CNBC's top tax software for 2024.
With the right tax software, you can simplify tax season, increase your refunds, and save time and money. These programs provide step-by-step guidance to help you maximize deductions and ensure accuracy. Top tax filing software companies offer both free and paid plans to cater to different users and provide accuracy guarantees.
CNBC Select identified the top tax software providers of 2024 based on various factors, including cost, user experience, expert tax assistance, and additional features. (Learn more about our methodology here.)
Best tax filing software of 2024
- Best for user experience: TurboTax
- Best for DIY filing: H&R Block
- Best free tax software: Cash App Taxes
- Best affordable tax software: TaxSlayer
- Best for accuracy guarantee: TaxAct
Best for user experience
TurboTax is a top-rated tax preparation software that provides multiple plans and guarantees its services. The program simplifies the process by asking clear questions and offering explanations, videos, and additional tips. You can choose to add live assistance or have a professional handle your file entirely.
TurboTax offers a range of features to ensure a seamless tax return filing experience. The software guarantees a maximum refund, 100% accuracy, and audit support. It also allows users to easily upload tax documents and file with the TurboTax app. Various levels of live assistance are available, including free filing for qualifying users with TurboTax Free Edition. Around 37% of filers qualify for free filing with expert help. Additionally, TurboTax offers tax refund advances.
Best for DIY filing
In the U.S., Canada, and Australia, H&R Block is a renowned tax preparation company that simplifies the filing process, whether you do it yourself or hire a professional to review your return. Customers have access to live support through various channels, including online, phone, and at over 11,000 tax offices nationwide.
H&R Block offers a range of services, including access to AI Tax Assist, a maximum refund guarantee, 100% accuracy, transparent pricing and process, free audit assistance, and mid-year care check-in. Customers can choose to file taxes online, with tax software or in person, and H&R Block also provides tax refund advances.
Best free tax software
If you want to save money on filing your taxes, Cash App Taxes, previously Credit Karma Tax, is worth considering. It allows you to file your state and federal returns for free in most tax situations. However, it's important to note that unless your return is simple, you should be comfortable doing your taxes yourself. The app does not provide access to professional tax advice or support for complex situations, such as multistate returns or foreign income.
Cash App Taxes promises a maximum refund and 100% accuracy, while also offering free audit defense with every return.
Best affordable tax software
TaxSlayer is a software that helps with tax preparation and is approved by the IRS. It offers various packages based on your tax situation and level of support. If you are confident in filing or have a simple tax situation, you can save money by opting out of certain features. TaxSlayer is also part of the Free File Alliance, which provides free tax services to eligible taxpayers in partnership with the IRS.
TaxSlayer offers a 100% accuracy guarantee and a maximum refund, and you can file your taxes on the go through the mobile app. Additionally, TaxSlayer allows you to deduct the cost of its services from your federal refund, so you don't have to pay when you file.
Best for accuracy guarantee
TaxAct is an excellent choice for those with complex tax situations who prioritize accuracy in their returns. While all providers on this list guarantee 100% accuracy, TaxAct takes it a step further. If your return is not accurate or you do not receive your maximum refund, the company will refund your software costs and cover any additional costs related to a lower refund or higher tax liability, up to $100,000. Additionally, TaxAct is a member of the Free File Alliance.
TaxAct offers both online and desktop tax preparation software, as well as the option to receive assistance from a tax expert for a flat fee through TaxAct® Xpert Assist.
How much does it cost to file taxes?
Different tax filing options have different costs.
Tax preparation software often includes a free version, with the option to upgrade to a paid plan. The tax prep services we reviewed offer free tax filing or charge as low as $11.05 for federal filing plus $4.95 per state. However, the costs can quickly increase with more complex deluxe, premium, and self-employed plans, with the most expensive option costing $170 for federal returns plus $50 per state. If you require live tax support, you may incur an additional surcharge of $35 to $100, plus state fees.
The IRS offers a DIY service called IRS Free File, which allows you to file your taxes for free. IRS Free File partners with online tax prep companies to provide guided tax preparation or Free File Fillable Forms. To use this service, go to IRS.gov and click on "IRS Free File." Once you have your tax documents ready, you can prepare and file your federal income tax online.
If your tax return is complex and you don't want to file it yourself using online software, you may want to consider hiring a CPA to do it for you, which comes with its own cost. Some tax prep software offers additional benefits such as live customer support with phone support and full tax preparation, available for both individual tax filers and business owners. The costs for these services range from $59 to $230.
Simple tax return vs. complex tax return
Filing a basic tax return is the simplest type of tax return, and many tax software programs offer free filing options. A simple return typically includes W-2 income, limited investment income, standard deductions, and unemployment income.
Some free tax preparation software offers additional benefits such as the earned income tax credit (TurboTax Free Edition, H&R Block, Cash App Taxes, and TaxAct), child tax credits (TurboTax Free Edition, H&R Block, Cash App, and TaxAct), and student loan interest tax deductions (H&R Block, Cash App, TaxAct, and TaxSlayer).
According to TurboTax, approximately 37% of taxpayers are eligible for this edition, which is only available for Form 1040 and has limited credits.
If your finances are complex and you don't qualify for a simple tax return, you'll need to file a complex one, and most tax software programs will charge you fees to do so. Complex tax situations include freelancers, small business owners, landlords, and those with investment income or earnings from stock sales.
If your tax return is simple, you may still want to upgrade and pay for a more complex plan to take advantage of additional tax deductions. However, if you cannot file a free simple tax return, the tax program you use will notify you and suggest upgrading to a more complex return.
Should I itemize or take the standard deduction?
You have the option to reduce your taxable income when filing taxes by either claiming the standard deduction or detailing deductions.
According to the IRS website, itemized deductions are expenses paid in the prior year that can lower your taxable income, while the standard deduction is a predetermined amount based on your filing status. Itemized deductions may include mortgage interest, real estate taxes, property taxes, disaster losses, state and local income or sales taxes, charitable donations, and partial medical and dental expenses.
Those with high incomes and significant deductible expenses in the previous year may benefit from itemizing over the standard deduction, such as with rental property deductions exceeding the standard deduction amount.
Why trust CNBC Select?
Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their money. Each tax software review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of the tax software market. At CNBC Select, we maintain the highest journalistic standards and ethics, and we earn a commission from affiliate partners on many offers and links. However, our content is created independently, without any input from our commercial team or external third parties. To learn more about our methodology and how we select the best tax software options, please refer to our detailed guide.
Our methodology
In order to determine the best tax software for filing taxes online in 2024, CNBC Select analyzed over a dozen programs and evaluated them based on various features.
- Cost
- User experience
- Expert tax assistance
- Accuracy and maximum refund guarantee
- Better Business Bureau (BBB) rating
- Customer reviews, when available
While many of these services offer free versions, many people have complicated finances that require them to pay to file their taxes. We evaluated the cost per plan and weighed the features you receive, like the ability to maximize deductions and credits. The more value for your money, the higher a service ranked.
Filing taxes can be a daunting task, whether you're a beginner or an experienced professional. To make the process as smooth and stress-free as possible, it's essential to choose user-friendly services.
Having access to a tax expert or support representative was a significant advantage. Nearly all of the top tax software provided some level of support.
If a service offered a comprehensive accuracy guarantee and a maximum refund, it was given a higher ranking.
In addition to the Better Business Bureau rating, customer reviews were also taken into account to determine the software's reliability and prompt resolution of customer complaints.
We ranked our recommendations for user experience, DIY filing, free tax software, affordability, and accuracy guarantee.
The fees for federal and state software programs may vary and can change without prior notice. Some programs do not charge until filing, so there is a possibility that the fees may change between the start and submission of the return.
Stay up to date with CNBC Select's comprehensive coverage of credit cards, banking, and money by following us on TikTok, Facebook, Instagram, and Twitter.
TurboTax Free Edition offers a $0 federal, state, and filing fee for simple tax returns only, which includes Form 1040 without any additional schedules.
