Compare Tax Services

+ H&R Block (Free)

In any tax preparation software comparison for free options, H&R Block has to show up at or near the top. Most free tax preparation software specifies that it’s intended for “simple” returns, but H&R Block’s definition of “simple” covers more ground than most. They include income from 1099-INTs and student interest from 1098-Es along with your standard W-2s. H&R Block (Free) manages child tax credits and other standard credits easily and will calculate state taxes for free.

H&R Block (Free) won’t do itemized deductions or handle freelance income or self-employment taxes. On the other hand, it will let you file your 1040 Schedule 1 (alimony, unemployment, educator expenses, etc.), Schedule 2 (alternative minimum tax, taxes on retirement plans, etc.), or Schedule 3 (child care expenses, education credits, retirement savings credits, etc.). The free version won’t do much to help with computations and explanations for these additional areas, but the ability to add them on without an additional cost is nice.

Our favorite thing about H&R Block (Free) is the liberal use of hyperlinks throughout to clarify or explain terminology and calculations. We’re big believers in the power of understandable information as a form of financial empowerment, and apparently so is H&R Block. Overall, the package is intuitive and easy to use. If you do get stuck, you can purchase H&R Block’s “Online Assist” at a reasonable price. This secures you extensive phone or online support with a tax professional.

+ TurboTax (Free)

You really can’t go wrong with almost anything TurboTax. They’re likely to show up at or near the top of any serious effort to compare tax services, free or otherwise. While there’s little unique about their free version, it takes care of the basics perfectly well – W-2s, claiming dependents, etc. TurboTax (Free) is slightly less ambitious than H&R Block’s equivalent offer and can only be used for the 1040EZ. If you made less than $100,000 in 2019, don’t own a home or rental property, haven’t sold any investments in the past year, and don’t plan to itemize, this is a perfectly nice options.

Turbo Tax keeps track of your returns each year so you can simply verify information that hasn’t changed and don’t have enter your employer, dependents, etc., unless they’ve changed. As your circumstances evolve or you find yourself considering itemized deductions or earning additional income, it’s easy to upgrade to a TurboTax package appropriate to your needs. They offer enough variations that there’s a pretty good fit out there for just about everybody.

+ efile.com

Efile.com isn’t exactly an unknown. They were used by upwards of 50 million taxpayers in 2018 and seem to be gathering steam. One of their leading features is something they frame as an “auto-tax-form-select-tool.” Rather than you choosing a tax software package from them first (“Free,” “Deluxe,” or “Premium”) you simply start entering your information and answering questions and the software adjusts as necessary based on what you provide. Whether you consider this a feature or a gimmick is entirely up to you.

Efile also does a nice job trying to position themselves as more customer-friendly, supportive, and service-oriented than better known competitors. It’s a “we try harder” approach from a company already doing rather well.

+ Credit Karma Tax

Credit Karma is good at many things, and their venture into online tax filing a few years ago certainly drew immediate attention. Now that a few years have passed, the general consensus is that Credit Karma Tax does a decent (but not stellar) job of free filing online, even for circumstances which would require bumping up to a paid version with many other providers. State returns, investment income, rental property, and other specific forms are available as needed.

On the other hand, while Credit Karma Tax offers support via chat, it lacks the flexibility of TurboTax or H&R Block when it comes to importing information or – more importantly – offering clear explanations of what various terms or categories actually mean. If you’re already pretty clear on what’s necessary for your annual tax returns, Credit Karma Tax (always free) has several features you might find useful. If there’s any chance you might overlook a deduction or misunderstand the twisted language so loved by the IRS, however, you should consider something more user-friendly.

+ TaxSlayer

TaxSlayer is the latest buzz and has quickly become an essential consideration in any tax prep cost comparison. Like efile.com, TaxSlayer offers flexible pricing based on your specific needs. The approach is a bit different, however. Its basic capabilities are the same across the board, but your price is based on how much support you need in the filing process. If you have a simple return and can handle the logistics without help, it can be free. The more clarification or other support you require, the more you pay – within reason.

If you’re pretty good at managing the process itself, TaxSlayer could offer great flexibility (free or otherwise) without unnecessary expense. Some taxpayers, on the other hand, aren’t as comfortable not knowing up front precisely what they’ll be paying for the process. Like any effort to compare tax services, it all comes down to what makes the most sense for you. If you roll the dice this year and don’t love it, you can always go another direction for your 2020 returns.

+ TaxAct

TaxAct is a an up-and-comer working to prove itself in the market. The price is right (just over the $50 - $100 range for most options). While they don’t have extensive in-line assistance like H&R Block or TurboTax, the software can do most of what the big boys can – just with less guidance along the way. They do offer appealing “screen-to-screen” support, so if you contact them needing logistical support, you can share your screen and they can share theirs to guide you.

+ H&R Block Deluxe

As much as we’d love to go our own way when it’s time to compare tax services, there’s no getting around the appeal and affordability of H&R Block Deluxe for your more involved personal tax return needs. It’s around $50 for federal returns and $45 for state. For that, it can handle almost any normal tax needs through asking the right questions and offering useful suggestions.

The glaring exception is self-employment or freelance work – anything requiring a Schedule C. It’s also not appropriate for Schedule D (capital gains) or Schedule E (rental property income) scenarios. It does make entering your information incredibly easy, and can import from last year’s returns – including information from other tax prep companies. It also lets you simply submit pictures of your W-2 and some other forms so you don’t have read the tiny print while typing in long series of numbers and risk user error. Online assistance is available at an additional charge, but once you have it, the service is virtually unlimited.

+ TurboTax Premier

There’s simply no avoiding the power of TurboTax in any personal or professional tax preparation software comparison. Premier is a bit pricier than some – just under $100 for federal returns and another $50 for state. On the other hand, it can handle just about anything you throw at it and is arguably the best out there for handling complicated tax scenarios by simply asking the right questions. It even helps you figure out what your donations are actually worth if you itemize.

TurboTax Self-Employed is only about $20 more and talks you through home office deductions and other specifics important to freelancers or entrepreneurs. It also provides you with a year of QuickBooks Self-Employed to encourage budgeting and fiscal attentiveness throughout the year – so you know we love that. You can import information from previous years or submit via photo instead of entering all those numbers by hand.

Similar to H&R Block, TurboTax offers live support for an additional charge. The support is generally top-notch up to and including helping you actually file.