Doing your taxes might never be fun, but the right tool can turn the worst annual chore into a manageable—and dare we say, rewarding—afternoon. The best tax software makes sure you get all the credits and deductions you deserve without dragging you through forms hell. After testing six online tax apps updated for the tax year, we can say with confidence that TurboTax is the most sophisticated, accurate, and straightforward tool for the job.
Because of its superior step-by-step tax guidance, TurboTax has been one of our top picks since we started testing tax software in But there are two cases where we think you should take a different route:. Finally, if you absolutely do not want to spend any money to file your tax return—regardless of how badly the software might make you want to rip your hair out— MyFreeTaxes sponsored by United Way and using TaxSlayer as the platform is completely free and has no income or age limitations.
You can learn more about that option in our Notable competition section. This version gives you access to all the forms, without any upsells. All the online editions of TurboTax offer the same smooth tax-filing experience, with context-sensitive help and clear, concise explanations, but the unpublicized IRS Free File by TurboTax is the best of the bunch.
All forms are covered for free, including those not available in the more well-advertised TurboTax Free Edition, such as student loan interest, business profit or loss, and investment capital gains or losses. The catch? TurboTax is the best online tax software because of its thorough and intelligent interview process. Use it if you have only a few other forms to enter.
Student loan interest and higher-education tuition and fees are valuable deductions you can take even if you file with the standard deduction.
If you have those student forms and only a handful of other forms to file, such as a W-2 and bank interest income, this is the best way to file for free. However, the software was also more error-prone, especially as the complexity of returns increased.
We ran into a couple of problems trying to hunt down stray forms, and the automated chat help was ineffective. As with auto repair, home improvement, and first aid, there are situations in which it makes sense to DIY and then there are situations that are better left to the pros.
If you freelance or own a business, if you manage rental property, or if you have investments more complex than interest or dividend payouts, you can save yourself time and stress by finding a good tax professional. Once you turn over your forms and documents, the pro enters your data for you, which not only saves you time but also prevents DIY errors.
Plus, their pricing is often more up front than that of most online software, which usually tries to upsell you midway through the filing process. Building a relationship with a pro that you can count on for years to come is also invaluable. Both companies have faced multiple lawsuits and investigations regarding their marketing, lobbying, and other business practices.
Adding to that public distrust, many people who filed their tax returns with these companies did not receive their Economic Impact Payments aka stimulus payments ; more on that below. TurboTax is arguably the easiest yet most thorough and accurate way to file your taxes on your own; we recommend the IRS-sponsored version so you get the same experience without any of the upsell.
The problem, according to the IRS , is that payments may have been made to bank accounts that were closed or no longer active. So, to get your stimulus payment as soon as possible, we recommend that you do the following:. Topics I covered included when to hire a tax pro, the biggest deductions you should claim, what to do to make the audit process less stressful, and, yes, head-to-head tax software comparisons.
The best way to file your tax return is electronically, and you should do it as soon as possible. It will get you your refund quickly, and it can help thwart identity theft.
Need further convincing you should file electronically? The IRS still has a backlog of about a million mailed-in paper tax returns for the tax year. You would also need to buy the desktop software again each year to keep up with tax changes. The online tax apps we recommend here are best for people with simple returns a few standard forms , as well as those who might benefit from itemizing common deductions such as home ownership, dependent care expenses, tuition or student loans, large charitable deductions, a health savings account, or medical expenses.
Most people take the standard deduction, but if itemizing makes more sense, the software helps you fill in the appropriate forms and informs you when you need to upgrade in order to file for those deductions or credits.
Small-business owners, active stock traders, and those with complex real estate situations are best served by a professional tax preparer. Under the hood, every tax software platform—even those that tax pros use—fills in the same IRS forms and usually uses the same math to calculate the amount you owe or the amount of your refund.
The biggest differences among the tax-filing options lie in how thorough their questions are, whether they ask the right questions, and how pleasant or taxing pun intended the experience is. You can learn more about the reported issues with Credit Karma Tax in the Competition section. To test these apps, we created three fictional filers to represent a range of situations.
These were the same ones we used previously, but slightly updated to include more common scenarios for many people in —things like getting unemployment income, not receiving their stimulus payments, or making charitable contributions.
In our testing, some tax apps pointed out this fact more clearly than others. We decided to leave the fictional filer to consult their fictional tax professional instead.
We proceeded with more common tax-filing situations. These are the key distinctions we considered during testing:. TurboTax is the best tax software for doing your own taxes, thanks to its superior review process and an elegant interface that makes filing nearly stress-free.
And IRS Free File by TurboTax is the best edition, if you qualify: It covers any and all tax scenarios, whether you have a simple return with just a few common forms including a W-2 for employee wages or a G for unemployment income or itemized deductions like mortgage interest, childcare expenses, and charitable deductions. To qualify for this edition of TurboTax, your household has to meet at least one of the following criteria:. We recommend checking to see whether you qualify for this program before starting, though.
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Readers are part of the CNET family, and the strength of that relationship is the ultimate test of our success. Find out more here. The right tax software can help you claim missing stimulus and child tax credit payments, while maximizing your return. The tax season could prove to be a headache with a new batch of rules regarding paid sick leave , unemployment insurance , stimulus check income and home office deductions. That means the tax filing process may require more preparation than previous years.
Many of the top tax software programs can handle complex tax situations, but you'll want to use the one that meets your particular needs and budget. But if your income is higher, or you have a complicated tax situation -- including having to itemize deductions or account for changes in your household -- you might opt for a more intuitive tax software platform to help streamline the process. We've reviewed some of the best tax software below, with details on how to use them and how much they cost.
Here are our top picks. Read more: These are the 13 best tax deductions to look forward to in TurboTax by Intuit is the clear front-runner for good reason. The software combines tax expertise and an easy user experience with an accessible interface. The technical setup is easy: Enter your information, import your tax documents and access your past TurboTax returns when needed. If your employer uses QuickBooks -- or if you're self-employed and manage your finances with QuickBooks -- your tax forms may already be available in Intuit, saving you a step.
TurboTax guides you through the process by asking straightforward questions, and never asks for information you've already given or that doesn't relate to your particular situation. If a question is confusing or you need clarification, you can easily access additional information.
You can also exit the process at any time and pick back up where you left off if you log onto your account from any device. Plus the Deluxe fee is less than you might pay for an accountant. If you know you won't qualify for deductions or credits, stick with the free version. TurboTax Premier is specifically designed for taxpayers with real estate, while TurboTax Self-Employed will help sole proprietors, freelancers and gig workers maximize their deductions.
You can even enlist the help of a tax professional or CPA with TurboTax Live, which can supplement any of the company's software offerings. TurboTax Audit Defense is available to offer audit protection and assistance, via a partnership with TaxAudit. The comprehensive benefits that come with TurboTax may cost more than other tax software, but the peace of mind you'll receive could be worth the price tag. That makes it a perfect fit for filers without complicated tax situations who don't want to pay, including students and recent grads.
The overall process is not as smooth as TurboTax, but it's still a well-designed, interview-style system that guides you and sidesteps potential mistakes.
The Help screens and extra information are useful, though not always as easy to access as with TurboTax. We evaluated the price per plan and weighed the features you receive, like the ability to maximize deductions and credits.
The more bang for your buck, the higher a service ranked. Whether you're new to filing taxes or a seasoned pro, user experience is crucial to filling out and submitting your return quickly and with little frustration. The services we chose had to be relatively user friendly. The ability to speak with a tax expert or support representative was a big plus.
Four out of five of the best tax software offered some form of support. And if a service supported consumers with a generous accuracy and maximum refund guarantee, it was ranked higher. We also considered the Better Business Bureau rating associated with the software. BBB ratings help determine whether a business is operating responsibly and if it helps to resolve customer complaints in a timely manner.
Customer reviews were also taken into consideration. After reviewing the above features, we sorted our recommendations by best for overall tax filing, runner-up, free tax software, most affordable and best accuracy guarantee.
The federal and state filing fees for the software programs mentioned above are subject to change without notice.
Many programs don't charge you until you file, so there's a chance the fees can change from the time you start your return until you submit it. Skip Navigation. Select Logo. Follow Select. Our top picks of timely offers from our partners More details. Upstart Personal Loans. LightStream Personal Loans.
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