

Remember that your additional fees could result in a better return on investment regarding potential tax benefits. Therefore, viewing this upfront cost as a wise investment is recommended.

>> Visit TurboTax >>

Best Tax Preparation Software – The Bottom Line

Using online tax preparation and filing services can be a convenient way to save time and avoid the frustration of paper filing. These services may uncover deductions you still need to consider, potentially increasing your refund.

The continuous improvement of tax apps and websites means that if you've had difficulties in the past, it's worth giving them another chance this year. Embrace the convenience and potential savings web-based tax solutions offer for a smoother tax season experience.

>> File Your Taxes Online With TurboTax >>

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