It’s January, and that means that employers have begun to give employees their W2 forms. When it comes to filing your taxes, you should consider your options. Do you want to meet with a professional, or would you rather use a tax software? This article focuses on tax software. Below is a breakdown of three of the most popular tax software options.
TurboTax is one of the most popular names when it comes to online tax software. The software is easy to navigate, and the instructions are straightforward which makes it a great choice for taxpayers who are using tax software for the first time. Furthermore, the software allows you to import documents from over a million employers and financial institutions. The bottom line is that TurboTax is one of the most user-friendly tax software options that are available. With TurboTax it’s never an issue to go back and update your entries, so you don’t have to worry if you forget to add something. One of the only cons with TurboTax is its price. There’s a fee for using the online version and a fee for getting a state tax return. Plus if you have certain investments you might have to use TurboTax Premier which is more expensive than their basic version.
H&R Block’s tax software is just as easy to use as the TurboTax software. One of the best features of Block’s software is the checklists it provides. For example, one checklist makes sure you don’t forget to provide all of the required tax forms before you submit your filing. Block also provides “Learn More” links that answer most of the questions you will have when completing your taxes. The cost of using Block is similar to TurboTax; however, unlike TurboTax, you don’t have to pay more if you have investment income. One of the only downsides of Block is its search feature. It doesn’t always provide the best resources to help you get the answer you’re looking for.
TaxAct is one of the most inexpensive software on the market. However, if you decide to itemize you may have to pay more than you would otherwise. Still, the software offers a great deal when compared to competitors. Compared to competitors’ software, it’s not as easy to update your filing if you realize you forgot to add information. TaxAct probably isn’t the best choice for taxpayers who have never used tax software before. Other programs do a better job of hand-holding. The software has some reassuring security features, though. If you leave the program open but aren’t active, it will automatically log you out after a couple of minutes. Ultimately, TaxAct is the best software to use if your biggest concern is affordability. The software’s “Price Lock Guarantee” means that once you pay for the program you won’t have to pay more—even if you purchase it in January and wait until April to submit your filing.