Ratings Methodology for
Tax Software
NerdWallet’s overall ratings for tax software providers are weighted averages of ratings in the following categories:

  • Pricing.
  • Tax forms supported.
  • Tools.
  • Features and ease of use.
  • Customer support availability.
  • Access to a tax professional.
  • Audit support.

Data collection and review process

NerdWallet reviews four companies that provide free and paid tax preparation for U.S. customers.

We collect data from providers, do firsthand testing and observe provider demonstrations, as necessary. 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.
Information updates

Our writers and editors conduct tax reviews on an annual basis. Throughout the year, we maintain contact with providers and update any changes to their offerings.
Factor weightings

The weighting of each rating factor is based on our team’s assessment of which features are most important to consumers and which ones impact the consumer experience in the most meaningful way.
The review team

The review team comprises writers and editors who cover taxes and investing. Each writer and editor follows NerdWallet’s strict guidelines for editorial integrity.

The combined expertise of our team is infused into our review process to ensure thoughtful evaluation of products and services from the customer's perspective.
Pricing

Free packages: If the provider’s list price for state returns is free, it earns the highest rating. If the provider charges more than $39.99, it earns the lowest rating.

Paid packages: Providers earn the highest rating if their average list price for federal returns is under $44. Those charging over $75 receive the lowest rating. For state returns, providers with an average price between $0 and $30 earn the highest rating, while those charging over $45 receive the lowest rating.
Tax forms supported

We consider how many forms a tax-prep software provider supports in the free versions of tax software. If it supports Form 1040, EITC, CTC, Schedules 1-3, Schedules A, C, D, E and a state return free, it earns the highest rating. The ratings go down the fewer forms supported. If a provider supports no forms, it gets the lowest rating. This category applies to the free package rubric only.
Tools

For this category, we consider the following factors across free and paid package types:

  • Refund calculation tracker: If the calculation tracker is prominent on all pages, a provider earns the highest rating. If a provider doesn’t offer a tracker, it earns the lowest rating.

  • Years of storage of prior returns: If a software provider offers storage for more than five years, it earns the highest rating. If it does not offer storage for returns, it earns the lowest rating.

  • Mobile version app store rating: This category reflects how users review each provider’s Android and iOS mobile app in Google Play and the App Store, respectively. If user reviews average at least 5 stars, a provider earns the highest rating. If user reviews average less than 4.4 stars, a provider earns the lowest rating.

  • Refund options: If a provider offers five or more refund options, it earns the highest score. If a provider offers only one refund option, it earns the lowest score.

  • Donation calculators: For paid packages only, if providers offer a robust donation calculator that does not require leaving the software, it earns the highest rating. If a provider does not offer a donation calculator, it earns the lowest rating.
Features and ease of use

For this category, we consider the following factors across free and paid package types:

  • W-2 import: If a provider allows users to import W-2s manually, from PDF or scan, desktop, mobile capture and directly from participating EINs, it earns 5 stars. If it does not allow users to import W-2s at all, it earns 1 star.

  • Switch/import from other tax software: If a provider accepts imports from PDF and tax files from all providers, it earns the highest rating. If it does not accept imports from other providers, it earns the lowest rating.

  • Interview process and visual design: If a provider’s software has a comprehensive navigational outline, questions in layman's terms, and intuitive user experience, it earns 5 stars. If the software only has a comprehensive navigational outline, it earns 1 star.

  • Contextual help: If a provider’s software includes context-sensitive help in the form of embedded links, expandable sidebars, searchable help features and jargon-free contextual assistance, it earns the highest rating. If a provider’s software does not provide context-sensitive help, it earns the lowest rating.

  • Tracking and ability to skip around: If "Where you are" is visible, and users can skip to virtually any part of the tax return from any page, a provider earns the highest rating. If the software offers no roadmap for users, it earns the lowest rating.

  • Help options displayed on screen: If all help options are displayed on the page, a provider earns 5 stars. If some help options are displayed, a provider earns 3 stars. If no help options are displayed, a provider earns 1 star.

  • Free educational resources: If a provider offers a robust selection of free educational resources, such as blog posts, calculators, tax guides, and up-to-date news centers, it earns the highest rating. If a provider offers limited or outdated free educational resources, it earns the lowest rating.
Customer support availability

For both free and paid packages, if the provider offers online support pages and at least two forms of human support (phone, email or chat), it earns the highest rating. Providers who offer no free customer support earn the lowest rating.
Access to a tax professional

Free packages: If a provider offers free help from a tax pro, it earns the highest rating. If it does not offer free or paid access to a tax pro for help, it earns the lowest rating.

Paid packages: We consider the following factors:

  • Pricing: If a provider charges less than $100 for their combined federal and state tax-pro assisted packages (lowest and highest tiers), it earns the highest rating. If it charges more than $180 for the lowest tier and over $250 for the highest tier, it receives the lowest rating.

  • Qualifications of tax pro: If a provider offers tax pro support from CPAs, enrolled agents, trained employees, or tax pros with specialized knowledge, it earns the highest rating. If a provider offers tax pro support from trained employees only, it receives the lowest rating.

  • Full review of tax return: Providers earn the highest rating if it includes a comprehensive review of the user's tax return as part of their assisted help package. Providers that do not offer a final review service receive the lowest rating.

  • Communication with the pro: Providers earn the highest rating if users can communicate with tax pro support via on-demand chat or screen-sharing on any device. Providers that limit communication to email or phone follow-up receive the lowest rating.

  • Availability of in-person tax support: Providers earn the highest rating if in-person tax prep assistance is offered in addition to standard virtual services. Providers that do not provide any in-person service options receive the lowest rating.
Audit support

For both free and paid packages, if a provider offers free audit assistance and defense in the event a customer is audited, it earns the highest rating. Some providers offer these services for an additional fee; others may not offer them at all. If a provider offers no audit assistance or defense, it earns the lowest rating.

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