5 Best Online Tax Software Programs: Easy, Free, and Affordable

Last Updated on December 28, 2022 by Selina Parker

Taxes. Nobody likes to think about them, but they’re a necessary evil every year. The good news is that some tremendous free tax software programs are out there that can make the process a lot easier for you.

This blog post will look at the best online tax software programs. We’ll also discuss what to look for when choosing online tax filing software and how much it will cost you.

What is tax software?

These are tools that you can use to file your taxes online. Numerous tax software programs make filing your taxes more leisurely and less stressful.

It can help you with your rental property income, business income, and investment income. It’s best to use a tax software program designed for your particular financial situation, so be sure to do some research before choosing one.

They’re easy to find, affordable, and, best of all, help prevent any costly mistakes on your end!

Best Online Tax Software to Use for Your Business

1. TurboTax

Best Software Overall

TurboTax is one of the most popular tax software and our No. 1 pick for the Best Tax Software of 2022. TurboTax was founded in the mid-1980s and has since grown to dominate the tax industry. Intuit owns it along with a range of financial services, including financial tracking software Mint and small-business accounting software QuickBooks.

TurboTax is known for its easy-to-use and straightforward interface. The program is similar to an interview in that it assesses each applicant. It guides you through a series of questions about your current and future earnings to help you figure out the best options. It also seeks tax deductions.

It has various goods available to fit multiple users’ requirements, and while there is a free version, there are limitations.

FEATURES

1. Statistics and reporting
2. Import and export data
3. Alerts
4. Reports that you can customize
5. Activity tracking
6. Historical data
7. Payroll & employer forms
8. Mobile access

PROS

• Tax preparation is enjoyable and straightforward with the help of this accounting software.
• Can easily read import tax documents
• Tax preparation assistance is available on a variety of different levels

CONS

• It is not the best option for those on a tight budget
• Tax preparation helped by a tax professional in person

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2. H&R Block

Best Tax Software Filing Option

H&R Block, a firm founded in 1955 by brothers Henry and Richard Bloch, is one of the world’s largest tax services businesses, with more than 800 million tax returns prepared throughout its history.

The firm frequently promotes the availability of in-person tax assistance for professional individuals. H&R Block requires that its tax advisors have at least 60 hours of training and pass a six-level certification test, with a typical H&R Block client assisted by someone with about 12 years of expertise.

H&R Block’s tax experts are accessible online and in its many retail shops; with over 11,000 retail offices in all 50 states, US territories, and US military bases worldwide, it’s easy to find one.

FEATURES

1. Import and export your tax forms with ease
2. Step-by-step instructions
3. You can upgrade to get live assistance
4. Several refund alternatives to choose from
5. Tax return storage
6. Guarantee of accuracy
7. Mobile app

PROS

• Expert assistance
• To take advantage of home mortgage interest and earnings credit reductions, submit your income tax return using the free option.
• Clarification of tax laws
• Before submitting your return, you may hire a tax pro review at an extra cost.
• Accuracy check
• Student loan interest
• Maximum refund guarantee

CONS

• It no longer offers refund anticipation loans
• Complex tax situations are beyond the scope of the free and low price tax plan package
• Other services are available at a charge
• Offers a small tax guide to consumers
• No itemized deductions

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3. Jackson Hewitt

Best for those who did not qualify for a free federal filing

A tax advisory firm called Jackson Hewitt was founded in 1982 as a place to conduct personal tax preparation in person. It has 6,000 locations, with around 3,000 Walmart outlets.

Jackson Hewitt allows you to meet with a tax professional in person, drop off or mail your tax papers, and let a specialist handle the rest. You may also upload virtually any document online.

They also provide three alternatives for submitting taxes: in-person, online by yourself, and with a tax professional’s help online.

FEATURES

1. Document checklist
2. Tax return storage
3. Accuracy guarantee
4. Mobile version

PROS

• Clear and uncluttered platform
• At a reasonable fee, you may submit several state returns
• Get experts to help to do your taxes in person

CONS

• No document upload function enables you to enter data more quickly.
• You must manually supply the information.
• There isn’t a free alternative for simple tax situations

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4. Cash App Taxes

Most affordable tax software

The tax preparation service offered by ‘Cash App’ – formerly known as Credit Karma Tax is a free tax preparation service that can assist you with federal and state taxes. It also offers information on credit cards, loans, insurance, and other financial products.

Features

1. Filing federal and state taxes is entirely free
2. Audit defense for free
3. Precision guarantee

PROS

• It is a free tax option
• It’s easy to use a filing system
• Your federal refund will not incur any tax preparation cost

CONS

• To submit your tax return, you must first download the app
• There aren’t much of customer care or phone assistance services
• You can’t offer multiple state returns
• Cannot directly upload W-2s or 1099s

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5. TaxSlayer

Most Popular Tax Software

Rhodes-Murphy & Co., a firm that later became TaxSlayer, was founded in 1965 in Augusta, Georgia. It began as a traditional tax preparation firm and has evolved into software for accountants and professional tax preparers. It is still family-owned and managed from its headquarters in Augusta today.

Four services are available for at-home tax filers through TaxSlayer. TaxSlayer’s Simply Free is similar to other firms in our list of the Best Tax Software of 2022 in that it offers a free filing alternative.

FEATURES

1. Quick tax refund
2. Available both mobile and online
3. Free audit defense
4. Accuracy guarantee

PROS

• Self-employed taxpayers should use this
• Affordable price
• All of these services come with phone and email assistance
• A tax expert is accessible on demand through this self-employed package
• Clean, simple interface
• Reminders may be set up for due dates to pay estimated quarterly taxes throughout the year.

CONS

• The earned income tax credit or the child tax credit is not available in the free version.

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Why is tax software necessary for you?

1. Simplifies the process

Having software can make the tax filing process a lot easier. Tax preparation software assists you in organizing receipts and other record-keeping documents for your taxes. Such applications are usually formatted as electronic versions of paper forms, making them accessible.

2. Saves you time and money

In addition to simplifying the tax-filing process, many applications offer free filing for federal taxes. It means that you don’t have to pay a preparer to do your return for you.

Additionally, some software products offer refund anticipation loans (RALs) that quickly provide access to your refund.

3. Ensures accuracy

When you file your taxes, you want to ensure that everything is correct. Tax preparation software often comes with guarantees assuring the accuracy of your return.

Bottomline

Choosing the best tax software will make the tax-filing process much more manageable. All listed tax software companies have various features, including free filing for federal taxes and refund anticipation loans. Choose the best product for your needs to ensure an accurate return.