Best tax software for 2021

The best tax software helps you file your taxes online with little hassle or frustration. We analyzed over 20 tax software programs — comparing the price, ease of use, filing options, support and features of each — to bring you the top seven.

What’s changed in 2021?
We added Keeper Tax for freelancers and Credit Karma Tax for best free tax software to our list.

Quick look at the best tax software programs

• H&R Block: Best for on-demand support
• Keeper Tax: Best for freelancers
• FreeTaxUSA: Best for limited budgets
• TaxSlayer: Best for tax preparers
• TaxAct: Best for complex returns
• TurboTax: Best for small business owners
• Credit Karma Tax: Best free tax software

The 7 best tax software programs

The best tax software depends on your specific tax situation. Here are seven top tax software programs if you’re self-employed, have a complex return, need more support or are on a limited budget.

Go to site

H&R Block

Best tax software for on-demand support

• Federal return: $0 to $144.99
• State return: $0 to $36.99
H&R Block has nine different software plans and packages — half of which come with on-demand support from tax experts, enrolled agents and CPAs. This makes it a great option for those who think they’ll need help during the filing process.

Pros

• Easy to use. H&R Block has a user-friendly interface and is known for producing accurate returns. The layout is clean and easy to follow compared to other programs.
• Multiple ways to file. You can file your tax return online, download a program onto your computer or stop by a local H&R Block location for in-person assistance.

Cons

• No automatic deductions. Unlike other tax software, H&R Block doesn’t automatically suggest deductions you should take.
• Additional fees. Expect to pay $25 on top of software fees if you want to get your refund via a paper check.

Go to site

Keeper Tax

Best for freelancers

• Federal return: $89
• State return: $0

The best software for Uber drivers and freelancers is Keeper Tax. The software connects with your bank account and tracks your expenses throughout the year to help you maximize your deductions. Come tax season, you can file directly with Keeper Tax for an additional fee of $89.

Pros

• Catches missed write-offs. Keeper Tax’s monthly expense tracking feature analyzes your financial accounts to catch all your tax-deductible expenses.
• Assigned licensed tax bookkeeper. When you sign up, Keeper Tax assigns you your own licensed tax bookkeeper who you can go to for help.
• Audit protection. Keeper Tax monitors your account and flags any expenses that are at risk of being audited, so you can correct them.

Cons

• Must use monthly service. You can only file your taxes with Keeper Tax if you use its monthly expense tracking service, which costs $16 a month.
• Not the cheapest option. Keeper Tax costs $89 a year. While this is average for freelance tax filing software, you may be able to file cheaper with FreeTaxUSA.

Go to site

FreeTaxUSA

Best tax software for limited budgets

• Federal return: $0
• State return: $14.99

  With FreeTaxUSA, you can file federal returns for free and state returns for $14.99, making it a great option for free filers and those on a limited budget. But it doesn’t support all tax forms.

  Pros

  • Affordable. You’ll pay $0 for federal returns and $14.99 for state returns, plus an additional $6.99 for live chat, audit assistance and unlimited amended returns.
  • No surprises. While many tax software programs try to upsell you throughout the filing process, FreeTaxUSA doesn’t and its fees are straightforward.

  Cons

  • No phone support. Unless you pay $6.99 for the Deluxe version, the only way to reach customer service is through email.
  • Doesn’t support all tax forms. You can’t use FreeTaxUSA if you have foreign employment income, a nonresident alien return, at-risk limitations and Archer MSAs, among others.

Go to site

TaxSlayer

Best tax software for tax preparers

• Cost: $1,195 to $1,495
TaxSlayer Pro is a tax preparation software designed specifically for tax preparers. It comes with unlimited support and integrated bank products to help your clients get paid sooner.

Pros

• Unlimited support. The average wait time during tax season is less than 60 seconds, according to TaxSlayer.
• Unlimited forms. File as many 1040 Forms with the IRS as you need without worrying about hitting a limit. All states are included.

Cons

• May not be Mac-compatible. The web version of TaxSlayer Pro is Mac-compatible, but the Premium and Classic versions are not.

Read review

TaxAct

Best tax software for complex returns

• Federal return: $0 to $109.95
• State return: $4.95 to $49.95

TaxAct offers five different personal tax preparation plans built to handle even the most complex of returns. Some plans even come with screen sharing capabilities so you can get on-demand support from a tax professional should you need it.

Pros

• Accuracy guarantee. If your return isn’t 100% accurate, TaxAct will give you a refund and pay all legal fees up to $100,000.
• Import previous returns. You can import old returns from TurboTax and H&R Block. Plus, you can access up to seven years of old TaxAct returns.

Cons

• Upselling. As with most software programs, TaxAct will try to upgrade you as you move through the filing process.
• No advances for tax refunds. Unlike some competitors, TaxAct doesn’t offer refund advances.

Read review

TurboTax

Best tax software for small business owners

• Federal return: $90 to $170
• State return: $40 to $50

TurboTax is the best tax software for self-employed individuals. Its business plans have all the bells and whistles — auditing support, payroll features, reports and even accounting software integrations. There are even tax experts on standby.

Pros

• Business-focused features. Seamlessly generate payroll forms, import data from Quickbooks, Square, Uber and more. Plus use TurboTax’s Audit Risk Meter to check your return for audit triggers.
• Discount for military. Service members can file their federal and state tax returns for free using any TurboTax package.

Cons

• Cost. You get what you pay for and in this case, TurboTax’s robust platform doesn’t come cheap. Expect to pay at least $130 to file a federal and state return.
• Not all downloadable software is Mac-compatible. While most of TurboTax’s downloadable software packages are both Windows and Mac-compatible, TurboTax Business isn’t. You can only use it on a Windows machine.

Credit Karma Tax

Best free tax software

• Federal return: $0
• State return: $0
Credit Karma Tax is one of the only tax filing options that’s 100% free. It covers most tax situations, including those with itemized deductions, business income, self-employment tax and capital gains. But you’ll need a Credit Karma account before you can sign up.

Pros

• No fees. Credit Karma Tax is free to use. You won’t have to pay if your situation is more complex or if you need to file a state return.
• Max refund guarantee. If you end up filing an amended return with another online tax software and get a bigger refund, Credit Karma will refund you the difference up to $100.
• Free audit defense. Credit Karma guarantees accurate calculations, but if its system makes an error and you get penalized, it’ll refund you up to $1,000.

Cons

• Must have Credit Karma account. You’ll be asked to sign up for a regular Credit Karma account before you can file your taxes. This account is free and lets you monitor your credit score and gives recommendations on how to improve it.
• Doesn’t cover all tax situations. Credit Karma doesn’t support multiple state returns, part-year state returns, nonresident state returns and more. Visit its website for other situations it doesn’t support.

How do I choose the best tax software?

Here are some major factors to consider when narrowing down the best tax software for your situation:

• Cost. Some tax software programs are sneaky and will let you start out on the free version, then bump you up to a paid tier as you go. Read the details for each tier so you know how much you’ll pay for your situation.
• Ease of use. Choose a tax program that’s easy to understand, so you can make sure you’re filling out everything correctly. If an interface looks clunky or confusing, it may only add to your frustration.
• Customer support. Some tax software programs come with live support by chat or phone while others are limited to email support only.

Compare online tax software

Use this table to compare popular online tax software options. Use the column headings to sort the table by the features you’re looking for the most.

How do I sign up for an online tax software?

Signing up for an online tax software only takes a few minutes.

1. Visit the online tax software’s website and click Sign Up.
2. Create your account using your email address, phone number and password.
3. Tell the platform about your tax situation.
4. Select its recommended package or choose another one.
5. Start filing your taxes.

Required documents

You don’t need any information to sign up for a tax software other than your name, email address and phone number. But you should have these documents on hand when you start the filing process.

• W2s
• 1099s for earned interest, self-employed income, dividends, retirement distributions and more
• Receipts for child care, educational expenses, medical bills, charitable donations, property taxes and mortgage interest, state and local taxes and any other expenses you’re claiming as a deduction
• Proof of retirement contributions

How much does an online tax software cost?

Prices vary depending on the tax filing company you choose. This table highlights the average cost based on the type of filing you need to do.

Type of tax return	Average price
Individual simple tax return	Free — federal return Free — state return
Individual complex tax return	$30 to $70 — federal return $13 to $35 — state return
Small business tax return	$44 to $90 — federal return $30 to $40 — state return

Are online tax software services safe?

Yes. Registered tax providers and the IRS take security precautions to ensure that your financial information is handled safely. If you still prefer to do things face to face, consider a service like H&R Block, which offers branches for paperwork drop-off. You can also print and mail in your own Form 1040.

What are the benefits of an online tax software?

Using an online tax software has these benefits:

• Fast. Filing your taxes online can typically be done in one day and takes less time than going to someone’s office and waiting on them to do it for you.
• Cost-effective. Using an online tax software is generally cheaper than hiring a tax preparer, and those with simple returns can file for free in most cases.
• Accurate. Most tax software programs have an accuracy guarantee and will give you a refund if their software calculates your return incorrectly.
• Highest refund guaranteed. Most tax software programs also have a refund guarantee where they’ll pay you the difference if another platform calculates a higher refund.

What should I look out for?

Here’s what to look out for when filing your taxes with an online tax software.

• May not be best for complex returns. If you have a complicated tax situation with multiple income streams, deductions and credits, it may be easier to hire a tax preparer to do the work for you.
• Varying customer service. Some platforms like TurboTax offer live support if you need help quickly, while others only help via email.

What’s the difference between a desktop and online tax software?

Desktop and online tax software cost about the same price and come with the same customer service access. This table highlights how they’re different.

	Desktop tax software	Online tax software
Can use on multiple devices
Works on all computers
Can use without internet access
Has more features
Better for complex returns

Tax software alternatives

You have two main alternatives if you don’t want to use a tax software:

• Tax professional. Hiring a CPA may be a good option if you’re a high net worth individual or business owner with a complicated and confusing tax situation. Otherwise, a business tax software can help you create an accurate return
• DIY. Doing your taxes yourself is the most laborious option — and it also has the most room for error. Unless you’re a tax preparer, you may not have the expertise to go this route.

Bottom line

Choosing the right tax software from the start will save you a lot of time and headache come tax season. As always, explore your tax filing options and learn which steps you should take to file your taxes this year.

Frequently asked questions

• How do I file taxes as an independent contractor?
  Independent contractors and freelancers are classified as 1099 employees, which means you’ll need to set aside quarterly estimated taxes and file Schedule C along with your return.
• Can I use a tax software on my Mac?
  You use most online tax software programs in your web browser, so they’re compatible with both Mac and PC. If you’re looking for downloadable software, H&R Block has a lot of options.
• What’s the best tax preparation software to use with Quickbooks?
  The best online tax filing software to use with Quickbooks is TurboTax. There are four different business packages to choose from. The Self-Employed package even comes with a free one-year subscription to QuickBooks Self-Employed.
• Is there any tax software that has a mobile app?
  Yes. You can file your taxes on a mobile app with TurboTax, H&R Block, TaxSlayer, TaxAct and Credit Karma Tax.