It's tax time: 4 free and paid software options to file your return online
The deadline for filing federal tax returns for the 2022 tax year is Tuesday, April 18. You don’t have to wait until the deadline, however. You can start filing today.
Are you planning to file electronically? You have a few options, including IRS Free File or Fillable Forms, tax prep sites and commercial software. You can scan important documents into a digital format using your phone or tablet. Tap or click here for more tax filing tips.
One of Kim’s listeners, Thomas from California, asked for our advice on tax preparation software. We’ll break down some popular options to help you make a decision.
NOTE: The Federal Trade Commission says Intuit’s “ubiquitous” advertising claiming that its TurboTax is free to use is misleading. The FTC asked a federal court to order Intuit to stop “disseminating the deceptive claim that consumers can file their taxes for free using TurboTax.” Be aware of that if you decide to use TurboTax.
1. TurboTax
TurboTax is one of the most comprehensive tax prep software solutions. Go to turbotax.intuit.com/personal-taxes/online and select the items that apply to you. The site will recommend software based on your selections. You’ll be asked questions about income, deductions, expenses, dependents and more. This will be populated into the software you choose.
The free version is suitable for simple returns (Form 1040) and is free to file for state and federal taxes. This covers your W2 and schedules 1-3. It also offers guidance in case of an audit and 24/7 online support from TurboTax specialists and the customer community. The top-tier software costs $71.20 plus $31 per state filed.
Choose a tier depending on your situation. Deluxe may work for most homeowners with children, while self-employed is better for freelancers and small business owners.
2. H&R Block
H&R Block is best for simple returns, which it offers for free (Form 1040 plus schedules 1-3) at the state and federal levels. You can get unlimited live help and video support for $39.99.
You can get the Deluxe option from Amazon for under $35. The Premium option costs $65.
3. TaxAct
We may earn a commission from purchases, but our recommendations are always objective.
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Tax season is over, but it’ll be back again. And again. It’s never too early to start preparing. While you don’t need to hunker down just yet, it can’t hurt to start making a list of deductions for next year’s filing.