Best Deals on Cheap (or Free) Tax Preparation Software in 2024
Tax season is always a source of worry and worry. It’s confusing with all the forms , graphs, and worksheets that need to be filled out. And it reveals the flaws and gaps in our accounting when we suddenly realize that we have lost, for example, all the receipts that we thought we had put in a safe place and completely forgot why we were so sure that we could deduct this trip to visit people.
That’s why so many people use tax preparation software and services to file their taxes to avoid costly mistakes. But tax return preparation doesn’t come cheap: Preparing a relatively simple federal tax return costs about $251 on average, and those costs can skyrocket as your tax situation becomes more complex.
But don’t despair. There are a variety of tax preparation options available these days, from surprisingly reliable free options to some pretty great tax preparation deals that don’t cost much but offer something in return.
Filing a tax return is free
Paying taxes is already bad. Paying taxes is just salt in the wound. If this isn’t an option for you , remember that there is never a fee to file a tax return, so you can always use the free fillable IRS forms to pay your federal taxes, and anyone who makes less than $72,000 can likely use the free form as well IRS for this. file your state taxes. However, not all states participate, although many states also have their own tax filing portals where you can file for free, so it’s worth checking. The main drawback here is the lack of guidance and advice other than the (often unclear) instructions on the forms.
The IRS is also testing a new program that will allow people to file taxes directly without using any commercial tax preparation software, but it is only available in 12 states this year and is not yet fully launched.
Most large tax preparation companies offer a free tier for relatively simple taxes, although they don’t always make it easy to access or use. H&R Block offers their free online service, for example, and Intuit TurboTax offers a free version (until March 31, 2024). You can also sign up for free to their Live Assisted tier, which typically costs $89 if your tax situation meets the criteria). You’ll need to check the limitations of these programs: if your tax situation is a little complex, they may not be suitable for you.
You can also take advantage of several 100% free tax preparation services:
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CashApp taxes . Owned by Square, Inc., CashApp Taxes lets you file both federal and state taxes for free, and the service includes free audit protection. This only works if you have a return from one state – if you live and work in different states, you probably won’t be able to use this. To use the service, you need to install the Cash App. The biggest drawback is the lack of customer support: if you have questions, it can be difficult to find someone who can help you.
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Volunteer Income Tax Assistance (VITA) . While this is not automated software, it’s worth noting that if you earned less than $64,000, you can use the IRS VITA service to prepare your taxes. The service is staffed by IRS-verified volunteers and can help with both federal and state taxes. You can use the VITA search tool to find a location near you.
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GetYourRefund.org . This is the online version of VITA, which offers help and preparation services for people with incomes under $66,000.
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AARP Tax Helper . Although administered by the AARP, this free tax return preparation service is available to anyone in their personal office, as well as anyone earning under $79,000 for the online self-filing service.
Great deals on tax preparation
All free tax preparation services have different limitations and are best suited for simple tax returns. If your situation is a little more complicated or you just want paid experts on your side, there are some great deals available.
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TaxAct and FreeTaxUSA . Both of these platforms offer fairly reliable tax preparation services for almost no cost. In both cases, preparing federal returns is free, but adding a state return will cost you some money ($34.99 for TaxAct, $15 for FreeTaxUSA). Free tiers are good for simple declarations; both also have paid tiers that you can upgrade to to get more services. The interface is similar to other tax preparation software and is quite easy to use.
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Jackson-Hewitt . Jackson Hewitt is an amazing deal; this will allow you to file both federal and state taxes for a flat fee of $25. The platform provides a step-by-step process for preparing your returns, with live chat support if you get stuck. It’s a little clunky and you’ll have to fill out a lot of information manually (as opposed to importing PDF forms), but the price is quite high.
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TurboTax . The best-known tax preparation platform is one of the easiest to use. If the free tiers aren’t right for your situation, the full service costs $89 plus $49 for additional state tax filing, or you can buy the software for $44.99 – $75.99 , depending on the complexity of your taxes.
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H&R block . H&R Block’s online service (not including the free offer) costs $35 to $85, plus a $37 state filing fee. You can also download their software for anywhere from $25 to $89 (plus additional fees if your taxes turn out to be more complicated than expected). Slightly cheaper than TurboTax and Liberty Tax, but the software and platform may be a little more difficult to use.
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Liberty Tax . With federal and state tax filing prices ranging from $82.90 to $122.90, Liberty Tax is not the cheapest or most comprehensive tax preparation platform. But it’s cheaper than hiring a CPA to do your taxes, and offers a fairly reliable service with plenty of support, including the ability to visit a shopping center and get personal advice.
If your taxes are fairly simple, you can probably get advice and file your taxes for free. If you have anything else, it’s usually worth paying something to get a real step-by-step guide through the tax form jungle.