Free and Paid Tax Preparation Software
It's that time of year again - the time when we must grapple with the daunting task of preparing our taxes. While hiring an accountant may seem like the easiest solution, it's not always the most economical choice.
While an accountant may be necessary for those with complex tax situations or multiple income streams, tax preparation software can be a more budget-friendly and convenient choice for those with straightforward returns. Let's explore the best tax preparation software to help you choose the one that meets your needs.
Here are the main benefits of using tax preparation software are:
Cost: Paying for tax preparation software is typically much cheaper than hiring an accountant. Depending on the complexity of your tax situation, you may be able to prepare your taxes with tax software for a fraction of the cost of hiring an accountant or even completely free.
Convenience: Tax software lets you prepare your taxes at your own pace and schedule. You can work on your taxes from the comfort of your home without an appointment with an accountant.
Tax preparation software offers both free and paid options, with the free options typically catering to those with simple returns and the paid options offering more comprehensive features and support for those with complex tax situations.
Prepare and File Your Federal Taxes for Free
You can electronically prepare and file your federal income tax return for free through IRS Free File program. The IRS Free File program is a partnership between the Internal Revenue Service (IRS) and several tax preparation software companies, which allows eligible taxpayers to prepare and file their federal tax returns online for free.
To qualify for the IRS Free File program, taxpayers must meet income requirements (generally, adjusted gross income of $72,000 or less).
The program is designed to make it easier for taxpayers to prepare and file their taxes online, especially those who may not have the resources to hire an accountant or purchase tax preparation software.
You can learn more about the IRS Free File program and eligibility requirements on the IRS website.
The Best Tax Software
Free tax preparation software is a great option for those with simple returns. For more complex tax situations, it may be worth investing in a paid tax preparation software option. Paid tax preparation software typically offers a wide range of features, such as importing previous tax returns or accessing tax professionals for guidance.
Plus, with the added cost comes added peace of mind - with a paid option, you can rest assured that your taxes are in the hands of experts. So if you have multiple streams of income or a lot of deductions and credits to claim, a paid tax prep software option may be the way to go.
Let's review the best ones on the market.
TurboTax
TurboTax is one of the most popular tax preparation software on the market. Known for its user-friendly interface and helpful assistant feature, TurboTax will assist you in the tax preparation process and help identify any deductions or credits for which you may qualify. With a range of pricing plans to suit different needs and budgets, TurboTax is a reliable choice for those looking to file their taxes online.
Go to TurboTax
TaxAct
For those looking for a budget-friendly tax preparation software, TaxAct is worth considering. With a range of pricing plans, including a free option for those with simple returns, TaxAct is an affordable choice.
Go to TaxAct
H&R Block
H&R Block is a well-known name in the world of tax preparation, and for good reason. With a range of pricing plans, including a free option for those with simple returns, H&R Block has something for everyone. Plus, with in-person tax preparation services available at its brick-and-mortar locations, H&R Block is a convenient choice for those who prefer a more hands-on approach to their taxes.
Go to H&R Block
TaxSlayer
TaxSlayer is another budget-friendly option. TaxSlayer has four plans that come with different levels of customer support. For those who are self-employed or have relatively simple tax situations, TaxSlayer is an excellent value.
Go to TaxSlayer