When it comes to preparing your taxes, you have three primary options: filling out the forms manually, hiring a tax professional, or using tax software.
The first option, manual filing, is free but can be time-consuming and potentially error-prone if you’re not familiar with the tax code. The second option, hiring a tax professional, is quick and efficient but can cost you hundreds of dollars, depending on the complexity of your return.
The third option is using tax software, which strikes a balance between cost and convenience. With so many options available in the market today, it can be challenging to decide which one suits your specific needs.
In this article, we will cover some of the best tax software options for preparing your 2019 tax returns, which are due in 2020.
Best for Complicated Returns: TurboTax
Intuit TurboTax
TurboTax is arguably the most well-known and widely used tax preparation software in the United States, and for a good reason. It offers an intuitive user experience and has robust capabilities to handle complex tax situations, including investments, rental properties, and self-employment. TurboTax also provides step-by-step guidance, ensuring that even users with intricate returns can file confidently.
Pros:
- Highly user-friendly interface.
- Seamless handling of complex tax situations.
- Excellent customer support with live agents available.
- Mobile app for on-the-go filing.
Cons:
- The cost can be quite high, especially if you opt for features like live support or audit protection.
- The free version is limited and only suitable for simple returns.
- TurboTax is known for upselling additional services that may not always be necessary.
Price Range (Federal + State): $0 – $130
Mobile App: Yes
Live Support: Yes
TurboTax is ideal for those with more complicated returns. While there are other software options that will get the job done, TurboTax’s user-friendly interface makes it the easiest to navigate for complex filings, which is why it’s the best choice for complicated returns.
Read our TurboTax review for a detailed analysis.
Best to File for Free: H&R Block
H&R Block
H&R Block is another leading tax preparation software that offers excellent value, particularly if you have a straightforward return. While it may not have quite the same features as TurboTax, it’s still a strong contender due to its accuracy, ease of use, and a free filing option that’s available to many taxpayers.
Pros:
- Very user-friendly interface with minimal jargon.
- Free filing option available for a wide range of taxpayers.
- Strong mobile app and helpful customer support.
- Less upselling compared to TurboTax.
Cons:
- The free version may not cover more complex tax situations.
- Some users may find the user experience slightly less polished than TurboTax.
Price Range (Federal + State): $0 – $96.98
Mobile App: Yes
Live Support: Yes
If your tax situation is relatively simple, H&R Block is a great choice. Its free filing option is more inclusive than TurboTax’s, covering many common tax situations such as student loan interest deductions, childcare credits, and education-related credits. H&R Block is particularly appealing to those who want a hassle-free filing experience without paying for unnecessary add-ons.
Read our H&R Block review for further details.
Best on a Budget: TaxAct
TaxAct
TaxAct is the most budget-friendly option on this list. It doesn’t offer the premium features that TurboTax and H&R Block do, but it gets the job done efficiently. TaxAct is ideal for people looking to save money on tax preparation, especially if their tax return is relatively straightforward.
Pros:
- Affordable, with a price point that’s lower than the other options.
- Reliable for simple to moderately complex returns.
- Provides good customer support at an affordable price.
Cons:
- The user interface is not as polished or intuitive as TurboTax or H&R Block.
- Some features may require extra effort and research, especially for more complicated situations.
Price Range (Federal + State): $0 – $99.92
Mobile App: Yes
Live Support: Yes
If you want to minimize costs, TaxAct is an excellent choice. While its interface isn’t as intuitive as some of the other options, it’s perfect for individuals who just need a basic, budget-friendly solution to file their taxes.
Best for Military: TaxSlayer
TaxSlayer
TaxSlayer is a tax preparation software that is particularly beneficial for military members due to its generous discounts. While its user interface is not as modern or easy-to-use as other software on this list, TaxSlayer offers a great deal for military personnel, including free federal returns for veterans and discounted rates for state returns.
Pros:
- Free federal returns for military members, regardless of complexity.
- Discounted state returns for military personnel.
- Offers a low-cost alternative to other premium tax software.
Cons:
- The interface feels outdated and less user-friendly than TurboTax or H&R Block.
- Features may feel limited for users who need more advanced tools.
Price Range (Federal + State): $0 – $76
Mobile App: Yes
Live Support: Yes
TaxSlayer may not be the most polished option, but it’s a great choice for military members looking for a budget-friendly solution with military discounts. If you’re willing to tolerate a less-than-perfect interface in exchange for savings, TaxSlayer is a strong contender for your tax preparation needs.
Read our TaxSlayer review for more information.
Conclusion
Choosing the right tax software depends on your specific needs and preferences. If you have a complicated return and are willing to pay for premium services, TurboTax is the clear winner. For those with simpler returns who still want high-quality support, H&R Block offers great value with its free filing option. If you’re on a tight budget, TaxAct provides an affordable solution without compromising the essentials. And for military personnel, TaxSlayer’s discounts make it a top choice for saving money on tax prep.
Make sure to evaluate your tax situation carefully and choose the software that best fits your needs. Whether you need help with a complicated return, want a free filing option, or are looking for something budget-friendly, there’s a solution for everyone.