TOP 3 TAX PREPARATION SOFTWARE PROGRAMS

Disclaimer: Always consult your financial and legal professionals before making any decisions. We are not liable for the actions that you take from this informative article. You are an adult and make those decisions on your own 😊 Also - proudly not using AI to generate writing this post...so please excuse any overlooked grammatical errors 😅 I tried my best!

Picking your software to file your taxes is no easy feat because you mostly want to deal with it once and be done and have the software remember all your financial information so you don’t have to start from scratch the next filing season. I’ve had my fair share of experiences as a user, client, and service provider. I’ve worked for H&R Block during my career baby years in the tax industry and while I very much enjoyed using their in house software in the office, it comes a close second to Intuit.

1. Number one on the list is Turbotax. I’ve been using it for over a decade, from the desktop version to the online version for myself and clients. While it’s not perfect, heck what is perfect anyways! Their support team is quite competent and their user interface is better than other software I’ve used.

Pros – convenient, fairly economical, can purchase from Costco during their new year or holiday sales to maximize discounts, ease of use.

Cons – if you have a more complicated tax return such as a Schedule C, own rentals, etc, they’ll upcharge you and you must purchase their more expensive software.

2. TaxSlayer

I was introduced to this software when I volunteered through the IRS VITA program. VITA stands for Volunteer Income Tax Assistance. There are many IRS approved partners who seek to help the underserved community. I found a program through the AARP (American Association of Retired Persons) to hep focus on the elderly and low income population. While the software itself is quite clunky, it’s perfect for simple 1040’s and first timers.

Pros – great for simple 1040 filers who are just starting off and don’t have much to claim, low price point entry.

Cons – you’ll run into issues if you don’t understand the tax law well. Sometimes you have to navigate through their clunky user interface to work around the issues that might require a more experienced tax preparer to help decipher.

3. Free Tax USA

I worked with this software during my volunteering days as well. Very similar to Tax Slayer in regards to the clunky user interface, however, they’re doing better each year and making it very user friendly. It’s a tie between Free Tax USA and Tax Slayer IMHO.

Pros – great for simple 1040 easy filers, can handle some Schedule C nuances, fairly economical.

Cons – clunky, but there is potential as they’re trying to improve their user interface each tax filing season.

Notable mentions include Tax Act and H&R Block online.

They’re improving each tax filing season however, I’d prefer the other 3 software programs I mentioned before working with these 2 software programs. That doesn’t mean I haven’t worked with them or guided clients on how to navigate their systems. It’s just a personal preference at times and the comfort level of the client.

Most clients don’t want to deal with deciphering the tax code and knowing where to input things from their W2.

It always helps to get a 2^nd look or opinion for your peace of mind to make sure you’re getting the most out of your tax return. Again, this is based on your financial competency and comfort levels.

What tax preparation software have you used and prefer? Would love to hear from you!

If you have any specific tax filing questions, send me a message or book through my online consultation link here.

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