Tax fraud continues to be a widespread issue with no end in sight. And as consumer fraud is costing Americans billions each year, it's vital your tax return is filed securely to ensure your personal information and tax refund don't fall into the wrong hands.
So as you collect your tax documents and complete your tax return before the April 18 deadline, consider using one of these secure and expedited platforms to submit your taxes to the IRS.
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Three ways to securely file your taxes this year
Before you start filing your taxes, the first step is to collect your tax forms so you aren't scrambling once you start the process. A comprehensive list of documents you'll need is available from the IRS, but here are the most pertinent documents and information you'll need:
- Your social security number or tax ID number, along with your spouse's information
- Any employment and/or investment income documents in 2021 such as a W2 or 1099
- Forms for deductions such as mortgage interest, student loan interest, charitable donations or education costs
- Any forms regarding stimulus payments issued to you
- Your bank account routing and account number to receive your refund by direct deposit
Once you have the information needed, ensuring your tax return doesn't fall into the wrong hands is the next step. Here's where you can securely (and quickly) file your taxes this year.
1. Free through the IRS website
The IRS Free File program provides an online service for Americans to prepare and file their tax return from their laptop or smartphone.
IRS Commissioner Chuck Rettig said in a statement that, "IRS Free File offers taxpayers an easy, free way to do their taxes from the safety of their own home. Free File also provides electronic filing with direct deposit, which is the best way to avoid delays and receive refunds quickly and securely."
To qualify for the program, your adjusted gross income (AGI) must have been less than $73,000 in 2022.
There are several different partners serving different tax situations and incomes that participate in the Free File program, so be sure to select from this list here. At the time of publishing, there are 11 partner offers with varying eligibility requirements such as state of residency, age and income on the IRS site.
2. Use an online tax preparation service
If you don't qualify for the IRS Free File program or have more complicated tax-filing needs, you may consider using a tax software service. Some offer free options for simple tax returns, but may not come with needed tax guidance to help you through the process.
Each service ranges in features and price as each person's tax filing needs can be vastly different. For example, Turbo Tax offers a free service designed for first-time filers or simple returns. In terms of paid options, it offers a deluxe service for $39 for HSA contributions and itemizing deductions, a premium service for $69 geared towards real estate investors and a self-employment service for $89 for gig workers and contractors. However, each paid service had additional costs for each state tax filing.
So before you select a tax software service, it's important to choose one that serves your needs based on your tax situation. Here are some of CNBC Select's favorite online tax-prep services:
TurboTax
Cost
Costs may vary depending on the plan selected - see breakdown by plan in the description below
Free version
For simple tax returns only. Not all taxpayers qualify. See if you qualify.
Mobile app
Yes
Live support
Yes, costs extra
Terms apply, see below for our methodology.
Pros
- Step-by-step guidance with a Q&A format that is easy to follow
- TurboTax Live provides on-demand advice and a final review from a tax expert
- Live Full Service has a tax expert prepare, sign, and file your return
- Accuracy and maximum refund guaranteed*
- Audit support, which provides free assistance if you get an IRS or other tax notice
Cons
- More costly than other software programs
- Live expert assistance plans have additional costs
Cost breakdown by plan:
- Free (For simple tax returns only. Not all taxpayers qualify. See if you qualify): $0 federal, $0 per state
- Deluxe (helps you maximize credits and deductions): $59* federal, $59* per state
- Premier (includes returns with investments and expenses): $89* federal, $59* per state
- Self-employed (for personal and business income and expenses): $119* federal, $59* per state
- Live Basic (includes help from tax experts): for a limited time, $0* federal, state included - simple tax returns only; must file by 3/31
- Live Deluxe (includes help from tax experts): $129* federal, $64* per state
- Live Premier (includes help from tax experts): $179* federal, $64* per state
- Live self-employed (includes help from tax experts): $209* federal, $64* per state
- Full Service Live Basic (includes help from tax experts; simple tax returns only): $209* federal, $54* state
- Full Service Live Deluxe (includes help from tax experts): $259* federal, $64* per state
- Full Service Live Premier (includes help from tax experts): $369* federal, $64* per state
- Full Service Live self-employed (includes help from tax experts): $399* federal, $64* per state
*Click here for TurboTax offer details and disclosures
**A simple tax return is Form 1040 only.
Cash App Taxes (formerly Credit Karma Tax)
Cost
$0 federal and state
Free version
Yes
Mobile app
Yes
Tax expert support
No
Terms apply, see below for our methodology.
Pros
- Completely free to use
- Get access to Cash App Tax services like credit monitoring alerts and credit score updates
- Audit defense, which gives you support from a representative if the IRS audits your tax return
- Maximum refund guarantee, or Cash App will pay you the difference up to $100 ($25 minimum)
- 100% accuracy, or Cash App will reimburse you for any penalties up to $1,000
Cons
- Only available in 40 states and D.C.You can't file with Cash App Taxes (formerly Credit Karma Tax) if you lived in a state for only part of the tax year, earned income in more than one state during the tax year or earned income in a state you didn't live in
- No support from tax professionals
H&R Block
Cost
Costs may vary depending on the plan selected - see breakdown by plan in the description below
Free version
Yes (for simple returns only)
Mobile app
Yes
Live support
Yes, costs extra
Terms apply, see below for our methodology.
Pros
- Simple step-by-step guidance that's easy to follow
- Unlimited on-demand chat or video support with Online Assist plans
- Ability to speak to a tax expert who has an average of 10 years experience (costs extra)
- Over 11,000 physical locations so you can meet with a tax expert in-person
- Maximum refund guarantee, or H&R Block will refund the plan fees you paid
- Audit support guarantee, which provides free assistance if you get an IRS or other tax notice
- 100% accuracy, or H&R Block will reimburse you for any penalties or interest up to $10,000
Cons
- Plans that include speaking with a live tax expert start at $69.99 for federal, plus additional state fee
- One of the more costly software programs
Cost breakdown by plan:
- Free (for simple returns): $0 federal, $0 per state
- Deluxe (helps you maximize credits and deductions): $44 federal, $45 per state
- Premium (includes returns with investments and expenses): $60 federal, $45 per state
- Self-employed (for personal and business income and expenses): $92 federal, $45 per state
File with a tax pro:
- Virtual (includes help from tax experts): Starting at $85
- In office (includes help from tax experts): Starting at $85
- Drop off (includes help from tax experts): Starting at $85
TaxAct
Cost
$0 to $48.71 federal, $29.96 to $33.71 per state (see breakdown by plan below)
Free version
Yes
Mobile app
Yes
Tax expert support
Yes, costs extra
Terms apply, see below for our methodology.
Pros
- Up to $100,000 accuracy guarantee, which reimburses you for IRS/state penalty or interest if the TaxAct software causes a calculation error in your return
- More affordable than other paid software
- Free one-on-one support from real tax experts with all plans
- Maximum refund and 100% accuracy guarantee, or TaxAct will refund the plan fees you paid and pay any difference in the refund or tax liability, plus cover any legal or audit costs up to $100,000
Cons
- Free plan charges per state return
Cost breakdown by plan:
- Free (only covers simple returns): $0 federal, $29.96 per state
- Deluxe (helps you maximize credits and deductions): $18.71 federal, $33.71 per state
- Premier (includes returns with investments and expenses): $26.21 federal, $33.71 per state
- Self-employed (for personal and business income and expenses): $48.71 federal, $33.71 per state
TaxSlayer
Cost
Costs may vary depending on the plan selected - see breakdown by plan in the description below
Free version
Yes
Mobile app
Yes
Tax expert support
Yes, costs extra
Terms apply, see below for our methodology.
Pros
- Cheaper plans, making this a more affordable choice if you don't have a simple return and need to upgrade
- Low state filing fees
- One-on-one support from real tax experts with Ask a Tax Pro (select plans only)
- 100% accuracy, or TaxSlayer will reimburse you for any penalties or interest charges
- Maximum refund guarantee, or TaxSlayer will refund the plan fees you paid
- IRS inquiry and audit support guarantee with select plans
Cons
- Experts are only available on Premium and Self-Employed plans
Cost breakdown by plan:
Simply Free (for simple returns): $0 federal, $0 per state
Classic (for any tax situation):
Classic - $29.95 Includes all forms + free phone & email support.
Premium (includes priority phone and email support, live chat and help from a tax expert):
Premium - $49.95. Includes all forms + live chat support, Ask a Tax Pro, front-of-the-line assistance
Self-employed (for personal and business income and expenses):
Self-Employed: $59.95. Includes all forms + access to a tax pro with self-employed expertise
Each state tax return is $39.95. Actual prices are determined at the time of print or e-file. Offer is subject to change or end without notice.
If you decide to file your taxes either through the IRS website or a tax software service, be sure to use a private Internet connection such as your own internet at home or someone you trust. If you want to be extra vigilant, consider using a VPN (virtual private network) for additional security. Using a public Wi-Fi network, like one at a coffee shop, does not provide a secure connection and can leave your personal information vulnerable to theft.
Note that you can save on filing with an online tax preparation service by using the right credit card. For example, if you have an American Express card, check your Amex Offers — you may be able to get a one-time $10 credit when you spend at least $50 with TurboTax by May 15, 2023. You can also find a similar deal at Chase Offers: you can earn $10 back on your TurboTax purchase through April 18, 2023, and get up to $15 in extra savings. Keep in mind, Amex Offers and Chase Offers are targeted and require enrollment.
Here are some of our picks for the best cards from Amex and Chase:
Blue Cash Preferred® Card from American Express
Rewards
6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations, 3% cash back on transit including taxis/rideshare, parking, tolls, trains, buses and more and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.
Welcome bonus
Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first 6 months.
Annual fee
$0 intro annual fee for the first year, then $95.
Intro APR
0% for 12 months on purchases from the date of account opening
Regular APR
18.99% to 29.99% variable
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
2.7%
Credit needed
Excellent/Good
See rates and fees, terms apply.
American Express® Gold Card
Rewards
4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases
Welcome bonus
Earn 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases within the first 6 months of card membership
Annual fee
$250
Intro APR
Not applicable
Regular APR
See Pay Over Time APR
Balance transfer fee
N/A
Foreign transaction fee
None
Credit needed
Excellent/Good
See rates and fees, terms apply.
Chase Freedom Flex℠
Rewards
5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%), 5% cash back on travel booked through the Chase Ultimate Rewards®, 3% on drugstore purchases and on dining (including takeout and eligible delivery services), 1% cash back on all other purchases
Welcome bonus
$200 cash back after you spend $500 on purchases in your first three months from account opening
Annual fee
$0
Intro APR
0% for the first 15 months from account opening on purchases and balance transfers
Regular APR
19.74% - 28.49% variable
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3%
Credit needed
Excellent/Good
Terms apply. Information about the Chase Freedom Flex℠ has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
Chase Sapphire Preferred® Card
Rewards
$50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining, 3X points on select streaming services and online grocery purchases (excluding Target, Walmart and wholesale clubs), 2X points on all other travel purchases, and 1X points on all other purchases
Welcome bonus
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
Annual fee
$95
Intro APR
None
Regular APR
21.24% - 28.24% variable on purchases and balance transfers
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
None
Credit needed
Excellent/Good
Terms apply.
3. Consult a tax professional in your area
If hiring a tax professional is your preference, you'll need to do this quickly. As the tax deadline is quickly approaching, CPA's are becoming booked up with appointments to see their current clients.
But before you book an appointment, consider the cost of hiring a CPA. According to the National Society of Accountants, a 1040 tax filing with no itemizations cost an average of $220. With itemizations, the cost jumps to $323. But if you had any 'life events' occur last year such as getting married, having children or purchasing or selling a home, it may be beneficial to hire a CPA to help you create a tax strategy that works in your favor.
However, before you choose a CPA, ensure you understand their cost to file your taxes, as well as if they're the best fit for your tax needs. If you have a unique tax situation, such as being in the military or if you're a multi-property real estate investor, you may want to search for a CPA with experience handling similar situations.
Additionally, you may want to check the status of their certification by searching their name or practice on your respective state's CPA registry. And to finalize your decision, consider checking review sites like Yelp or Google Reviews to see if other people have been satisfied with their tax filing experience.
Hiring a CPA is likely the most expensive solution to filing your taxes, but having a professional on your side that understands taxes well can take a huge hassle off your plate — and could even possibly result in a larger tax return.
FAQs
Is it safe to file your own taxes?
It's generally safe to file your taxes electronically if you're using a safe private internet connection. That said, if you have a more complicated tax situation — for example, you're a business owner or have significant assets — you might want to consider hiring a professional to avoid filing mistakes that can result in an IRS audit.
What is the easiest way to do your own taxes?
You're most likely to find it the easiest to use tax software for filing your own taxes. The software will guide you through the process, taking your tax information and inputting it into forms for you. If you have a complex tax situation, you can opt to pay for a premium package with features that can simplify your filing experience.
Is it better to file taxes electronically or by mail?
Most of the time, filing taxes online is the better choice. This way, your tax return will reach the IRS and be processed much faster — which means you'll also get your refund quicker, especially if you choose direct deposit. Plus, your data will be safer when electronically encrypted. When you mail your documents, you leave your personal information exposed to potential theft.
What to avoid when filing taxes?
Errors when filing taxes can turn costly. Here are a few common mistakes to avoid:
- Choosing an incorrect filing status. Indicating your filing status is essential to filing your tax return. It has an impact on your tax bracket and the amount you'll pay in taxes, as well as the tax credits and deductions you can claim.
- Not having all the documents. You might want to rush and file your taxes early. After all, you want to get your tax refund sooner rather than later. But before you start, ensure that all organizations and institutions that might owe you a tax document have sent you one. Have all the paperwork ready before filing to avoid amending your tax return later.
- Not reporting all the information that has been sent to you. If you've received a tax document, the IRS has received it too. Enter all the information from such documents carefully so that everything matches the government's records. If something doesn't look right, bring it up to the document's sender and request a corrected form.
- Entering incorrect account numbers. Nobody wants to anxiously await a tax refund only to realize they have provided the wrong banking information. Remember to double check your bank account and routing number if you're choosing direct deposit.
- Missing out on tax breaks. The IRS might not be known as the most generous institution, but there are plenty of tax credits and deductions available, especially for families and homeowners. Always check how much you can deduct when itemizing before opting for the standard deduction.
- Not filing at all. You might be tempted to skip filing if you can't afford your tax bill. However, that can lead to penalties and even tax evasion charges. Instead, file a return and enroll in an installment payment plan offered by the IRS.
Bottom line
Tax season is unfortunately a ripe time for fraudsters to get a hold of your information. But if you file in any of these ways, you minimize the risk of your information being stolen, along with ensuring your tax return is processed correctly.
And by filing online or through a CPA, rather than sending your return through the mail, you'll minimize the time between filing and receiving your tax refund.
And once you receive your refund, it can serve as a tool to pay down debt, save for a home or invest for the future.
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