How To Choose A Tax Preparation Software?

Answer 1

As the IRS tax code becomes increasingly complex and more and more people choose not to tackle that additional complexity on their own, more and more people are turning to tax preparation software to help complete their tax returns. And with that an abundance of tax preparation software packages have popped up for you to choose from.

Many software packages provide comparable services if you’re filing a relatively basic tax return but even those with more complicated returns can find a lot of value and ease of use in today’s choices.

Here’s a rundown of some of the better choices.

TurboTax

TurboTax still remains one of the biggest and best options out there. It generally has one of the most robust and smooth interfaces available. The interview feature and functionality available within the software is usually considered one of the better available but that performance comes with a cost. TurboTax is also one of the more expensive choices. The ability to ask questions of tax professionals free of charge is a noteworthy perk.

TaxAct

TaxAct also remains one of the top choices of taxpayers. TaxAct offers a free Federal filing option for those with more basic tax returns while the deluxe edition for more complex returns still comes at a reasonable cost of under $20. Both online and PC versions of the software perform very well.

eSmart Tax

This software is a newer entry to the tax prep software world from Liberty Tax Service. It earns a reputation as a more bare bones tax software when compared to the likes of TurboTax and TaxAct but it also comes at a lower price which might be beneficial to the more budget conscious individual.

H&R Block At Home

Perhaps the best option of the major tax prep companies, H&R Block’s software offers a lot of nice features such as its DeductionPro add-on and the corresponding mobile apps available for most smartphones come free of charge. This one is a nice combination of price and performance.