Tax Preparation Software: Reviews

Reviewers overwhelmingly choose TurboTax as the best tax-preparation software. TurboTax has a more comprehensive interview process than H&R Block At Home Premium (*Est. $60), its main competitor -- especially for… expandcomplicated topics such as multiple stock sales, business deductions, depreciation and mortgage refinancing, as well as rental income and expenses. Both allow you to prepare your federal and state taxes and e-file your federal return for free (although to e-file a state return, you'll have to pay $20 extra with either one). However, reviews say the pricier TurboTax Premier is worth its cost: It's easier to navigate and gives the best help with uncommon tax scenarios. TurboTax Premier is compatible with Windows and Macintosh computers. collapse

If you have a less complicated tax situation, TurboTax Deluxe costs less than TurboTax Premier (*Est. $70), yet it still lets you perform federal and state tax preparation. Like the Premier version, the Deluxe version… expandlets users e-file their federal return for free, but e-filing a state return costs $20 extra. Features include an Audit Risk Meter and a tool that provides accurate values for charitable donations, but it offers no advanced help for investments or rental property income, such as found in TurboTax Premier. A less expensive version, TurboTax Basic (*Est. $30), omits these special features and the free state tax-preparation software. collapse

Reviews say TaxACT is quick and accurate, but not as sophisticated as more expensive tax software. TaxACT doesn't offer as much help to users, but if you have a simple tax return or don't require much handholding, TaxACT… expandOnline Ultimate is the best bargain. It includes federal and state tax preparation, along with free electronic filing for both -- unlike TurboTax Deluxe (*Est. $50) and Premier (*Est. $70), both of which charge another $20 for e-filing state taxes. You can also buy boxed or downloadable versions of TaxACT Ultimate (*Est. $22), but the software is for Windows only. collapse

All of the major software companies now offer free, pared-down versions. But TaxACT's free software is the most robust: It includes every e-fileable form the IRS has to offer, while free versions of TurboTax and H&R Block… expandAt Home omit some forms. All free versions include free federal e-filing, but TaxACT charges the least to e-file a state return -- $15, as opposed to $28 for the other companies. Both Windows and Mac users can use TaxACT Free Edition online; there's a version you can download onto your desktop, but it's Windows-only. Guidance for complex topics is limited, but help is available for simpler and more common situations. If you plan to e-file a state return, reviews say your best bet is to purchase TaxACT Online Ultimate (*Est. $18), which includes more convenient features and a free state e-file. For the best tax help, choose TurboTax Deluxe (*Est. $50) or Premier (*Est. $70). collapse