12 Best Tax Software in The US

When the dreaded deadline looms closer, the best choice is to use tax software to ease up the tax filing process. Tax filing preparations can be both tedious and complicated if one doesn’t know exactly how it works. 

Tax filing preparations can be both tedious and complicated if one doesn’t know exactly how it works. 

When the dreaded deadline looms closer, the best choice is to use tax filing apps to ease up the filing process. This is highly recommended, especially for those who hate doing manual tax calculations themselves.

Our guide presents a comprehensive list of the best tax software available in the US. We will also include some relevant information about tax filing and how using the best applications immensely helps simplify the process. 

Our goal is to help you come up with an informed decision based on the facts presented. We will show you not just the best tax software available today but also help you choose the right option that your situation calls for.

How Does Tax Software Work?

Tax software is designed to make computations using the formulas under the Tax Code. The information you provide will be calculated using all the tax forms to ensure you get the maximum tax credits and deductions that are allowed by law.

Similar to hiring a professional tax preparer, related software aims to get you the lowest tax liability possible.

Those who have tried filing their tax returns manually surely agree that you’ve spent a lot of time going through all your documents and forms. Going back and forth through all these documents, checking if the numbers match, and double-checking all calculations is not fun. 

The more complicated your tax situation is, the more times you’ll be doing this. 

Fortunately, tax applications can do everything for you. You just have to open an account, pass the security checks, and fill out their lengthy questionnaire. All computations and the impact of the Tax Code on your financial profile are done by the software’s program.

The sequencing and pulling up of the tax forms needed for a specific situation is done by the software. The user will just be filling in the blank fields, ticking the correct options, and clicking a button if called for.

The site and/or a tax professional will then review your file and inform you if there are errors and omissions. After the concerns are addressed, the program will transfer your data to the proper channel you want to file to. Choosing to send to the federal or state will be done by the software if you choose those options.

Lastly, once the data has been processed, the user answers a few more questions. The return will be presented back to the user for acknowledgment. The fees and additional charges are then paid if applicable. 

The user is provided with an option to print and save a copy of the entire tax filing—which we recommend always do!

What Are The Advantages Of Using Tax Software?

Tax software has a handful of advantages if ever you decide to use one. Below is a quick overview of the benefits you get from them:

Tax software automates income tax filing

You can complete your annual tax returns in less than a dozen steps. Users can save a lot of time just by filling out online forms without doing any calculations.

Plus, the computations a tax app does are always more accurate than those done manually. However, we still advise you to double-check the numbers that you punch in an online calculator.

Users can file their tax returns anytime, anywhere

Tax filing applications enable you to choose the time and place to file your tax returns. Uncomplicated tax returns can be done in an average of 45 minutes. Choosing to file your returns manually can take several hours up to days to complete.

Most tax software is easy to use

While there may be software that has a steep learning curve, most are made for ordinary people like you and me. In fact, there are a lot of alternatives available that match the user’s knowledge level. 

We recommend checking for the software we will be discussing below that has a spectrum of features like online support or those that have the most complex of computations—all based on the demands of your financial situation.

It doesn’t matter if you’re new to tax applications or someone who is filing tax returns for a living. There’s always something that will fit your needs. 

Users are ensured to have all necessary forms attached to their tax returns

All primary forms for tax returns are available in the software’s database. There are also a lot of articles and walkthroughs that can help the user understand which forms are needed. 

Tax software can handle the simplest tax returns… or the most complicated ones

All software can handle simple and basic tax returns. Even those free ones are good enough to handle the most basic personal finance computations. For instance, a student can use them to claim educational tax credits. Some tax apps, like H&R Block, are even built for dedicated tax uses like this.

All users still need to pay for the filing fee, though—that is not something your tax app will cover.

As your situation gets more complicated or you need to file multiple returns, you’ll need to pay for the deluxe package or the most expensive premium package. You’ll also need to pay for expert tax reviewer services to handle complicated tax returns.

Refunds are received faster when using tax software

Tax refunds via e-file, which is the basic concept of tax software, are considered to be the fastest way for payments to arrive. You’ll also get a faster refund if you’ve ticked the direct deposit for your payment.

Using tax software is one of the best forms of record-keeping

Transactions made using any tax application will be recorded on your account. This makes organizing all your financial records a lot easier. 

Financial records from the previous years can also be retrieved and compared to those of your current year. You can also call your account on the software to be your personal storage for your accounting records. 

We still advise you to print hard copies of these records for safekeeping. 

Tax preparation software is constantly updated with the most recent tax laws

One of the top features of many tax applications is the constant updating of its programs in accordance with current tax laws. Whenever a new tax law is introduced or amended, expect the software developers to roll out the latest update.

Using tax software is much cheaper than hiring the services of a professional

There are only two options for taxpayers to choose from in case they need help in filing their income tax returns: hiring a professional or using tax software. 

We want to reiterate that basic tax returns can be handled by most tax apps. Only those returns that are complicated will need a tax pro’s assistance. Taxpayers with low income, fewer deductions, one employer, and fewer investments can greatly benefit from using online tax applications.

Software-assisted filings are much cheaper than hiring a professional, as you’re only required to pay for the filing fee. There is software that also offers free filing for state returns.

Tapping a tax professional will require an additional service charge. Take note that most, if not all, tax professionals have also subscribed to tax software for their clients. The choice is yours.

How To Choose The Best Tax Software

As the IRS enforces strict compliance with tax laws, it is necessary to ensure that accurate, comprehensive, and complete tax calculations are promptly reported. Fortunately, with the help of auto tax technology, mistakes can be avoided.

However, some software offers support from a professional accountant for additional money. That is why you have to carefully assess your situation and determine if you need a simple, inexpensive program or a more robust one to fulfill your needs.  

When looking for the best tax applications in the market, we recommend seeking the following key features, and then you decide for yourself:

Personal Compatibility

Your situation may call for certain requirements that not every tax software can provide. For example, if you are a freelancer, student, small business owner, or a single entrepreneur, you will have fewer requirements compared to someone with multiple businesses, assets across states, and earnings above category 7.

Taxpayers with W-2 income, on the other hand, will just need the simplest and most inexpensive software available. 

Our operational definition of “simple” is the software in which all the user’s basic needs are provided. There is no complex computation involved—only the basic forms are needed, and no data integration from the app is necessary. 

You also won’t need any support in completing the tax filing. Basically, it’s just filling up the blanks on a single or a couple of forms. 

Technical Compatibility

Technology has made newer software more robust and highly capable of easily integrating complex computations. The trade-off is that your computer or device should keep up with the demand. Thus, check if your device meets the minimum system requirements of the tax software before deciding to use it.

Most software can run on browsers and can be used as long as you are connected to the internet. Other tax applications are cloud based and have mobile apps that you can use on the go.

When choosing your tax software, make sure that these tax preparers run across your devices and different operating systems. Having an offline mode is also a plus.

User Experience

The best software should be straightforward to use. Everything one needs should be readily available—from forms, guides, computation formulas, and informative insights about the topics that may need guidance. Users can go through their tax returns with ease with minimal learning necessary.

It is also important that the visual designs add value to the user experience. Menus and buttons should be easy to spot, and the presentation should at least hold the user’s hand throughout the journey. The users should not wonder what to do first when they arrive at the homepage.

Furthermore, the best online tax software should have an intuitive design, offer free training, and hold the hands of newcomers at every step of the tax filing process. Online customer support should also be available at any time.

Whenever you’re in doubt, it’s also recommended to check user ratings just to see what people’s actual experience with the product is.

Multitude of Functionality

Whether you’re a student, a business owner, or even an ordinary mortgage payer, not all taxpayers have the same financial profiles. As we’ll further discuss below, one user’s needs greatly vary depending on how simple and complex the situation is. 

That is also the reason why the functionalities and services of certain tax applications can be different from their competitors. They have different target audiences, or their technology hasn’t caught up yet.

Some of the best tax programs in the market offer only fairly common and basic accounting systems. This is best for those who have fewer complexities with their tax profiles. These simple platforms have essential forms, document managers, and quick tax estimators.

On the other hand, other tax apps have additional options like gift and estate taxes and unlimited state returns. Such features are used by entities with complex financial portfolios. 

Pricing

The best tax programs and applications generally cost an average of $20 and above, depending on the tax services you or your company needs. In fact, among the software customers have used, you’ll find that the pricing is almost similar. 

Their packages are similar as they mostly have a Basic, Deluxe, and Premium package. Inclusive in tax filing packages are:

  •  The minimum and maximum limit of users allowed.
  •  The maximum of filings allowed.
  • The minimum and maximum number of multiple-state filings.

The most common tax preparations require the least computations. At the same time, more complex financial management situations may call for additional services and packages that push you to shell out more cash.

For the simplest tax filing, we recommend checking out software that is completely free or charges a minimal amount. There are numerous tax apps that offer free services for basic tax situations like those that just need 1040 Forms. 

On the other hand, if you’re prepared to shell out money for purposes of grabbing the perks and features behind the paywall, just make sure you get value for your buck. 

You get value from your money when: 

  • All the forms you need are there.
  • The purposes of using tax applications, like fast, auto computation and integration of data, are all accomplished.
  • There’s an observable difference between the free and paid versions, such as having a tax professional assist and review your forms.

You may get a little confused about which one applies to your situation. After all, not all Deluxe or Premium versions offered by these tax companies have the same features and perks as their competitors. As such, our advice is to first try out their free and basic version. 

If the free version can cover your tax needs and complete basic filings, then there’s no need to upgrade, right? 

Experienced users with basic financial profiles usually just use the free version of their chosen tax app. Others use the Deluxe version if they need to file several tax returns for their clients or need professional help. Those that use the premium version usually have accounting firms with a lot of clients.

Identify which category of user you belong to. Then, you can determine which package you need to grab.

Data Security Features

One’s financial records are deemed to be private and confidential. Your financial records, including your income tax return, should only be seen by yourself and your representative. Technology has advanced that anything digital can be stolen or hacked. Thus, there is a need to ensure that the software you choose has adequate security features to protect your data.

Cloud-based tax applications are safer compared to software that needs to be installed on your computer or mobile device. 

Fortunately, the best software we presented on the list below has made it a priority to ensure that data used with their software is highly secure and encrypted. 

Support and Walkthrough Features

Not all taxpayers fully understand the concept of taxation and the process of filing income tax returns. In fact, not every software provides in-depth explanations, guides, and walkthroughs for new users. Some only have FAQ pages, tutorials, channels, and forums where users gather and share their knowledge.

Auditing Feature

Proper tax filing is one thing, while auditing is another thing. Make sure the software of your choosing has both, especially when you’re not an expert on this topic. You may not necessarily need auditing, but it is better to know about it than take any risks.

Availability of Tax Professional

Newer iterations of tax applications incorporate the feature where users have the opportunity to interact with tax professionals. Some software allows users to chat and ask for guidance from the expert, while others provide an avenue for users to talk live and face-to-face with certified tax preparers.

These professionals will guide you, provide advice, and even review your documents before you send them off to the IRS. 

The rates tax professionals ask for depending on the provider and package that you choose. The professional fee significantly varies depending on the software, though the most common scheme is a fee per filing. 

Make sure to check the professional support fees and if they’re included with your package, as well.

Availability of Tax Forms

If you have ticked all the features mentioned above, this last one is very important. Take a look at the list of all the forms and schedules you need for your tax filing. Simple tax returns need fewer forms, while complex, multi-state filings and entities with multiple businesses need more. 

Remember that not all software has the same number and type of IRS forms available to their users. The low-priced or free-to-use software has only the basic forms. 

The other tax applications have the basic forms and documents for complex situations like: 

  • Importation and exportation forms
  • Forms used by owners of multiple businesses
  • Those who have their financial assets spread all over the place.

Best Tax Software in the US 

In this list below, we have compiled the best tax software according to the features mentioned above, as well as those that reviewers and users highly rank and recommend.

  • TurboTax
  • H&R Block
  • TaxSlayer
  • TaxAct
  • Cash App Taxes
  • Jackson Hewitt
  • E-File
  • Drake Software
  • ATX
  • FreeTax USA
  • UltraTax CS
  • Liberty Tax

You might be wondering what these programs and apps can do. We’ll help you by introducing you to each one of them and what they’re best at. Let’s get into the relevant details and find out what makes one tax application the best out of all the rest of the entries on this list.

TurboTax

TurboTax is one of the most popular software used in online filing. It is very easy to use and is designed to ensure the accuracy of information due to the multiple checks in its programming. For example, if you skipped a certain section, TurboTax will send you back to the blank section before moving on.

Its interface is also very intuitive. It guides the user step-by-step through the process. 

TurboTax is considered to be the best pick for its very user-friendly presentation. It explains both simple and advanced tax topics through its multi-layered support system. You can also ask for assistance from the very helpful community.

Despite its excellent features, TurboTax is one of the most expensive. The more complex and complicated your financial profile is, the more expensive the packages that will be apt for you. 

 




TurboTax Best Features

  • Very user-friendly

  • Covers and explains all topics well

  • Can easily import 1099-MISC with a single click

  • Regularly updated according to the latest tax laws

  • Top online audit support




TurboTax Costs

  • Deluxe online filing: $40 federal return; $40 additional state return 

  • Premier online filing: $70 federal return; $40 additional state return 

  • Self-employed online filing: $90 federal return; $40 additional state return 

H&R Block

H&R Block is the best tax app for students who want to claim their educational tax credits. The forms are readily available on their free online software. 

H&R Block has outstanding online and in-person tax support—features at which the software excels. Their system is very efficient and allows users to search for forms, information, and guides even before they start uploading their details. W-2 forms can be obtained earlier, allowing for a much quicker filing of tax credits.

Taxpayers who want a simple yet comprehensive tax preparation service for their personal finance filing should check this app.

 





H&R Block Best Features

  • Free online filing

  • Starts at very low, student price points

  • Excellent user experience

  • Provides very simple walkthrough of complex topics and situations, such as tax deductions and personal finance

  • Student ACA calculator is available

  • Has one of the best tax support systems on the market

  • Expert help is optional but very beneficial for newcomers




H&R Block Costs

  • Free online filing: $0 federal return; $0 state return

  • Deluxe online filing: $30 federal tax return; $37 additional state return 

  • Premium online filing: $50 federal tax return; $37 additional state return 

  • Self-employed online filing: $80 federal return; $37 additional state return

TaxSlayer

TaxSlayer is the best option if you’re a company loaded with federal tax return forms. This is the software most professional tax preparers and accountants use. Their robust system can support the preparation and integration of the most complex tax profiles. 

If you’re a taxpayer who requires a Schedule C and wants to know all the credits and deductions available to you, TaxSlayer is the way to go. 

Its track record speaks for itself as well—with over 30 years of providing DIY tax services, TaxSlayer has all the tax forms, calculations, and customer support (via phone and email) that you need.

Help from their resident tax professional is inclusive when you use the TaxSlayer software. A pro will always be available for live chatting. You’ll be at ease knowing that help is readily available whenever you need it. 

 






TaxSlayer Best Features

  • Supports all major IRS documents, including tax deductions

  • Lives by its “Most compact taxation solution” branding

  • Has one of the best error checkers in the market

  • Web-based app, no installation necessary 

  • New data options available




TaxSlayer Costs

  • Free online filing: $0 federal return; $0 additional state return 

  • Deluxe online filing: $17 federal return; $29 additional state return 

  • Premier online filing: $37 federal return; $29 additional state return 

  • Self-employed online filing: $47 federal return; $29 additional state return 

TaxAct

TaxAct is best suited for taxpayers with an adjusted gross income, not over $73,000. You can file your taxes without any hassle. Their IRS Free File is even available for free—thanks to TaxAct’s partnership with the IRS.  

Although TaxAct is capable of preparing complex tax returns, it stands out for its intuitive user experience. It handles financial situations in ways the user can easily get and understand. 

If you’re a W-2 worker and don’t need the online support that other top brands offer, this is the best tax software for you. Their free Xpert Assist feature is not bad, either.

However, if you do not qualify for the IRS Free File program, it will cost you more than other tax applications on this list. Moreover, their version of tax professional assistance and per-state filing are expensive as well. 

 




TaxAct Best Features

  • Great user experience

  • Best choice for simple tax filing

  • Also best for complex tax returns

  • Has a dedicated package for small businesses

  • The organization of topics is sensible




TaxAct Costs

  • Free online filing

  • Deluxe online filing: $29.95 federal return; $40 additional state return fee

  • Premier online filing: $39.95 federal return; $40 additional state return 

  • Self-employed online filing: $74.95 federal return; $50 additional state return 

Cash App Taxes

Formerly known as Credit Karma Tax, Cash App Taxes boasts of being the only software that doesn’t charge for comprehensive tax filing preparations. This is also the best choice for filing federal and state taxes at zero cost! 

In addition, if you use Cash App Taxes in filing for a tax refund, you’ll get your cash much earlier than when using other platforms.

The only downside of using Cash App Taxes is it doesn’t have any tax professional help available if you ever want one. There’s also no way of filing multiple state returns. In short, this software supports most IRS forms but not all. 

 

 



Cash App Taxes Best Features

  • 100% FREE

  • Simple interface and quick navigation

  • Pages load amazingly fast

  • Can be accessed through mobile

  • All basic IRS forms are available

Cash App Taxes Costs

  • Free online filing

Jackson Hewitt

Jackson Hewitt is a tax preparation software used by the company’s tax professionals that cater to individuals and businesses all across the US. With over 5,500 locations that offer in-person tax prep services, the brand has expanded to include DIY online tax preparation packages. This tax application has both desktop and mobile versions.

Patrons of the company love the reasonable pricing, especially that of their DIY flat rates. The software has also been updated to have improved error checking for its wide coverage of tax related services.

However, their online help tools still need a bit of improvement. If you’re someone who needs full guidance along the way, you won’t get this from this software.

 

 



Jackson Hewitt Best Features

  • Reasonable pricing

  • Improved error checking

  • Wide choices of tax topics and packages

  • Good mobile version

Jackson Hewitt Costs

  • A flat fee of $25 for federal and covers as many state tax returns

E-File

For those seeking budget-level tax assistance, E-File would be our recommended option. Despite its reputation for being cheap, its systems can handle any IRS-related concerns. They have higher-tier products but at much cheaper rates compared to other brands. 

This cheap cost is perhaps due to their slim and streamlined services. If you want to prepare and file your tax return accurately, that’s what E-File offers. The software can handle complex situations, though with obvious limitations. 

E-File is purely a DIY tax platform. You have to do everything yourself here. If you get confused or are in doubt, hiring someone to guide you is not an option here.

 




E-File Best Features

  • An alternative to expensive upper-tier products

  • A good tax option for filing returns for multiple states

  • The software of choice for DIY filing of complex taxes

E-File Costs

  • Free online filing: $0 federal return fee; $22.49 additional state return fee

  • Deluxe online filing: $20.99 federal return fee; $22.49 additional state return fee

  • Premier online filing: $37.49 federal return fee; $22.49 additional state return fee

Drake

Drake software is known among small to middle-sized accounting firms due to its reliability and quick returns features. This tax app is best suited for businesses that are too busy to spend time filling in forms. Thanks to their quick review process, all of your tax returns can be promptly filed with accuracy.

Any errors and missing information can easily be detected. A system prompt will instantly pop up whenever an error is identified. Refunds and fees are also included in real time. 

Their system is also robust. It can handle the most complex financial and tax integration processes. The user can import 1040, K-1, and W-2 without any hitch.

You won’t initially believe how robust their system is at first glance. The design looks outdated.

 





Drake Best Features

  • Quick calculations and returns

  • Reliable error detection

  • Parameters and reminders can be customized

  • Importing and exporting tax forms is very easy

  • Filing can be done online

  • Has excellent customer service

Drake Cost

  • Essentials: Monthly subscription of $40.25

  • Business: Monthly subscription of $45.99

ATX

ATX software is the top site for accounting firms and freelance accountants for its library of tax compliance forms. Users are only required to pay a flat fee regardless of how many returns they file. 

Their website is easy to navigate, and you can open multiple files at the same time. Their interview tool also helps guide users in choosing which forms to pull up. Their online support is also at the ready whenever needed.

However, be prepared to chalk up additional fees for filing certain forms like 1099. Filing after the deadline would also cost more if you use this software.

 




ATX Best Features

  • Huge library of compliance forms

  • Has a checker that detects errors and mistakes

  • Has a refund meter

  • With a detailed walkthrough to guide the user





ATX Costs

  • Free Trial

  • ATX Pay-per-Return: $529.00

  • ATX 1040 Package: $669.00/one-time payment

  • ATX Max Package: $1,579.00/one-time payment

  • ATX Total Tax Office: $1,579.00/one-time payment

  • ATX Advantage: $3,949/one-time payment

FreeTaxUSA

FreeTaxUSA is the top software of choice for the self-employed taxpayer who doesn’t have a lot of income but is required to file a Schedule C. They can handle complex tax returns, help the user understand various tax topics, and guide them along the way.

In fact, FreeTaxUSA lives up to its reputation as a “free software.” 

Users can prepare, print, or e-file their tax returns without spending a dime. Federal returns are free, while state returns will require you to pay a minimal amount. They have the cheapest fee for federal filing—hands down. They also have a Deluxe version in which users can enjoy certain perks like the audit center and professional tax support. 

If you’re looking for good value for a low-price tag tax app, FreeTaxUSA is the best choice for you.

 





FreeTaxUSA Best Features

  • Free federal filing

  • Among the cheapest state filing fees

  • Supports all major schedules and tax forms

  • Has a large number of help options

  • Clean interface

  • Professional help is available at very low rates 





FreeTaxUSA Costs

  • Free online filing: $0 federal return fee; $12.95 additional state return fee

  • Deluxe online filing: $0 federal return fee; $12.95 additional state return fee

  • Premier online filing: $0 federal return fee; $12.95 additional state return fee

  • Self-employed online filing: $0 federal return fee; $12.95 additional state return fee

UltraTax CS

UltraTax CS is a tax preparation software best suited for businesses that need their data organized. This software is used by the same company to serve their clients. They have their review tool and have a very organized and itemized system. UltraTax CS has all tax related forms for all states available, along with the federal forms. 

Its robust system is also capable of completing complicated situations with utmost accuracy. This tax app is one of the most used and well-reviewed by bookkeepers and the best accountants alike. 

A downside of using UltraTax CS is the user needs to get used to its less intuitive design and the lack of user support. Beginners and newcomers surely will get turned off by its less appealing interface. There’s also the lack of technical support or prior notice when the app crashes or when servers go down.

Overall, UltraTax CS has a steep learning curve and requires the user to have a lot of patience before enjoying its great features and capabilities. 

 






UltraTax CS Best Features

  • Capable of doing any tax return task

  • Results are always accurate no matter how complicated the situation is

  • Best for filing both state and federal taxes

  • Very useful in importing data

  • Has both local installation or Cloud-based hosting

  • Rates are reasonable for the average user

 

UltraTax CS Costs

  • $2650 per year for 100 tax returns

  • Custom: Upon request (for 2 to unlimited users, 101 to unlimited tax returns, 11 to all applicable states

Liberty Tax

Liberty Tax is another software of another experienced brick-and-mortar tax preparation company. The over 12,000 certified accountants of Liberty Tax use this software to serve their clients. The online version of this software offers cheaper yet still very efficient tax prep packages for their clients across the country.

Their services can be done in-person, remotely, and DIY (without the assistance of a professional), all using the Liberty Tax software. 

Take note that accurate and exceptional services are only guaranteed if you work with their representatives. The software itself is somewhat outdated and clunky.

The DIY version, which you can perform yourself, has three paid options: the basic, deluxe, and premium. The option you choose depends on your filing status. If you have experienced doing DIY tax preparation before, you won’t be having any problem using Liberty Tax. 

 




Liberty Tax Best Features

  • Simple yet efficient design

  • Quick-loading pages

  • Self-employment topics are also covered

  • Can be accessed on mobile

 

Liberty Tax Costs

  • Basic: $45.95

  • Deluxe: $65.95

  • Premium: $85.95

What Should I Do If The Software Does Not Have The Forms I Need?

The best software should always have the basic IRS forms and documents for the taxpayer to use. However, there may be instances when a certain form is missing, and the tax filing cannot be completed or gets delayed. 

Here are the most common reasons why some forms are missing and how the user can fix them.

A new version of the form is being updated

Federal forms are constantly revised and updated. Even the most basic documents like Form 1040 and Schedule 1-3, which all individual taxpayers need, can sometimes go missing and unavailable for the time being. 

Check the dates when the updated version of the form will be released. The IRS usually announces when it will be available for download. Tax service companies usually follow suit and upload the missing forms as soon as they’re available. Be aware that the release date may also vary depending on the Operating System of your PC (Windows or Mac).

The tax software only performs the basic operations and does not support complex integration of data

Some tax apps and programs have limitations in the data they process. This is how they are designed, and the user cannot fix this. 

Before starting your tax filing, check which types of financial profiles the software can handle. The cheaper ones or those that offer free tax filing are designed to only process the non-complex returns. If you belong to categories with complex tax situations, it is better to find another tax app or purchase the paid version.

Wrapping Up

The list of top choices we presented about the best tax software in the US should provide you with enough information to help you with your decision. There’s no single software that can fit all users’ needs. What may be best for others wouldn’t apply to your situation. You know which one is the right one for you.

Remember that what is most important is that you can file your taxes accurately and on time. In addition, the tax application should be able to streamline all your financial information and perform the accounting process in the most complete, concise, and comprehensive way possible. 

Opting to DIY your tax filing through your choice of software isn’t a bad idea. You can definitely save a lot of money by doing so. Just make sure you know what to do and understand the software’s capabilities before jumping in.

If the process gets tough, there are good tax applications that have built-in features where you can ask for professional help. Get in touch with these experts to make your life much easier and better. 

Finally, we strongly advise you to keep a printed copy of your tax filing regardless of what tax software you use. 

Frequently Asked Questions

How much does tax software usually cost?

The cost of using tax apps depends on the features and complexity of services that you need in your filing. Filing simple income tax returns below a certain threshold can be completely free. If you have a complex financial situation, you may need to part ways with some cash in the range of $20-$200.

Take note, however, that you still need to pay the state filing fee regardless of your income threshold.

Why should I use tax software instead of traditional paper tax filing?

Tax apps are an advancement and an alternative in the process of filing income tax returns. The risky, time-consuming processes of traditional paper tax filing have been eliminated and much improved. 

Plus, the information processed using tax programs is encrypted. Only you (and your representative) and the IRS can view the information you have submitted. So if you’re worried about the security of your data—don’t be. 

What are the tax brackets for filing taxes?

The federal tax income rates are based on your taxable income. The best tax apps can automatically perform these tax computations for you, but if you’re curious, the IRS has the numbers for you.

For instance, the top tax rate is still 37% for individual single taxpayers with incomes greater than $578,000. Meanwhile, the lowest rate is 10% for those who earn  $11,000 or less.

Aside from federal taxes, you should also see what the tax rates are like in the state in which you or your business are operating. 

Do you need tax returns to refinance?

Yes, your tax returns are required to refinance. In fact, most lenders require home owners to provide a copy of their tax returns from at least three years back to ensure that they are still capable of paying for the renegotiated mortgage.

You can use the IRS’ Where’s My Refund tool to check your tax returns online. 

Is home insurance tax deductible?

Unfortunately, home insurance tax is not tax deductible.  Still, that doesn’t mean home owners can’t apply for deductions. For example, deductions are available for property taxes up to $10,000. 

Meanwhile, if you’re renting a part of your space through Airbnb and other platforms, deductions are available for a portion of your premiums, like your electricity bill.

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