Best Tax Software

In 2020, nearly 170 million individual tax returns were filed by Americans — and 153 million of those were filed electronically. Although all taxpayers must file a return and pay what they owe, there’s no reason to navigate those complicated forms and confusing tax laws alone.

The best tax software to use in 2021. H&R Block: Best value overall; TurboTax: Best value for itemizing deductions; TaxSlayer: Best value for self-employed filers; Credit Karma: Best free option.

IRS Free File

When choosing free tax software, why not go right to the source? The IRS Free File program provides taxpayers with state-of-the-art tax preparation software through an organization called the Free File Alliance. Most top tax software companies are members of the alliance, including tax prep giants H&R Block, TurboTax and TaxSlayer.

Every year, millions of taxpayers use Free File to quickly, safely and accurately complete their returns. Filers with incomes of $64,000 and below can file electronically for free by using the convenient e-file option. Those with incomes over $64,000 are required to print their returns and file by mail.

Benefits:

Free of charge to all taxpayers
Name brand software
Step-by-step guidance and comprehensive customer service
Strict privacy and data security

Drawbacks:

Services limited for taxpayers with over $64,000 in income
State-specific software not available in every case
Distracting advertising

Find Out: What Are the 2020-2021 Federal Tax Brackets and Tax Rates?

TurboTax Free Edition

TurboTax receives consistently high marks from users, who appreciate its easy-to-use interface. The free version of this popular software includes many of the same features that are included in the paid editions. In the event of an IRS audit, TurboTax offers guidance and advice from an experienced tax professional.

Once your taxes are filed and your refund is on its way, you might appreciate learning more about your financial health with the complimentary Turbo feature, which supplies your income, credit score and debt-to-income ratio, along with explanations and personalized advice on each.

TurboTax Free Edition is ideal for customers who have W-2 income and take the standard deduction. Taxpayers who itemize deductions or have different types of income can still file online or download the TurboTax Basic, Deluxe, Premier or Home & Business bundles for a fee.

Samsung allshare for mac. Benefits:

Available in English and Spanish
Free filing for federal and state simple returns
Easy to upload and import tax data
Step-by-step guidance
24/7 online support
CompleteCheck double-checks your return for accuracy

Drawbacks:

Only simple returns with no schedules are free
Heavy advertising and upselling
Refund advances are available to select customers only

Don’t Miss: 8 New or Improved Tax Credits and Breaks for Your 2020 Return

H&R Block Free Online

H&R Block stands behind all of its tax preparation software, including H&R Block Free Online, with a maximum refund guarantee, professional audit support and a promise of 100% accuracy. As with its paid software, H&R Block’s free online option uses an interactive Q&A interface to guide taxpayers through the filing process. Although some users report that it might not be as easy to use as TurboTax, it remains an excellent choice for taxpayers looking for the best free tax software.

Users who don’t meet the qualifications for free filing can receive in-person service at a local H&R Block office or can purchase more comprehensive versions of H&R Block software for a fee, depending on how complicated their tax situation is. Get your taxes done by one of H&R Block’s tax professionals, and you’ll have the option to request a refund advance of up to $3,500.

Benefits:

Free federal and state filing for qualified customers
Complimentary income tax and refund calculator
Autofill W-2 from a photo
Online technical support via instant chat
Convenient help center for answers to common tax questions
Easy drag-and-drop transfer of your previous year’s return
Layered data security and privacy protection
Accuracy check and audit protection

Drawbacks:

Terms and concepts aren’t always well explained
Navigation tabs might take some getting used to

Deep Dive: H&R Block vs. TurboTax — Which Is Best for Your 2020 Tax Return?

Credit Karma Tax

There is a simple reason Credit Karma Tax is ranked as one of the best free tax filing options. It truly is free, not just for filing basic federal and state returns, but for more complex returns as well. All that’s required to access Credit Karma Tax is signing up for Credit Karma’s flagship credit monitoring service, which does require inputting your Social Security number. That service provides free credit reports from all three major credit bureaus along with credit monitoring and weekly credit score updates. In addition, users receive access to financial calculators and educational articles, plus targeted product promotions based on the information found in credit reports.

Unfortunately, not all tax forms are supported by the platform, so not all filers will be able to use the service.

Benefits:

File for free with minimal upsell
Maximum refund guarantee
Accurate calculations guaranteed
Complimentary audit defense with Tax Protection Plus
Jump-start feature allows quick W-2 upload
Online help center provides answers to tax questions
Accuracy review before submission

Drawbacks:

No drag-and-drop option for previous returns
Credit Karma membership required
Site navigation can be a challenge
Doesn’t support all forms

Also See: These Are the Receipts To Keep for Doing Your Taxes

Which Is the Best Free Tax Software for You?

As long as your tax situation is relatively simple, you can take advantage of some of the best free tax preparation software options that are available online via these reputable providers. Which one is best depends on your tax situation and your level of comfort using software to complete your returns. The Free File platform is offered by the IRS, but state filing isn’t necessarily free, and not all states participate. You can file state returns using the other options, and TurboTax and Credit Karma can even help you take control of your credit. Although H&R Block might not be the easiest to use, the optional no-interest loan against your refund might make up for it.