Top Picks for 2024: Finding the Best Tax Software for Your Needs

Top Picks For 2024: Finding The Best Tax Software For Your Needs

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Tax season can be a stressful time for many individuals and businesses, especially considering the complexities of small business taxes. However, with the right tax software, you can simplify the process and ensure accuracy in your filings. As we dive into 2024, there are several top contenders in the market that offer a range of features to meet your specific tax needs, including those related to small business taxes. In this article, we will explore the Best Tax Software in 2024 to help you make an informed decision.

Top the Best Tax Software in 2024


Top Picks For 2024: Finding The Best Tax Software For Your Needs

Despite ongoing controversies surrounding TurboTax‘s alleged predatory marketing practices, it maintains its position as the leading online tax service provider in 2024. Why? TurboTax seamlessly integrates tax expertise with a user-friendly interface, catering to both seasoned taxpayers and newcomers navigating their first solo filing experience. As of now, no other online software surpasses this industry giant.

Similar to its counterparts, TurboTax streamlines the process by guiding users to locate required information on tax forms and flagging potential errors. However, its standout feature lies in its meticulous guidance throughout the entire filing journey. Unlike competing software that may bombard users with irrelevant financial inquiries post-initial assessment, TurboTax avoids this inconvenience.

TurboTax accommodates various taxpayer needs through its three-tiered system: TurboTax Free Edition, Deluxe, and Premium. Additionally, for those seeking assistance, TurboTax Live Assisted and TurboTax Live Full Service offer expert support or the option to delegate tax responsibilities to a professional.

While TurboTax’s extensive benefits come with a higher price point compared to other software options, for most filers, excluding freelancers and certain investors, the cost remains reasonable and worthwhile.

  • Best overall: TurboTax is a popular choice for many taxpayers, offering a user-friendly interface, comprehensive support, and a variety of features to help you maximize your refund.
  • Free version: Yes, for simple tax returns
  • Paid plans: Start at $39
  • Best for: Individuals and families with a variety of income sources and deductions.

H&R Block

Top Picks For 2024: Finding The Best Tax Software For Your Needs

H&R Block boasts numerous advantages. It stands out as our preferred choice for a seamless free online tax filing experience, offering an extensive array of IRS forms. Additionally, its paid tiers come at a lower cost compared to TurboTax. Notably, H&R Block facilitates an effortless transition from TurboTax through Direct Import, simplifying the process with just a cellphone number.

While not as polished as its primary competitor, H&R Block employs a well-structured interview-style system to guide users and prevent potential errors. The abundance of help screens and FAQs, while thorough, may feel overwhelming to some users.

A significant draw of H&R Block is its widespread physical presence, with approximately 9,000 offices across the US. This allows users to seek professional assistance or drop off their taxes for completion by an expert if they prefer not to proceed with online filing.

For the 2024 tax season, H&R Block offers four filing tiers: Free Online, Deluxe, Premium, and Self-Employed, supplemented by in-person assistance and online support from a Live Tax Pro.

Subscribing to H&R Block’s Deluxe, Premium, or Self-Employed tiers grants access to the AI Tax Assist tool, a user-friendly chatbot. However, it’s important to note that while enjoyable to use, the AI isn’t flawless.

  • Best for students: H&R Block offers a free plan for students, as well as paid plans with additional features such as audit support and live chat with tax professionals.
  • Free version: Yes, for students
  • Paid plans: Start at $44.99
  • Best for: Students, self-employed individuals, and taxpayers with rental income.


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FreeTaxUSA provides complimentary federal return filing regardless of the complexity of your tax situation, making it a preferable option compared to platforms like TurboTax and H&R Block, especially if you don’t require extensive additional features.

Similar to many online tax software platforms, FreeTaxUSA facilitates the initiation of your tax return by allowing you to upload your previous tax documents. However, a significant portion of data input still necessitates manual entry. Regrettably, FreeTaxUSA’s online assistance is limited, and there’s no accompanying mobile application for users’ convenience.

Although federal returns are free, FreeTaxUSA imposes a $15 fee for state tax filing. Additionally, the service offers extra assistance options for customers. The Deluxe version provides access to a tax specialist via live chat and allows for unlimited revisions to your tax return. For those seeking even more comprehensive support, the Pro Support package offers telephone access to a tax professional while you complete your return.

  • Best budget-friendly: FreeTaxUSA offers a completely free plan for federal and state tax returns, with no hidden fees.
  • Free version: Yes
  • Paid plans: None
  • Best for: Simple tax returns with no itemized deductions or self-employment income.

Cash App Taxes

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Cash App Taxes provides a comprehensive tax preparation service at no cost, ensuring thorough coverage of IRS forms and schedules. Users benefit from the convenience of receiving one federal and one state tax return, all with a guarantee of maximum refund.

While the absence of file importing and a unique desktop login procedure (necessitating initial download of the mobile app) could deter some users, once engaged, the software operates similarly to other programs. Through a straightforward interview-style process, it gathers relevant tax information to populate IRS forms efficiently.

Given its reliance on manual data input, Cash App Taxes is best suited for individuals with relatively uncomplicated tax situations and a modest number of forms to submit.

Additionally, it’s worth noting that Cash App Taxes lacks professional tax support and mandates installation of the Cash App mobile app on a mobile device or tablet, which may deter individuals accustomed to other peer-to-peer payment platforms.

  • Best free and mobile-friendly: Cash App Taxes is completely free to use and has a mobile-friendly interface, making it easy to file your taxes on the go.
  • Free version: Yes
  • Paid plans: None
  • Best for: Simple tax returns with no itemized deductions or self-employment income.


Top Picks For 2024: Finding The Best Tax Software For Your Needs

While TaxSlayer’s online tax software may not boast impressive features, especially in terms of help and support, it remains our top choice for freelancers and gig workers seeking cost-effective tax filing solutions.

The Self-Employed tier of TaxSlayer offers tailored assistance for tax preparation, focusing on self-employment taxes. It also provides year-round tax payment reminders and a three-year audit defense service.

TaxSlayer presents four service levels, including Simply Free, Classic, Premium, and Self-Employed, with prices ranging from free to $53 for filing a federal return under current promotional rates. Access to TaxSlayer’s live chat support and tax professional assistance is exclusive to the Premium tier.

While Simply Free imposes limitations such as a $100,000 taxable income cap for the year and excludes the option to claim dependents, it does offer a complimentary state return, noteworthy as the paid tiers charge $40 per state return.

Although TaxSlayer’s interface and support resources may lack the finesse of its competitors, it remains a cost-effective choice for self-employed filers. For those uncomfortable with self-completing tax returns, engaging a CPA might be a preferable alternative.

  • Best for customer support: TaxSlayer offers comprehensive customer support, including live chat, phone support, and email support.
  • Free version: Yes, for simple tax returns
  • Paid plans: Start at $27
  • Best for: Individuals and families with a variety of income sources and deductions, who want access to customer support.


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TaxAct’s online tax filing software stands out for its simplicity and affordability compared to leading competitors.

A key highlight is its $100,000 Accuracy Guarantee and Maximum Refund Guarantee, ensuring precise refunds and maximizing returns within legal boundaries. Should it fall short, TaxAct pledges reimbursement up to $100,000, covering the disparity between your actual refund and potential earnings, as well as software expenses and any incurred legal or audit fees.

While lacking some features of its counterparts, TaxAct delivers comparable services at a reduced rate. Notably, its Deduction Maximizer feature meticulously scans your return for overlooked tax deductions.

For additional support, TaxAct offers Xpert Assist, a professional tax assistance service, for an extra $60—a fee we consider somewhat steep. Nonetheless, it provides valuable free resources including a comprehensive tax glossary and instructions for completing various common tax forms.

  • Best IRS Free File: TaxAct is one of the IRS Free File partners, offering free tax filing for taxpayers who meet certain income requirements.
  • Free version: Yes, for qualifying taxpayers
  • Paid plans: Start at $36.95
  • Best for: Low-income taxpayers who qualify for the IRS Free File program.

Jackson Hewitt

Top Picks For 2024: Finding The Best Tax Software For Your Needs

Jackson Hewitt provides a straightforward online tax software service without frills. Unlike TurboTax or H&R Block, it may lack intuitive features and flashy interfaces. You won’t be able to upload documents like a W-2 form, and customer support tools are somewhat lacking.

However, Jackson Hewitt Online offers a compelling advantage with a flat rate of $25 for federal returns and unlimited state returns, regardless of your tax complexity. Unlike competitors with tiered pricing, Jackson Hewitt simplifies costs.

Moreover, the company provides free IRS audit assistance, a Lifetime Accuracy Guarantee to prevent unexpected penalties or interest, and a maximum refund guarantee. For those seeking personalized assistance, filing can be done at Walmart or one of its 5,200 offices with a Tax Pro (prices vary by filing situation and state).

  • Best for value: Jackson Hewitt offers a free plan for federal and state tax returns, with the option to add on paid features such as live chat with tax professionals and audit support.
  • Free version: Yes
  • Paid plans: Start at $25
  • Best for: Simple tax returns with no itemized deductions or self-employment income.

Understanding Tax Software: functionality and operation explained

Tax software refers to specialized computer programs or applications designed to assist individuals and businesses in preparing and filing their tax returns. These software solutions automate various aspects of the tax preparation process, making it more efficient and accurate. They typically provide step-by-step guidance, calculators, and tools to help users input their financial information, calculate tax liability, claim deductions and credits, and generate the necessary forms and documents required for filing with tax authorities.

Here’s a general overview of how tax software works:

Data Entry

Tax software allows users to enter their financial information, such as income, expenses, and deductions, using a user-friendly interface. This information can be manually entered or imported from electronic sources like W-2 forms, financial institutions, or previous tax returns.


Once the financial data is inputted, the software performs calculations based on the applicable tax laws, regulations, and formulas. It automatically calculates the tax liability or refund owed to the taxpayer.

Deduction and Credit Maximization

Tax software often includes features that help identify potential deductions and credits that the taxpayer may be eligible for. It may ask specific questions or use algorithms to find opportunities for maximizing deductions and credits, ultimately reducing the tax burden.

Error Checking

Tax software typically performs built-in error checking and validation to minimize mistakes and ensure accuracy. It checks for common errors, inconsistencies, and missing information that could trigger audits or penalties. This helps users identify and correct any issues before submitting their returns.

Forms Generation

Based on the entered data and calculations, the software generates the necessary tax forms and schedules required for filing with the appropriate tax authorities. It automatically populates the relevant fields, eliminating the need for manual form completion.


Many tax software solutions offer the option to electronically file (e-file) tax returns directly with tax authorities. E-filing is a secure and convenient method that expedites the processing and refund issuance. The software guides users through the e-filing process, ensuring compliance with the necessary protocols.

Updates and Support

Tax software providers keep their applications up to date with the latest tax laws and regulations. They provide regular software updates to incorporate changes and ensure accurate calculations. Additionally, most tax software companies offer customer support through various channels, such as phone, chat, or email, to address user inquiries and provide assistance.

In summary, tax software simplifies the tax preparation process by automating calculations, providing step-by-step guidance, and generating the required forms. It helps users accurately file their tax returns, claim deductions and credits, and ensure compliance with tax laws. With the right tax software, individuals and businesses can streamline their tax filing process, save time, and minimize the chances of errors or penalties.

Determining the ideal users for Tax Software

Tax software is designed to cater to a wide range of users, from individual taxpayers with simple tax situations to businesses with more complex financial structures. Here are some categories of users who can benefit from tax software:

Individuals with Simple Tax Situations

Tax software is ideal for individuals who have straightforward tax situations, such as those who earn income from a single job, have limited investment income, and claim standard deductions. With user-friendly interfaces and guided workflows, tax software makes it easy for individuals to enter their information, calculate their tax liability, and file their returns accurately.

Individuals with Complex Tax Situations

Tax software can also be beneficial for individuals with more complex tax situations. This includes self-employed individuals, freelancers, landlords, and investors who need to report business income, rental income, capital gains, and various deductions. Tax software provides specific forms and schedules to handle these complexities, ensuring accurate calculations and proper reporting.

Small Business Owners

Small business owners, including sole proprietors, partnerships, and S-corporations, can greatly benefit from tax software. It offers features tailored to handle business income, expenses, depreciation, and payroll taxes. Tax software can automate bookkeeping, track expenses, generate profit and loss statements, and provide guidance on deductible business expenses, maximizing deductions, and navigating business-specific tax laws.

Freelancers and Gig Economy Workers

With the rise of the gig economy, many individuals are now working as freelancers or independent contractors. Tax software can streamline the tax filing process for gig workers by providing tools to track income, expenses, and deductions specific to their freelance work. It simplifies the reporting of 1099 income and helps identify potential deductions related to self-employment.

Investors and Traders

Tax software can be valuable for investors and traders who need to report capital gains, dividends, and other investment income. It can handle the complexities of investment-related calculations, such as cost basis, wash sales, and capital gain/loss calculations. Tax software often integrates with investment platforms, allowing users to import their investment data for seamless reporting.

Tax Professionals

Tax software is widely used by tax professionals, including accountants and tax preparers, to efficiently manage multiple client tax returns. It offers features for bulk processing, data import/export, and electronic filing. Tax professionals can leverage the software’s capabilities to streamline their workflow, improve accuracy, and serve their clients more effectively.

It’s important to note that the suitability of tax software may vary depending on the specific needs and circumstances of the user. It’s recommended to evaluate the features, functionality, and pricing of different tax software options to find the one that aligns best with your particular tax situation and requirements.

Identifying unsuitable candidates for Tax Software utilization

While tax software can be beneficial for many users, there are certain situations where it may not be the most suitable option. Here are some scenarios where tax software utilization may not be ideal:

Complex Business Structures

Tax software may not be suitable for businesses with complex structures, such as large corporations with multiple subsidiaries, international operations, or intricate tax planning strategies. In such cases, consulting with a professional tax advisor or employing specialized tax software designed for complex corporate tax needs may be more appropriate.

Unfamiliarity with Technology

Some individuals, particularly those who are not comfortable using computers or technology, may find tax software challenging to navigate. If you are not confident in your ability to use software effectively, you may prefer to work with a tax professional who can guide you through the process and ensure accurate filings.

Inability to Resolve Complex Tax Issues

Tax software provides guidance and support for common tax situations, but it may not have the expertise or resources to address complex tax issues or unusual circumstances. If you encounter intricate tax problems, have significant tax liabilities, or face an audit, seeking assistance from a professional tax advisor is advisable.

Taxpayers with Limited Time or Patience

While tax software can simplify the tax preparation process, it still requires time and effort to input data accurately and review the results. If you have limited time, are easily overwhelmed by the tax process, or prefer to delegate the task to someone else, delegating the tax filing to a tax professional may be a better option.

Non-Standard Tax Situations

Tax software is designed to handle common tax scenarios, but it may not be suitable for individuals or businesses with highly unique or specialized tax situations. This includes individuals with complex international tax obligations, individuals with significant investment portfolios, or businesses involved in highly regulated industries. In such cases, seeking the expertise of a tax professional who specializes in the specific area may be necessary.

Preference for Personalized Advice

Tax software provides general guidance based on the information entered, but it may not offer personalized advice tailored to your specific financial situation. If you value personalized advice, have questions about tax planning, or want to explore potential tax-saving strategies, consulting with a tax professional can provide the individualized attention and expertise you need.

It’s important to assess your specific tax situation, comfort level with technology, and the complexity of your tax affairs when determining whether tax software is the right fit for you. In some cases, a combination of tax software for streamlined preparation and a consultation with a tax professional for review and advice may offer the best of both worlds.

Selecting optimal online Tax Software: A comprehensive guide

Selecting the optimal online tax software can greatly simplify the tax preparation process and ensure accurate filings. Here is a comprehensive guide to help you choose the right tax software for your needs:

Assess Your Tax Situation

Start by understanding your tax situation. Consider the complexity of your income sources, deductions, and credits. Determine if you need support for self-employment income, rental properties, investments, or other specialized tax scenarios. This will help you identify the specific features and functionality you require in a tax software solution.

Consider User-Friendliness

Look for tax software with a user-friendly interface and intuitive navigation. The software should guide you through the process with clear instructions and prompts. A simple and organized layout will enhance your user experience, making it easier to enter and review your tax information.

Features and Functionality

Evaluate the features and functionality offered by different tax software options. Consider whether you need assistance with deduction maximization, investment income calculations, self-employment tax calculations, or other specific needs. Look for features like error checking, audit support, and the ability to import data from previous tax returns or financial institutions.

Mobile Accessibility

If you prefer to work on your taxes on the go or need access from multiple devices, consider tax software with mobile accessibility. Check if the software provider offers a mobile app or a responsive web interface that allows you to work on your tax return conveniently from your smartphone or tablet.

E-Filing and Refund Options

Verify that the tax software supports electronic filing (e-filing) to submit your tax return to the appropriate tax authorities securely. Additionally, check if the software allows you to choose direct deposit for your tax refund, which can expedite the refund process.

Security Measures

Ensure that the tax software provider prioritizes data security. Look for software that uses encryption and secure data transmission protocols to protect your personal and financial information. Review the provider’s privacy policy and data handling practices to ensure your data remains confidential.

Customer Support

Consider the availability and quality of customer support. Look for tax software providers that offer various support channels, such as phone, chat, or email, to address your questions and concerns. Check if they provide online help resources, FAQs, or a knowledge base to assist you in using the software effectively.

Pricing and Packages

Compare the pricing and packages offered by different tax software providers. Consider whether they offer a free version or trial period, as well as the cost of additional features or upgrades. Evaluate the value you will receive based on your specific tax needs and budget.

User Reviews and Ratings

Read user reviews and ratings of the tax software you are considering. Pay attention to feedback regarding ease of use, accuracy, customer support, and overall satisfaction. User reviews can provide insights into real-world experiences and help you make an informed decision.

Vendor Reputation and Trustworthiness

Consider the reputation and trustworthiness of the tax software vendor. Research the company’s history, how long they have been in business, and its track record. Check if they have a strong presence in the industry and if their software is regularly updated to reflect changes in tax laws and regulations.

By following this comprehensive guide, you can narrow down your choices and select the optimal online tax software that meets your specific tax needs. Remember to review your tax return for accuracy before filing and consult with a tax professional if you have complex tax situations or need personalized advice.

Here are some frequently asked questions (FAQs) about finding the Best Tax Software for your needs in 2024

What are some top picks for tax software in 2024?

While specific rankings may vary based on individual preferences and needs, some popular tax software options for 2024 include TurboTax, H&R Block, TaxAct, and TaxSlayer. These software providers offer a range of features, user-friendly interfaces, and support for various tax situations.

Which tax software is best for individuals with simple tax situations?

For individuals with simple tax situations, TurboTax and H&R Block are often recommended. They provide user-friendly interfaces, step-by-step guidance, and support for common tax scenarios. Both offer free versions for simple returns and paid versions for additional features.

What tax software is suitable for self-employed individuals?

Self-employed individuals may benefit from tax software that specifically caters to their needs. TurboTax Self-Employed, H&R Block Self-Employed, and TaxAct Self-Employed are popular options. These software solutions offer features for tracking business income, expenses, and deductions, along with guidance for self-employment tax calculations.

Which tax software is best for small business owners?

Small business owners may find TurboTax Business, H&R Block Business, or TaxAct Business suitable for their needs. These software options provide features tailored to handle business income, expenses, depreciation, and other business-related deductions. They can help simplify bookkeeping, generate necessary forms, and provide guidance specific to small business taxes.

What tax software is recommended for investors and traders?

Investors and traders may consider TurboTax Premier, H&R Block Premium, or TaxAct Premier+ for their tax needs. These software options cater to investment-related tax scenarios, including capital gains, dividends, and stock sales. They can handle complex investment calculations and reporting requirements.

Which tax software is best for tax professionals?

Tax professionals often prefer professional tax software solutions such as Intuit ProConnect Tax Online, Drake Tax, or CCH Axcess Tax. These software options offer advanced features, bulk processing capabilities, integration with accounting software, and comprehensive support for managing multiple client tax returns.

How can I determine the best tax software for my specific needs?

To determine the best tax software for your needs, evaluate factors such as your tax situation, ease of use, required features, mobile accessibility, data security, customer support, pricing, and user reviews. Consider your specific requirements, budget, and comfort level with technology when comparing different tax software options.

Can I try tax software before purchasing?

Many tax software providers offer free versions or trial periods that allow you to test the software before purchasing. Take advantage of these offerings to assess the software’s user interface, features, and suitability for your tax needs.

So, taking advantage of free versions or trial periods offered by tax software providers is an excellent way to evaluate the software before making a purchase. These trial versions allow you to get hands-on experience with the software, explore its features, and determine whether it meets your specific tax needs.

As tax season approaches, having the Best Tax Software can significantly reduce stress and improve accuracy in your filings. Whether you are an individual or a business owner, there is a tax software solution that can meet your needs. Take the time to evaluate your specific requirements and choose the software that aligns best with your goals. With the right tax software, you can streamline the tax preparation process and ensure compliance with the latest tax laws.

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