The tax season start date has arrived and the tax deadlines have been announced by the IRS. If you haven’t started filing your taxes already, you’re probably starting to look around for the best and cheapest tax software program online to e-file with for 2022.
If you’re locked in to a particular tax prep software that you love, this may be an easy decision for you: find the right software version for your tax situation this year, pay the cheapest price you can (discounted offers are below to help with that goal), and e-file ASAP. If you haven’t filed your own taxes, or are looking to switch programs, finding the best and cheapest tax software program online can get tricky.
For starters, the features in the paid versions of various programs often don’t align – even if they have the same name (e.g. “Deluxe” or “Premium”). You’ll want to review what forms are covered and meet your personal filing needs, based on how complex your filing is. And with “free versions”, the forms each program covers can be very limited, mostly focused just on simple 1040 filing only, without coverage for many different forms.
Additionally, no two tax software programs have all of the same features. Tax expert advice and support differs (or is not offered at all), audit protection differs, in-person support (if needed) differs, data import differs, and so on.
So, what I’ve tried to do in this tax software comparison review is give you a quick and easy cost comparison breakdown of all federal and state e-filing costs, key feature comparison, limitations, and even a few special links with the largest available discounts (in the “Link to Best Promo Discount” row below and the “Tax Software Discount Coupon Promo Codes” section below that), so that you can get the cheapest tax software prices (or even free offers) available.
Here’s my comparison of the best and cheapest tax software prep programs available online:
Comparison of the Best & Cheapest Tax Software Prep Programs Online:
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Link to Best Promo Discount: | Get 25% off H&R Block here | Get TurboTax here | Get TaxSlayer here | Get 20% off TaxAct here | Get a free FreeTaxUSA federal return here | Get a free Cash App Taxes federal & state return here |
Cost of Federal Returns (Current Standard Prices, Before Discount): | Free: $0 Deluxe: $29.99 Premium: $49.99 Self-Employed: $84.99 "Online Assist" (live tax expert supported) versions: Basic: $39.99 Deluxe: $69.99 Premium: $109.99 Self-Employed: $149.99 | Free: $0 Deluxe: $59 Premier: $89 Self-Employed: $119 "Live" (live tax expert supported) versions: Basic: $0 (if filed by 3/31/22) or $79 Deluxe: $119 Premier: $169 Self-Employed: $199 | Simply Free: $0 Classic: $17.95 Premium: $37.95 Self-Employed: $47.95 | Free: $0 Deluxe: $24.95 Premier: $34.95 Self-Employed: $64.95 | "Free" (includes Basic, Advanced, Premium, Self-Employed): $0 Deluxe: $6 | Free |
Cost of State Returns (Current Standard Prices): | Free: $0 Deluxe: $36.99 Premium: $36.99 Self-Employed: $36.99 "Online Assist" (live tax expert supported) versions: Basic: $0 Deluxe: $36.99 Premium: $36.99 Self-Employed: $36.99 | Free: $0 Deluxe: $49 Premier: $49 Self-Employed: $49 "Live" (live tax expert supported) versions: Basic: $0 Deluxe: $54 Premier: $54 Self-Employed: $54 | Simply Free: $0 Classic: $36.95 Premium: $36.95 Self-Employed: $36.95 | Free: $34.95 Deluxe: $44.95 Premier: $44.95 Self-Employed: $44.95 | Free: $14.95 Deluxe: $14.95 | Free |
Comparison of Features Per Version: | Click here then "Compare Filing Options" | Click here then "More Details" | Click here then "Learn More" next to each product | Click here then "Details" under each product | Click here to review | 1 version for all filers |
Free Federal Available to: | All filers, limited scope | All filers, limited scope | All filers, limited scope | All filers, limited scope | All filers | All filers |
Free Federal Scope Limited To: | Basic/simple 1040 filing. See product description for details. | Basic/simple 1040 filing. See product description for details. | Basic/simple 1040 filing. See product description for details. | Basic/simple 1040 filing. See product description for details. | All forms, with a few exclusions. | Cash App Taxes excluded forms |
Free State Available To: | All filers, limited scope | All filers, limited scope | All filers, limited scope | N/A, state filing is $34.95 per return | N/A, state filing is $14.99 per return | All filers |
Free State Scope Limited to: | Basic 1040, with few additional forms | Basic 1040, with few additional forms | Basic 1040, with few additional forms | Basic 1040, with few additional forms | N/A, state filing is $14.99 per return | All filers |
Ability to Have a Tax Pro Review Your Return Online: | Yes, with "Tax Pro Review" versions | Yes, with "Live" versions | No | No | No | No |
Office Locations: | Yes | No | No | No | No | No |
The Cheapest Tax Software Prep (& Free Tax Software Prep):
If your goal is strictly to find the cheapest tax software available, I recommend 5 above the others:
- H&R Block
- TurboTax
- TaxSlayer
- TaxAct
- Cash App Taxes (formerly “Credit Karma Tax”, now owned by Square/Cash App)
Each have at least 1 “free” or “basic” version that offers free filing for both federal and state returns (note that TaxAct charges $34.95 per state filing). The scope of these free tax prep offerings can be limited, however, as it usually only covers a simple 1040 filing, with W-2 income and a handful of added forms. H&R Block, TurboTax, TaxSlayer, and TaxAct also allow you to start with a version and upgrade later to a more robust version that covers everything you need, without having to re-enter all of your information. Look at the product descriptions to take your best guess on where to start and go from there.
I really don’t recommend jumping at something just because it is “free”, on the surface. Make sure you do your homework to find the best fit. Here’s just a sampling of what the “free” versions of tax software often do not cover:
- Child Tax Credit
- HSA contributions/withdrawals
- Itemized deductions
- Mortgage interest deductions
- Charitable contributions
- Investment income
- Landlord rental income
- Self-employment income
- Business income
Those are commonly used forms by many tax filers. The IRS Free File Alliance (see more in my cheap or free ways to e-file post) also connects to you many of the free versions I highlight in this article, but they typically have state, age, and income restrictions and can also be limited in the forms that they cover. Also, note that both H&R Block and Turbotax are no longer participating in the Free File Alliance. Furthermore, you may not be able to transfer to an upgraded paid plan (if needed), without reentering all of your information. If you have a simple return, the free versions in this article are just as good, don’t come with the restrictions, and are easily transferred to upgraded versions, if needed. Of course, you could always try to go the Free Fillable Forms route too, but I would not advise it. ;-)
Tax Software Discount Coupon Promo Codes
If you’re looking to pay for whatever tax software is the best fit or you’ve used before, here are some discount coupon promo codes to utilize, in order to get the best price if you need to upgrade to a paid version later on in the filing process. I have affiliate partner relationships with a number of these tax software programs, and they have provided me with special discounted pricing to offer to my readers that is the best you will be able to find anywhere, automatically applied by using the links below (for a limited-time only).
- H&R Block: 25% off at link on paid versions (this is an exclusive discount for 20somethingfinance readers)
- TurboTax: discounts have ended for this year on paid versions
- TaxSlayer: discounts have ended for this year on paid versions
- TaxAct: 20% off at link on paid versions
- Cash App Taxes: free to use (formerly “Credit Karma Tax”, now owned by Square/Cash App)
- FreeTaxUSA: lowest price at link on state e-file
- Liberty Tax: $10 or $15 off, varies by paid online version
- eSmartTax: $10 or $15 off, varies by paid online version
- E-file.com: 30% off at link
The Best Tax Software Prep:
Cheapest is not always best – particularly when it comes to something as essential as filing your taxes.
If you have a more complex return and want the most robust programs and support, the best tax software options are
All offer:
- the broadest feature sets of all tax programs
- they cover up to every possible form, with upgraded versions
- data imports
- prior year returns
- accuracy guarantees
- audit support (included or as an add-on)
- live chat support
- the ability to have a tax expert personally review your return (at H&R Block and TurboTax only, for an added charge)
And if things get real crazy, H&R Block even has office locations for in-person reviews and support. You can also check out my free guide on how to do your taxes to get your basics squared away in preparation for filing your return.
Happy tax filing to all!
Early bird gets the worm! H&R Block is usually 50% off during Black Friday weekend. I have self employment income so I always buy the premium edition for around $40 on sale. I urge you to mark your calendars.
But of course it’s ridiculous that lobbyists sponsored by these companies have made simple tax returns so complicated that we have to buy software to do it!
Where’s Credit Carma Tax?
Intuit was forced by the DOJ to sell Credit Karma Tax to Square as part of their Credit Karma purchase (Intuit also owns TurboTax). It’s now “Cash App Taxes”, and it looks like they’re still getting everything together.
FYI, it looks like Cash App Taxes (formerly Credit Karma Tax) has now fully launched on both the Cash App and desktop. Here’s the link: Cash App Taxes
Acquired by Cash App b/c Intuit is buying CK
Actually, free version of FreeTaxUSA covers pretty much everything:
Child Tax Credit
HSA contributions/withdrawals
Itemized deductions
Mortgage interest deductions
Charitable contributions
Investment income
Landlord rental income
Self-employment income
Business income
But you have to do it manually… Which I prefer because I see how things work.
Here’s what they don’t cover:
Foreign employment income (Form 2555)
Nonresident alien returns (Form 1040NR)
Customers or preparers living outside the United States when they file their taxes
At-risk limitations (Form 6198)
Casualty or theft gain or loss for business and income producing property
Donations of high value property over $5,000 such as collectibles, equipment, or real estate*
And, with FreeTaxUSA you can’t buy paper I-bonds with your refund.