Which Tax Prep Program Is Right for You?

With tax season upon us, it’s time to figure out your plan for doing your taxes and filing your tax forms.

There isn’t a single “best” tax-preparation software that fits every taxpayer’s needs. Rather, the ideal choice depends on your personal and financial situation, the complexity of your return, your comfort level with preparing your own taxes and even whether you’re eligible for any free options. Here are some points to help you decide. 

Free filing options for eligible taxpayers

• The IRS Free File program provides access to free, brand‐name tax-preparation software if your income is below a certain threshold. This program is a good choice if you have a relatively simple return.
• Alternatively, if you’re comfortable entering your information yourself without step by step guidance, you might consider Free File Fillable Forms, which lets you electronically complete IRS forms at no cost.

These options are directly available on IRS.gov and are designed to meet the needs of many individual taxpayers.

When your tax situation is more complex

• If you are self employed or run a small business, you may have additional forms and credits to consider. In that case, paid commercial software might be more helpful because many of these programs offer extra tools—such as error checks, one on one support and the ability to handle more complicated situations such as business and foreign income and self employment deductions.
• Many of the commercial programs are available through the IRS Free File interface for eligible taxpayers, but if your income exceeds the Free File threshold or you simply prefer additional support, then comparing features (such as ease of use, customer reviews, available support and pricing) may help you decide which product best meets your needs.

Other considerations

• Think about how involved or “DIY” you want to be. If you prefer a guided, step by step process, then a commercial software package with a robust interview system may work well for you. If your tax situation is very straightforward (for example, you have only wage income and a few deductions), then the free options offered through IRS Free File or Free File Fillable Forms may be all you need.
• If you’re not sure about your return’s complexity or have special circumstances (such as self employment or foreign earned income, or other unique credits or deductions), it might be worth consulting a tax professional—whether through paid software that includes support or by directly hiring an enrolled agent or CPA.

Should I pay a tax expert for help?

Allison Boisson, an independent tax preparer in Washington, D.C., suggests the following rule of thumb to determine when you require assistance from a real, live tax professional: “whenever you have decisions to make that the machine can’t make for you.”

Generally speaking, if you’re divorced, own a primary or side business or have significant investment assets, you most likely should employ a professional firm or Certified Public Accountant (CPA) to prepare your taxes for you.

If your situation is relatively simple—meaning you have a salaried job that reports withholding in a standard W-2, and perhaps you have some interest and dividend income and standard tax relief deductions, such as the classroom supplies deduction for educators—then doing your own taxes can be the easiest, most economical choice. Your Form 1040 ideally shouldn’t go beyond Schedule A (for itemized deductions) and Schedule B (for investment income).

Which tax-preparation software is best for me?

With so many software and online tax-preparation program options out there, figuring out which one to use can seem almost as complicated as deciphering the tax law.

Software that’s installed on a desktop computer has its advantages, particularly in terms of data security and storage. Online programs provide more flexibility because they can be accessed anywhere there’s an internet connection, and updates are performed automatically.

Most tax-prep programs will import data from previous returns, and some will import data from other software programs. As far as user interface goes, some offer a very basic setup, meaning you’ll fill in the numbers in empty fields. Other programs (usually the more expensive ones) lead you through the task by asking you questions to help you complete your return.

When it comes to filing your tax forms, most programs allow you to e-file a simple federal tax return for free. Some include both the federal return and state return for the same price, while others charge filers extra for a state return.

We’ve compared a sampling of 11 online- and software-based tax-prep programs (listed alphabetically below) at various price points to show the wide range of options available to taxpayers. Most of these companies have multiple levels of online tax-prep offerings, including free versions for simple returns, to fit just about any need.

As an NEA member, you can find special discounts and cash-back offers on tax software and services, such as TurboTax, TaxAct, H&R Block and more, through NEA Discount Marketplace. Look under the “Office Supplies” filter, then click on “Finance & Tax Prep” to find available offers. 

Quick comparison of 11 tax preparation software options

CNET, a technology and science media company, evaluated and rated many of the tax-preparation programs in this chart. FreeTaxUSA was rated best for free-to-use software. TurboTax was rated the best tax software overall: The free version is good only for basic returns, while the Deluxe Edition has tools to maximize tax credits. An even more expensive version helps self-employed people and small-business owners find industry-specific deductions. H&R Block was rated highly for its vast pool of tax experts.

The Internal Revenue Service (IRS) has partnered with many companies to provide free web-based tax preparation services (the IRS Free File Program), but only if the taxpayer’s adjusted gross income is $84,000 or less (individual or joint filings).

Be sure to apply to free tax services only through the IRS website because scammers pretending to be members of the Free File Alliance may offer their “services” directly. Visit the IRS website for more information.

Given the upsurge in ID theft on tax returns, the IRS has made it mandatory to use a special identity protection (IP) PIN number or enter your adjusted gross income from the previous year.

Conclusion

Evaluate your personal circumstances. If you qualify for the free programs on IRS.gov—and your tax situation is relatively uncomplicated—then IRS Free File or Free File Fillable Forms can be the best, most cost effective option. On the other hand, if you have more complicated tax matters (for example, small business income, self employment deductions or special credits), you might prefer the features and support available from commercial software products. Keep in mind that the IRS itself does not endorse any one specific brand; its publications encourage you to choose the option that best meets your needs.

Because “best” depends on your individual situation, review the available free and commercial options, compare their features (including how they handle the types of income and deductions you expect to claim) and then select the one that fits both your tax complexity and your personal preferences.

NOTE: All of the information in this article is accurate as of March 1, 2025.