Nearly half of all Americans will file their taxes online this year, and that number is only going up. Many people are filing online for the first time, and if this is you, you’re not alone. Between 2019 and 2020, e-filing rates increased by 5.9%. And it only got bigger from there.
Tax softwares have been exploding in popularity. From the ease of filing from your couch to the cost-effective free plans available to most people, it’s a no-brainer to file online. There’s still one big problem with tax software, though.
The best tax software helps you maximize your refund or minimize your tax bill. But what exactly is that? Let’s find out.
What Is Tax Software?
To begin, let us look at the basics. Tax software is essentially a digital tool that helps you prepare and file your taxes. IIt’s like having your own personal expert available to help you through the complicated web of tax forms and math. Your tax return is then automatically completed by these software applications after they have asked you a series of questions regarding your income, deductions, and credits. The best tax software should provide accurate tax estimates and projections.
Thinking about doing your taxes without software? It can be done, but I bet it would be a real pain. Avoid common tax errors by using the best tax software on the market.. It will do all the math, checks your work twice, and keeps you from making mistakes that could lead to an audit.
How Do You Find The Best Tax Software?
Choosing a tax software is an important decision since it can make the difference between a fast, easy return and dealing with a time-consuming IRS audit.
That’s why we’re doing a deep dive on the best options to help you get your taxes done on your terms.
How To Buy The Best Tax Software?
By leveraging the best tax software, you can optimize your tax strategy for long-term financial goals. But first, know your needs.
- Simple returns? Should you be single with a little income, a free choice could be sufficient.
- Self-employed or have investments? You probably need software with extra features.
- Business owner? Look for software tailored to your specific business needs.
Next, consider these factors:-
- Ease of use: Tax time stresses enough. Search for software with simple user interfaces and clear explanations.
- Cost: Compare features and pricing to find the best tax software for your needs.
- Customer support: Excellent customer service can literally save you if you run across problems.
- Data security: Your financial data is private. Select programs with robust security policies.
- Features: Does the software offer the deductions and credits you’re eligible for?
Pro Tip: The best tax software should offer import capabilities for easy data transfer.
Lastly, don’t be afraid to shop around.
- Read reviews: Always find out what other people have to say about the particular software.
- Try before you buy: Many software providers offer free trials. Take advantage of it.
- Ask for recommendations: Friends, family, or a tax professional might have suggestions.
Pros and Cons Of Tax Preparation Software
Like everything in life, tax software has its upsides and downsides. Let’s break it down:-
Pros:-
- Time-saving: Investing in the best tax software can save you time and money in the long run.
- Accuracy: Peace of mind comes from using the best tax software that guarantees accuracy in calculations.
- Convenience: You can do taxes at your own pace from the comfort of your home.
- Guidance: A lot of software offers helpful tips and explanations throughout the process.
Cons:-
- Cost: Although there are free choices, many well-known softwares have a hefty price tag.
- Learning Curve: The learning curve for some software can be high and can take some time to understand, especially for people who have never used it before.
- Data Security: Data Security: Data breaches constantly exist as with any online service.
Best Tax Software Plans For Individuals In 2025
Let’s start with our 10 best tax software picks for individuals. Filing as an individual can be as simple or complex as you’d like. Tax softwares will all walk you through the deductions you can get, but you don’t have to claim all of them.
A word of warning, though – skipping tax deductions may save you time, but it means a smaller return.
There are also some deductions you have to prepare in advance for. For example, you can claim a deduction for your drive to and from work, but only if you know how many miles the drive has put on your car. As you wrap up this tax season, consider asking your tax expert about prepping for other qualifying deductions.
The best tax software will keep things simple for you, so it’s worth doing a bit of research to make sure you don’t miss anything obvious. For example, some home repairs are tax-deductible, but not all tax software will ask about them.
A little research ahead of time could make a big difference in your tax return in 2025. In this blog, you’ll see the help, form limit, and costs of different tax software, but these should only let you know which software to look into further.
Once you have a few in mind, shop around! Make sure you’re working with the best tax software for your situation.
1. H&R Block – Free Edition
Tax giant H&R Block has been a household name in taxes for more than 50 years, so it’s no surprise they’re our very first pick for best tax software. With their average tax pro having around a decade of experience, they’re perfect for people looking for help and trying to transition to doing their taxes online.
Best For: People who are new to filing taxes online and want lots of guidance.
| Free Version | |
| Help Available | No in-person, large library |
| Form Limit | 1 Federal, multiple state |
| Final Cost | $0 |
2. TurboTax – Free Edition
A close second to H&R Block, TurboTax really made a name for themselves as the best tax software for people new to filing taxes. They feature dozens of helpful blogs, a supportive online community of more than 3 million members, and on-demand help with their paid plans.
Best For: Anyone who is familiar with the internet, but could use some tax guidance now and again.
| Free Version | |
| Help Available | No in-person, large library + online community |
| Form Limit | 1 Federal, 1 state |
| Final Cost | $0 |
3. Intuit Credit Karma
Formerly Credit Karma Tax, this service is TurboTax’s younger, free-er cousin. With Cash App Taxes, you can file totally free – they won’t even upsell you, since they don’t have any paid plans. People who are stressed by upsells and want to file on the go will find that Cash App Taxes is the best tax software for taking that anxiety away.
Best For: People who want to file from their phone and are confident flying solo.
| Help Available | No in-person, no library |
| Form Limit | None, even if you’re filing for several deductions |
| Final Cost | $0 |
4. Free Tax USA
Most blogs that review the best tax software focus on the few big companies out there. While the expert support with something like TurboTax or H&R Block is great, the cost for that support can be pricey.
That’s why we included Free Tax USA on our list. This software allows you to file your federal returns for free, no matter what your tax situation is. Their free edition covers a variety of tax situations, and their comprehensive paid version is one of the best on this list.
Best For: People looking to spend as little as possible while still getting access to live help.
| Free Edition | Deluxe Edition | |
| Help Available | No in-person, no library | Live tax support |
| Form Limit | None, even if you’re filing for several deductions. | None |
| Final Cost | $0 federal, $14.99 for state | $7.99 to upgrade + $14.99 for state filing = $21.98 |
5. 1040.com
We’ll say this upfront: 1040.com isn’t for you if you’re looking for something free, and it’s worth it.
As you’ve already seen, most “free” tax software isn’t really free and the final cost can catch you totally off-guard. 1040.com is one of the best tax software options because they fix that. They don’t offer a free return at all. Instead, everyone pays the same flat rate to file both federal and state returns.
This means that no matter how simple or complex your return is, you’ll pay just $25 total. Talk about a steal! Best of all, 1040.com partners with several charities, so you’ll be giving back just by filing taxes.
Best For: People who want to give back while filing a no-frills tax return.
| Help Available | No live help, but an extensive library. |
| Form Limit | None |
| Final Cost | $25 |
6. Jackson Hewitt
Best known for their pop-ups in grocery stores and malls, Jackson Hewitt has been helping Americans file taxes for nearly half a century. They’ve kept up with the changes in filing taxes and now offer two online options.
With Jackson Hewitt, you can file alone or with a tax expert. When you file alone, you still have access to live customer support and their 100% satisfaction guarantee. They’ll refund anyone who isn’t completely satisfied with their experience.
Filing with a tax expert online is a hands-off process. You give them the info they need and they take care of the rest. No matter how complicated your return is, you’ll pay one flat fee. The simplicity of Jackson Hewitt makes them a top contender for best tax software.
Best For: People who want a lot of guidance without complicated pricing guides.
| File Alone | File With A Tax Expert | |
| Help Available | None | Live support allows you to take a hands-off approach. |
| Form Limit | None | None |
| Final Cost | $25 to file both federal and state | $99 |
7. TaxSlayer
If you’re self-employed or have side gigs, Taxslayer’s Self-Employed package is perfect for you. It covers everything you need—like 1099 forms and Schedule C—without any form limits.
You’ll get top-notch support with live chat, phone, and email options, so help is always at your fingertips.
TaxSlayer ensures you get every deduction and credit you’re entitled to, making tax season a breeze!
Best For: Self-employed individuals who need comprehensive support and want a hassle-free tax filing experience.
Help Available | Live chat, phone, and email support |
Form Limit | None |
Final Cost | $67.95 federal + $39.95 to $44.95 state |
Best Tax Software For Freelancers and Small Businesses In 2025
Now we’ll be looking at the best tax software for freelancers and small businesses. These situations can make taxes more complex, so it’s important to have a tax software you can rely on.
When freelancing or running a small business, there are other things to take into consideration when doing your taxes. Whether you’re filing as a freelancer, small business, or individual, the hardest part of doing taxes is the prep. When you freelance or run a business, there are more steps to preparing for your taxes.
The best tax software will give you year-round access to help you stay on top of the prep. When you have that extra bookkeeping help directly from your tax filing system, you can track your business’s expenses and income.
Tracking expenses and income can do two huge things when it comes time to file taxes. First, it can help you get a bigger return. Secondly, good record-keeping can prevent you from being audited and can make the process run more smoothly if you do.
The final thing to take into consideration when searching for the best tax software for your small business is quarterly payments. Some freelancers and small businesses prefer to make quarterly tax payments instead of paying all at once at the end of the year.
Some tax softwares will send reminders or process the quarterly payments for you. If this is something you prefer, check with your tax software choices to see how they handle it. And again, don’t be afraid to shop around! Your business is important to you, and you deserve to feel confident and included in the process of filing taxes for it.
Find the best tax software for small business that offers tax planning features.
1. TaxSlayer
When it comes to complex tax situations, you can feel taken advantage of. Many companies present you with two options: pay a little and fly totally solo, or pay a lot and get the help you need.
TaxSlayer is different. Their self-employed package is one of the best tax software options on the market because it has everything you need for one price. All the forms, access to a tax expert, and even quarterly tax reminders.
They’ll guide you through the process from start to finish. The normal stress of filing taxes as a business owner or freelancer just melts away!
Best For: People looking for an all-in-one solution at a flat price.
| Self-employed | |
| Help Available | Live chat, phone, and email support |
| Form Limit | None |
| Final Cost | $54.95 federal + $39.95 state |
2. FreeTaxUSA
Tax season doesn’t have to be a hassle, especially for freelancers and small business owners. With FreeTaxUSA, filing federal taxes is free and filing state taxes is only $14.99, making it an affordable option. With excellent security and accuracy guarantees, it’s a dependable option for obtaining the largest refund with the least amount of trouble.
Their technology makes the process straightforward with features like W-2 import, easy roll-over for returning users, and real-time mistake checks. With a 4.8-star rating from over 543,000 users, you know you’re in good hands.
Best For: Freelancers and small business owners looking for an affordable, easy-to-use tax filing solution with no hidden fees.
Help Available | Email and message center support |
Form Limit | None |
Final Cost | $0 federal + $14.99 state |
3. IRS Free File
The IRS Free File program makes it possible to file taxes without spending a single penny. This program provides two simple options for filing your federal taxes online for free: Free File Fillable Forms for individuals who are comfortable with preparing their own forms, and guided tax software.
The guided tax software takes the guesswork out of filing by asking simple questions and ensuring accurate calculations. Some partners even provide free state tax preparation if you qualify. The Free File Fillable Forms offer a straightforward solution for any income level if you’d rather have more control, but you’ll have to do the calculation and guidance yourself.
Best For: Ideal for those who want to file their taxes for free and don’t mind doing a bit of the work themselves.
Help Available | No direct support, but partners offer guided assistance. |
Form Limit | None |
Final Cost | $0 federal + some partners offer free state filing |
4. TaxAct
Choosing a tax software is something you do every year. With all the options on the market, it’s no surprise most people don’t pick the best tax software for them on the first try. That’s why TaxAct lets you upload your forms from last year, even if you used another software.
Once you upload the basics, TaxAct’s huge library and expert tax help can guide you through the rest. Their beloved “bookmark” feature lets you mark places on your return that you need to come back to later, so you’ll never forget a form.
Best For: People looking to change providers for something with more guidance.
| Self-employed | |
| Help Available | Live chat, email, and phone support; enormous blog library and supportive online community. |
| Form Limit | None |
| Final Cost | $99.99 federal + $59.99 per state filed |
Ensure the best tax preparation software offers comprehensive coverage of tax forms.
5. TurboTax
Intuitive navigation and clear explanations are hallmarks of the best tax software. And that is precisely why TurboTax is so popular. Their user-friendly interface and prompt response times make them shine. When it comes to finding the best tax software for your small business, they’re worth a look!
The free plan is helpful for individuals, and their small business plans allow you to file all the forms you need with no hassle and lots of help.
Best For: People who are filing taxes for their small business/freelance income for the first time.
| Self-employed | Self-employed Live | |
| Help Available | Live chat help, blog library, online community. | Live video help, screen sharing. |
| Form Limit | None | None |
| Final Cost | $0*- final price of $129 $0 for state if you qualify for a free federal return | $89 – final price of $219 $59 or final price of $69 |
6. Found
It can be hard to do your taxes when you’re self-employed, but Found makes it look easy. This banking and tax tool does everything in one place to make it easy for you to handle your business’s money. It gives you free real-time estimates and automatic tax savings.
Found takes the guesswork out of taxes by setting aside money for you automatically as you make it. It also gives you real-time estimates so you’re never caught off guard. It also helps you find all the tax breaks you can get, so you pay the least amount of taxes possible. It also makes your Schedule C and 1099 forms automatically, and if you subscribe to Found Plus, you can pay your taxes right from the app.
Best For: Ideal for self-employed individuals who want a hassle-free way to manage their taxes and finances, with minimal costs.
Help Available | In-app support, FAQs, and email assistance |
Form Limit | Auto-generates Schedule C and 1099 forms |
Final Cost | Free basic features; Found Plus at $19.99/month for additional features, including tax payments |
7. H&R Block
Savvy business owners know that tax season comes once a year, but you need to be thinking about taxes all year-round. That’s why H&R Block’s best tax software for self-employed and small businesses gives you access to tax experts no matter what time of year it is.
H&R Block’s tax representatives for this package go through specialized training to help small businesses. They know all the ins and outs of federal and state tax prep, and you can even choose to have H&R Block do your bookkeeping and give you a business consultation.
Best For: People who want all their tax prep. taken care of year-round.
| DIY | File With A Tax Pro | |
| Help Available | Unlimited, on-demand chat help. | Virtual or in-person meetings, no DIY needed. |
| Form Limit | None | None |
| Final Cost | Starting at $115 & $49 per state filed | Starting at $203 & $70 per state filed |
Other Free Tax Filing Options
If you’re on a tight budget, there are some free tax filing options available. However, it’s important to note that these choices might have restrictions. For example, they might only be available to taxpayers with simple returns or low incomes.
Discover the best free tax software to file your taxes without breaking the bank.
1. IRS Free File: Work with the IRS to get free TaxSlayer and TaxAct tax software access. Those with basic tax circumstances—income less than $79,000 in 2023—usually find this choice well suited.
2. GetYourRefund.org: GetYourRefund links eligible taxpayers with IRS-certified volunteers able to virtually prepare your refund. For people under $66,000, this choice performs nicely and welcomes returns from past years (2020–2022). Independent filers whose income is under $79,000 also have a “File Myself” choice.
3. MilTax: Through the MilTax program, active service personnel, veterans, and their families can get free tax software, phone assistance, and live chat help. This service fits quite nicely for managing military-specific tax matters.
4. Tax Counseling for the Elderly (TCE): Specifically addressing seniors (age 60+) with tax concerns— especially those related to pensions and retirement. Some sites may also assist low-to-moderate income filers in their 50s.
5. Volunteer Income Tax Assistance (VITA): Get free help from IRS-certified volunteers at community organizations. This is a great option for low- and moderate-income filers, people with disabilities, and older adults. VITA services may not handle complex situations like self-employment income.
6. Free Online Tax Software: Many popular software companies offer free versions for very basic tax returns. Think one W-2 and no itemizing deductions. Before you start, be sure to review restrictions
7. Direct File (Limited Availability): For citizens of 12 states, the IRS tested a new scheme in 2025 whereby they could file straight with the agency for free. This service does not accept late files and has restrictions on credits, deductions, and income as well.
Pain-Free Ways To File Taxes In 2025
We’ve said it before and we’ll say it again – gathering information is the hardest part of filing your taxes. This is just as true of picking a tax software as it is of anything else.
The good news is that by doing the research and picking the best tax software for your situation, you’re already done with a big part of it! Once you find a tax software that works for you, it’s a huge chunk of work off your plate for next year.
Filing your taxes next year won’t be as hard as this year. The more time you spend getting to know your money and your taxes, the less intimidating it’ll be. Many of the best tax software companies have a newsletter you can subscribe to so you can keep growing your knowledge.
Knowledge is power, especially when it comes to something as elusive as taxes. Just by doing this research, you’re miles ahead of the roughly 7 million people who don’t file taxes at all. Filing a tax return can be an enormous boost to your financial security.
Many people find that their tax return can help them pay down debts, make important purchases, or bolster their savings account. These things are all crucial to financial wellness, which makes filing your tax return using the best tax software a jumpstart on your financial journey.
The best tax software will help you file your taxes and open the door to so much more.
Here at Penny Calling Penny, our tax blogs are only a part of our growing library. We’re dedicated to helping you learn to manage your money, no matter where you’re at on your financial journey. Subscribe to our newsletter so you never miss a Penny, and we’ll see you next time!
Pick Your Next Read:
FAQs
Filing taxes can feel overwhelming, but there are options to make it easier. You can use user-friendly tax software like TurboTax or H&R Block, hire a tax professional for personalized assistance, or check if you qualify for the IRS Free File.
Yes, TurboTax does offer a free version for simpler tax situations. However, keep in mind that additional fees might apply for more complex scenarios. So review TurboTax’s options to see if the free version aligns with your tax-filing needs.
If you’re a tax preparer, finding the right software is crucial. Consider options like Intuit ProConnect Tax Online, Drake Tax, or TaxSlayer Pro, based on what suits your preferences and budget.
We know everyone’s situation is unique, so finding the best online tax filing service depends on your needs. TurboTax, H&R Block, TaxAct, and FreeTaxUSA are popular choices with user-friendly interfaces. Consider factors like cost, ease of use, and customer support to discover the online service that genuinely fits your requirements.
