Ratings Methodology for
Tax Software
NerdWallet’s overall ratings for tax software providers are weighted averages of ratings in the following categories:

  • Pricing.
  • Transparency.
  • Tax forms supported.
  • Tools.
  • Mobile app.
  • Features and ease of use.
  • Customer support availability.
  • Access to a tax professional.
  • Accuracy guarantee and audit support.
  • Security and privacy.

Data collection and review process

NerdWallet reviews four companies that provide free and paid tax preparation for U.S. customers.

We collect data from providers and do first-hand testing of the software. Our process starts by sending detailed questions to providers. The questions are structured to equally elicit both favorable and unfavorable responses. They are not designed or prepared to produce any predetermined results. The providers’ answers, combined with our editorial team’s hands-on research, make up our proprietary assessment process that scores each provider’s performance.

The final output produces star ratings from poor (1 star) to excellent (5 stars). Ratings are rounded to the nearest half-star.
Information updates

Our writers and editors conduct tax reviews on an annual basis. Throughout the year, we maintain contact with providers and update any changes to their offerings.
Factor weightings

The weighting of each rating factor is based on our team’s assessment of which features are most important to consumers and which ones impact the consumer experience in the most meaningful way.
The review team

The review team comprises writers and editors who cover taxes and investing. Each writer and editor follows NerdWallet’s strict guidelines for editorial integrity.

The combined expertise of our team is infused into our review process to ensure thoughtful evaluation of products and services from the customer's perspective.
Pricing

For this category, we consider the following factors across free and paid package types:

  • Free packages: Providers earn the highest rating if their list price for both federal and state returns is free. Providers that charge more than $60 for federal returns and $40 or more for state returns earn the lowest rating. For multi-state filing, providers earn the highest rating if they offer free additional state returns; providers that don’t support multi-state returns earn the lowest rating.

  • Paid packages: Providers earn the highest rating if their average list price for federal returns is under $44. Those charging over $75 receive the lowest rating. For state returns and multi-state returns, providers with an average price between $0 and $30 earn the highest rating, while those charging over $45 or who don’t support multi-state returns receive the lowest rating.
    • Transparency

    For this category, we consider the following factors:

  • Product comparison ease: Providers earn the highest rating if they offer a clean, side-by-side price comparison of all DIY products and pricing directly on the homepage. Providers earn the lowest rating if finding DIY prices or plans requires jumping between multiple pages or signing in to the program.

  • Upselling frequency: Providers earn the highest rating if upsells are minimal and contextual. Providers earn the lowest rating if they display frequent, confusing or interruptive upsells that block filing progress. This subcategory only applies to free packages.

  • Downgrading ease: Providers earn the highest rating if users can downgrade plans at any time directly within the product, with clear, intuitive steps, billing impacts are clearly disclosed, and all previously entered information seamlessly carries over to the new plan. Providers earn the lowest rating if users face significant barriers to changing plans, such as hidden steps, unclear billing impacts or total loss of previously entered information when switching plans. This subcategory only applies to paid packages.
    • Tax forms supported

    For this category, we consider the following factor across free package types:

    Federal tax forms available: We consider how many forms a tax-prep software provider supports in the free versions of the software. If it supports Form 1040, the EITC, the ACTC, and schedules and forms covering complex tax situations, it earns the highest rating. The ratings go down as the number of supported forms decreases. If a provider supports no forms, it gets the lowest rating.
    Tools

    For this category, we consider the following factors across free and paid package types:

  • Refund calculation tracker: If the calculation tracker is prominent on all pages, a provider earns the highest rating. If a provider doesn’t offer a tracker, it earns the lowest rating.

  • Years of storage of prior returns: If a software provider offers storage for more than five years, it earns the highest rating. If it does not store returns, it earns the lowest rating.

  • Refund options: If a provider offers direct deposit to a bank account, a prepaid card/gift card and alternative options (e.g., U.S. savings bond, apply to next year’s taxes), it earns the highest score. If a provider offers only direct deposit, it earns the lowest score.

  • Donation calculator: If providers offer a robust donation calculator that does not require leaving the software, it earns the highest rating. If a provider offer not donation calculator, it earns the lowest rating. This subcategory only applies to paid packages.
    • Mobile app

    For this category, we consider the following factor across free and paid package types:

    Mobile app rating: This category reflects how users review each provider’s Android and iOS mobile app in the respective app stores. If user reviews average 4.8 to 5 stars, a provider earns the highest rating. If user reviews average less than 4.3 stars, or if a mobile app is not available or has no reviews, a provider earns the lowest rating.
    Features and ease of use

    For this category, we consider the following factors across free and paid package types:

  • Automated data entry: If a provider allows users to import W-2s manually, from PDF or scan, desktop, mobile capture and directly from participating EINs, and is able to upload or port 1099s, it earns the highest rating. If it only allows users to manually key in W-2s, it earns the lowest rating.

  • Switching/import from other tax software: If a provider accepts imports from PDF and tax files from all providers, it earns the highest rating. If it does not accept imports from other providers, it earns the lowest rating.

  • Interview process and visual design: If a provider’s software has a comprehensive navigational outline, questions in layman's terms, and intuitive UX, it earns the highest rating. If the software has a poor navigational outline, it earns the lowest rating.

  • Contextual help: If a provider’s software includes robust context-sensitive help in the form of embedded links, expandable sidebars, searchable help features and jargon-free assistance, it earns the highest rating. If a provider’s software provides poor context-sensitive help, it earns the lowest rating.

  • Tracking and ability to skip around: If "Where you are" is visible, and users can skip to virtually any part of the tax return from any page, a provider earns the highest rating. If the software offers no roadmap for users, it earns the lowest rating.
    • Customer support availability

    For this category, we consider the following factors across free and paid package types:

  • General customer and product services support: Providers earn the highest rating if they offer at least two forms of human support, such as phone, email or live chat. Providers earn the lowest rating if they offer no free customer support.

  • Help options displayed on screen: If all help options are displayed on the page, a provider earns the highest rating. If no help options are displayed, a provider earns the lowest rating.

  • Free educational resources: If a provider offers a robust selection of free educational resources, such as blog posts, calculators, tax guides and up-to-date news centers, it earns the highest rating. If a provider offers limited or outdated free educational resources, it earns the lowest rating.

    • Access to a tax professional

    Free packages: If a provider offers free help from a tax pro, it earns the highest rating. If it does not offer free or paid access to a tax pro for help, it earns the lowest rating.

    Paid packages: We consider the following factors:

  • Pricing: If a provider charges less than $70 (lowest tier) and $115 (highest tier) for their combined federal and state tax-pro assisted packages, it earns the highest rating. If it charges more than $130 (lowest tier) and over $175 ( highest tier), it receives the lowest rating.

  • Qualifications of tax pro: If a provider offers tax pro support from CPAs, enrolled agents, trained employees and tax pros with specialized knowledge, it earns the highest rating. If a provider offers tax pro support from trained employees only, it receives the lowest rating.

  • Full review of tax return: Providers earn the highest rating if it includes a comprehensive review of the user's tax return as part of their assisted help package. Providers that do not offer a final review service receive the lowest rating.

  • Communication with the pro: Providers earn the highest rating if users can communicate with tax pro support via on-demand chat or screen-sharing on any device. Providers that limit communication to email or phone follow-up receive the lowest rating.

  • Availability of in-person tax support: Providers earn the highest rating if widely accessible in-person tax prep assistance is offered in addition to standard virtual services. Providers that do not provide any in-person service options receive the lowest rating.
    • Access to a tax professional
    Accuracy guarantee and audit support

    For this category, we consider the following factors across free and paid package types:

  • Type of audit support available: If a provider offers free audit assistance and defense in the event a customer is audited, it earns the highest rating. If a provider offers no audit assistance or defense, it earns the lowest rating.

  • Scope of accuracy guarantee: Providers earn the highest rating if they reimburse penalties or fees, software costs and any additional tax liability. Providers earn the lowest rating if they offer no reimbursement.
    • Security and privacy

    For this category, we consider the following factors across free and paid package types:

    Data use transparency: Providers earn the highest rating if they clearly explain how user data is used and make the option to opt out easy to find. Providers earn the lowest rating if they do not clearly disclose how user data is used.

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