BLUEPRINT

Advertiser Disclosure

Taxes

Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy.

In 2024, the IRS expects to receive more than 128 million tax returns. To make the process of filing your taxes (and hopefully receiving your refund) as painless as possible, choose an affordable, easy-to-follow online tax software.

To that end, we collected 19 data points on eight of the most popular online tax preparers to pick the best tax software for you, while highlighting the positives (and pointing out the negatives) of its rivals.

Best Tax Software Comparison Table

Star ratingFederal filing feeState filing fee
Best Overall: Cash App5$0$0
Runner-up: TurboTax4.24$0* to $459$0 to $64
Runner-up: TaxSlayer4.18$0 to $62.95$0 to $39.95
Runner-up: TaxAct3.96$0 to $99.99$39.99 to $59.99
Runner-up: MyBlock3.85$0 to $85$0 to $37
*File for free with TurboTax Free Edition. ~37% of taxpayers qualify. Form 1040 + limited credits only.

Best tax software

Pros and cons, explained

Cash App

Pros

Free audit defense. If the IRS audits your return, Tax Protection Plus, with which Cash App partners, will provide a qualified specialist to provide consultation to you, respond to inquiries and demands on your behalf (as you specify), attend any hearings with you and assist with any tax debt resolution. 

Accuracy guarantee. If your taxes weren’t correct due to a Cash App Taxes calculation error and a federal or state tax authority levies penalties and interest against you, the company will reimburse you up to $1,000 in the form of gift cards.

Max Refund Guarantee. You could receive up to $100 in the form of gift cards if you end up filing an amended 2022 federal return that provides the same information and nets you more tax savings. 

Cons 

Account and download required. You must sign up for the Cash App platform, not just Cash App Taxes, which means downloading the app on your phone even if you want to use a laptop or desktop to file. Cash App may be offering its tax service for free in the hopes that you’ll end up using its other services, which include banking and investing.

Doesn’t apply to every possible tax situation. Cash App Taxes doesn’t support a slew of special situations: non-resident, part-year or multiple state filings, underpayment, foreign-earned income, filings for minors (those aged under 18) and a whole host of somewhat older and rarer tax credits, including general business credits (Form 3800) and health coverage tax credit (Form 8885). Cash App lists which forms it doesn’t take. 

No live tax support. While Cash App has live chat and email to assist you on issues involving the nuts and bolts of the platform, it doesn’t have support dedicated to answering any of your personal tax questions. 


TurboTax

Pros

Accurate calculation guarantee. If you pay penalties and/or interest to a federal or state tax agency due to a miscalculation that occurred on the TurboTax software, the company will reimburse you, except for financial costs due to a payment plan. For example, if you owe $5,000 due to an error and enter a payment plan with the IRS that charges $500 in interest, TurboTax will cover the $5,000 and not the $500. 

Maximum refund guarantee. If you file an amended 2022 return up to seven years later and receive either a larger refund or owe a smaller amount — and you didn’t change any of your tax information – TurboTax will refund you whatever you paid for the software. If you used the service for free*, you’ll still receive $30.

Secure access. Multi-factor authentication, encryption, Touch ID and automatic email notifications all work to protect your sensitive information as it’s transmitted between entities.

Cons

Most options aren’t free. If you desire all the bells and whistles, you’ll need to pay for them, which can significantly eat into your expected refund.

Upselling. As you go through the process of filling out forms, the software works to upsell you. You’re often reminded of higher-cost tiers and add-on services that could help you get a larger tax return, even if you’re already paying for a package. 

End price could be a surprise. If you accept a few upscale, add-on software features, when your head is already so full of numbers, the grand total you owe TurboTax in the end may be an unpleasant surprise. 


TaxSlayer

Pros 

100% accuracy guaranteed. If a state or federal tax authority charges you penalties and fees due to an incorrect calculation on TaxSlayer’s part, the company will pay those charges. 

Free access to live support. Getting answers from a tax professional doesn’t require you to pay for a premium tier. Even filers using “Simply Free”and paying nothing to complete their taxes have the ability to talk with or email a tax expert — and for an unlimited amount of questions. 

Lower prices for premium features. If you’re self-employed, filing taxes can be expensive. While TaxSlayer’s self-employed software package commands the highest price among its offerings, $62.95 is relatively low.  

Cons

Limited time to submit a maximum refund guarantee claim. If another tax software lands you a larger refund or a smaller tax bill, you only have 60 days or until June 15, 2023 (whichever is sooner) to file your claim in writing and receive a refund for the TaxSlayer program you purchased. If you paid nothing, your refund is nothing. As a comparison, TurboTax’s maximum refund guarantee is valid for seven years and if you used its free file offering, you’ll still get a $30 refund. 

Possible wait times for help. If you don’t sign up for the premium software, you might have to wait a while for tax help. Unless you select a high tier, you don’t have priority status in getting a response. 

State tax filing typically costs extra. Like most tax software companies, TaxSlayer charges a fee in most cases to convert all the information you entered for your federal tax filing to the proper forms for your state(s). 


TaxAct 

Pros 

Accuracy guarantee. Rather than promise to refund you the price of the software, if you have problems due to a calculation error on TaxAct, the company will pay up to $100,000 to cover it.

My TaxPlan. A free tool, My TaxPlan provides personalized advice on how to set yourself up for a maximum refund next year. For example, you may be advised to make a certain amount of contributions to one of your retirement funds. 

Prior year document import. Like most top tax software companies, TaxAct allows you to automatically import last year’s tax return by uploading a PDF from whatever provider you used before. This way, you have less to enter by hand and can start off strong. 

Cons

Pricey. There’s a free federal return option, but you still have to pay $39.95 for the state. And when you need a paid version of the software, that state cost suddenly shots up to $54.95. In general, the company likes to say that its service costs less than competitors like TurboTax, but it doesn’t cost that much less.

Upselling. Unless you start out with the highest-cost version of the tax preparation software, you’ll get frequent reminders, as you fill out the paperwork, that upgrading the service could save you money or get you a larger refund.

Limited mobile app. While TaxAct has a mobile app, it isn’t compatible with many tax forms, including forms for self-employment, investments and rental property. It can be useful to you if you have only basic tax filing needs. It covers these forms: W-2, interest and dividend income, unemployment compensation, child tax credit, child and dependent care credit, education credits and deductions, premium tax credit, earned income tax credit (EITC) and saver’s retirement credit.


H&R Block

Pros 

The free version is robust. Not only is the free version of the software truly free with no cost to do your state taxes, it also supports more IRS forms than competitors. Most tax preparation companies only allow you to file an IRS Schedule 1 on their free software versions. H&R Block adds IRS Schedule 1 and Schedule 2, allowing you to report more income types and claim more tax credits. 

Integrated mobile app available. You can use H&R Block’s app, MyBlock, to start or finish filing your tax returns, using it interchangeably with another device like a laptop or desktop. The app also allows you to snap photos of receipts, donations and tax forms as you get them throughout the year, so they’re all in one place for tax season.

No Surprise Guarantee. Unlike some competitors that try to constantly upsell you as you work on filing your taxes (which, if you agree, can make for an unpleasant surprise at the end), H&R Block has a No Surprise Guarantee, which means you’ll know the cost of the service before you start. 

Cons 

Unlimited, live help gets pricy. For a tax professional’s assistance when you’re already paying for the self-employed version of the software, be prepared to open your coin purse wider. It costs $145 for federal, plus $37 per state to get an expert’s insight at that level. 

Some competitors are less expensive. Compared to other tax software companies on this list, H&R Block sits in the middle of the pricing spectrum for its base software packages. CashApp and TaxSlayer are less expensive. 

Refund transfer fees apply. If you want to pay H&R Block from your expected tax refund, that’ll cost you $39 for your federal filing. If you want it by check, that’ll be an additional $25.  


Methodology

We considered eight of the most popular tax preparation software in the U.S, including Cash App, TurboTax, TaxAct, TaxSlayer, H&R Block, Jackson Hewitt, Taxes to Go and Liberty Tax. We analyzed and scored them based on 19 separate data points, to ultimately create a star rating. A perfect score of 100 means the software would get five stars; a score of 80 would get four stars and so on. 

Here are the categories we analyzed and how we weighted each.

Free filing options: 30%. Typing out numbers into tax forms can be a lot of stress and require an hour or two. Essentially paying someone for the joy of allowing you to fill out forms is counterintuitive, especially if you’re already having to pay more money to the government. That’s why we counted free filing options as the most important aspect in tax software.

Customer service options: 25%. Rather than go on a wild goose chase on the internet to find an answer that might not even be correct, it can be much simpler to contact a verified professional with your tax questions. We considered phone support, live chat, email help and the presence and quality of tooltips that are integrated into the software. 

Ease of use: 25%. If the software programing is great, you hopefully won’t have questions that require you to contact a tax professional. Yet everyone has preferences on what interface  they prefer. We counted the ability to take the program for a test drive before you sign up and start filling out your personal information as one of the largest elements in this category, plus general ease of navigation, the presence of an FAQ section and the app ratings on Google Play, the Apple App Store and Trustpilot. 

Price: 20%. All else being equal, we rewarded tax software platforms that charged less for its product. To be sure, some people’s tax situations are more complicated than others. But we believe that the majority of filers using tax software have relatively easy returns, and therefore dinged companies that charged more, especially those that try to upsell customers throughout the filing process. 

Why you should trust us

No one can pay us to be included on our lists. We maintain editorial integrity, making choices based on data and our best judgment, which is rooted in years of professional experience in the reporting on consumer finance.

The lead editor of banking at USA TODAY Blueprint, Taylor Tepper, has over a decade of personal finance experience, including writing award-winning pieces at Money Magazine and being published in the New York Times, Time, Fortune, Bloomberg and NPR. 

The deputy editor, Jenn Jones, brings over five years of writing and analytical skills to bear, as she worked in consumer finance prior to her editorial career. 

How to choose the the best tax software for your needs

Different tax prep programs offer different services at different prices. The key is to have a sense of what type of filer you are (simple return or complex or in between) and select accordingly. 

1. Figure out what your needs are

There are three questions to ask yourself:

  • How much help do you want? Software companies typically offer three flavors of available assistance — none (the cheapest), on-demand answers to your questions (the second most inexpensive) and the total package, wherein a professional does everything for you (the highest priced).
  • What tax forms do you need? If you plan to simply claim the standard deduction and file your one W-2 Form, you need only the basics. On the other end of the spectrum, if you run your own business or earn freelance income, you’ll likely need many forms. If you want to do itemized deductions and/or account for investment income, you’ll likely need something in the middle.
  • How much are you willing to pay? Here’s where your dreams of handing off a stack of paperwork may come to a crashing halt (or not). Typically, the more forms you need and the more assistance you want, the more you’ll shell out. You may not need to crack open your wallet, however. Many tax preparation companies allow you to pay for the service with your refund. You’ll, of course, need to net a refund big enough to cover it if you want this option.

2. Check out what’s available

Just because you see a tax preparation service advertised all the time, doesn’t mean it’s the best one. Do some research into the businesses. Make a list of the companies that have the forms you need and note the prices that they charge. Then narrow it down based on price, extra features or other elements you value. 

3. Switch it up if it’s not the right fit

If the tax software you start using turns out to not have the right forms or you want more help — or you just don’t like the software experience — you can often upgrade or switch to a different company. Several tax services don’t require that you pay upfront, which can make it easy to alter things on the fly. 

How does tax software work?

You’ll typically begin by providing your name, address, contract information, Social Security number and other personal information. You’ll need to give the same information for any dependents you’re claiming, plus your own marital status. 

If you filed taxes last year, you may be asked for that year’s adjusted gross income as a way to further prove your identity, so it can be good to have your 2021 return on hand. 

Upload your income documents

To make things easier, many tax software platforms allow you to take a photo of tax forms and upload it, rather than typing in all the data yourself. You’ll still have the option to type it in and, if the software doesn’t allow photos, you’ll need to go old school and hit the keyboard yourself. You might also be able to simply enter your employer’s EIN code to upload all of your W2 information if your employer participates in the program. 

Enter your credits and deductions

The tax code is vast and full of different credits and deductions that can lower your overall tax burden. The point of tax prep software is to help you access those tax goodies as easily as possible. 

For instance, popular credits include:

  • Earned Income Tax Credit.
  • American Opportunity Tax Credit.
  • Lifetime Learning Credit.
  • Child and Dependent Care Credit. 
  • Saver’s Tax Credit.

This can help you avoid missing out on opportunities you may not have known even existed.

“Part-time workers are more likely to meet the income eligibility of the Saver’s Credit, and are less likely to be aware of it,” said Transamerica Center for Retirement Studies chief executive Catherine Collinson. “If you don’t have a plan, there’s a good chance you might not know about it.”

Meanwhile, you may be able to deduct the following from your adjusted gross income:

  • Student loan interest.
  • Mortgage interest.
  • Donations to registered non-profits. 
  • Business expenses.
  • Contributions to special savings accounts, such as individual retirement accounts (IRAs) and health savings accounts (HSAs). 

If you could save more money by itemizing your deductions rather than taking the standard deduction, you’ll need to enter in a potential slew of numbers. It may be more work but it’s all in the name of getting a bigger return. 

Any tax preparer worth its salt will prompt you with questions to see if you qualify for any potential credit or deduction in order to limit your tax burden. 

Review, sign and send

When finished, consider taking a break and then reviewing everything with fresh eyes to confirm it’s shipshape. If your tax software allows it, you can request that an expert also give it a once-over. 

When you’re satisfied, you’ll have to formally agree that everything in your filing is true and correct. Then you click a button or two to officially send it off to the relevant tax agencies.

Those who opt to have any refund directly deposited into their account, will have to provide their banking information.

Learn more: When can I expect my tax refund?

Should I use tax software or hire a professional?

You should consider using a tax software if you’re up for taking on what’s hopefully a minor challenge. However, if you have a particularly gnarly financial situation, or doing taxes completely stresses you out, hiring a professional can be worth it.  

Big life changes. A tax professional could help you best navigate the financial waves from big events that happened over the last year – or that will happen soon – including marriage, divorce, having a child, selling a home, gaining an inheritance, settling an estate and retirement.

Complicated income. The phrase “more money, more problems” is sometimes true. If you have income from a full-time employer, part-time employer, freelance job, a series of gigs, child support, alimony and/or government benefits, like unemployment or Social Security, things can become confusing quickly. 

Upcoming audit. If tax agencies notify you that you’re being audited, getting a certified public accountant (CPA) with audit experience could ultimately save you time, stress and money. 

Business ownership. The financial lifeblood of a company can be hard to manage and tricky to report. Not only do you have the normal income and expenses, you can also have depreciation, wages and much more. 

Serious investments. If you frequently deal or heavily invest in the stock market, especially crypto, it may be smart to have a professional look at the tango of transactions to determine what’s taxable. Various factors can intersect and change up what deductions and credits you qualify for, and how much you need to pay both Uncle Sam and your state.

Can you use IRS Free File?

About 70% of taxpayers qualify for a free federal tax return via the IRS Free File program. If you have an adjusted gross income (AGI) of $73,000 or less, you don’t need to pay a penny. You can find IRS Free File though several tax preparation companies, including:

  • TaxSlayer.
  • TaxAct.
  • FreeTaxUSA.
  • 1040Now.
  • FileYourTaxes.com.
  • ezTaxReturn.com.

You check out the full list of IRS Free File partner firms to see if you might benefit.

If you’re up to the challenge of doing almost everything yourself, without software guidance and automatic calculations, you can use Free File fillable forms instead.

Frequently asked questions (FAQs)

Based on our analysis, we think the best software for tax preparation is Cash App Taxes.

The answer to this question is highly-debated as it’s hard to prove. Many tax softwares give a “maximum refund guarantee.” 

Monday, January 23, 2023, is the earliest you can file your 2022 taxes. However, sometimes there are reasons you should wait to file

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Jenn Jones

BLUEPRINT

Jenn Jones is the deputy editor for banking at USA TODAY Blueprint. She brings years of writing and analytical skills to bear, as she was previously a senior writer at LendingTree, a finance manager at World Car dealerships and an editor at Standard & Poor’s Capital IQ. Her work has been featured on MSN, F&I Magazine and Automotive News. She holds a B.S. in commerce from the University of Virginia.

Taylor Tepper

BLUEPRINT

Taylor Tepper is lead editor for banking at USA Today Blueprint and is an award-winning journalist and former senior staff writer at Forbes Advisor, Wirecutter/New York Times and Money magazine. His work has also appeared in Fortune, Time, Bloomberg, Newsweek and NPR. He lives in Dripping Springs, TX with his wife and 3 kids and welcomes bbq tips.