Most people either rely on tax software or an accountant to handle their taxes.
Especially for those whose taxes are pretty straightforward, using tax software is the cheapest, easiest way to go. There are a number of really good programs out there to help you calculate, organize and file your tax returns online.
But everything comes with a cost. So below we’ll look at what you can expect to pay for some of the most popular tax software options.
What Does Tax Software Cost?
The average cost of a tax software ranges between $29.95 and $104.99. Most of the time, it includes a state fee (so you can also file your state taxes) which is $63 on average.
But the cost of a tax software program will depend on certain things. One of these factors includes the provider.
For TurboTax, which is currently the undisputed leader in the tax software world, their programs range from $60 to $120 and additional state costs. But they also have a free edition of their software program.
The free version is made for those who have a simple tax return. Basically, you have W-2 income and nothing else. It still contains many of the features from their paid versions.
People love TurboTax because of its user-friendly features. The softwares includes personalized explanations of tax calculations and is easy to use.
H&R Block’s software ranges in cost from between $49.99 to $109.99. It also has additional state costs to file state returns. And, as with TurboTax, they also offer a free version of their software.
It is generally considered to be the second overall best tax software program. Part of the reason is that they have one of the most easy to understand software programs for users. They provide a comprehensive explanation regarding tax topics.
TaxAct’s tax software programs cost from $44.95 to $79.95. You will also pay additional state costs. And, much like with the previous two tax software programs, they also offer free programs.
TaxAct tax software program includes good navigation tools as well as data entry options. TaxAct also has the highest accuracy guarantee reimbursement with coverage for up to $100,000 in taxes, legal costs, and penalties.
TaxSlayer does not offer free tax software programs. However, the good thing is, unlike the tax software programs we mentioned earlier, their fees are lower.
Their offers range from $24.95 to $54.95. But you will pay state costs. For its value, TaxSlayer is one of the best tax software options out there.
They have a 100 percent accuracy guarantee as well as they support major IRS forms and schedules.
IRS Free File
The IRS Free File allows you to file taxes at no cost if your income is less than $64,000. They are one of the Free File Alliance members. The other members are H & R Block, TurboTax, and TaxSlayer.