Best Online Tax Software for December 2023 – NerdWallet

Taxes are confusing enough without the added stress of figuring out which tax software is the best tax software. So we did the research to help you choose the ideal option to file taxes online. We focused on well-known and widely used tax-preparation software, and while the tax code is the tax code, there’s a crucial difference between paying for what you’ll use and paying for stuff you don’t need.

These star ratings are based on a tax provider’s free tier score. For more detailed scoring, see below. Providers frequently change pricing. You can verify the latest price by clicking through to each provider’s site.

There are many tax prep software providers out there, and each one offers different packages for different taxpayers. When choosing, it’s likely most helpful to start with your individual needs.

Form 1040 and schedules 1, 2 and 3, income from wages (W-2), income from bank interest (1099-INT) and dividends (1099-DIV), student loan interest (1098-E).

Itemized deductions (Schedule A), deductions and expenses from freelance or self-employed work (Schedule C), HSA distributions (1099-SA).

TurboTax’s software feels like an interview with a tax preparer who knows just what to ask and how best to guide you.

Its extensive assortment of tools, contextual learning features, and human tax help support offerings — which include a professional review of your return — make DIY tax filing accessible to a wide range of filers.

TurboTax has an interview-style Q&A experience and a wide range of functionalities that make entering information easy. Help is easy to access, and explanations are clear and authoritative. Contextual help, in the form of embedded links, sidebars and videos is exceptional.

If you don’t know what you need — or how much you need to pay for — it might help to examine the providers individually and what sort of experience each one offers. Here are a few areas to dig into:

• User experience: Software that feels like an interview — asking questions about your income and any live events that might allow for deductions — offers more guidance than a basic fill-in-the-blank process. The ability to import forms such as W-2s is better than having to manually type in numbers.

• Support options: Most tax software offers a searchable FAQ section or knowledge base, and some offer video tutorials or user forums to help answer questions. Audits are unlikely for most taxpayers, but if you think you’re at risk, and want to purchase protection, you should understand what your software provides.

• Tax pros for assisted help: One important offering in recent years has been one-on-one help from a human tax pro, live on your screen. Depending on the provider, these pros might be able to give you tax advice or review your whole tax return before you file. (This sort of help may come with an extra charge.)

• Availability of tax forms: If you find a provider that excels in the areas above, you then want to choose the package that covers all of the tax forms and schedules you need.