Best Tax Softwares: 7 Top Cost-Effective and Premium Options in the USA

It’s that time of the year when most Americans are worried and tense– The Tax Season.

Taxes can be confusing, and finding the right tax preparation software—whether for professionals or individuals—can be just as challenging. Many users also seek software that ensures they receive the same refund or tax bill they expect.

Online tax preparation software simplifies difficult tax filing processes and ensures accuracy, time savings, and speed. They reflect tax code modifications from the IRS and help you enhance your refund amount by suggesting more relevant deductions. 

No one thinks about taxes until it’s time to pay one. This is the time when people usually ask: What is the best tax software? No worries, here we have listed 7 best tax softwares reviews based on their pros and cons. Besides this, we have also covered whether it is worth spending money on tax services or who should take the help of tax software. 

Let’s move forward to grab insights into the latest 2025 tax software.

Is Tax Preparation Software Worth It in the United States?

The United States is the hub for innovation in the technical industry. With over half of the U.S. population relying on tax software, the demand for digital tax solutions continues to grow. The advent of tax software has streamlined the filing process, maximizing deductions, ensuring accuracy, and reducing the time spent on tax preparation. 

The demand for tax software depends on the different situations of taxpayers. If you are an individual taxpayer, you are only reporting income from Form W-2 and taking the standard deductions. This is the situation where tax software can be efficiently used. But if you own a business, it gets difficult to manage a large number of investments and income from different sources. In such situations, you must consider taking help from CPA firms to ensure the return is accurate and you are receiving all the deductions you are eligible for. Later in this blog, you will learn about the top tax software for CPA firms. 

Whether you’re an individual, a small business owner, or a professional tax preparer, investing in reliable tax software can simplify compliance and minimize errors.

Pros of Tax Software for Tax Preparers

• Tax software saves manual data entry time, and it also automates calculations.
• The utilization of AI-powered tools to identify errors and inconsistencies ensures accurate and error-free returns.
• This practice is more cost-efficient than hiring a CPA firm for basic returns. 
• It enables seamless online filing with direct IRS integrations. 
• Premium options for tax software provide collaboration tools for tax firms. 

Cons of Tax Software for Tax Preparers

With benefits, every tech innovation comes with certain limitations, let’s look at the different cons of this software: 

• Business tax filing using tax software might be quite complex, it might require expert intervention. 
• Premium features of the software often come with higher pricing tiers. 
• It requires you to store sensitive data online, enhancing cybersecurity risks. 
• First-time users might take time to adapt to different software functionalities. 

Top 7 Premium and Cheap Tax Software for Tax Preparers

Here, you will come across the top 7  IRS-approved tax software for tax preparers. With their pros, cons, and detailed description: 

TurboTax

Best For- Ease of use, comprehensive guidance

Top Services- Step-by-step guidance, Live tax service, AI-powered accuracy

TaxSlayer

Best For- Affordable pricing for similar features

Top Services- Federal and state filing, best tax software for self-employed, Audit assistance

H&R Block

Best For- Live Support

Top Services- Online filing and in-person assistance. Tax pro consultation.

TaxAct

Best For- Overall Value

Top Services- Affordable plans, maximum refund guarantee, Business tax filing.

FreeTaxUSA

Best For- Overall Value

Top Services- Affordable plans, maximum refund guarantee, Business tax filing.

Jackson Hewitt

Best For- Complicated Tax Situations

Top Services- In-person and online filing, Expert tax prep, Refund advances

Cash App Taxes

Best For- Free tax filing

Top Services-  $0 federal & state filing, Crypto and stock reporting, Mobile-friendly

Now, let’s look at a more detailed explanation of the best Tax preparation software for professionals:

TurboTax: Best for Ease of use

Free version: Free versions provide a simple form of 1040 returns, which is used by 37% of the people (it provides no schedules except for child tax credit, student loan interest, and earned income tax credit).

Guarantee: It provides 100% accuracy and maximum refund.

Live Support: Two live plans, one is live assisted and provides final review and unlimited assistance. While another is live, full service that includes a dedicated expert to complete and file your return. 

Tax Refund Advance Loan: Yes

Pros:

• It provides a lot of help options.
• Downloadable Available
• It covers most tax situations. 
• Straightforward interface of the software.
• It reduces the need for manual work.

Cons:

• The free version of the software has some basic features and a single tax filing form.
• As compared to the competitors, the cost of premium features is comparatively higher.
• Lack of a Custom support feature with the free version. 

Product Details with Informed Pricing:

Free Version

This software is completely free for state filings.

• TurboTax allows you to file a 1040 form, but it can’t itemize or schedule your filings.
• In this section, around 37% of the taxpayers are eligible.  

Paid Version

Deluxe: $39 + $39 per State

It itemizes and helps to claim several tax deductions and credits. It is considered the best tax software for small tax preparers.

Premium: $89 + $39 per state

• Tax filing for investment reporting and rental income, plus business income. 
• If you need packages with live assistance, it has additional fees of $49 + $169. 

TaxSlayer: Best Software with Affordable Pricing

Free version: Yes

Guarantee: Complete guarantee of accuracy and maximum return

Live Support: Free software provides phone and email support, while the premium version has priority live chat and phone support. You can also get a dedicated tax expert to help you throughout the process in the self-employed tier. 

Tax Refund Advance Loan: No

Pros:

• As compared to other tax software, its paid versions are highly cost-effective.
• It provides tax-pro support to individuals who require extra support. 
• Clean, and understandable interface
• Supports all major IRS forms and schedules
• This software is fast

Cons:

• It needs improvement in content quality, help.
• Context-sensitive help can also be improved. 
• As compared to H&R Block and TurboTax, it needs interface improvements. 

Product Details with Informed Pricing:

Free Software

There is no specific cost for federal and state filings ($0 + $0)

It provides a free 1040 tax filing form, but only suitable for simple tax situations or for taxable income less than $100,000. 

Paid Packages

Classic

$27.95 + $42.95 per state.

It includes all tax filing forms, deductions, and credits. 

Premium

$49.95 + $42.95 per state.

It includes all tax filing forms, deductions, and credits with tax pro support. 

Self-Employed

$59.95 + $42.95 per state.

It has similar product details as premium features but also includes support for audit defense and self-employment needs.

H&R Block: Best for in-person and live support

Free version: Yes

Guarantee: Ensures complete accuracy and maximum refund. 

Live Support: With paid software, unlimited chat support is available with AI tax Assist. 

Tax Refund Advance Loan: Not available with H&R Block online

Pros:

• Its interface is modern and easy to use.
• It provides clear and helpful information
• It can save your spot and return later. 
• Seamless data entry while uploading tax documents. 

Cons:

• The paid version is expensive.
• Itemized decorations are not included in the $0. 
• With the free version, you do not get customer support via chat or phone. 

Product Details with Informed Pricing:

Free Software

$0 + $0 per state filings

The 1040 tax filing form also provides limited schedules 1, 2, and 3. This is the best tax software of 2025, free, due to its scheduling features. 

Paid Version

Deluxe

$35 + $37 per state.

It provides all tax filing forms, deductions, and credits. 

Premium

$65 + $37 per state.

It schedules D and E, and E-1s for investors and rental property owners

Self-Employed

$85 + $37 per state.

Considered the best tax software for small businesses, freelancers, and independent contractors. 

It also provides AI chat support access and tax pro. 

TaxAct: Competitive tax software to consider

Free version: Yes

Guarantee: Provides 100% accuracy and maximum refund

Live Support: You can get expert assistance by paying additional fees

Tax Refund Advance Loan: No

Pros:

• Its free version even includes retirements and dependent income.
• Comparatively affordable
• It provides high accuracy and maximum return guarantee. 

Cons:

• Frequent Upgrade Prompts
• Fewer online resources and limited guidance in comparison with other competitors.
• Error-checking can be improved. 

Product Details with Informed Pricing:

Free Software

$0 + $39.99 per state filed.

It is considered the best approach for simple filers with college expenses, retirement income, or unemployment. 

Premium Options

Deluxe

$29.99 + $39.99 per state filed.

This slab can be purchased by homeowners and those who want certain kinds of deductions for their child care. 

Premium

$49.99 + $39.99 per state filed.

If you want to file some capital gains and losses reports, this is considered the best option. It can also be used by those who have sold a home or rental property. 

Self-Employed

$69.99 + $39.99 per state filed.

This tier is highly used by contractors, small-business owners, and freelancers.

It provides Schedule C and Schedule F. 

Tax Pro Support can be accessed with additional fees of $60. 

FreeTaxUSA: Best for free tax filing

Free version: It provides free federal tax filing, while state filing might cost you extra. 

Guarantee: It even provides accuracy with free federal tax return amendments. 

Live Support: Limited free support, priority support includes additional cost

Tax Refund Advance Loan: Not available

Pros:

• It provides prior-year tax return filings.
• Free federal tax filings with low-cost returns
• It is highly accurate
• Supports various tax situations, including itemized deductions.
• It provides cheap premium and deluxe features.

Cons:

• It takes extra charges for state filing
• No live chat or phone support
• No tax refund advance loan options

Product Details with Informed Pricing:

Free Version

$0 + $39.99 per state filed

It provides taxpayers with a single 1040 form option. 

Premium Options

Deluxe

$29.99 + $39.99 per state filed

It is the best tax software for homeowners and deductions.

Premium

$49.99 + $39.99 per state filed

One of the best software for capital gains tax and rental property owners. 

Self-Employed

$69.99 + $39.99 per state filed

This tax tier is mostly used by contractors and freelancers, and it also provides Schedule C and F. 

Jackson Hewitt: Famous for a pretty straightforward Process

Free version: Only paid versions are available based on the complexity of the file. 

Guarantee: It provides accuracy and refund guarantee

Live Support: Online and in-person support is provided

Tax Refund Advance Loan: Yes

Pros:

• Low Price
• Comprehensive Coverage of Tax Topics
• Seamless interface of the software.
• Proactive error checking and excellent final review. 

Cons:

• Pages aren’t automatically saved.
• It doesn’t allow you to import a prior year’s return. 
• There are some quality, searchable, and context-sensitive issues. 

Product Details with Informed Pricing:

Free Version

There is no free version available for users

Paid Version

Deluxe and Premium

Pricing for deluxe and premium tiers depends on the complexity of the tax situation. Furthermore, it provides online and in-person options. 

Self-Employed

Its prices vary, including tax pro support.

Cash App Taxes: Best for Free Filing

Free version: Yes

Guarantee: Complete 100% accuracy and maximum refund

Live Support: No

Tax Refund Advance Loan: No

Pros:

• Clean and simple user interface
• Mobile App 
• Robust free state and federal filing.

Cons:

• No refund split
• Few help resources
• Doesn’t cover all tax situations

Product Details with Informed Pricing:

Free Version

Completely free for both federal and state tax files. 

Paid Version

Deluxe and Premium

There is no paid version available with this tax filing software.

Self Employed

This software is also free of cost and available for investors, including crypto & stocks.

How to decide whether I need tax software or not?

Two measures can be used for tax filings, such as tax software or tax professionals, such as a CPA. Now, the question is which measures make more sense for you, which can be decided using a few factors such as budget, the complexity of your tax situation, and how much help you need. 

Tax software can easily complete the taxpayer’s tax filing process without requiring them to answer a different set of questions they might be unaware of. Best Tax Software 2025 offers a streamlined filing process and handles specialty income and most tax forms. This software also notifies whether it is beneficial to grab a particular dedication. 

If you have multiple income streams and have made various investments, consider a premium version of the tax software. Tax pro version can help businesses simplify their tax planning process. 

Furthermore, basic features of the tax software can be used by small contractors or individual payers. Though Americans have the option to file taxes via a paper form that can be processed through the mail, these cases include a lot of unnecessary risks such as delays in tax returns or processing. So, in such cases, premium tax software plays a crucial role.

Looking at the importance of the tax software, you can also analyze the importance of the personal finance software. 

Free vs. Paid Tax Software: When is it Worth Paying for a Tax Service

There are various best tax software for small businesses or individual contractors. All of these software provides several options, ranging from completely free to premium versions. While a premium version has multiple innovative features and functionalities, some of the basic requirements can also be fulfilled with free software. 

If you are using a free tool, including software options available through the IRS Free File program. This can be treated as the best option for users if: 

• Your Adjusted Gross Income is $79,000 or less. AGI can be calculated by subtracting deductions from the total income. You are eligible for the IRS Free File guided options if your AGI is $79,000 or less. 
• Your tax situation is simple, as the free version covers tax situations such as standard deductions and regular income. While some of the software provides free support for retiree income sources like pensions, Social Security, investments, and annuities. 
• The free version can be considered the best option if you are comfortable with the DIY approach. Free versions also provide some minimal assistance as compared to the paid version. So, in this case, the self-filing process can be a bit more challenging. 
• Some of the IRS free file partners ask for a separate fee for state returns. However, this is a subject of concern if you live in a state that requires state return. So, while selecting this feature, you can compare the cost of free software versus paid software.

Benefits of upgrading to paid versions: 

Though the free version of the software has most of the basic features that work well for many taxpayers, there are several reasons you might consider the paid version: 

• Most Comprehensive Support: If you are new to tax filing and need customer support, the paid version ensures robust services like phone support, chat support, and a final review of your tax documents before filing. 
• Access to More Tax Forms: Paid versions can assist in uncommon situations and different forms. If you have multiple sources of income such as rental properties, complex investments, and self-employment, paid software can help you find the forms you need. 
• Enhanced Accuracy Checks: Paid software ensures form review to identify potential errors and mistakes that could trigger an audit from the IRS. 
• Audit Support: Most of the paid tax software provides audit assistance and protection if the IRS decides to take a closer look at your return. 
• Additional Features: Some features are considered nonessential but the premium version of the software provides tools like data imports from investment accounts, prior-year comparisons, and tax-planning resources. 

Recommended Read: Step By Step Guide to Develop CRM Software- Cost and Features

How to Choose the Best Online Tax-Filing Software in 2025?

Well, every tax software has different options and ways of operating. It raises multiple questions in the user’s mind, like, What is the best software for doing your own taxes? Or a professional working in a CPA firm might think: What software do most tax professionals use? This section will cover all the important factors that need to be considered while selecting online tax software:

• Ease of Filing: Tax laws are constantly changing every year, so the backend of the software must be frequently updated to keep up with the latest innovations. It ensures accurate results while filing taxes, leading to enhanced user experience.
• Tax forms Offered: Every individual needs a different tax form based on their income. So, when selecting software, look for the forms and services offered by the company to ensure all your needs are fulfilled seamlessly. 
• Price: This is one of the most crucial factors, as most of the tax software provides basic tax filing features free of cost, and premium features are available with their subscription plan. Premium features include customer support, audit protection, tax assistance, and state tax returns. Compare tax software costs among your filing options to ensure you don’t overpay. If you are paying more than $200 for your tax software, consulting with a tax professional might not be expensive for you.
• Customer Support: The tax filing process seems complex to you and needs extra help, a customer support feature can help you to file an accurate return. Every tax software has a different way of customer support, like virtual assistance, in-chat support, in-person help, or call availability. 

Final Words

Finally, you must have understood that every tax software comes with different pros, cons, and services. Furthermore, this blog must have clarified all your questions including:

• What is the best software for doing your own taxes?
• What software do most tax professionals use?
• Do I have to buy H&R Block software every year?
• Is TaxAct or H&R Block better?

If you are fascinated by the tax software idea and have an interesting idea, without any delay, think about connecting with the best custom software development company like DianApps.