Tax Preparation Software: Reviews

Updated March 2012

Tax time is painful enough without winding up with tax preparation software that's a pain to use. ConsumerSearch looks at the major -- and not-so-major -- tax preparation software packages to find the best ones. Reviews from experts are analyzed, and reports from users are scrutinized, to make our picks.

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Best tax software for complex returns

TurboTax Premier 2011

*Est. $75 Compare Prices

Most reviewers say TurboTax Premier 2011 is the best tax-preparation software if your return is complex. TurboTax Premier 2011 has a more comprehensive interview process than H&R Block At Home Premium (*Est. $50), its… expandmain competitor. That's especially true for complicated topics such as multiple stock sales, business deductions, depreciation and mortgage refinancing, as well as rental income and expenses. Both programs 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

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Expert & User Review Sources:

PCMag.com: Tax expert Kathy Yakal tests the online versions of five top tax programs -- TurboTax, H&R Block At Home, TaxACT, TaxSlayer and CompleteTax -- by using them to complete dummy returns.

PC World: TurboTax beats H&R Block At Home, TaxACT, CompleteTax and Tax Brain software to win this test.

The New York Times: Tim Gray tests the premier boxed versions of TurboTax, H&R Block At Home and TaxACT. TurboTax Premier does the best job with his family's taxes, he says, pulling in last year's tax return information without a hitch and smoothly handling a tax credit for his new high-efficiency wood stove.

Macworld: Jeffery Battersby gives TurboTax Premier a perfect rating of 5 after doing his family's taxes with both it and H&R Block software, which gets a 4.5-star rating.

About.com: Shelley Elmblad, About.com's guide to financial software, tests the Home and Business version of TurboTax.

Amazon.com: TurboTax Premier rates an overall 4 stars out of 5 based upon more than 100 customer reviews.

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Best tax software for most

TurboTax Deluxe 2011

*Est. $50 Compare Prices

If you have a less complicated tax situation, TurboTax Deluxe costs less than TurboTax Premier 2011 (*Est. $75), yet it still lets you perform federal and state tax preparation. Like the Premier version, the Deluxe… expandversion lets 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 2011 (*Est. $30), omits these special features and the free state-tax preparation software. TurboTax Deluxe works with Windows, Mac and the iPad. collapse

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Expert & User Review Sources:

PCMag.com: This review is for the step-up TurboTax Premier version, but TurboTax Deluxe is similar minus some specific guidance for investments, etc.

PC World: Yardena Arar tests TurboTax head-to-head against H&R Block At Home, TaxACT, CompleteTax and Tax Brain software.

Download.com: Jaymar Cabebe at Download.com, which is owned by CNET, tests TurboTax Deluxe by doing his taxes with it.

About.com: Shelley Elmblad, About.com's guide to financial software, tests the Home and Business version of TurboTax -- but her recommendation is for TurboTax in general.

Amazon.com: TurboTax Deluxe earns an overall rating of 4 stars out of 5, based on the more than 300 user reviews posted.

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Tax software for simple returns

TaxACT Online Ultimate 2011

*Est. $18 Learn More

Reviews say TaxACT Online Ultimate 2011 is quick and accurate, but it's not as sophisticated as more expensive tax software. and it doesn't offer as much help to users. If you have a simple tax return or don't require… expandmuch handholding, and you are comfortable with preparing your taxes online, TaxACT Online Ultimate is the best bargain. It includes federal and state tax preparation, along with free electronic filing for both. That's unlike TurboTax Deluxe 2011 (*Est. $50) and Premier 2011 (*Est. $75), both of which charge an additional $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

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Expert & User Review Sources:

PCMag.com: TaxACT's tax-prep tools, guidance and speedy, easy-to-navigate user interface "would likely meet the needs of the majority of U.S. taxpayers," Kathy Yakal says.

PC World: Yardena Arar calls TaxACT "the outstanding bargain option among tax sites." It doesn't offer the robust built-in help topics that TurboTax does, and it can't import as many different types of data, but it's otherwise full-featured and much cheaper than TurboTax.

The New York Times: Tim Gray lodges the same complaints against TaxACT that other critics do: The built-in tax help is "the least helpful of the three" major tax software brands, and Gray can't get TaxACT to import his prior year's tax return information.

About.com: Shelley Elmblad, About.com's guide to financial software, calls TaxACT "a great value," In all versions.

Available at TaxACT.com for $17.95

Best free tax preparation

TaxACT Free Edition 2011

Free Learn More

All of the major software companies 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 At… expandHome omit some forms. All free versions include free federal e-filing, but TaxACT charges the least to e-file a state return -- just $15. Windows, Mac and iPad 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; 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 2011 (*Est. $18), which includes more convenient features and a free state e-file. For the best tax help, choose TurboTax Deluxe 2011 (*Est. $50) or Premier 2011 (*Est. $75). collapse

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Expert & User Review Sources:

MoneyCrashers.com: After testing the free version of TaxACT against paid versions of TurboTax and H&R Block At Home, blogger Kira Botkin decides she'll use TaxACT to file her own taxes this year.

PCMag.com: Kathy Yakal tests the paid version of TaxACT, but she says the free version is just as capable, minus some help features, and "should be your first stop if you're considering online tax preparation this year."

About.com: About.com's guide to financial software, Shelley Elmblad, previews TaxACT software for tax year 2011.

Examiner.com: Shelley Elmblad, About.com's guide to financial software, is also a personal finance expert for the Milwaukee area for Examiner.com.

Download.com: Only two users had review the 2011 tax year version of TaxACT Free Edition -- but Download.com, a CNET site, lists more than 40 user reviews for prior years' versions.

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