Best Tax Software of September 2024

H&R Block's free version has no income restrictions and covers more tax situations (e.g., unemployment income) than many other free tiers offered by the competition. The interface is easy to use and filers can upload multiple tax documents to avoid manual entry.

What we like: H&R Block Free can handle Form 1040, limited Schedules 1, 2 and 3, income from wages (W-2), bank interest (1099-INT) and dividends (1099-DIV), and student loan interest (1098-E).

What H&R Block Free can’t do: The free tier doesn't support itemized deductions (Schedule A), deductions and expenses from freelance or self-employed work (Schedule C), or HSA distributions (1099-SA).

TurboTax scores high marks for two important categories: ease of use and tax support.

• Ease of use: TurboTax has an interview-style Q&A experience and a wide range of functionality and tools that make entering information easy. Help is easy to access, and explanations are clear and authoritative.

• Tax pro support: TurboTax offers users the option of upgrading to its Live Assisted packages to gain access to screen-sharing, chat and phone support from a tax pro. Although these services come at an additional cost, access to a pro is generous, and you’ll also get a final review of your return.

What we like: TurboTax’s software feels like an interview with a tax preparer who knows just what to ask and how best to guide you.

TaxSlayer’s paid packages, on average, are the most affordable of all the providers we review. TaxSlayer's free version also includes a free state return. Some competitors make you pay for a state tax return, even at the free tier.

What we like: TaxSlayer’s formula — allowing clients to pay for the amount of help they need rather than the types of tax forms they need — allows you to access most tax filing situations while keeping costs low.

Across the board, TaxAct’s offerings are less expensive than similar products from competing providers. That’s a nice score — especially for filers who value function over form and want affordable human help if necessary.

What we like: TaxAct is a good deal. It didn't win any "best" accolades this year, but there's no denying its pricing.

In the U.S., tax filers often have three options for completing their federal tax returns: (1) file manually by paper, (2) file online using tax software or (3) file through a tax pro, such as a CPA or an enrolled agent.

Tax software helps filers complete and submit their federal and state income tax returns using a DIY program. Due to its convenience and accessibility, it's by far one of the most popular filing methods.

You can sign up for tax software online via the provider's website. There may be multiple packages to choose from — but generally, the more complex your taxes are, the more you can expect to pay. The program will then guide you through your federal and/or state taxes by asking a series of interview-style questions that will help it populate tax forms on the backend.

The type of support you can expect will vary from provider to provider. Some packages and programs include access to a tax pro, such as a CPA, should you need it, but these services may require an upgrade or result in additional fees. Once your filing is complete, the program runs a final check and submits your return to the IRS and/or the state tax department.

If you don't know what you need, it might help to examine online tax filing providers individually and what sort of services each one offers. Here are a few areas to dig into:

Pricing and fees: How much you pay for tax software is often a function of how complex your taxes are or how much help you need. People with fairly simple situations — such as W-2 income only and very few credits to claim — may be able to take advantage of the "free version" many commercial programs offer. Though, state returns many not always be included in these offers. Outside of this, the IRS and other state tax departments also offer free tax filing services, such as Direct File and Free File.

If you need to itemize, have a lot of investment income, freelance or are self-employed, you'll need access to more complicated forms, which often means paying for higher-tiered tax prep packages that offer more support and tools. Some packages also come with paid upgrades or separate products that give you access to a tax pro — such as a CPA or an enrolled agent — who can collaborate with you on a return. These add-ons will typically up your total, but people who want to DIY with just a little support might find it worth the price.

User experience: Software that feels like an interview — asking questions about your income and any life events that might allow for deductions — offers more guidance than a basic fill-in-the-blank process. The ability to import forms such as W-2s 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. 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.

Tax pros for assisted help: One important offering in recent years 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 may come with an extra charge.)

Customer service: Even with the best tax software programs, there's a chance you might run into a technical issue or need some help as you move along the filing process. If this is important to you, make sure to take a close look at what customer help options are available to you — phone, email, chat or video call — and hours of availability.

Most filers use either tax software or a tax professional, such as a CPA. Deciding which route makes the most sense for you often comes down to three factors: the complexity of your tax situation, how much help you need and your budget.

“Tax software tries to simplify the language of the tax code for taxpayers,” says Nayo Carter-Gray, CEO and founder of 1st Step Accounting. "But it can still be confusing or overwhelming since it asks a bunch of questions that the average taxpayer may not be familiar with.”

The best software should walk you through the filing process, can handle most tax forms and specialty income, and will tell you whether it’s better to take the standard deduction or itemize, for example.

Carter-Gray, an enrolled agent, says working with a tax pro may be the better option if you’re getting overwhelmed with questions, made a large transaction you’re unsure how to handle, had multiple income streams or various investments — or if you’re simply just seeking more tax planning.