Best Online Tax Software Providers Of January 2024
Looking for the best online tax software providers for the year 2024? Here are some of the top options to consider:
- TaxSlayer Premium: Offering excellent customer support, TaxSlayer Premium is a top choice for those who want to ensure they have access to help when they need it.
- Cash App Taxes: If you’re looking for a free tax software option, Cash App Taxes is a great choice. It’s easy to use and can help you file your taxes without breaking the bank.
- TurboTax Deluxe: Known for its ease of use, TurboTax Deluxe is a popular choice for those who want to get their taxes done quickly and easily.
- TaxSlayer Self-Employed: If you’re self-employed, TaxSlayer Self-Employed is a great option. It’s specifically designed to help those with more complex tax situations, and can help you maximize your deductions and credits.
No matter which option you choose, these online tax software providers can help make tax season a little less stressful.
Best Tax Software for Customer Support
TaxSlayer Premium
TaxSlayer Premium is a tax software that provides exceptional customer support. The software offers various ways to contact customer support for tax filing assistance, including phone, chat, email, and professional tax assistance. TaxSlayer Premium stands out from its competitors by offering free professional tax assistance, which is not available in other tax software.
We contacted TaxSlayer’s support line and were pleased to find that the hold time was less than two minutes. The customer service representative, Mardae, was professional and helpful. We asked him how to report business income from a 1099-NEC, and he provided step-by-step guidance to enter the form into the program.
Pros & Cons
- TaxSlayer Premium offers good customer service, including multiple ways to contact the company: by phone, chat, and email, as well as through professional tax assistance.
- TaxSlayer Premium offers assistance from a tax expert without an additional cost.
- Free tax assistance is available only with TaxSlayer’s Premium and Self-Employed editions.
Who Should Use It?
TaxSlayer Premium is the best option for users who value excellent customer service and want to pay a low price for a product with great support. Users have access to a priority phone line, and TaxSlayer also provides assistance via chat, as well as more standard options such as email support.
In conclusion, TaxSlayer Premium is an excellent choice for users who require reliable customer support and free professional tax assistance. With its multiple ways to contact customer support and affordable price, TaxSlayer Premium is a top contender for the best tax software for customer support.
BEST FREE TAX SOFTWARE
Cash App Taxes
If you have a simple tax situation, Cash App Taxes is the best free tax software for you. This tax software is unique because it offers completely free tax filing, even for complicated returns. While most of the big players provide a free version for simple returns, they charge for self-employed tax returns.
However, you need to download the Cash App to use the program. There is limited support services available, with only email support for users and no option to speak with someone. Therefore, we recommend this software for simple tax returns, but not for those with more complicated taxes unless they feel confident filing their own returns.
Pros & Cons
- Completely free for everyone.
- No phone support available.
- Must download Cash App to file taxes.
- Only supports tax filing for one state, so if you have multiple state tax returns, you can’t file with Cash App Taxes.
Who Should Use It?
Cash App Taxes works best for those with a simple tax return, such as a W-2 and a couple of common deductions like student loan interest. It’s a great choice for those seeking online tax software that is completely free and won’t surprise you with fees. Additionally, it’s quick and easy to use.
Best Tax Software for Ease of Use
TurboTax Deluxe
TurboTax Deluxe is a top pick for easy-to-use online tax software due to its simple interface that allows you to easily navigate your tax return and enter all necessary information. You can also import your tax documents directly into the platform.
Features
TurboTax Deluxe offers a range of helpful tools as you prepare your tax return, including explainer videos, questionnaires to help you identify tax deductions and credits, and explanations for why you might owe taxes. This is particularly useful for someone who feels mostly confident filing their taxes but wants some reassurance they’re doing it right. TurboTax also keeps you updated on your tax refund or liability as you add deductions and credits.
The navigation menus direct you to specific tax categories, such as income, deductions, and credits. TurboTax also provides a list of items required to complete your tax return accurately. The user-friendly interface lets you easily navigate between categories to file your tax return.
Pros & Cons
Pros of TurboTax Deluxe include its simple, easy-to-use interface that helps you quickly navigate to specific tax forms and situations. TurboTax Deluxe offers many helpful tools such as EasyGuide and Explain Why. They allow you to identify additional tax deductions and credits and provide a brief explanation of why you may owe taxes. You can also upload your W-2, enabling TurboTax to fill out key fields on your return automatically. Additionally, TurboTax provides alternative secure ways to log into your account without using your password.
Cons of TurboTax Deluxe include the fact that it tries to upsell you more than competitors do. It can also be more expensive than the competition, depending on the time of year. Its prices fluctuate and currently range from $69 to $129 for federal income tax filing, plus an additional $59 for each state tax return.
Who Should Use It?
If you have more than a basic W-2 (if, for example, you itemize deductions and have investment income) and you feel comfortable filing your own taxes—but you also think you may need a little assistance here and there, TurboTax Deluxe is a great option for you.
Best Tax Software for the Self-Employed
TaxSlayer Self-Employed
TaxSlayer Self-Employed is a top choice for self-employed filers due to its strong customer service and user-friendly platform. The software offers a guided interview to walk you through the tax filing process step-by-step, ensuring accuracy and efficiency.
One of the most attractive features of TaxSlayer Self-Employed is its affordability. For just over $100, you can file both federal and state tax returns electronically, saving you money compared to other tax software options. TurboTax, for example, can charge close to $200 for the same service.
TaxSlayer Self-Employed also offers the option to navigate directly to specific tax forms, providing a faster option for those who don’t need the extra guidance. However, the guided experience may slow you down if you’re searching for a particular deduction or business expense.
Pros and Cons:
- Costs include expert tax help to answer any questions you may have.
- Offers a guided experience to help you navigate directly to tax forms.
- TaxSlayer’s tax experts have limited IRS VITA or in-house training and may not be certified public accountants, enrolled agents, or tax attorneys. However, if a tax expert is unable to answer your questions, the case is escalated until it’s resolved.
Who Should Use It?
If you’re a self-employed person looking for the most value for your money, TaxSlayer Self-Employed is an excellent option. Its step-by-step guidance, tax experts on call, and affordable pricing make it an ideal choice for those who want to file their taxes quickly and accurately.
The Complete Guide to Using Tax Software
Tax software is a digital tool that simplifies tax preparation. It works by guiding you through the tax filing process, asking you questions and filling out the necessary forms for you. While tax software has its advantages, like convenience and cost-effectiveness, it also has its drawbacks, such as limited support and potential errors. To choose the right tax software, consider factors like pricing, features, and customer support. You can also explore free options like IRS Free File. Here are some of the best online tax filing options of 2024:
| Tax Software | Features | Price |
|---|---|---|
| TurboTax | User-friendly interface, extensive support options | Starts at $39.99 |
| H&R Block | Easy-to-use, free in-person support | Starts at $29.99 |
| TaxAct | Affordable pricing, free audit support | Starts at $9.95 |
| Credit Karma Tax | Completely free, simple interface | Free |
| FreeTaxUSA | Low-cost option, no hidden fees | Starts at $6.99 |
When it comes to paying someone to do your taxes, it really depends on your individual situation. If you have a complex tax situation, it may be worth it to hire a professional. However, if your taxes are relatively simple, tax software may be all you need. Ultimately, the choice is yours.
If you’re interested in using IRS Free File, keep in mind that this program is only available to taxpayers with an adjusted gross income of $72,000 or less. Additionally, each tax software provider has its own eligibility requirements and limitations for this program.
In summary, tax software can be a helpful tool for simplifying the tax preparation process, but it’s important to choose the right provider for your needs. Consider factors like pricing, features, and customer support before making a decision.
What Is Tax Software?
Tax software is a digital tool that guides you through the process of filing both your federal and state tax returns. With tax software, you can benefit from features such as direct import of tax forms, tax deduction locators, expert tax help, and customer service support. This software helps you save time by providing navigation tools to easily enter your tax information. Additionally, most tax software products allow you to upload your prior year’s tax return to avoid manually reentering key details such as your name, Social Security number, and dependents’ information.
The cost of tax software varies, but if you have a simple tax return, you may be able to file for free. This is especially true if you have only one W-2 and few deductions. Tax software can be an effective way to simplify the tax filing process and ensure that you are filing your taxes correctly.
How Does Tax Software Work?
Tax software is designed to simplify the process of filing your taxes. The software guides you through the process of entering your income and deductions to calculate your tax liability or refund. Most tax software requires you to enter your income information from tax documents such as W-2, 1099 K or 1099-INT. You can also enter deductions such as mortgage or student loan interest, business expenses, or contributions to a health savings account.
Some tax software providers may ask you a series of questions to gather the necessary information. This process is similar to what you would experience if you were to hire a tax professional. Depending on the software, you may need to enter your information directly onto a tax form, which requires more tax knowledge to ensure you enter the information correctly.
After entering all the necessary information, the tax software will calculate your tax liability or refund. You can choose to pay taxes or receive a direct deposit to your bank account by entering your banking details. Finally, you can either file electronically or choose to file a paper tax return.
In conclusion, tax software is an efficient way to file your taxes. It simplifies the process by guiding you through the necessary steps and ensures that you enter the correct information to avoid errors.
Pros and Cons of Tax Preparation Software
Pros of Tax Preparation Software
When it comes to tax preparation software, there are several benefits to consider. Some of the advantages of using tax preparation software include:
- Easy navigation tools: Tax preparation software often comes with user-friendly navigation tools that make it easy to input your tax information and navigate through the tax preparation process.
- Interview questionnaires: Tax preparation software may provide interview questionnaires that help you identify all the tax deductions and credits that you may be eligible for.
- Direct import of W-2 and 1099 Forms: With tax preparation software, you can directly import your W-2 and 1099 forms, which can save you time and reduce the risk of errors.
- Overall review of tax forms and calculations: Tax preparation software can provide an overall review of your tax forms and calculations, which can help you catch any errors or discrepancies.
Cons of Tax Preparation Software
However, there are also some drawbacks to using tax preparation software, including:
- Limited tax professional assistance: Tax preparation software may not provide the same level of assistance as a tax professional. If you have a complex tax situation, you may need to seek the help of a tax professional.
- It may require some working tax knowledge to use: While tax preparation software is designed to be user-friendly, it may still require some working tax knowledge to use effectively. If you are unfamiliar with tax laws and regulations, you may need to do some additional research to ensure that you are using the software correctly.
How To Choose an Online Tax Software Provider
When selecting an online tax software provider, consider the following factors:
- Ease of use: Look for a platform with a user-friendly interface and simple navigation.
- Costs and fees: Compare pricing and fees across different providers to find the most affordable option for your needs.
- Technical and tax assistance: Ensure that the platform offers reliable technical support and assistance with tax-related questions.
- Customer support options: Check for available customer service options, such as phone, email, or live chat support.
How to Buy the Best Tax Software
To ensure that you buy the best tax software for your needs, it’s important to identify your specific requirements first. Consider your financial situation, including your earnings, expenses, and any passive sources of income. For instance, if you work freelance, you may want to look for software that can handle self-employment taxes.
Once you have a clear idea of your requirements, you can start researching your options. It’s important to set standards to narrow down the choices. Look for software that offers the features and capabilities you need, without paying for options you don’t.
Pro Tip: Choosing quality tax software can help you save time and money when filing your taxes. Take the time to find the best tax software that works for you.
Consider factors such as ease of use, customer support, and security features. Look for software that offers free trials or demos, so you can test it out before making a purchase. By taking the time to research and compare your options, you can find the best tax software to meet your needs.
Should You Pay Someone To Do Your Taxes?
If you have a complex tax situation or you’re unsure about how to file your taxes, you may be wondering if you should hire a tax professional to help you. Here are some scenarios where it may be worth paying for professional tax preparation services in 2024:
How Much Does a Tax Preparer Cost?
The cost of hiring a tax preparer can vary widely depending on the complexity of your tax situation and the tax preparer’s fees. Some tax preparers charge a fixed fee that varies based on the complexity of your return, while others charge an hourly rate. Here are some estimated costs for tax preparation services:
- Simple tax return: $150-$250
- Moderate tax return: $250-$500
- Complex tax return: $500-$1,000 or more
It’s important to note that these are just estimates and the actual cost may be higher or lower depending on your specific tax situation and the tax preparer you choose. Additionally, some tax preparers may offer additional services such as tax planning or audit representation for an additional fee.
Overall, if you have a complex tax situation or you’re unsure about how to file your taxes, it may be worth paying for professional tax preparation services. However, if you have a simple tax situation and feel confident in your ability to file your taxes on your own, you may be able to save money by doing it yourself.
IRS Free File
If you are looking for a free tax filing option, you may want to consider the IRS Free File program. This program allows you to file your tax return for free if your adjusted gross income (AGI) is less than $73,000. Unlike some advertised free filing solutions from online tax providers, the IRS Free File program supports more tax forms for free.
Other Free Tax Filing Options
If you have a simple tax return, with one W-2 and a couple of deductions, you may be able to file your taxes for free with many online tax software providers. However, before selecting a free product, it is important to ask some questions to ensure that the product meets your needs. Some questions to consider include:
- Which forms does the tax online software provider allow you to file?
- Is there an additional cost for state tax return filing?
- Are there any income restrictions to qualify?
- Is support available?
It is important to note that while many online tax software providers offer free filing for simple returns on their websites, not all free products are created equal. Therefore, it is important to carefully review each product offering to see which free product works best for you.
Pro Tip: If you owe the IRS, you can set up a payment plan by calling (800) 829-1040 or filing an online payment agreement application at IRS.gov.
Methodology
To determine the best online tax software for simple tax filings, we analyzed nine popular online tax software providers. We narrowed down our list to focus on the providers that offer free tax preparation for simple federal and state tax returns. The four finalists were Cash App Taxes, H&R Block, TaxSlayer, and TurboTax.
We created three generic tax filing profiles to evaluate each provider’s ease of use, quality of customer service, and free filing options. The profiles included a single filer with a basic W-2 and student loan deductions, a married couple with wage income, a dependent, and child care expenses, and a freelancer with business income and deductions.
Our analysis used side-by-side comparisons of the providers’ features and costs to determine the best online tax software in four categories: Best Free Online Tax Software, Best Online Tax Software for Ease of Use, Best Online Tax Software for the Self-Employed, and Best Online Tax Software for Customer Support.
Best Free Online Tax Software
To determine the best free online tax software, we analyzed which provider offered the most impressive overall package of features with no fees for federal and state tax return filings, no income or filing status restrictions, and the broadest selection of tax filing forms. After careful evaluation, TurboTax was determined to be the best free online tax software.
Best Online Tax Software for Ease of Use
An easy-to-use platform is essential for many tax filers. For this category, we reviewed each platform to determine which provided the simplest process for completing users’ tax forms. We evaluated each company’s Q&A tax interview options, looked for the ability to upload W-2 forms and automate data entry, explored all navigation menus, and gauged the length of time required to complete a return. After careful evaluation, H&R Block was determined to be the best online tax software for ease of use.
Best Online Tax Software for the Self-Employed
Self-employed freelance workers generally have more complicated income tax filings than employees. Ensuring that online tax software caters to the special needs of freelancers and self-employed individuals is essential at tax time. We evaluated each platform’s offering in this category for pricing, support, state filing fees, deduction finder options, and total costs. After careful evaluation, TurboTax was determined to be the best online tax software for the self-employed.
Best Online Tax Software for Customer Support
Our analysis included a thorough review of each platform’s support options. We determined if the online tax software providers offered phone, live chat, email, or help articles for users, and we evaluated each option. We contacted customer service departments by phone to assess their hold time and customer service quality. After careful evaluation, TaxSlayer was determined to be the best online tax software for customer support.
Each category was weighted and scored feature by feature. The author, a certified public accountant (CPA) with more than 20 years of taxation experience, completed all tax software testing by opening accounts with each provider to perform hands-on evaluations.
Frequently Asked Questions (FAQs)
When are taxes due for the 2024 tax filing season?
Tax Day for the 2024 tax filing season is on Monday, April 15, 2024. This means that the deadline to file your 2023 tax return is on this day. You should make sure to file your taxes on or before this date to avoid any penalties and interest.
What happens if you miss the tax deadline?
If you miss the tax deadline, you may incur additional penalties and interest. To avoid this, you should consider filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return if you think you may need more time to file. However, keep in mind that while this form extends the time to file, it does not extend the time to pay your taxes, which are still due on tax day. The final date to file an extension for your 2023 taxes will be April 15, 2024.
Is it better to hire a tax professional or use tax software?
Whether you should hire a tax professional or use tax software depends on the complexity of your tax situation. If you only have one W-2 and no deductions, using do-it-yourself tax software could be a cost-effective choice. However, if you own a business, sold investments or worked in multiple states in 2022, you may need guidance from a tax professional. Other situations where you might benefit from tax assistance could include working multiple jobs, getting divorced or having a baby.
Who should and who should not use tax software?
Generally, if you need to file a tax return, you should use tax software. However, there are certain circumstances where you may not need software, such as if you have one Form W-2 and no tax deductions. However, even in those cases, using tax preparation software can make it easier to file your tax return and request direct deposit of your tax refund.
Are there any hidden fees associated with tax software?
While there may be some fees associated with using tax software, you will have the option to decline any additional fees before you file your tax return. This means that you will be aware of any fees before you finalize and submit your tax return.
Do I have to buy tax software every year?
If you use online tax preparation software, you do not need to buy tax software every year. Tax software providers update their online products annually to align with the current tax law. This means that you can use the same software for multiple tax years, as long as you have an internet connection.
What are the top-rated tax filing apps for self-employed individuals?
When it comes to tax filing apps for self-employed individuals, there are a few options that stand out. Some of the top-rated apps include TurboTax Self-Employed, H&R Block Self-Employed, and TaxSlayer Self-Employed. These apps offer features such as expense tracking, mileage tracking, and the ability to import data from popular accounting software.
Which tax software offers the best value for small business owners?
Small business owners looking for value in their tax software may want to consider options such as TaxAct, FreeTaxUSA, or Credit Karma Tax. These software options offer a range of features at affordable prices, including free options for simple tax returns.
How do professional tax preparers rate the leading tax software?
Professional tax preparers often have experience with a variety of tax software options and can offer valuable insights into their effectiveness. According to a survey conducted by the National Association of Tax Professionals, some of the top-rated tax software options among professionals include Drake, UltraTax CS, and Lacerte.
Are there any highly recommended free online tax filing services?
There are a few free online tax filing services that come highly recommended by users and professionals alike. Some of these options include TurboTax Free Edition, H&R Block Free Edition, and TaxAct Free Edition. Keep in mind that these free options may have limitations and may not be suitable for all tax situations.
What tax software do homeowners find most beneficial for their needs?
Homeowners may benefit from tax software options that offer features such as mortgage interest deduction calculators and guidance on home office deductions. Some of the top-rated options for homeowners include TurboTax Deluxe, H&R Block Deluxe, and TaxSlayer Classic.
Which tax preparation software is considered the most user-friendly?
User-friendliness is an important factor for many individuals when choosing tax preparation software. Some of the most user-friendly options include TurboTax, H&R Block, and TaxAct. These software options offer step-by-step guidance and intuitive interfaces to make the tax filing process as smooth as possible.
Next Up In Taxes
As tax season approaches, it’s important to stay up-to-date on any changes that may impact your return. Here are some key updates to keep in mind:
- Standard Deduction: The standard deduction for single filers has increased to $12,550, while the standard deduction for married couples filing jointly is now $25,100.
- Income Tax Brackets: The income tax brackets have been adjusted for inflation, with the top bracket now starting at $523,600 for single filers and $628,300 for married couples filing jointly.
- Child Tax Credit: The Child Tax Credit has been expanded to include children up to age 18, and the credit amount has increased to $3,000 per child (or $3,600 for children under age 6).
- Retirement Contributions: The contribution limits for 401(k) and IRA accounts have increased to $20,500 and $6,000, respectively.
It’s important to note that tax laws can be complex and subject to change. Consider consulting with a tax professional to ensure you’re taking advantage of all available deductions and credits.
