Tax preparation software for individuals

Selecting a product that not only fits your needs but does not break your budget is key. It is a good idea to review the price of each product and consider the following:. If you have a simple tax return, including a W2 and a few tax deductions, you may be able to file your taxes for free. Many tax online software providers offer an advertised free tax filing version for simple returns on their website.

If you need extra hand-holding while completing your tax return, make sure your review support options. Here is a listing of questions to consider before selecting your product:. If you reside in Louisiana, Oklahoma and Texas , you may have more time.

The IRS announced residents of these states now have until June 15, to file their tax returns due to recent storms. If you need more time to file, make certain to file an extension to extend the tax due date to October 15, —although be aware that any taxes that you owe the IRS will still be due on May But while these tax online products do provide limited free filing options, many of the same providers partnered with the IRS Free File Program to offer a different free product for those who may qualify.

Your AGI is your total income minus certain deductions. Before using this service, you should browse each product offering to see which free product works best for you. While this program has been in existence since , you may not have heard of it. Since online tax software providers donate these services, they advertise them very little. The main difference? Here are some scenarios where you should consider hiring a tax pro:. Tax online software providers may allow you to complete simple tax filings at no cost.

In addition to the federal cost filing, you may expect a cost to file your state tax return. If you did not receive all or part of your Economic Impact Payments aka stimulus checks , you can claim them on your tax return through the Recovery Rebate Credit.

The credit will either increase your tax refund or reduce the amount you owe and the credit will apply for both the first and second stimulus payments. To determine your claim amount, refer to your Notice , which provides the first stimulus check payment, and Notice B for the second round of stimulus checks. The IRS should send these notices by mail to each payment recipient. This information must be included on the Recovery Rebate Credit worksheet when completing your tax return.

Check out more of her work at kemberley. Select Region. United States. United Kingdom. All ratings are determined solely by our editorial team. Kemberley Washington. Forbes Advisor Staff. Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Here are our top picks for the tax season. Read more. You can opt for the Basic, Deluxe or Platinum tier of the Worry-Free Guarantee plan, which promises to reimburse you if you end up receiving a reduced refund or face additional tax liabilities.

Both the Deluxe and Platinum tiers also offer restoration assistance that help if your identity is stolen and a tax return is filed on your behalf. The Platinum tier includes Audit Security support with a dedicated specialist who will manage and represent your case.

Check out our FAQ below for more information on the likelihood of being audited and the factors that could increase your risk. Otherwise, Jackson Hewitt's tax preparation service is in line with what you'll find elsewhere: You can use the Basic free tier for simple returns, import older tax returns prepared on other platforms, receive tech support via live chat and auto-complete state returns. If you are in a high tax bracket or have a particularly complicated tax situation where errors may be more likely, TaxAct could be for you.

You can access tax-filing guidance from a tax specialist that ranges from in-app chat support with screen-share capabilities to unlimited one-on-one advice over the phone. It's simple to import previous tax returns, navigate the platform and browse through the knowledge database as you input your itemized deductions.

TaxSlayer is an inexpensive tax preparation service and provides all of the tax forms you'll need. While the free version comes with some degree of access to personalized tax advice, you'll need to pay for a higher level package, such as TaxSlayer Premium, to get comprehensive assistance from a tax professional, including live phone and chat support, as well as audit protection.

FreeTaxUSA is mostly free, except you'll need to pay to file state taxes. It offers options for importing previous tax returns and filing an amended tax return. The Deluxe version includes priority live chat, customer support and access to its tax specialists and audit service.

These tax professionals should be able to address all your specific income tax return questions -- from what paperwork you need to how to understand an audit notice and write a response to the IRS. There are two main ways to file your taxes for free.

These private services offer free products for those with simple filing situations, and as long as you don't have complications like investment income or rental property income, you can stick with the free products all the way through filing. Note, however, that Intuit and other companies will often try to upsell you on other products throughout the process.

Before signing up for a higher-tier product you hadn't planned on, make sure you really need it. When you file only a single W-2 from an employer, it's considered a simple tax return.

With a simple return, you won't be itemizing deductions, claiming investment income or rental property, reporting freelance income or claiming business expenses like a home office. You can also start filing with a free return in most cases and upgrade your service level if needed.

The beauty of well-designed tax software is that most filers won't need to pay extra for expert help. All of the answers you need should only be a few clicks away, and if you need technical assistance help with the software, not tax-related issues , support should be easily accessible.

If you find yourself constantly wanting to speak with a human tax expert or if you know your tax situation is complicated, you may be better off selecting tax software with tax expert support or simply hiring a CPA, or certified public accountant, on your own.

If you have self-employment income, itemized deductions, investments or other complicated tax situations, the extra cost is likely to be worth it. It can also be easier to send off your forms to an expert and know they'll take care of everything. Remember that the extra amount you're paying in fees could get you a better return, making the upfront cost a smart investment. Keep in mind, however, that it depends a lot on your individual filing situation, your withholdings and your tax bracket.

As good as many software programs are, a human expert is often the way to go. Get advice and answers as you go, with a final expert review before you file. Have a dedicated tax expert handle everything, from start to finish. With Full Service, we do your taxes for you in a few easy steps. Snap and securely upload your tax documents Get matched with the right expert for your tax situation Your expert does your taxes and keeps your in the loop Review everything with your expert before they file.

Why pay so much more going to other places when you can do it yourself online in the comfort of your home? Helped me so much and saved me a lot of money. I think the live support from experts is the icing on the cake! Get a comprehensive review of your online tax return before you file so you can be confident nothing gets missed.

Got married? Its Deluxe package is best for users with fairly simple returns who want to maximize tax deductions and credits, while its Premier tier is better suited for individuals with investments such as rental property, stocks, bonds, or cryptocurrencies. Those who opt for the Self-Employed tier get a personalized audit assessment, easy imports from Quickbooks and other sources and all of the services in the Free, Deluxe and Premier tiers, all of which include online assistance.

It can accommodate taxpayers who qualify for the Earned Income Tax Credit, who plan to claim the child tax credit and who received unemployment income. TurboTax also offers free federal and state tax filing to active duty and reserve military, including members of the National Guard, with E1-E9 classifications.

Filers simply have to go to the regular TurboTax portal and enter their rank to file using any TurboTax product tier. One great TurboTax feature is the ability to import investing gains and losses from a variety of sources. If you have a more complicated return, there are three paid tax-filing software tiers: Deluxe, Premium and Self-Employed. There is also a hybrid service for those who prefer the DIY approach, the Tax Pro Review, which provides filers the assurance of an extra and professional set of eyes on their returns.

However, this service is only available through the company's paid tiers. It offers comprehensive explanations on all tax forms and a clear step-by-step guide to help you file taxes on your own.

You can always upgrade your package at an additional cost to get instant access to a tax professional. The offer will be applied once you enter your eligible Employer ID Number during filing. TaxAct offers a fairly robust calculator you can access under the Tax Tools tab.

TaxAct is worth considering if you have different income streams, are an entrepreneur, contractor or self-employed. The Self-employed tier covers freelance income including NEC , farm and business income, and depreciation calculations, plus circumstances covered in the Premier tier. Jackson Hewitt is better known for its pop-up shops and kiosks that sprout up in strip malls and big-box stores during tax season, but the tax preparer also has online software for people who want to file their taxes from home.

Jackson Hewitt offers one option for online DIY filers, in addition to three more expensive tiers for people who want the help of virtual tax pros. The Deluxe package covers homeowners and those with dependents and itemized deductions, while the Premier tier supports self-employed individuals.

Jackson Hewitt is a safe bet if you prefer to file your tax returns with the assistance of a tax professional. Apart from having in-person options at your local mall during tax season, its customer support is comprehensive and even includes IRS audit assistance. That being said, Jackson Hewitt is one of the pricier tax software companies on our list. For small-business owners or self-employed independent contractors with a modicum of confidence in their tax knowledge, TaxSlayer can offer a decent product at an affordable price.

E-file emphasizes speed on its homepage , boasting that many users can file their taxes electronically with its online software in less than 15 minutes. It's not only fast, but it's also generally less expensive than other tax preparers. It accepts promo codes, too. E-file will automatically save your progress as you complete your tax forms. Though the platform is entirely online and promotes electronic filing, it will still let you print out your tax forms to mail in yourself.

If you encounter a question before that point, you can pay for phone or email assistance. Its filing process is simple: once you create an account, enter your taxpayer information and E-file will prepare your return. The standard interface features prior-year import and a help support sidebar that guides you every step.

Whether your tax situation is simple, basic or advanced, you can file your federal tax return for free. According to FreeTaxUSA, email responses from customer support will typically take around half an hour. FreeTaxUSA offers free filing for people in all tax situations such as filing jointly, homeownership, dependents, itemized deductions, self-employed, investments, rental property, retirement and tuition program distributions.

Once you file your return, it will be automatically stored as a PDF for up to seven years. If you want to file your taxes for free, most of the leading tax preparation software providers out there have strict income limits for you to qualify.

Free offerings are also often limited to people with super-simple returns, forcing filers with complex returns to dip into their bank accounts to prepare and file their taxes.

This is not the case with Credit Karma ; the company offers comprehensive filing for federal and state returns for free. Credit Karma, primarily known as an online platform that aims to help its users achieve personal finance and credit score goals, has developed an e-file product: Credit Karma Tax. To facilitate your tax preparation process, Credit Karma is equipped with easy-to-use navigation tools to guide you every step of the way. You can also easily import your using their Smart File feature on the Credit Karma Tax mobile app or your computer.

Credit Karma Tax is available in 40 states. However, its services are not available in states that offer free online tax filing services.