15 Best Tax Software Programs (2024)

What is the best tax software?

1. Intuit TurboTax.

TurboTax is known for efficiently processing simple tax returns. It also offers a free filing option as well as easy navigation that can be used by a layperson for personal tax returns.

Features

• Navigation system : The guided navigation system assists new users by asking them a series of questions that are easy to understand. The process becomes more comfortable for users when they record the correct answer.
• In-depth articles: It offers a repository of in-depth articles where users can get answers to all frequently asked questions and other relevant information.
• TurboTax Live : This feature allows users to share their screens and have their statements reviewed directly by accountants and tax consultants. Users also have the option of connecting with a chartered accountant upon request. Users can connect through four options, including Basic Live for $49.99, Deluxe Live for $89.99, Premier Live for $139.99, and Self-employed Live for $169.99.
• Max Assist and Defend : This feature allows users to benefit from audit protection for complex tax returns. You can buy it for an additional $44.99.

Pricing

TurboTax offers four pricing plans:

• TurboTax for self-employed workers - Cost: $119.99 + $39.99 for each state declaration.
• TurboTax Premier - Cost: $79.99 + $39.99 for each state declaration.
• TurboTax Deluxe - Cost: $59.99 + $39.99 for each state declaration.
• TurboTax Free - Cost: $0+$29.99 for each state declaration.

2. Liberty Tax.

Liberty Tax can significantly reduce the cost of your tax return. This affordable online tax software has a user-friendly interface and lots of unique features to attract tax filers.

Features

• Advance tax refund loan : It's one of Liberty Tax's most appealing features that makes it popular with tax filers. Users can get advances of $500 to $6,250 depending on the expected federal refund after deducting authorization fees.
• Enhanced audit support : This is an add-on that users can purchase to get pre-audit assistance for documents that the IRS may request. It also helps respond to IRS correspondence and offers post-audit advice.
• Maximum money-back guarantee : Liberty Tax offers a maximum money-back guarantee to its customers. If you file the same return with a competitor's software and get a higher refund or lower federal tax, Liberty Tax will promptly reimburse you for the amount paid for tax preparation services.
• Tax estimator : This is a fictional tax return tool that helps the user estimate the amount of the refund or tax to be paid before the tax return.

Pricing

Liberty Tax offers four paid editions:

• Simple edition : Federal returns: $34.95, State declarations: $35.95.
• Basic edition : Federal Declarations: $44.95, State Declarations: $39.95
• Deluxe edition : Federal Declarations: $64.95, State Declarations: $39.95
• Premium edition : Federal returns: $89.95, State declarations: $39.95.

3. Jackson Hewitt.

Jackson Hewitt offers the second largest tax preparation service in the United States. It also offers solid customer support through its brick and mortar stores across the country.

Features

• Solid customer support : With over 3,000 brick and mortar stores located inside Walmart stores across the United States, Jackson Hewitt offers solid customer support. It also allows users to complete their tax return in offline mode.
• Tax tools : It offers a plethora of user-friendly and effective tools, including a refund status checker, a W-2 location tool, and a tax estimator, among others.
• Refund Advance : It offers users the option of taking out an advance loan of up to $3,500 for an estimated tax return at an annual interest rate as low as 0%.
• Audit support : It offers a free audit assistance service to users.

Pricing

The official site does not mention pricing plans. However, online reviews suggest that prices start from $29.99.

4. AvaTax.

Avalara AvaTax is one of the main tax automation tools that can intensify your tax compliance efforts. It is capable of dealing effectively with simple declarations and complex tax obligations.

Features

• Error-free calculation : This handy feature only defines the nexus once and then automatically applies the appropriate rates for subsequent transactions accurately. It relies on an integrated geolocation and address authentication system to ensure that data is accurate, visible, and accessible.
• Transparency : The intelligent suite of reports makes the taxation process transparent and simple. Users can get payments summarized in a single schedule.
• Useful integrations : It has over 500 pre-built integrations that link it to other popular POS, accounting, and ERP systems.
• International taxation : Avalara offers numerous add-ons related to international taxation or specific to taxation to improve the efficiency of the software. These add-ons include Avalara CertCapture, Avalara Returns, AvaTax Excise, and more.

Pricing

The paid version costs $50.

5. Drake Tax.

Drake Tax offers an easy to use, comprehensive, and accurate software solution for standard tax reporting requirements. The software provides excellent customizable reports and other user-friendly functions to meet user tax requirements.

Features

• Ease of use : it offers easy navigation and allows users to quickly move from one item to another. It provides all the major tax forms, consolidates gift and inheritance taxes, and includes other applications to effectively manage document transfers.
• Full statements : The software offers support for some of the most complicated tax cases. It is equipped with all 1040 forms, including all federal packages and 48 state packages. It also provides access to forms for S corporations, C corporations, partnerships, trusts, estates, and tax-exempt organizations.
• Scheduling tools : Its tax planning functions help the user compare taxes on an annual basis. It allows old information to be archived and is equipped with an amortization table.
• Paperless filing : It encourages the reduction of the use of paper needed to prepare and file taxes through options such as sharing information for reviews, electronic signature, and electronic reporting of tax documents.

Pricing

Drake Tax costs $330 per year and comes with a free trial. It does not offer a free plan.

6. ONESOURCE from Thomson Reuters

ONESOURCE is a powerful tax software that perfectly meets the needs of large companies, including those with international interests and that have to deal with extremely complex tax situations.

Features

• User interface : It is equipped with a well-organized dashboard and eliminates the possibility of entering repetitive data. It offers effective integration with other tax compliance and reporting applications.
• Web-based : The web-based platform supports multiple user access from different devices and platforms. This feature makes it perfect for the tax department of a company that employs multiple professionals for compliance and reporting.
• Single data entry : ONESOURCE shares input data across the system with all relevant applications to eliminate multiple entries of the same data.
• Process Management : Process management capabilities help streamline workflow to achieve maximum team efficiency.

Pricing

Users should contact the supplier to get a quote based on the specific needs of the business.

7. QuickBooks.

QuickBooks is perfect for improving the efficiency of financial management through innovative means. Its functions include the possibility of preparing and declaring taxes while meeting the standards and legislation in force in the user's field of action.

Features

• Tools for accountants : QuickBooks offers a plethora of insights and organizational capabilities that help businesses keep accounting data organized, including overdue items, accounting notes, invoices due, and contact data.
• Automated reports : This function ensures that even the smallest taxable amount is entered during the tax return in order to avoid any penalty or interest.
• Highly secure : It offers robust security put in place to guarantee data through end-to-end encryption of data inputs.

Pricing

You don't get a freemium plan, you get a free trial.

Paid plans include:

• Freelancers: $5/month
• Simple Start: $7/month
• Essentials: $17/month
• Plus: $25/month

8. Clarus R&D.

Clarus R+D is the best solution for simplifying tax credit tasks for small and medium-sized businesses. It offers users a solid combination of cutting-edge technology and effective customer support through trained tax experts and CPAs.

Features

• Automatic calculation: It is capable of automatically calculating the R&D tax credit for users based on the data collected for the user.
• Compliance: Clarus automatically generates secure documents and reports.
• A simplified tax process: Clarus R+D is perfect for all the cumbersome tasks of tax preparation. It's an ideal tool for small businesses that don't have the time and resources to manage and calculate tax credits accurately.

Pricing

It offers plans based on specifications according to the needs of businesses.

9. OLT online taxes.

OLT Online Taxes is a free online federal tax preparation solution that allows taxpayers to prepare their federal tax returns through the IRS Free File Alliance.

Features

• Remote declaration solution : The OLT TED IRS solution offers an effective alternative to paper-based tax preparation. It can effectively meet the tax requirements of small, medium, and large businesses.
• Robust security : Every piece of information entered in the BTA is checked by Trust Safety to ensure optimal safety. It also offers verification assistance to help taxpayers save their returns.
• Navigation : It has several navigation tabs, including a first-level navigation tab for filing state and federal returns. The second-level navigation tab gives you access to income, primary information, credits, adjustments, taxes and deductions, and the tax summary, among other things.
• Self-adjusting glossary : It is equipped with a glossary sidebar that provides links to relevant articles on specific tax topics. The content suggested in the glossary adjusts automatically, based on the data entered into the tool.

Pricing

It comes with a free edition. The premium edition costs $15.90.

10. Credit Karma.

Credit Karma is an excellent option for professionals who are looking for a free but powerful tool for preparing and submitting declarations electronically. The software is equipped with several advanced features and offers reliable support and advice to American taxpayers.

Features

• Support for multiple tax preparation forms: The software takes care of virtually all popular forms and appendices to ensure efficient tax preparation and filing. It covers essential requirements, including detailed deductions, capital gains and losses, and self-employed income, among others.
• User interface: It offers the layout of tax preparation modules in an intuitive dashboard. A horizontal toolbar at the top of the screen allows users to easily select basic information, federal taxes, and state taxes.
• Data verification: Credit Karma tax software checks the data entered by the user twice before transferring it. In the event of an error or omission in the data, it offers the possibility of returning to the offending screens to correct them.
• Customizable: It allows users to choose the scope of the tax that is applicable to them, including deductions, wages, and income, among others.

Pricing

It is available free of charge.

11. H&R Block

H&R Block is one of the most recognized names in the field of taxation. It offers comprehensive tax support with a powerful user interface and numerous user-friendly functions.

Features

• Customer Support: It offers one of best support software platforms thanks to its more than 12,000 offices across the United States.
• Ask a pro: Regardless of the software edition you use, you can always get the support you need through chat and screen sharing for 40 to 50 dollars.
• Free filing: H&R Block's “Free Filing” option offers a more useful DIY proposition than other tax software companies. Users can take advantage of the benefits of mortgage interest deductions and income credits through this feature.
• User friendly navigation: Its user interface is easy to navigate. Users can use the menu at the top of the screen to go back and correct any errors.

Pricing

H&R Block offers a freemium plan. So if you only need the basic functions, the free plan will suffice.

Then, they offer six pricing plans:

• Basic: 29.95
• Deluxe: $54.95
• Premium: 74.95
• Independent: $79.99
• Premium and Business: 89.95

12. Tax law.

TaxAct is one of the most affordable tax platforms. Above all, it is a boon for users who are looking for an affordable option to execute complex transactions. It also offers numerous TaxAct offers for additional discounts.

Features

• Cashback bonus: TaxAct has partnered with several leading retailers and restaurants in the U.S., including Regal, Domino's, Amazon, Bed Bath & Beyond, GameStop, and Home Depot. If the user decides to transfer part of the refund to a gift card from one of the retailers mentioned, TaxAct rewards the user with a bonus of up to $100.
• Past tax returns: It allows users to import data from TaxAct returns from previous years to make the reporting process efficient. It also allows users to import data from other providers, including Turbotax and H&R, among others.
• Accuracy Guarantee: It offers a $100 accuracy guarantee in case of error. It's quite daring and unique!
• Web-based: As it is a web-based software, it offers greater flexibility to use the platform from any device and any geographic location. It also provides a mobile application for an improved smartphone experience.

Pricing

For simple tax filers with dependants, education expenses, and retirement income, you can use their free plan.

For more complex needs, it offers four pricing plans:

• TaxAct Basic+ - Federal: $10 to $15, State: $19.95.
• TaxAct Deluxe+ - Federal: $30-48, State: $39.95
• TaxAct Premier+ - Federal: $40 to $50, State: $39.95.
• TaxAct Self Employed - Federal: $60 to 78, State: $39.95

13. FreetaxUSA.

FreeTaxUSA is an inexpensive tool that is suitable for tax filers who have a good idea of how the tax ecosystem works. It's perfect for those who don't need a fancy platform with all the bells and whistles.

Features

• Usability: one of the strengths of this software is its ease of use and its no-frills user interface. Its simple user interface provides a rather lackluster experience, with no fancy color palettes, animations, or videos.
• High-performance free version: The free version offers all the required forms for which you should buy a premium version of any other tax software. It can process forms, including those related to self-employment (Schedule C), capital gains transactions (Schedule D), rental property income (Schedule E), and other sources of income.
• Free Support: Unlike other tax software, it offers free customer support. The service is limited but can resolve all of a declarant's basic questions.
• Guaranteed accuracy: The software offers a total guarantee of the accuracy of the tax return. It pays interest and penalties on your behalf caused by an incorrect tax return.

Pricing

You get a free plan to get a maximum refund and file your federal return. In addition to the free version, the deluxe edition costs $6.99.

14. TaxSlayer.

TaxSlayer offers good value for money to declarants who are looking for quality features, user interface, and customer support at a great price.

Features

• Strong knowledge base: Its robust online knowledge base offers detailed information about tax filing and software features. Users can search for specific answers and resolve most of their issues without the help of customer support.
• Easy to use: It offers a user-friendly interface that is a boon for newbies and small business owners. The configuration is meticulous and comes with an easy user guide.
• Value for money: It offers solid customer support, a plethora of features, and greater ease of use at a much lower price than other competitors in the market.
• Filing a cheap status declaration: Regardless of which plan users use, filing a status declaration is charged at a flat rate of 29 dollars. Members of the military can complete the declaration of status at the discounted price of $15.

Pricing

You can use the freemium plan for a simple tax situation.

There are four paid editions in addition to the free version:

• Classic: 17
• Premium: 37
• Freelancers: 47

15. Free File.

Free Files is the result of an alliance between the International Revenue Service (IRS) and the Free File Alliance. This free service is a great source of information and offers easy to use tax preparation software.

Features

• Tax breaks: It offers a question-and-answer format that helps eligible taxpayers effectively find tax benefits.
• Effective online extensions: If a user is unable to complete their declarations by the deadline (18 April), they can request a six-month extension using the “Free File” feature.
• Free forms: It offers free electronic forms to fill out for the convenience of taxpayers. It is an effective option for tax filers to prepare and complete their tax return without any assistance.
• Free: The taxation platform is free and is equipped with a direct refund for faster processing.

Benefits

• It offers distinct modules for students, self-employed taxpayers, military professionals, government entities, and international payers, among others.
• Besides English, the software is available in other languages including Japanese, Vietnamese, Spanish, Chinese, and Russian.
• The software offers detailed practical guides created by tax professionals to inform users and save them time.
• Great tool for people who have tax filing knowledge and don't want to spend on a paid tool.

Disadvantages

• Limited functions for complex tax returns.
• Customer support is not robust for complex tax issues.

Pricing

It is available free of charge.

What is tax software?

Tax software platforms are best suited to helping individuals or organizations prepare and complete their tax or tax returns. They are intended to streamline the tax filing process by guiding the user through the various relevant tax forms and questions.

In addition, tax software is capable of automatically calculating the tax obligations of the individual or the company. Many tax software packages are now also available in web versions to allow users to use them easily from any device connected to the Internet, including computers and smartphones.

In addition to standard deductions, tax software helps the taxpayer make additional savings or take advantage of less popular deductions. For example, tax preparers may have complicated tax situations and find additional savings based on their:

• Interest on student loans
• Properties and rental income
• Child tax credits
• Reimbursement of mileage expenses
• Use of the business telephone
• Dividend distribution
• Home office savings
• State filing requirements

The most interesting thing is that almost all of them guarantee absolute accuracy, defense against audits, and the highest possible returns to help users maximize their savings.

How do I choose the best tax preparation software?

During tax season, filing taxes on paper alone results in an error rate of 20%. Taxpayers can reduce the risk of error to less than 1% by filing taxes online. In addition to saving money, having the right tax software can help you avoid unwanted errors and IRS checks.

Here are a few things you should consider before choosing the ideal tax software.

1. Software version.

Premium or basic? The hardest task is deciding which version of the tax management program best meets your needs. Users are confused between the following questions: “Is it worth paying extra for the Premium version?” and “Does the basic version meet my needs?” There is no clear answer to these two questions.

The basic version may not have all the features, while the premium versions have all the basic features, including their strengths. Open source software tools generally offer all the basic features in their basic version and only charge for premium versions to provide customer support.

It is advisable to read the characteristics of all the versions and compare them to your needs to make the right decision. If you still don't know what to do, it's best to go for the Premium version that offers all the features.

2. Need to prepare a state tax return.

Some providers include the state tax price in the subscription fee and others separately. If you're not filing a state tax return, it's best to buy tax software that bills the return separately. That way, you can save at least $25.

3. Help with tax deductions.

Taxpayers should look for software that offers an in-depth knowledge base on tax laws and offers quick links to IRS publications. Ensure that the software has a video tutorial to help users understand how to perform the entire process. This helps users to better prepare for the statement.

Make sure that the tax software can extract data from your in-kind donations to claim a tax deduction. The tax deductions search function will allow you not to miss any details by asking yourself all the relevant questions. Independent professionals should ensure that the software includes Appendix C to effectively calculate capital gains.

4. Consider free software.

There are several open source tax software programs that can be used free of charge. Most tax filing platforms are better suited for users who need to fill out a simple and fundamental return. Some of them have free versions that are capable of completing complex declarations.

Take FreeTaxUSA, for example:

With FreeTaxUSA, you can file your federal return for free and only pay extra for state tax returns and other optional services.

Users who have experience filing taxes and don't need to be spoon-fed may also consider using free software to make additional savings.

5. Customer support.

Ensure that the tax software offers solid customer support and is staffed by qualified tax professionals to provide a great experience for software users. Several tax software providers offer online support and chat support, but the taxpayer has to wait several minutes for answers.

Check whether the presence of a tax professional upon request is chargeable or if the tax software provider provides audit assistance. Also, check the toll-free number and email support.

FAQs

What is the purpose of tax software?

Tax software is designed to help individuals and business owners prepare their annual tax returns.

What is a federal tax return?

A federal tax return is a document that helps the Internal Revenue Service (IRS) collect income tax from taxpayers.

Is the IRS free file program useful?

The IRS's free federal tax filing program is designed to help individuals and families file their annual returns. They can use tax software to prepare and file their taxes for free, or prepare them by hand and renew a copy of the previous year's form.

The only problem with the IRS free file program is that it is fairly basic in the functions offered to the tax preparer.

Summary.

So, here are some of the best tax software platforms you can consider for fiscal 2020.

When selecting the right software, there are a few key things you should keep in mind, including the following:

• Accuracy of tax returns
• Strong customer support during the filing and audit process
• Maximum return for business or personal finances
• Easy to use interface
• An in-depth knowledge base to answer questions
• Transparent pricing

The points mentioned above form the basis for a solid tax reporting tool. Consider these points carefully before making the final decision for this fiscal year.

What tax software do you use? Are there any that are not on the list? Let me know in the comments.

Other recommended reading: If you're looking to take charge of your business finances, check out my guide to the best accounting software And if you're just getting started, read my ultimate guide to best business ideas to be launched this year.