What we look for in rating tax software
The best tax software, by our determination, is the service that does most of the work for you for a price you can stomach. Or even for free.
To find the right software for various tax needs, we critique the top providers on a range of factors falling into five general categories: cost, user experience, value, access to experts, and trustworthiness. Each of these factors is rated on a five-point scale. Some are judged more heavily than others, resulting in a weighted average. The weighted average, rounded to the nearest tenth, is our editor's rating.
Cost (25% of rating)
Most Americans shouldn't have to pay for tax preparation, so we pay special attention to the free plans offered by each tax software provider. We consider the breadth of tax forms covered by each free plan and whether state returns are included or cost extra.
We take a close look at the paid plans offered by each company, which cater to filers with more complex needs, such as homeownership deductions, investment income, or self-employment. We evaluate the all-in price, which includes state returns, to compare how much these filers pay for the service and how it compares to competitors.
We emphasize this category because we believe that if you're looking for a do-it-yourself tax software, you're probably interested in keeping your costs down. The average price of a basic return prepared by a licensed tax preparer in 2023 was $124, according to a report by the National Association of Tax Professionals. Some of the best online tax software can get the same job done for a quarter of that price or less.
Examples
- A tax software provider offering no-cost federal and state filing with minimal restrictions will receive a 5 out of 5.
- If a provider's free filing plan is more limited than competitors' plans and/or charges a steep fee for state filing, it will earn a 3 out of 5.
- If a provider offers paid plans that are consistently more expensive than competitors' plans for filers with the same situation, it will earn a 1 out of 5.
User experience (25% of rating)
We considered whether the tax software is easy to use and navigate for the average user and whether e-filing — the preferred filing method by the IRS and many state governments — is the default.
Where available, we scanned public reviews of the company on Trustpilot, Consumer Affairs, Reddit, and the Apple and Google app stores to see what users said about the software's performance and usability, and the company's customer service.
Examples
- A provider with a simple, modern interface and a history of mostly positive customer reviews will earn a 5 out of 5.
- If a provider has a solid user interface but users have complained about consistent software bugs or errors, or bad customer service, it will receive a 3 out of 5.
- If a provider has mostly negative reviews, an outdated interface, and/or hard-to-reach customer service, it will get a 1 out of 5.
Value (25% of rating)
Feature-rich tax software may, justifiably, cost more than software with fewer helpful features. In addition to considering the sticker price of a provider's software, we consider whether the price is worth paying for certain types of filers.
High marks go to platforms with premium features like W-2 and 1099 document upload and prior-year tax return import, which reduces time spent manually entering data, and year-round tax planning tools for freelancers. Providers that include basic audit support in their paid packages are seen more favorably.
Examples
- A software provider that offers tools like estimated tax payment reminders for freelancers; full W-2, 1099, and prior-year tax return import and upload capabilities; and industry-specific tax guidance will receive a 5 out of 5.
- A provider with some time-saving features and tax-planning tools will get a 3 out of 5.
- If a provider has no time-saving features for filers, it will get a 1 out of 5.
Access to experts (15% of rating)
Taxes can be confusing, and getting help from an expert shouldn't be a luxury. We evaluate the availability of tax experts at each software provider and whether that access costs extra. We also consider the different ways filers can get in touch with experts. High marks go to companies that offer more than one method of communication, such as live chat and a dedicated phone line.
Examples
- A provider with paid packages that include unlimited access to tax experts via more than one channel will receive a 5 out of 5.
- A provider that restricts access to tax professionals to those who purchase the most expensive package, or that charges a high fee for access, will get a 3 out of 5.
- Providers that offer only technical or basic support and no tax-specific help will get a 1 out of 5.
Trustworthiness (10% of rating)
Trustworthy tax software providers have full accuracy and refund guarantees, so customers can ensure their tax liability or refund is calculated correctly and that they're compliant with federal and state tax authorities. The company's policy should include clear instructions for submitting a claim and getting reimbursed if an error is discovered in the software that results in penalties for a taxpayer.
Whether a provider's fees and terms are transparent is also an important factor. It should only take a few clicks to compare product offerings. Once a filer is preparing their return, they should only be prompted to upgrade if they no longer qualify for their initial plan choice, including the free version, and they should be automatically downgraded if they qualify for a cheaper plan.
We also know how important a company's reputation can be. In the online tax preparation industry, there have been a few notable public controversies around deceptive advertising. We evaluate federal complaints against these companies and what steps, if any, they have taken to rectify the issues.
When available, we considered a company's Better Business Bureau rating.
Examples
- A company with standard guarantees, transparent pricing, and no recent history of federal complaints or public scandals will receive a 5 out of 5.
- A company with a substandard accuracy or refund guarantee policy or confusing pricing, but no scandals within the last five years will get a 3 out of 5.
- A company that has been investigated by a federal agency or a state authority and has not accepted any wrongdoing will get a 1 out of 5.
