Best Tax Software for 2024 Filing Season
As we approach the 2024 tax filing season, finding the right tax software is crucial for a smooth and efficient filing process.
At Financer.com, we’ve thoroughly researched and compared the top tax filing options to help you make an informed decision.
Quick Answer: Best Tax Software for 2024
- Best Overall: TurboTax – Comprehensive features, great for complex situations
- Best Free Online Filing: H&R Block – User-friendly with option for in-person support
- Best 100% Free Option: Cash App Taxes – Free federal and state filing for most tax situations
- Best for Accuracy Guarantee: TaxAct – Offers up to $100,000 accuracy guarantee
- Best for Self-Employed: TaxSlayer – Affordable option with good support for freelancers
Whether you’re a simple filer, self-employed, an investor, or somewhere in between, we’ve got you covered with the latest information on features, pricing, and user experiences.
Comparing The Best Tax Software Side by Side
| Feature | TurboTax | H&R Block | Cash App Taxes | TaxAct | TaxSlayer |
|---|---|---|---|---|---|
| Best For | Overall, complex situations | Free online filing | 100% free option | Accuracy guarantee | Self-employed |
| Free Version | Yes (simple returns) | Yes (more forms than TurboTax) | Yes (all covered situations) | Yes (basic returns) | Yes (basic returns) |
| Pricing Range | $0 – $119 + state fees | $0 – $84.99 + state fees | $0 (federal and state) | $0 – $94.95 + state fees | $0 – $59.95 + state fees |
| Mobile App | Excellent | Very Good | Excellent | Good | Good |
| Live Expert Support | Yes (additional cost) | Yes (additional cost) | No | Yes (additional cost) | Yes (higher tiers) |
| Audit Support | Yes (paid versions) | Yes (paid versions) | No | Yes (additional cost) | Yes (higher tiers) |
| Import Options | Extensive | Very Good | Limited | Good | Good |
| Accuracy Guarantee | Up to $10,000 | Up to $10,000 | Up to $100 | Up to $100,000 | Up to $100,000 |
| Pros | – User-friendly interface – Comprehensive features – Excellent support options | – Robust free option – In-person support available – Good value for price | – Completely free – User-friendly mobile app – Covers most tax situations | – Affordable pricing – High accuracy guarantee – Good for self-employed | – Affordable for complex returns – Good support for self-employed – Intuitive interface |
| Cons | – Most expensive option – Upselling can be aggressive | – Less robust tools for investors – Support can be inconsistent | – No expert support – Limited import options – Not for complex situations | – Less intuitive interface – Limited free option | – Less comprehensive support – Fewer advanced features |
Note: Pricing and features are based on the 2024 tax year and may change. Always check the official websites for the most current information.
Top Tax Software Options for 2024
1. TurboTax: Best Overall Tax Software
Why We Chose TurboTax
TurboTax stands out for its user-friendly interface, comprehensive features, and excellent support options. It’s particularly beneficial for investors and those with complex tax situations.
TurboTax, developed by Intuit, remains a top choice for many taxpayers due to its intuitive design and robust features. Here’s what you need to know:
Comprehensive coverage for various tax situations
Excellent import options for investment data
Live expert support available
User-friendly mobile app for on-the-go filing
Audit support included in higher-tier packages
Key Features of TurboTax
Pricing for TurboTax 2024
- Free Edition: $0 Federal + $0 State (for simple returns)
- TurboTax Live Assisted Basic: Pricing varies based on tax situation
- TurboTax Full Service: $100 Back Offer on federal filing fees
2. H&R Block: Best Free Online Filing Experience
Why We Chose H&R Block
H&R Block offers an excellent balance of user-friendly online filing and the option for in-person support, making it ideal for those who may need additional assistance.
H&R Block provides a seamless online filing experience, especially beneficial for those with straightforward tax situations. Key highlights include:
User-friendly interface for online filing
Option for in-person support at local offices
Competitive pricing for various tax situations
Robust free filing option for simple returns
H&R Block Advantages
3. Cash App Taxes: Best Free Filing Option
Why We Chose Cash App Taxes
Cash App Taxes (formerly Credit Karma Tax) offers completely free federal and state tax filing for a wide range of tax situations, making it an excellent choice for budget-conscious filers.
For those seeking a no-cost filing option, Cash App Taxes stands out:
100% free federal and state filing
Supports most common tax situations
User-friendly mobile app
Accuracy guarantee
Cash App Taxes Features
Limitations
Cash App Taxes may not be suitable for those filing in multiple states or active traders with complex investment situations.
Choosing the Right Tax Software for You
Selecting the best tax software depends on your specific financial situation and needs. Consider the following factors:
Complexity of your tax situation
Budget for tax preparation
Need for expert support or audit assistance
Preference for mobile filing options
Availability of specific features (e.g., investment income reporting)
Factors to Consider
For First-Time Filers
Recommendations for First-Time Filers
- Best Option: H&R Block Free Online or TurboTax Free Edition
- Why: Both offer user-friendly interfaces and step-by-step guidance ideal for simple returns.
- Key Features to Look For: Easy-to-understand explanations of tax terms, free filing for simple returns, and robust help resources.
For Self-Employed Individuals and Freelancers
Recommendations for Self-Employed
- Best Options: TurboTax Self-Employed or TaxSlayer Self-Employed
- Why: These options offer specialized features for handling business income and expenses, including 1099-MISC and Schedule C forms.
- Key Features to Look For: Expense tracking, ability to import data from accounting software, and guidance on deductions specific to self-employed individuals.
For Investors
Recommendations for Investors
- Best Option: TurboTax Premier or H&R Block Deluxe + State
- Why: These versions offer robust support for investment income, including stocks, bonds, ESPPs, and cryptocurrency transactions.
- Key Features to Look For: Automatic import of investment data, guidance on reporting capital gains and losses, and support for less common investment types.
For Homeowners
Recommendations for Homeowners
- Best Option: H&R Block Deluxe or TaxAct Deluxe+
- Why: These options provide comprehensive guidance on homeowner-specific deductions and credits.
- Key Features to Look For: Support for mortgage interest deductions, property tax deductions, and guidance on home office deductions if applicable.
For Families with Children
Recommendations for Families
- Best Option: TurboTax Deluxe or H&R Block Deluxe
- Why: These versions offer comprehensive support for family-related credits and deductions.
- Key Features to Look For: Guidance on child tax credits, education credits, and dependent care expenses. Also look for help with the Earned Income Tax Credit (EITC) if applicable.
For Those Who Want Expert Help
Recommendations for Those Seeking Expert Help
- Best Options: TurboTax Live or H&R Block Online Assist
- Why: These options provide access to live tax experts for personalized advice and review.
- Key Features to Look For: On-demand access to tax professionals, ability to screen share, and final review by a tax expert before filing.
Remember, while these recommendations can guide you towards the right software for your situation, it’s important to review the specific features and limitations of each option.
New for 2024 Tax Season
As you prepare for the 2024 tax season, be aware of these important updates:
Key Tax Updates for 2024
- Inflation Adjustments: The IRS has made annual inflation adjustments affecting standard deductions and tax rates.
- Retirement Account Limits: Contribution limits for 401(k)s and IRAs have increased slightly.
- Form 1099-K Reporting: The threshold for receiving a Form 1099-K remains at $20,000 and 200 transactions for the 2024 tax year.
- IRS Direct File Pilot: The IRS is testing a free direct filing system in select states, which may expand in future years.
Maximize Your Tax Filing Experience
To get the most out of your chosen tax software and ensure a smooth filing process, follow these tips:
Steps for Efficient Tax Filing
Follow these steps to streamline your tax filing process and maximize your potential refund:
Steps
Gather All Necessary Documents
Collect W-2s, 1099s, receipts, and other relevant financial documents before starting.
Choose the Right Software Tier
Select the appropriate version of your chosen software based on your tax situation complexity.
Take Advantage of Import Features
Use direct import features to minimize manual data entry and reduce errors.
Review Deductions and Credits Carefully
Ensure you’re claiming all eligible deductions and credits to maximize your refund.
Double-Check Your Return
Review your completed return for accuracy before filing.
File Early
Submit your return as soon as possible to avoid last-minute rushes and potential identity theft.
Can I Trust Tax Software with My Financial Data?
When filing your taxes online, the security of your personal and financial information is paramount.
Top tax software providers employ robust security measures to protect your data. Here’s an overview of the security features offered by the leading tax software options:
| Software | Key Security Features |
|---|---|
| TurboTax | – Multi-factor authentication – Data encryption (256-bit AES) – Secure socket layer (SSL) technology – Regular security audits – Fraud detection algorithms |
| H&R Block | – Multi-factor authentication – Data encryption in transit and at rest – Secure data centers – Regular penetration testing – 24/7 security monitoring |
| Cash App Taxes | – Data encryption – Secure socket layer (SSL) technology – Regular security updates – Account verification processes |
| TaxAct | – Multi-factor authentication – Data encryption (256-bit) – Secure data transmission – Physical security measures at data centers |
| TaxSlayer | – Multi-factor authentication – Data encryption – Secure data storage – Regular security audits – Compliance with IRS security standards |
Understanding Common Security Features
Key Security Measures Explained
- Multi-factor Authentication (MFA): Requires multiple forms of verification to access your account, typically a password plus a code sent to your phone or email.
- Data Encryption: Converts your data into a code to prevent unauthorized access. 256-bit encryption is a highly secure standard.
- Secure Socket Layer (SSL): Establishes an encrypted link between a web server and a browser, ensuring all data passed remains private.
- Fraud Detection: Uses algorithms to identify suspicious activities or potential identity theft attempts.
- Security Audits and Testing: Regular checks and simulated attacks to identify and address potential vulnerabilities.
Additional Steps You Can Take to Enhance Security
Use a strong, unique password for your tax software account
Enable multi-factor authentication whenever possible
Avoid using public Wi-Fi when accessing your tax information
Keep your computer’s operating system and antivirus software up to date
Be cautious of phishing emails or calls claiming to be from the IRS or tax software providers
Regularly monitor your accounts for any suspicious activity
User Security Best Practices
While all reputable tax software providers prioritize security, it’s important to remember that no system is completely immune to threats.
By choosing a trusted provider and following good security practices, you can significantly reduce the risk to your sensitive information.
Important Note
If you suspect any unauthorized access to your tax information or potential identity theft, contact your tax software provider immediately and consider filing an Identity Theft Affidavit (Form 14039) with the IRS.
Frequently Asked Questions
Tax Software FAQs
Is it safe to use online tax software?
Yes, reputable tax software providers use advanced security measures to protect your personal and financial information. Always ensure you’re using a trusted platform and follow good cybersecurity practices.
Can I file my taxes for free?
Many tax software providers offer free filing options for simple tax returns. Additionally, the IRS Free File program provides free filing options for taxpayers with incomes below certain thresholds.
What if I need help while using tax software?
Most tax software options provide various support features, including searchable knowledge bases, chatbots, and live expert assistance (often at an additional cost). Choose software that offers the level of support you think you’ll need.
How do I know if I’m eligible for the IRS Direct File program?
For the 2024 tax season, the IRS Direct File program is in a pilot phase and available only in certain states. Check the official IRS website for the most up-to-date information on eligibility and availability.
Choosing the right tax software can significantly simplify your tax filing process and potentially maximize your refund.
By comparing options on Financer.com and considering your specific needs, you can make an informed decision for the 2024 tax season.
Key Takeaways
- TurboTax offers comprehensive features and support, ideal for complex tax situations.
- H&R Block provides a great balance of online and in-person support options.
- Cash App Taxes is an excellent free option for straightforward tax situations.
- Consider your specific tax needs, budget, and desired support level when choosing software.
- Stay informed about tax law changes and new filing options for the 2024 tax season.
Remember to start your tax preparation early and take advantage of the features offered by your chosen software to ensure a smooth and accurate filing experience. For personalized advice, consider consulting with a tax professional.
