Banking
CNBC’s best tax software of 2024
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Tax season can be stressful, but with the right tax software, you can save time and money and ensure accuracy. These programs guide users through the process so they can maximize deductions and increase their refunds. Many of the top tax filing software companies offer free and paid plans to cater to a wide range of users and stand behind their services with accuracy guarantees.
CNBC Select rounded up 2024’s best tax software providers based on factors like cost, user experience, expert tax assistance and additional features. (Read more about our methodology below.)
Best tax filing software of 2024
Best for user experience
TurboTax
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Cost
Costs may vary depending on the plan selected – click “Learn More” for details
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Free version
TurboTax Free Edition. ~37% of taxpayers qualify. Form 1040 + limited credits only.
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Mobile app
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Live support
Available with some pricing and filing options
Click here for TurboTax offer details and disclosures. Terms apply.
Pros
- Step-by-step guidance with a Q&A format that is easy to follow
- TurboTax Live provides on-demand advice and a final review from a tax expert
- Live Full Service has a tax expert prepare, sign, and file your return
- Audit support, which provides free assistance if you get an IRS or other tax notice
Cons
- More costly than other software programs
- Live expert assistance plans have additional costs
TurboTax is a leading tax preparation software that offers a variety of plans and backs its services with several guarantees. It guides you through each step with straightforward questions, and you get access to explainers, videos and extra tips. You can also pay to add live assistance — or let a professional handle your file altogether.
Standout features: TurboTax guarantees a maximum refund, 100% accuracy and audit support for your tax return. The software allows you to easily upload tax documents, and you can opt to file with the TurboTax app. Various levels of live assistance are available, including with free filing for qualifying users with TurboTax Free Edition. According to TurboTax, around 37% of filers qualify for free filing with expert help. Additionally, TurboTax offers tax refund advances.
Best for DIY filing
H&R Block
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Cost
Costs may vary depending on the plan selected (Free Online, Deluxe, Premium, or Self-Employed) – click “Learn More” for details
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Free version
Yes (for simple returns only)
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Mobile app
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Live support
Available with some pricing and filing options
Pros
- Simple step-by-step guidance that’s easy to follow
- Unlimited on-demand chat or video support with Online Assist plans
- Ability to speak to a tax expert who has an average of 10 years experience (for paid plans only)
- Over 11,000 physical locations so you can meet with a tax expert in-person
- Maximum refund guarantee, or H&R Block will refund the plan fees you paid
- Audit support guarantee, which provides free assistance if you get an IRS or other tax notice
- 100% accuracy, or H&R Block will reimburse you for any penalties or interest up to $10,000
Cons
- Must have a paid plan to speak with a live tax expert
- One of the more costly software programs
H&R Block is a tax preparation company operating in the U.S., Canada and Australia. It makes the filing process relatively simple, especially if you’re filing on your own, though you can also pay for a professional to review your return. Depending on the plan, customers can get live support online, over the phone or at over 11,000 tax offices nationwide.
Standout features: H&R Block provides access to AI Tax Assist with all plans. The company also guarantees a maximum refund, 100% accuracy, transparent pricing and process, as well as free audit assistance and mid-year care check-in. You can opt to file taxes online, with tax software or in person. H&R Block also offers tax refund advances.
Best free tax software
Cash App Taxes (formerly Credit Karma Tax)
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Cost
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Free version
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Mobile app
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Tax expert support
Pros
- Completely free to use
- Get access to Cash App Tax services like credit monitoring alerts and credit score updates
- Audit defense, which gives you support from a representative if the IRS audits your tax return
- Maximum refund guarantee, or Cash App will pay you the difference up to $100 ($25 minimum)
- 100% accuracy, or Cash App will reimburse you for any penalties up to $1,000
Cons
- Only available in 40 states and D.C. You can’t file with Cash App Taxes (formerly Credit Karma Tax) if you lived in a state for only part of the tax year, earned income in more than one state during the tax year or earned income in a state you didn’t live in
- No support from tax professionals
Cash App Taxes, formerly Credit Karma Tax, is worth looking into if your goal is to not spend money on filing your taxes. In most tax situations, you can use it to file your state and federal returns for free. Note that unless your return is simple, you need to be fairly comfortable doing your taxes yourself. It doesn’t offer access to professional tax advice or support certain situations, such as multistate returns or foreign income.
Standout features: Cash App Taxes guarantees a maximum refund and 100% accuracy. The company also includes free audit defense with every return.
Best affordable tax software
TaxSlayer
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File your taxes for as low as $27.02 with TaxSlayer*
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Cost
Costs may vary depending on the plan selected
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Free version
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Mobile app
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Tax expert support
Pros
- Cheaper plans, making this a more affordable choice if you don’t have a simple return and need to upgrade
- Low state filing fees
- One-on-one support from real tax experts with Ask a Tax Pro (select plans only)
- 100% accuracy, or TaxSlayer will reimburse you for any penalties or interest charges
- Maximum refund guarantee, or TaxSlayer will refund the plan fees you paid
- IRS inquiry and audit support with select plans
Cons
- Experts are only available on Premium and Self-Employed plans
*18% off your federal tax return. Offer is valid on federal tax returns e-filed by April 15, 2024, at 11:59 p.m. ET. Only valid for new or first time TaxSlayer users only. Promotion code must be entered at checkout. Offer is not applicable to state tax returns or additional products. Offer is valid for one-time use only and cannot be combined with any other coupons, promotions, discounts, or offers. Offer is nontransferable, cannot be sold or otherwise bartered, and is not applicable to previous purchases or returns.
TaxSlayer is an IRS-approved tax preparation software that backs its services with several guarantees. Packages are priced based on your tax situation and the level of support you want. That means if you’re a confident filer or have a simple tax situation, you can save some money by skipping features like chat support. As a member of the Free File Alliance, TaxSlayer also offers free tax services to eligible taxpayers in partnership with the IRS.
Standout features: TaxSlayer provides a maximum refund and a 100% accuracy guarantee. You can also file your taxes on the go through the mobile app. Additionally, TaxSlayer offers the option to deduct the cost of its services from your federal refund, which allows you to skip paying when you file.
Best for accuracy guarantee
TaxAct
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Cost
Costs may vary depending on the plan selected – click “Learn More” for details
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Free version
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Mobile app
No, the mobile app was discontinued
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Tax expert support
Pros
- Up to $100,000 accuracy guarantee, which reimburses you for IRS/state penalty or interest if the TaxAct software causes a calculation error in your return
- More affordable than other paid software
- Free one-on-one support from real tax experts with all plans
- Maximum refund and 100% accuracy guarantee, or TaxAct will refund the plan fees you paid and pay any difference in the refund or tax liability, plus cover any legal or audit costs up to $100,000
Cons
- Free plan charges per state return
TaxAct is a good pick for those who have a complicated tax situation and want to prioritize their return’s accuracy. While every provider on this list guarantees 100% accuracy, TaxAct takes it to the next level. If your return isn’t accurate, or you don’t get your maximum refund, the company will refund your software costs and pay any difference in your lower refund or higher tax liability, as well as cover any legal or audit costs up to $100,000. TaxAct is a also member of the Free File Alliance.
Standout features: TaxAct allows you to file online or download tax preparation software to use on your desktop. Plus, you can get help from a tax expert for a flat fee with TaxAct® Xpert Assist — a feature you can add to any of the provider’s plans.
How much does it cost to file taxes?
Different tax filing options have different costs.
Most tax preparation software comes with a free version, along with the option to upgrade to a paid plan. The tax prep services we reviewed either have no cost for free tax filing or charge as low as $11.05 for federal filing plus $4.95 per state. However, the costs can add up fast with the more complex deluxe, premium and self-employed plans — the most expensive is $170 for federal returns, plus $50 per state. If you want to add live tax support, the surcharge can be $35 to $100, plus state fees.
There’s also a DIY service provided by the IRS called IRS Free File where you can file your taxes at no cost. IRS Free File partners with online tax prep companies to help filers do free federal returns. Once you have your tax documents ready, go to IRS.gov and click on “IRS Free File.” From there, you can prepare and file your federal income tax online using either guided tax preparation (which redirects you to an IRS partner site) or Free File Fillable Forms.
If your tax return is more complicated and you don’t want to DIY using online software, you may want to think about hiring an expert like a CPA to file your taxes for you (which of course comes at its own cost). Keep in mind that some tax prep software offers an add-on benefit of live customer support with phone support and even full tax preparation, available for both individual tax filers and business owners. Costs generally range anywhere from $59 to upwards of $230.
Simple tax return vs. complex tax return
A simple tax return is the most basic type of tax return you can file, and many tax software programs let you file this return for free. A simple return generally includes W-2 income, limited interest and dividend income (i.e. investment income), standard deductions and unemployment income.
Some free plans also include the earned income tax credit (TurboTax Free Edition*, H&R Block, Cash App Taxes, and TaxAct), child tax credits (TurboTax Free Edition, H&R Block, Cash App and TaxAct) and student loan interest tax deductions (H&R Block, Cash App, TaxAct and TaxSlayer).
* (according to TurboTax, about 37% of taxpayers qualify for this edition and it’s available for Form 1040 + limited credits only)
If your finances are more complicated and you don’t qualify for a simple tax return, you’ll need to file a complex one and most tax software programs will charge you fees to file. Complex tax situations typically include anyone with freelance income (1099 tax forms or Schedule C forms for self-employed filers), small business owners (who would want to deduct business expenses) and landlords (who would want to deduct rental property expenses from their rental income), as well as anyone with investment income, or earnings from investments and stock sales.
The tax program you use will notify you if you can’t file a free simple tax return and instead need to upgrade and pay to file a more complex return. And even if you can file a simple tax return, you may want to pay for the next-tier plan to benefit from more tax deductions.
Should I itemize or take the standard deduction?
When you file your taxes, you can choose to lower your taxable income by either taking the standard deduction or by itemizing deductions.
The standard deduction is a preset amount that depends on your filing status, while itemized deductions are expenses you paid in the prior year that can reduce your taxable income. Itemized deductions may include mortgage interest, real estate taxes, property taxes, disaster losses, state and local income or sales taxes, charitable donations and partial medical and dental expenses, according to the IRS website.
In most cases, higher-income earners who have large, deductible expenses in the year prior will get a lower tax bill from itemizing versus taking the standard deduction. For example, owning rental property comes with tax-deductible perks that may exceed what a filer would otherwise receive through the standard deduction.
FAQs
When are taxes due?
The tax deadline this year is April 15, 2024. Due to state holidays, the deadline is slightly later for residents of Massachusetts and Maine — April 17.
What happens if I miss the tax deadline?
If you miss the April 15 deadline, you still need to file your taxes and should do so as soon as possible. You’ll incur a penalty if you file late and owe taxes, which only gets pricier the longer you wait. You won’t incur a penalty if you don’t owe and instead have a tax refund coming.
Can I pay taxes with a credit card?
You can pay taxes with a credit card, but providers typically charge a processing fee associated with doing so that may outweigh any benefits.
Besides the convenience factor, paying with a credit card allows you to earn cash back or other rewards, meet spending requirements for welcome bonus offers and potentially buy some extra time on tax payments by taking advantage of a 0% APR period. However, the processing fees and potential interest charges for late credit card payments can end up being greater than the value of the rewards.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every tax software review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of tax software products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best tax software options.
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Our methodology
To determine which tax software offers the best way to file your taxes online in 2024, CNBC Select analyzed over a dozen filing programs. We compared each program on a range of features, including:
- Cost
- User experience
- Expert tax assistance
- Accuracy and maximum refund guarantee
- Better Business Bureau (BBB) rating
- Customer reviews, when available
Cost was one of the most important factors. While many of these services offer free versions, many people have complicated finances that require them to pay to file their taxes. We evaluated the price per plan and weighed the features you receive, like the ability to maximize deductions and credits. The more bang for your buck, the higher a service ranked.
Whether you’re new to filing taxes or a seasoned pro, user experience is crucial to filling out and submitting your return quickly and with little frustration. The services we chose had to be relatively user-friendly.
The ability to speak with a tax expert or support representative was a big plus. Four out of five of the best tax software offered some form of support.
And if a service supported consumers with a generous accuracy and maximum refund guarantee, it was ranked higher.
We also considered the Better Business Bureau rating associated with the software. BBB ratings help determine whether a business is operating responsibly and if it helps to resolve customer complaints promptly. Customer reviews were also taken into consideration.
After reviewing the above features, we sorted our recommendations by best for user experience, DIY filing, free tax software, most affordable and best accuracy guarantee.
The federal and state filing fees for the software programs mentioned above are subject to change without notice. Many programs don’t charge you until you file, so there’s a chance the fees can change from the time you start your return until you submit it.
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* Cash App Taxes – TurboTax Free Edition: $0 Federal + $0 State + $0 To File offer is available for simple tax returns only with TurboTax Free Edition. A simple tax return is Form 1040 only (without any additional schedules).
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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