Best Tax Software of 2024
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Taxes are confusing enough without the added stress of figuring out which tax software to use. While you should get the same refund or bill no matter which provider you choose, tax filing programs typically come at a cost — so there’s a crucial difference between paying for what you'll use and paying extra for what you don’t need.
We did the research by testing and evaluating four well-known, widely used online tax providers. Our review process includes first-hand testing, information collection and user surveys, focusing on factors that are important to filers: price, ease of use, tools, tax pro help and customer support.
If you're new to filing or just need a little more guidance, you can also check out our tax software guide or our video on the ins and outs of picking tax software further down on the page. Prices are updated monthly and are accurate per provider as of Nov. 1, 2024.
Best tax software 2024
H&R Block: Best free tax software for simple returns
H&R Block Free
5.0
NerdWallet ratingFederal: $55 to $115. Free version available for simple tax returns only.
State: $0 to $49 per state.
Expert help is included with paid packages free of charge.
Our take: H&R Block's free version has no income restrictions and covers more tax situations (e.g., unemployment income) than many other free tiers offered by the competition. The interface is easy to use and filers can upload multiple tax documents to avoid manual entry.
What we like: H&R Block Free can handle Form 1040, limited Schedules 1, 2 and 3, income from wages (W-2), bank interest (1099-INT) and dividends (1099-DIV), and student loan interest (1098-E).
What H&R Block Free can’t do: The free tier doesn't support itemized deductions (Schedule A), deductions and expenses from freelance or self-employed work (Schedule C), or HSA distributions (1099-SA).
Well-designed and user-friendly interface.
Free version offers a generous selection of tax forms.
All paid packages include access to tax pro help at no additional charge.
Downgrading your package requires calling H&R Block's support line.
Final review of your tax return requires an additional paid upgrade to Tax Pro Review.
TurboTax: Best overall tax software package
TurboTax
4.5
NerdWallet ratingFederal: $69 to $129. Free version available for Form 1040 and limited credits only. Roughly 37% of filers qualify.
State: $0 to $64 per state.
Expert help is included with an upgrade to Live Assisted packages.
Our take: TurboTax scores high marks for two important categories: ease of use and tax support.
Ease of use: TurboTax has an interview-style Q&A experience and a wide range of functionality and tools that make entering information easy. Help is easy to access, and explanations are clear and authoritative.
Tax pro support: TurboTax offers users the option of upgrading to its Live Assisted packages to gain access to screen-sharing, chat and phone support from a tax pro. Although these services come at an additional cost, access to a pro is generous, and you’ll also get a final review of your return.
What we like: TurboTax’s software feels like an interview with a tax preparer who knows just what to ask and how best to guide you.
Intuitive U/X.
Handy tools and features that help minimize manual input.
Generous tax pro support that includes a final review if you upgrade.
Expensive compared with other tax software.
The free version is limited in what it can handle.
TaxSlayer: Best affordable tax software package
TaxSlayer
4.0
NerdWallet ratingFederal: $37.95 to $67.95. Free version available for simple tax returns only.
State: $0 to $44.95 per state.
Expert help is included in Premium and Self-Employed packages only.
Our take: TaxSlayer’s paid packages, on average, are the most affordable of all the providers we review. TaxSlayer's free version also includes a free state return. Some competitors make you pay for a state tax return, even at the free tier.
What we like: TaxSlayer’s formula — allowing clients to pay for the amount of help they need rather than the types of tax forms they need — allows you to access most tax filing situations while keeping costs low.
More affordable than bigger-name tax software providers.
Premium and Self-Employed tiers include free tax pro support.
Free version of the program has many restrictions, including income limits, and it won't allow you to claim dependents.
TaxAct: Competitive tax software to consider
TaxAct
3.5
NerdWallet ratingFederal: $49.99 to $99.99. Free version available for simple tax returns only.
State: $39.99 to $59.99 per state.
Xpert Assist tax help is included as a paid upgrade.
Our take: Across the board, TaxAct’s offerings are less expensive than similar products from competing providers. That’s a nice score — especially for filers who value function over form and want affordable human help if necessary.
What we like: TaxAct is a good deal. It didn't win any "best" accolades this year, but there's no denying its pricing.
More affordable than bigger-name tax software providers.
Premium and Self-Employed tiers include free tax pro support.
Free version of the program has many restrictions, including income limits, and it won't allow you to claim dependents.
Best tax software overview
| Best affordable tax software
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| Best free tax software for simple returns
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| Best overall tax software
Promotion: NerdWallet users can save up to an additional 10% on TurboTax. | |
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Promotion: NerdWallet users get 25% off federal and state filing costs. | |
These star ratings are based on a tax provider's free tier score. For more detailed scoring, see the full product details drop-down menu above. Providers frequently change pricing. You can verify the latest price by clicking through to each provider's site.
Tax Software Basics
What is tax software, and how does it work?
In the U.S., tax filers often have three options for completing their federal tax returns: (1) file manually by paper, (2) file online using tax software or (3) file through a tax pro, such as a CPA or an enrolled agent.
Tax software helps filers complete and submit their federal and state income tax returns using a DIY program. Due to its convenience and accessibility, it's by far one of the most popular filing methods.
You can sign up for tax software online via the provider's website. There may be multiple packages to choose from — but generally, the more complex your taxes are, the more you can expect to pay. The program will then guide you through your federal and/or state taxes by asking a series of interview-style questions that will help it populate tax forms on the backend.
The type of support you can expect will vary from provider to provider. Some packages and programs include access to a tax pro, such as a CPA, should you need it, but these services may require an upgrade or result in additional fees. Once your filing is complete, the program runs a final check and submits your return to the IRS and/or the state tax department.
Quality tax software should also facilitate the refund or payment process between you and the tax entity. This means you can pay your tax bill directly via the software or supply your banking info to the provider to initiate the refund process.
How to choose tax software
If you don't know what you need, it might help to examine online tax filing providers individually and what sort of services each one offers. Here are a few areas to dig into:
Do I need tax software?
Most filers use either tax software or a tax professional, such as a CPA. Deciding which route makes the most sense for you often comes down to three factors: the complexity of your tax situation, how much help you need and your budget.
“Tax software tries to simplify the language of the tax code for taxpayers,” says Nayo Carter-Gray, CEO and founder of 1st Step Accounting. "But it can still be confusing or overwhelming since it asks a bunch of questions that the average taxpayer may not be familiar with.”
The best software should walk you through the filing process, can handle most tax forms and specialty income, and will tell you whether it’s better to take the standard deduction or itemize, for example.
Carter-Gray, an enrolled agent, says working with a tax pro may be the better option if you’re getting overwhelmed with questions, made a large transaction you’re unsure how to handle, had multiple income streams or various investments — or if you’re simply just seeking more tax planning.
If you already know you want to file on your own but are wondering if you should use software (whether free or paid) or paper forms, that answer is simple. The IRS says e-filing is the easiest, fastest and most efficient way to file. Filing digitally will also ensure your tax refund gets to you sooner.
Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest online tax software providers. Our aim is to provide an independent assessment of available software to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
We collect data directly from providers, do first-hand testing and observe provider demonstrations. Our process starts by sending detailed questions to providers. The questions are structured to equally elicit both favorable and unfavorable responses. They are not designed or prepared to produce any predetermined results. The provider’s answers, combined with our specialists’ hands-on research, make up our proprietary assessment process that scores each provider’s performance.
The final output produces star ratings from poor (1 star) to excellent (5 stars). Ratings are rounded to the nearest half-star. For more details about the categories considered when rating tax software and our process, read our full methodology.
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