Best Tax Software For Small Business (2022 Update): TaxSlayer vs TurboTax vs H&R Block vs TaxAct vs FreeTaxUSA & More

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Tax time is here and so are your W-2s or 1099s since most employers sent them out to arrive by the end of January. In fact, business taxes are due in many states in mid-March. So, it’s time to get started and get rolling, especially if you’re due a refund check.

Please note that this article has been updated with each company’s 2022 products for the 2021 tax season.

Article Overview

What Features Should Tax Software Have?

Not all tax product offerings are the same, but there are some features that you should always look out for when picking the right tax product for you.

Direct Deposit Refund

Direct deposit may not seem like such a big deal, but it’s a much faster way of receiving a tax refund, and most tax companies these days prefer it (some even offer discounts for using it). Direct deposit may not be a must-have feature on your list, but if you’re looking for a reputable tax company to go with, the chances are that they offer it as an option.

Electronic Filing

In the age of technology, utilizing electronic filing is the same as using direct deposit refund services. Most big tax service providers offer the opportunity to file your taxes electronically.

Error Checks

Error checks are an important part of tax filing for any software user. To file your taxes is one thing, but to file taxes and catch any potential errors or mistakes is another.

Often we spend so much time working on our taxes that we can neglect to notice even the most obvious mistakes, so it’s important to have a second line of defense to minimize the risk of an IRS audit (learn more about the IRS audit process). Most reputable tax products these days offer error check services.

Federal Returns

There should be no question that a tax service provides the opportunity to file federal returns.

Pay Only When You File

Where filing taxes used to mean purchasing software before filing, today tax products can often be downloaded online, and you can e-file. This usually means not having to pay until you file your taxes.

The ability to complete your taxes using a service before paying for it shows that the company has confidence enough in its product to let you try it out before paying its fee and provides you hands-on evidence as to why you should have faith in it as well.

State Returns

Not all filing software provides the opportunity to file state returns in addition to federal returns, but these days, so many do offer this feature, there really is no excuse for not having it. A state return feature makes filing taxes a much easier and more streamlined process and allows you to get everything taken care of in a single session with less hassle.

Tax Return Status Check

Filing taxes is a stressful process, and it can be particularly frustrating not knowing the status of your tax return. Most reputable tax software provides the opportunity to check your tax return status online, which makes the whole tax filing process much easier by giving you peace of mind. It also allows you to better budget when any refund money is coming into your bank account.

Best Tax Software For Small Business

Below are the top 3 online tax options for your business. We chose our winners based on cost, ease of use, professional tax prep assistance, features, and customer support.

H&R Block Tax Review

#1 H&R Block logo

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Don’t let the big brand name scare you off, this is a solid tax program and is our number one choice with a price tag that is hard to beat. H&R Block tax software supports all entities looking to file taxes, but it also offers top of the line support services, including FAQs.

H&R Block is less expensive than TurboTax and has the same features except for help forums. H&R Block released More Zero, which lets you import a tax return from any competitor, upload tax documents, and prepare and file on any device.



  • Affordable federal return filing fee for such a big name software
  • Free federal e-filing of the 1040EZ
  • Allows for 5 e-files when you purchase the software directly
  • Offers professional audit defense and a professional tax consultant service
  • Offers Affordable Health Care Act (ACA) assistance for calculating tax credits/penalties
  • Provides support via telephone, email, live chat, community, and offers tutorials and FAQs for users
  • Import W-2 forms & 1099-B forms from participating institutions
  • Mobile version available
  • Face-to-face support options by going to an office
  • Online support isn’t as detailed as others

Read Our Full Review Of H&R Block Tax

Filing Taxes Online

Need an extra “push” to file your taxes online? It’s not as scary as it sounds. Watch the short one-minute video below for the encouragement you need.

TurboTax Review

#2 TurboTax logo

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Saving lots of money on taxes is worth the few dollars more spent today on this software vs the competition. TurboTax is our second pick, with up to five e-filings per purchase, you can file taxes for the whole family. Plus, 1040EZ filings are free. The program seamlessly integrates with your specific state’s tax filing systems.

Top that with great customer support, a professional audit, and tax consultant service and you’ll find TurboTax is hard to beat. This is why it is our second choice for the best tax company, and it’s only second to H&R Block because it’s slightly more expensive.



  • Guaranteed maximum refund
  • Benefit of the best-selling tax filing software
  • Online, CD, or downloadable software available
  • 5 e-files available to cover your whole family (with CD or download software)
  • Free federal and state e-filing for 1040EZ
  • State filing available with every edition
  • Free Affordable Health Care Act assistance for calculating tax credits and penalties
  • Fully functional mobile version for iOS and Android
  • Excellent customer service via telephone, email, and live chat, and added support with user forums, tutorials, and FAQ sections
  • Expensive
  • No physical locations where you can file in-house or meet with a tax specialist
  • Additional fee for audit defense

Read Our Full Review Of TurboTax

TaxACT Review

#3 TaxACT logo

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This is another popular program you can buy at a competitive price. If you are not looking for help forums, live chat, or a tax consultant, this program has a lot to offer at a good price.

If a tax filer discovers someone else has already filed a return using their information, TaxAct will assist them via Identity Recovery powered by InfoArmor, a service that will navigate the resolution process on the customer’s behalf. TaxAct falls just above the middle of the road due to its extreme affordability and the ability to file taxes no matter what entity you are filing as, making it our third pick.



  • Price lock guarantee, accuracy guarantee, satisfaction guarantee, and maximum refund pledge
  • Free federal and state e-filing for 1040A and 1040EZ
  • 5 e-files plus 1 state return included with purchase of the higher-level download software
  • Q&A interview guide filers about previous years’ taxes and health insurance
  • Professional audit defense
  • Offers professional tax products for CPAs, accountants, and other professionals
  • Mobile version available
  • Import W-2 forms from participating institutions as well as prior year returns and charitable donations
  • Can only import 1099-B CVS file formats with Tax Act
  • No user forum feature

Comparison Table

If you need help with any of the terms we use in the table below, you can see them defined at the bottom of this article in our terminology section. All of the companies in the table below offer 1040 & itemized returns, 1040EZ & simple returns, direct deposit refund, electronic filing, email assistance, final tax review, IRS acknowledgment in 48 hours, pay only when you file, self-employed and sole proprietor, small business, state returns, and tax return status check.

1st: H&R Block 2nd: TurboTax 3rd: TaxAct E-file eSmart Tax & Liberty Tax ExpressTaxRefund FreeTaxUSA TaxSlayer
Audit Defense Checkmark Additional Fee Checkmark Additional Fee Checkmark Checkmark Premium Users Only
Big Business Checkmark Checkmark Checkmark
Error Checks or Alerts Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
Federal Filing and Program Use Cost $29.95 and up $39.99 and up $26.95 and up $24.95 and up $44.95 and up $29.95 (plus add-ons) Free $17.00 and up
Free 1040EZ Federal Tax Filing Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
W2 Import Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
1099-B Import Checkmark Checkmark Only CSV File Checkmark
Help Forums Checkmark Checkmark
Investment or Rental Property Checkmark Checkmark Checkmark Checkmark Checkmark Investment Only (Not Rental Property) Checkmark Checkmark
IRS Publication Library Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
Live Chat Checkmark Checkmark Checkmark Checkmark Checkmark
National Average Comparisons Checkmark Checkmark Checkmark Checkmark
Refund Meter Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
State Returns Cost $36.99 and up $40.00 $39.95 and up $28.95 $36.95 and up $25.00 $12.95 $29.00
Tax Consultant Available Checkmark Checkmark Checkmark Checkmark
(For higher tier packages)
Tax Data Importation Feature Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
Telephone Assistance Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
Tutorials Checkmark Checkmark Checkmark Checkmark Checkmark

What Other Options Do I Have For Tax Software Services?

E-file | eSmart Tax (Liberty Tax) | ExpressTaxRefund | FreeTaxUSA | TaxSlayer Review logoVisit Website

E-file is missing some key features we’ve come to expect from our tax software companies. E-file doesn’t offer a big business option, 1099 import, help forums, IRS publication library, live chat, and more.

Its site is not very detailed, which makes it difficult to review. Perhaps some of these features are covered, but it looks like it’s missing some big elements from what we see on the website. If you have experience with E-file, please share with us to keep this review current.



  • Free federal filing
  • W2 import
  • Website does not explain features
  • No live chat or user forums
  • Missing many key features

eSmart Tax (Liberty Tax) Review

eSmart logo

Visit eSmart Tax Website

Liberty Tax Services owns eSmart Tax, and both companies offer nearly identical products. The only difference is the cost. We recommend choosing eSmart over Liberty because its price can be $10 to $25 lower than Liberty’s.

Either way, both companies are on the less expensive side of the spectrum when compared to other tax products and services. All filing options are online, and there is no downloadable software.

Both eSmart and Liberty’s websites are designed quite similar and easy to use. If you have a larger business, you’ll have to look elsewhere, but for those of you with simple returns, have families, own a smaller business, or are investors, one of these two companies may be a good fit for you.



  • Very affordable pricing, especially for the number of features
  • Free live chat, phone, and email support
  • In-person support at Liberty Tax offices nationwide
  • Import last year’s return from most major tax services
  • 100% guarantee for biggest return, accuracy, and customer satisfaction
  • Free W-2 download
  • No larger business filing options
  • Additional fee for enhanced audit assistance
  • No downloadable software available

Read Our Full Review Of eSmart Tax

ExpressTaxRefund Review

ExpressTaxRefund logoVisit Website

Of all of the tax products compared in this article, ExpressTaxRefund offers the least amount of services for one of the highest fees. ExpressTaxRefund is not the service for you if you’re a big business, a rental property owner, or looking for consultation from a tax professional before filing your taxes.



  • Offers telephone, email, and FAQs as a means of support for users
  • Expensive price for the lack of features provided
  • Additional fee for itemized versus standardized deduction
  • Doesn’t provide free federal e-filing for 1040EZ
  • Cannot be used for those with rental property or large businesses
  • Additional fees for e-filing, business owners, various tax credit forms, self-employment, and a $39.95 fee for bank refund processing
  • Does not provide professional audit defense services or a professional tax consultant
  • Can’t import W-2, 1099, or other necessary forms into program
  • Outdated website

FreeTaxUSA Review

FreeTaxUSA logo

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FreeTaxUSA stands out due to its 100% free federal tax filing. This service also provides an automatic refund calculator.

Overall, it has the basics for those of you needing to file a simple return, but we don’t feel comfortable ranking FreeTaxUSA in our top three because there are larger companies with more prominent reputations. Check out the pros and cons below and decide how this free tax provider compares with the paid alternatives.



  • Best price we could find for federal and state filing fees
  • Easy to use
  • Automatic refund calculator
  • Support for part-year nonresident state tax returns
  • A professional tax consultant is not available
  • Deluxe edition costs an additional $6.99 for Audit Assist and Priority Support
  • Can’t import W-2, 1099, or other necessary forms into program
  • No setup to do business taxes
  • No phone support or in-office option

TaxSlayer Review

TaxSlayer logo

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TaxSlayer may have the prices you’re looking for when filing your taxes, but there are a few areas where this service falls short. TaxSlayer offers features at the premium level that competitors offer as the basic level, which is why this service isn’t in our rankings. If you aren’t concerned with audit defense, TaxSlayer could be a good option for you… unless you’re a big business.



  • Very affordable federal and state filing fees
  • Free federal e-filing for the 1040EZ
  • Professional audit defense (for higher-tier packages)
  • Mobile version available
  • Military receives 50% off, excluding Simply Free
  • Import W-2 with Classic and Premium packages
  • Cannot be used for big business returns
  • Doesn’t offer the services of a professional tax consultant
  • Can’t import 1099 forms into program


  • 1040 & Itemized Returns: For those who have 1040 forms to file or who are using itemized returns this year.
  • 1040EZ & Simple Returns: For those who have 1040EZ forms to file or who have simple tax returns this year.
  • Audit Defense: A service provided by a tax software company that assists you if the IRS audits you after using their product for the year’s tax return.
  • Big Business: Software for a corporation or LLC.
  • Direct Deposit Refund: Option to receive your tax refund directly into your bank account through a direct deposit.
  • Electronic Filing: Allows you to file your tax return online through electronic transmission. This is generally an instant process but may require the faxing or mailing of a signature form.
  • Email Assistance: The software offers direct assistance to users via email contact.
  • Error Checks or Alerts: Provides error checks and/or prompts you with alerts to let you know that there’s something in your tax return that doesn’t “add up” or that may flag you for an audit with the IRS.
  • Federal Filing and Program Use Cost: Cost for using the program and filing your federal tax return using this product.
  • Final Tax Review: Provides a final review of your tax filing to check for issues before transmitting your return.
  • Free 1040EZ Federal Filing: Gives you the option to free file if you’re filing a 1040EZ.
  • Help Forums: Offers help forums where users can ask for help in regards to using the software, as well as general tax related questions and issues.
  • Investment or Rental Property: Provides the ability to claim investment or rental property income or loss.
  • IRS Acknowledgment in 48 Hours: Lets you know within 48 hours that your return has been accepted or rejected by the IRS.
  • IRS Publication Library: Provides access to the IRS publication library which includes helpful tax publications that have been written in plain language format by the IRS to help taxpayers like you have a better understanding of specific tax concerns.
  • Live Chat: Offers a live chat service to get answers to your questions instantly. Some software companies charge an additional fee for this service.
  • National Average Comparisons: Provides comparisons to help you compare your overall tax year to others in the nation.
  • Pay Only When You File: Software doesn’t charge you until you’re ready to file your tax documents.
  • Refund Meter: A visual meter to keep track of your refund or amount owed for the tax year as you go through the tax preparation process.
  • Self Employed and Sole Proprietor: Can be used if you’re self-employed or a sole proprietor.
  • Small Business: Can be used to file a tax return for a small business. Learn more about small business tax deductions.
  • State Filing Cost: The cost of filing a state tax return with this software. The amount for state filing will vary by state for most software.
  • State Returns: Gives you the ability to file your state tax returns.
  • Tax Consultant Availability: Has a real, live tax consultant on hand to go over your return with you before you file. This option is generally an additional fee.
  • Tax Data Importation Feature: Allows you to import tax data from a previous year into the software.
  • Tax Return Status Check: Provides the opportunity to check the status of your tax return after it’s been e-filed to find out when you might get any refund back that’s due to you.
  • Telephone Assistance: Provides the opportunity to receive help from a real, live tax professional over the phone. Sometimes this is an additional fee.
  • Tutorials: Provides tutorials to help ensure that you know how to use the software and all of its components correctly.

Deciding Which Tax Software Is Right For Your Business

The key to finding the right service for your company is identifying the one that suits your most significant needs and you’re comfortable using.

  1. One of the first things to look at is whether or not you understand the interface that the service uses. Many software options now offer tutorials and walk-throughs to ensure that you don’t face any difficulty using their service.
  2. Once you find a software you’re comfortable using, you’ll need to ensure that it allows for filing as your specific entity. There is no use being proficient at a software if you’re filing as a big business and the software doesn’t allow for big business filing.
  3. The next thing you’ll need to consider is the cost of the software you’re looking at. There are a wide variety of options to select from and you should be able to find one that suits your budget.

After these minimum requirements have been met, choosing the right software for you is just a matter of which features you’re looking for when filing your annual tax return.

Are You Worried About Being Audited?

This is a fear we all have, but do you really know what happens if you get audited by the IRS? We’ve got an entire article dedicated to teaching you about what to expect if you get audited by the IRS.

About The Author:

Jeff received his Bachelor in Business Administration with a Concentration in Finance from Malone University. Jeff has many years experience as a small business owner, with forays in retail and property management.

For more than a decade, Jeff has acted as SEO and analytics consultant for We Rock Your Web and is constantly studying and evolving to learn how to properly navigate this ever changing industry.

Disclaimer: This website contains reviews, opinions and information regarding products and services manufactured or provided by third parties. We are not responsible in any way for such products and services, and nothing contained here should be construed as a guarantee of the functionality, utility, safety or reliability of any product or services reviewed or discussed. Please follow the directions provided by the manufacturer or service provider when using any product or service reviewed or discussed on this website.

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Don’t choose H&R Block. Lack of professional customer service personnel. Technical department does not understand their own programs and can’t, or won’t, provide information as to how data is transferred from one schedule to another. I was a long time user of the program and if they are going to sell a product without an implied warranty they know how it works it is time to find another resource.

In your comparison review, you do mention the cost differences of the different levels of programs (basic, deluxe, premier). However, your table doesn’t show or compare what each level offers/files. Does TurboTax’s deluxe edition (not addition, btw) allow you to itemize only or can I use it to file my investments? Would I have to purchase a Premier TurboTax to file my self-employed return with vehicle use or could I file that same return with H&R Block’s Deluxe edition?

Great question Salem! Take a look at our individual review of TurboTax. From what you stated, it sounds like the Self-Employed Edition would be the best fit for you. Let me know if you have any other questions!

I think you mean “.csv” file, not CVS 😉 (comma separated values)

Great review, though.

Haha! Too funny! Thanks for catching that error! You are correct, it should’ve said CSV not CVS. We have corrected this now. Thanks for the help and glad you liked the review. 🙂

Is there a way to use a program for Canadians with rental income in the U.S.?

Beware of TurboTax if you choose to pay via your tax refund. They will charge you an extra $34.99 bank processing fee in addition to whatever you paid to file, which in my case was also $34.99. I just clicked right past that fee and submitted. That was my fault for not looking at it close enough, but still feel a little cheated.

I tried HR Block and they totally screwed up my Self Employed Health Insurance Deduction. Either that, or there is something I overlooked or didn’t do right. I went over that section multiple times. They said I owed hundreds. I did my taxes on TaxAct and they seemed to have calculated everything correctly and said I would get a refund. I may try one more place or do it by hand to make sure. I haven’t filed yet.

A major problem with Taxcut is that if you run a resolution of 1920 x 1080 on your monitor, the forms occupy only about 1/3 of the screen and are barely readable. Customer Service has responded to me that you need to run no higher than about 1360 x 760, great if you have a 19 inch monitor. This program is unusable – hope their money-back ‘guarantee’ works.

This article says it was updated 12/14/15, but the claim about TurboTax offering the Amazon gift card is not true. That has gone to H&R Block this year.

Does that change the ratings?

Hi Mark, great question. We are actually in the process of doing a full update on this one. We are just waiting for some companies to release their 2016 information (which some may have since the New Year). An Amazon gift card would not change the rating. Although receiving one is a “perk” it does not make a tax service better or worse so we do not base our rankings on perks. Make sure to check in periodically for out updated 2016 rankings!

Am I missing the line providing the checks for which versions have CD purchase for home installation vs. the versions that have to be online/cloud and hack susceptible?

We do not have this in our table. We will consider adding it in our next audit.
Thank you!

You should check out FreeTax. You can file Federal and State Returns for free.

That sounds too good to be true! Have you used FreeTax before Naomi?

If you make under $65,000 you can go to the IRS website and they will refer you to a load of preparers that have to do your taxes for free.

Jeff, this article would be more helpful if it included a few extra lines in your chart.

Specifically, does the software support importing W-2 and brokerage 1099-B data directly from payroll providers (like ADP) and brokerage houses (like Fidelity, E*Trade, etc)?

And does the software support for IRS forms have any gaps (such as the recent Turbo Tax decision not to support electronic filing of Schedule D for investments gains/losses, except when using their higher-priced versions)?

Thanks for the great suggestions, we will definitely keep these in mind during our next update.

I don’t know who is best – I know I did 4 different programs (TT, TA, HR and TaxSlayer) and while they were all very close on Federal, the State numbers were all over the block. They all said I owe state, but they ranged from $138 to $802. That’s too much of a difference for me to trust. Return was dropped off at the CPA this afternoon!

Which one was right? 🙂

To be honest, I don’t remember from last year. This year I used TaxAct, so they must have all been reasonably close. TaxAct was the cheapest for me. TT would have been $80 with Fed, State & Prop Tax. TA came to just under $45 for everything. TT has great sales, but state is additional where TA has state included.

A big question for me is can I import all my investment 1099s. I looked for options to Turbo Tax this year because of the bait and switch which would push me to premium for what used to work in deluxe and I’ve never liked the way it works — too slow to wade through all the screens.

Tried Tax Act online — kept having to log back in and wait for processing.

Tried Tax Act download and found it worked great and looked simple but it does not offer imports from the largest mutual fund companies and brokerages.

Tried H&R but couldn’t find import options and got left on hold for half an hour when I tried to ask.

Expect I’m stuck with Turbo Tax. It’s deductible is a joke to me. Someday the IRS should challenge its ridiculous valuations.

TaxSlayer is $14.95 for state this year.

Thank you for catching that! We have changed it in the table.

You show TaxACT has chat on this comparison chart which is incorrect.

Thanks Chandler, you are correct! I have made the correction in the table. Thanks for reading and commenting!


You said that H&R Tax Cut 2013 lacks forum support and no professional audit defense or professional tax consulting. However, the software that I have in hand says just the opposite. Perhaps you are getting your information from the TurboTax web site which states this information. HR Block’s web site says they offer this right on their home page.

Sorry for the confusion. When we updated our article we missed updating our 2nd place paragraph where these items you listed were written out. Thank you for bringing it to our attention. You will now see the correct information in the 2nd place paragraph along with the H&R Block section. Please let us know if there is anything you have questions about and thank you again for bringing this to our attention.


Save 10% off on eSmart tax returns when you click on this link and use the coupon code ESTOFFER10 during checkout before Tax Day, April 15th, 2013.

I’ve seen the commercials, but how is the Taxbrain software?

Also, I would like to hear more about the actual process. Did the reviewer just compare the sell sheets of each product, or did they purchase each and do a mock return to see what the software did and didn’t catch, etc? That’s a big concern.

Hi Eric,

Thanks for the tip on Taxbrain – we will add it to our list for next year’s review. We are too far into the 2013 tax season to add it at this time with other projects we have on our plate but appreciate the input!

As for our review, we actually have the same process for all of the categories and niche areas that we cover across our entire company (from pet insurance and antivirus software to green cleaners and tax programs). We focus on collecting, collating, analyzing and organizing all the reviews we can find or experience first-hand into one cohesive review on any given topic.

That process is outlined here:

* Extensive industry research
* Independent expert reviews
* Anonymous consumer phone calls & email inquiries to the company (mystery shopping)
* Consumer feedback on our website (in this case
* Consumer reviews on third-party review sites like Yelp, the Better Business Bureau and more.
* Social media discussions on Twitter, Facebook, Google Plus, etc.

So while we do not always have the time or ability to review everything first-hand ourselves (due to cost, availability or other reason), we have built a review process over the past 5+ years that works to provide an overview of every review we can find out there on the given topic we are discussing to provide one of the most comprehensive and unbiased reviews out there.

Thank for your inquiry,

Michelle @ We Rock Your Web

Do not fall for the latest email scam to get you to click on a spammy link. Do not do it.

If you get an email that appear to be from TurboTax stating that ”Your State Return Has Been Rejected” pleases know that this is NOT from TurboTax or your bank. Do not open the attachment and do not forward the email. Delete the email immediately.

H&R Block is offering a great deal for online tax software in 2013 – only $13.95 (regularly $15.95). Just click the ad above and enter the coupon code HB02MGT8JX during the checkout process. Deal ends on 4/30/13.

It is hard to believe that I’m already thinking about 2012 taxes. I started a side business this year, so I will have to deal with a LLC filing. Does anybody have experience with the more advanced tax software features? I’ve narrowed my search down between Turbo Tax and H&R Block. H&R Block’s ‘Premium’ option is slightly cheaper than Turbo Tax’s ‘Home & Business’. H&R Block also offers the worry-free audit support, which is really appealing to me. Anybody have any suggestions?

I began working at the age of 16, which means I’ve had more than enough time to try out a few tax preparation services. When I was 16, it was easy to file my own taxes. As I got older, and my taxes became more complicated, it was necessary to use a tax preparation company. I think the first company I ever used was Tax Slayer. While the service was great for your basic needs, I found that it wasn’t a good option when I became self-employed.

When I started my career in freelance writing, I turned to H&R Block. At first, everything seemed great and their service met my needs. Unfortunately, as my taxes became more complicated, the prices got higher and higher. Soon, I was looking at paying over $100 to prepare my taxes. This was something I simply could not afford. As a college student and part-time writer, these prices put a strain on my bank account and sent me in search of yet another company.

I then began using the company, TaxAct. The price was perfect and the site was easy to use. In fact, I would still be using TaxAct if it hadn’t been for the latest tax form, the 1099-K. I found it impossible to figure out how to enter this information without it looking like I was making twice as much as I really was. This led me to TurboTax.

TurboTax is an excellent service that has a middle of the road price range, but makes it easy to file your taxes, even with the dreaded 1099-K. Sure, I hate paying more than I was paying with TaxAct, but it’s worth it to make sure I’m doing my taxes correctly.

I can’t necessarily recommend one tax preparation service over another. It all depends on your needs and how complicated your taxes are, but it really does pay to shop around.

When you go to file your taxes, the type of software you use shouldn’t be the only thing you consider. I know so many people that go pay to have their taxes done when they could just do them at home using this kind of software. I’m always trying to show them how to file their taxes from home to save money and time. It’s not even like you actually have to do the math any more. Now you just fill in the text boxes, and you can ask questions along the way if need be.

I personally use Turbotax, but I have used Taxcut and Taxslayer

The programs can be used for free, but they might charge you to actually file the taxes. If you make enough money, that’s usually not a big deal. However, if you are in the lower income bracket, you might want to take advantage of the free filing service you can get if you go to the program through the IRS website or your state treasurer’s website and use their free file links. They take you to some of these programs, but allow you to file for free. Also, don’t forget to pay the fee and register if you are going to be filing taxes for anyone aside from yourself.

I am strange enough to actually get a sick satisfaction out of doing taxes. It’s like spring cleaning. You wait all year to do it and once you’re done, there is this feeling of accomplishing something.

I generally use Turbotax, but I also used another tax program this year for my state taxes. If you want to use the free efile option, keep that in mind when choosing your tax program. You might want to do your federal taxes with the more advanced tax software, then use a less advanced one for your state taxes, simply because the state taxes…well they just aren’t as “taxing”. (LOL I crack myself up!)

Here’s the thing: if you want to e-file for free, you have to sign up for the software separately. So, since I used Turbotax for my federal taxes, I could have paid to use it for my state taxes, but since I’m such a frugal soul, I signed up with a whole other company. True, I had to manually enter my information instead of importing it, but I didn’t have to pay a fee to get them filed. I just thought this might be something people would want to know about so they could save a few dollars. You also learn about this through your state’s website and the IRS website.

Deciding which tax stuff to use is alwaysbso confusing. Thanks for helping me make the better choice this year with turbotax. I know it costs more but not getting audited makes it worth every penny. Interesting (and tempting) to see so many free options though…