Filing taxes on your own can save you time and money compared to the back-and-forth of working with an accountant. However, you may still need to pay a fee to file both your federal and state tax returns.
There are free filing options, but those are typically limited to simple tax returns and lack the added benefits of a paid plan.
Consumers who have more complex tax situations, like income from self-employment or earnings from investments, will need to pay to use a tax filing program that supports those forms. And even if you don't have a detailed tax situation, you may want to upgrade to include live support from tax experts.
Before you pay for a premium tax software program, consider what free and paid options have to offer. Then decide which option fits your needs.
Free tax software
Free tax filing programs allow you to submit simple returns at no cost. You need to meet certain requirements in order to qualify for free filing. Each tax software defines simple tax returns differently, but a simple return is a basic 1040 form, which generally includes W-2 and unemployment income, limited interest and dividend income and standard deductions.
Check out if you qualify for a simple tax return.
All of CNBC Select’s best tax software programs allow eligible users to file a simple tax return for free. The one exception is TaxAct, which costs $29.96 per state return, but nothing for a simple federal tax return.
Here are your free tax filing options:
- Best overall tax software: TurboTax Free (for simple tax returns only. Not all taxpayers qualify.)
- Runner-up: H&R Block Free
- Best free tax software: Cash App Tax (formerly Credit Karma Tax)
- Best affordable tax software: TaxSlayer Simply Free
- Best for accuracy guarantee: TaxAct Free
Paid tax software
If you’re self-employed or a freelancer, you won't receive a W-2 and will need to upgrade to a paid plan that supports more tax forms and schedules beyond a basic 1040. For example, self-employed people need a plan that supports Schedule SE. Freelancers need to file a Schedule C, which accounts for freelance income and expenses found on a 1099 form (which acts like a freelancer's W-2).
And even if you earn W-2 income, you may still need to upgrade to a paid plan that includes certain schedules, like Schedule B, interest and ordinary dividends, or Schedule D, capital gains and losses, for earnings from the sale of your home, car, stocks and bonds.
Overall, paid tax software may be less of a choice and more of a requirement for your tax situation. However, you may also want to pay extra to benefit from enhanced features that can include help from a tax professional.
We reviewed deluxe, premium and self-employed tax filing plans and found that costs are as low as $11.05 for federal filing, plus a minimum of $4.95 per state.
Here are the tax filing options for paid plans (click View More to see the price breakdown by plan):
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): $69* federal, $59* per state
- Premium (includes returns with investments and expenses): $129* federal, $59* per state
- Live Basic (includes help from tax experts): $99* federal, $54* per state
- Live Deluxe (includes help from tax experts): $139* federal, $64* per state
- Live Premium (includes help from tax experts): $219* federal, $64* per state
- Full Service Live Basic (includes help from tax experts; simple tax returns only): $219* federal, $54* state
- Full Service Live Deluxe (includes help from tax experts): $269* federal, $64* per state
- Full Service Live Premium (includes help from tax experts): $409* federal, $64* per state
*Click here for TurboTax offer details and disclosures
**A simple tax return is Form 1040 only.
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
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.
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
Bottom line: Should you pay to file your taxes?
Ultimately, paying to file your taxes may not be entirely up to you. There are many situations, like income from freelancing or a home sale, that require you to upgrade to a premium plan. If you don’t qualify for a simple tax return, choose the most affordable plan that fits your filing needs.
And even if you qualify for a simple return, you may want to pay for a premium service, so you can maximize deductions, benefit from live support and maybe even have a tax professional review your return before you file.
Read more
Our methodology
To determine which tax software offers the best way to file your taxes online, CNBC Select analyzed 12 programs. We compared each program on a range of features, including:
- Cost
- User experience
- Expert tax assistance
- Accuracy and maximum refund guarantee
- Better Business Bureau (BBB) rating
- Customer reviews, when available
Cost was one of the most important factors. While many of these services offer free versions, many people have complicated finances that require them to pay to file their taxes. We evaluated the price per plan and weighed the features you receive, like the ability to maximize deductions and credits. The more bang for your buck, the higher a service ranked.
Whether you're new to filing taxes or a seasoned pro, user experience is crucial to filling out and submitting your return quickly and with little frustration. The services we chose had to be relatively user friendly.
The ability to speak with a tax expert or support representative was a big plus. Four out of five of the best tax software offered some form of support.
And if a service supported consumers with a generous accuracy and maximum refund guarantee, it was ranked higher.
We also considered the Better Business Bureau rating associated with the software. BBB ratings help determine whether a business is operating responsibly and if it helps to resolve customer complaints in a timely manner. Customer reviews were also taken into consideration.
After reviewing the above features, we sorted our recommendations by best for overall tax filing, runner-up, free tax software, most affordable and best accuracy guarantee.
The federal and state filing fees for the software programs mentioned above are subject to change without notice. Many programs don't charge you until you file, so there's a chance the fees can change from the time you start your return until you submit it.
