Best Tax Software 2021

Taxes are confusing enough without the added stress of figuring out which tax software is the best tax software. So we did the research to help you choose the ideal option to file taxes online. We focused on well-known and widely used tax preparation software, and while the tax code is the tax code, there’s a crucial difference between paying for what you could use and paying for stuff you don’t need.

Best tax software: Providers we reviewed

A quick note on how to choose tax software ...

There are many software providers out there, and each one offers different packages for different taxpayers. When choosing, it's likely most helpful to start with your individual needs.

• "I have a pretty simple return."

• "Which software is easiest to use?"

• "Tell me more about each provider."

• "Can I work with a tax pro online?"

• "Or can I just give it all to a tax pro online?"

Best software for simple returns

H&R Block Free

Typically, you have a "simple tax return” if all of your income is from your job (rather than from interest, dividends or other sources), and you claim the standard deduction instead of itemize.

If that sounds like you, you may not need tax software built for crazy-complicated tax situations. And when it comes to tax prep software that can do simple returns at a reasonable price without sacrificing user-friendliness, we think H&R Block Free stands out from the crowd.

Like the free tax software from most of its competitors, H&R Block Free lets you file Form 1040. But H&R Block’s free version also lets you file schedules 1 and 3, which is a big bonus because many taxpayers need to file those forms to report things such as business income, alimony, certain retirement contributions, the credit for dependent care expenses, the Lifetime Learning Credit or the Saver’s Credit. You may need to upgrade if you don't know how much to claim for those things and want the software to calculate it for you.

Also, if you plan to itemize deductions, were a landlord, freelanced or ran a small business or had any other situations going on, you’ll probably need to upgrade to one of H&R Block’s paid packages.

H&R Block’s interface is visually simple, straightforward and easy to use, and it steps up to explain concepts as you go. Skipping around to specific spots can be a little tricky, but a banner across the top keeps track of where you stand in the filing process.

Free tax software packages at a glance

» MORE: Learn about IRS Free File and other free filing options

Best software for ease of use

TurboTax

With its intuitive design and experience and variety of support options, TurboTax is in many ways the standard for the do-it-yourself tax-prep industry.

TurboTax’s interface is like a chat with a tax preparer. You can skip around if you need to, and a banner running along the side keeps track of where you stand in the process and flags areas you still need to complete. Embedded links throughout the process offer tips, explainers and other resources. And help buttons can connect you to the searchable knowledge base, on-screen help and more.

Notable handy features include import capabilities that let you switch to TurboTax from another provider, auto-import certain tax documents, a donation calculator and the ability to access and work on your return across devices. All of this comes at a price, and similar offerings from competitors this year may provide a better value.

More about tax-software providers

If you don't know what you need — or how much you need to pay for — it might help to examine the providers individually and what sort of experience each one offers. Here are a few areas to dig into:

• User experience: Software that feels like an interview — asking questions about your income and any live events that might allow for deductions — offers more guidance than a basic fill-in-the-blank process. The ability to import forms like a W-2 is better than having to manually type in numbers.

• Support options: Most tax software offers a searchable FAQ section or knowledge base, and some offer video tutorials or user forums to help answer questions. One recent differentiator has been one-on-one help from a human tax pro, live on your screen. Depending on the provider, these pros might be able to give you tax advice or review your whole tax return before you file. (This sort of help comes with an extra charge.) Audits are unlikely for most taxpayers, but if you think you’re at risk and want to purchase protection, you should understand what your software provides.

• Availability of tax forms: If you find a provider that excels in the areas above, you then want to choose their package that covers all the tax forms and schedules you need.

Here's a look at some top tax-software providers and what using them is like.

TurboTax

TurboTax is generally pricier than everything else out there, but even though confident filers may not need all the bells and whistles that most TurboTax online products offer, many people will find the experience and the availability of human help worth the extra cost. We’ve long praised TurboTax for its design and flow.

» Learn more in our TurboTax review.

H&R Block

H&R Block’s software is a solid contender in the crowded market for tax software. Though it’s not the most expensive of the tax software providers we reviewed, H&R Block online tax software isn’t the cheapest either. Still, its free version is one of the best on the market, the interface is straightforward and easy to use and on-screen help from a human is available for an extra cost.

» Learn more in our H&R Block review.

TaxAct

TaxAct is less well-known among tax software providers, but it offers quality online software that generally costs far less than TurboTax or H&R Block. It may not be as fancy in some ways, but you can get on-demand, on-screen access to a tax pro like the other guys offer, and the data-entry process is similar to most of the competition. And TaxAct’s prices are hard to ignore.

» Learn more in our TaxAct review.

TaxSlayer

TaxSlayer's pricing model sets it apart: The company charges according to the level of support you want, rather than according to a software package’s capabilities. In other words, the cheapest paid package handles all the same tax situations and forms that the most expensive package handles — what changes is how much help you can get. Translation: If you’re a confident tax filer and don’t need a lot of support, you could save a lot of money with TaxSlayer.

» Learn more in our TaxSlayer review.

Paid tax software packages at a glance

Live help online from a tax pro

Many of us have had to learn to do more and more things online last year. Working with a tax pro can be another one. Indeed, even before "coronavirus" was a thing, some providers had an option to work on your tax return with a human tax preparer onscreen.

This year, providers are upping their offerings of live help from a tax pro while you prepare your return.

H&R Block also has Tax Pro Review, a one-on-one review of your completed return for accuracy and possible missed tax breaks. The tax pro will sign and e-file for you if you want.

When you want to ditch the software and just hire someone

If you don't want fuss with tax software (or taxes at all, for that matter), there's another option that generally involves uploading your tax documents to a portal and having a human tax pro take it from there.

Prices and services vary, but here are some options.