The Best Online Tax Software of 2021

DIY taxes are easier than ever, thanks to online software, but even the most confident tax-filers need help every now and then. That's where H&R Block shines: We like that you can file your taxes online (by yourself or with a pro), via mobile app, with downloaded software, or in person at more than 11,000 locations.

H&R Block’s free version is better than most. Like the others on this list, it handles Form 1040 along with the Earned Income Tax Credit (EITC) and child tax credits. But you can also claim the student loan interest deduction and file schedules 1, 2 and 3, which means more taxpayers are covered under the free version.

Although attractive and easy to use, the interface isn’t quite as intuitive as TurboTax’s. For instance, H&R Block assumed Timothy Taxes had a W-2 (even after using “retired” as his job title), and we had to work a few screens to get back on track with retirement income.

But it still asks clear questions, offers helpful explanations along the way, looks for common tax breaks, and includes a help center for when you get stuck. You can upgrade to a paid version for tax advice via phone call or live chat. For an additional cost, H&R Block offers Online Assist, in which a tax professional reviews your return and checks for any missed tax breaks. Timothy Taxes used the free version, as did Noah Numbers (saving him money over TurboTax). The Go-Getter family used the Self-Employed package.

H&R Block is best for people who might want to file at a local office or qualify to use the free version. (If you have a more complicated tax situation, then TurboTax might lead you through the process better.)

TaxAct’s software is a solid balance between low prices and decent features. TurboTax and H&R Block are still easier to use, but if you’re looking to save money, TaxAct is a competent alternative.

TaxAct functions much like the others on this list: You can import last year’s returns (including ones from TurboTax and H&R Block) along with certain forms. Tax specialist phone support is included in all paid packages, but you can also pay extra for Tax Expert Help Service, in which you schedule an appointment with a tax expert.

Aside from offering an efficient tax-prep product at lower prices, TaxAct also has an accuracy guarantee worth $100,000. If the TaxAct software makes an error on your return that results in a higher tax liability or lower refund, it will reimburse you for any resulting penalties and interest up to a maximum of $100,000. That’s the highest stated guarantee we found of the filing programs on this list.

If you’re looking to save money, you have high income and you’re worried about errors, the low price points and high-dollar guarantee could be reason enough to choose this software.

Noah Numbers had to use the Deluxe+ version to claim the student loan interest deduction, while Timothy Taxes used the Free package and the Go-Getters used the Self-Employed package. The interface was easy to navigate, although a few prompts were frustrating. For instance, when TaxAct told Jane Go-Getter to return to a specific place in her tax return to fix an error, it didn’t provide a link to that specific place.

You’ll be asked whether you want to enter the information on the form yourself or receive guidance. We used the guidance option, but poked around the file version, too. Some tax filers are probably very comfortable using the forms. But if you’ve only ever used online software to file taxes, then seeing the forms can feel overwhelming. Having the option is a nice touch.

TaxAct also seemed to know when to provide information at the relevant moment. For example, TaxAct set Timothy Taxes’ filing status to single but asked if he wanted to check out "qualifying widower." Then TaxAct clearly explained why Timothy couldn't qualify as a widower (he doesn't have a dependent). It also included a “pro tip” about claiming parents as dependents.

TaxSlayer supports all major IRS forms and schedules at affordable prices, but its flaws are made clear when using the software alongside others. The free version comes with more limitations than the others on this list, its interface lacks polish and the live-chat feature is subpar.

Among competitors on this list, TaxSlayer offers the lowest prices. Its Free version handles simple tax situations along with the student loan interest deduction, though you’ll need to meet certain income and filing qualifications. The Classic version ($17) handles anything more complicated: all deductions, credits, schedules and forms. Although the Free and Classic packages include free tech support, you’ll have to upgrade to Premium to get tax advice.

The Premium version comes with a support feature called Ask a Tax Professional, in which you can submit questions through your TaxSlayer account. A tax expert will follow up with an answer within one business day via phone or email. Self-Employed package users also get customized self-employment tax advice.

TaxSlayer is best for more confident tax filers who don’t mind minimal guidance—and those looking to save a few bucks.

The Go-Getters used the Self-Employment package, while Noah Numbers and Timothy Taxes used the Simply Free version. The software calculated the same tax refunds compared to the other preparers on this list, but it just wasn’t as easy to move around or get help. Some of the tax-topic explanations direct you to IRS pages, which defeats the purpose of tax-prep software. Other prompts don’t have explanations at all. While entering Jane Go-Getter’s information, we couldn’t resolve the issue using the live-chat function, which disconnected after 15 minutes. We ended up calling phone support and resolving the issue there.