NOTE: The tax deadline for the 2022 filing season is April 18th, 2023. Learn more about changes the IRS has made here.
Filing your taxes can be complex, time-consuming, and stressful. For these reasons, some individuals and business owners turn to professional tax preparers to handle the tax filing process for them. However, there are numerous online tax software options that allow many tax filers to file their own taxes.
You don’t want to trust your taxes to just anyone. Instead, you want to use an online tax software with a strong reputation and one that can handle all aspects of your tax return. With so many options, it can be hard to determine which online software tool is the best for your specific situation. This professional tax software comparison reviews the top four online options to help you choose the right one.
In This Piece
What Is the Best Online Tax Software?
While there are a number of professional tax software options available, there are a few with a long-standing reputation for providing effective and affordable services. It’s important to note that while this software handles most, if not all, of the tax calculations, you still need to prepare for tax season by gathering all of your tax documents.
Below is a tax software for tax professionals comparison to help you better compare your options.
TaxSlayer
With nearly 60 years of providing tax preparation services, TaxSlayer is one of the top professional tax filing services online. It offers unlimited phone and email support, as well as live chat services for Premium accounts and higher. TaxSlayer also guarantees that its software provides the greatest tax refund, or it will reimburse you the difference.
Best of all, TaxSlayer stands by its services by offering a 100% accuracy guarantee. If there are any issues with your taxes, other than user error, it covers any penalties you may incur. If you’re anticipating a tax return, you can have any service fee deducted right from your refund check to avoid any upfront, out-of-pocket expenses.
Costs: Basic filing of 1040s are free. The Classic package is $19.95, the Premium package is $39.99 and the Self-Employed package is $49.95.
TurboTax
TurboTax is one of the most popular online tax software options available and serves millions of Americans every year. Its services come with a 7-year guarantee that ensures 100% accuracy, which means TurboTax will refund you for any penalties or interests accrued due to an error in its software.
TurboTax offers three tiers of services, including Simple, Deluxe, and Premium. The Simple package is ideal for the most basic tax returns. The Deluxe package is best for those with more credits and deductions, and the Premium plan is for investors and self-employed tax filers. Users can also upgrade to receive unlimited Live Assisted support from tax professionals or opt to have the company prepare their taxes for them.
Costs: Simple 1040 returns are free, if filed by March 31, while Deluxe services start at $59 and Premiums packages start at $105.
FreeTaxUSA
There are several ways you can file your federal taxes for free, and FreeTaxUSA is one of them. Its free services include its Basic, Advance, Premium and Self-Employed packages. These tiered packages are available to individuals, families, contractors, self-employed taxpayers and small-business owners.
TaxFreeUSA also offers a Deluxe package that includes live chat service for an additional fee. State tax filing services start at $14.99. You can import your W-2s and previous year’s taxes for easier filing. Its services include a 100% accuracy guarantee, as well as free federal tax extension filing services and unlimited amends.
Cost: Federal tax filing is free, but you can upgrade to the $7.99 Deluxe package that includes live chat support. State tax filing services start at $14.99.
TaxAct
TaxAct is another popular online tax filing service company. It offers four tiered packages, including its free basic version for simple tax returns, its Deluxe package for taxpayers with loans and children, its Premier package that is designed for investors and its Self-Employed package for those who are self-employed, contractors and small-business owners. All packages include live support through its free Xpert Assist services.
TaxAct lets you import information from your previous year’s tax returns and current year W-2s to simplify the tax filing process. It also offers an accuracy guarantee that covers any penalties and interest you incur (up to $100,000) if there is an error in your tax return due to TaxAct software.
Cost: Basic tax filing services are free. The Deluxe package is $24.98, the Premier package is $34.95 and the Self-Employed package is $64.98.
What to Know about Online Tax Preparation Software
Before selecting an online tax filing service, it’s important to do your research. This online tax service comparison can help you identify the different services various tax filing companies offer. All the services companies listed above offer an accuracy guarantee, which can protect you if there’s an error in the software.
After you compare tax software, it’s important to choose the right package. For example, if you own your own home or have children, you likely won’t qualify for the basic package. If, on the other hand, you’re an investor or self-employed, the premium package might be the best option.
Get Help with Your Taxes
If you’re uneasy about doing your own taxes or have additional concerns, don’t hesitate to reach out to a tax professional, such as a CPA, for tax advice or tax filing services. For more tax tips and resources, check out Credit.com’s online tax education resources.
Source: credit.com