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Tax software and tax preparation services are often more expensive than do-it-yourself options. However, if you have complex taxes with significant investment income, itemized deductions, or a tax credit spanning multiple tax years, going to a tax prep expert or using tax software may be a good option. The best tax prep companies have sterling reputations, fair pricing schedules, and extra services available, like flexible in-person hours. The best tax software offers reasonable pricing, a user-friendly experience, and intuitive interfaces that file state and federal returns online while providing free tax software options for simple tax returns.
Best Tax Software and Tax Preparation of 2024
- Best Overall: H&R Block
- Best for Ease of Use: Jackson Hewitt
- Best Online Experience: TurboTax Live
- Best for Self-Employed: EY TaxChat
Best Overall : H&R Block
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- Cost: $89 and up
- In-person service: Yes
- Refund advance: Yes
- Drop-off, in-person, or virtual tax preparation services available
- Choose from 9,000 locations
- Pricing starts at $89 for a basic federal return and an undisclosed extra charge for state filing
- Additional costs per form can lead to high prices for some filers with complex taxes
- Not all preparers are CPAs
H&R Block is a well-known name in tax preparation with the size and reliability to help it win our top spot. In addition to doing your taxes yourself with H&R Block’s software, the company offers three full-service tax preparation plans. In 2023 over 20 million people filed their tax returns through H&R Block. You can have your taxes done either at one of the 9,000 H&R Block retail locations.H&R Block is based in Kansas City, Missouri, and was founded in 1955.
You have two options for tax prep performed at an H&R Block office. The first is an in-person tax prep service where you sit in the office (or at home on the computer) with a tax pro from a local office while your return is completed. The second option is a drop-off service where you leave your pile of tax papers, and everything is calculated on the correct forms. Then you come back to sign the final paperwork. In both cases, pricing starts at $89 for basic returns plus an extra charge per state. A newer option allows you to upload forms for a virtual tax preparation experience. This means you get the full service of an H&R Block representative without having to go into an office. The combination of a large number of locations and multiple tax preparation options at a reasonable price makes it our best overall pick. It also offers eligible customers a refund advance loan.Best for Ease of Use : Jackson Hewitt
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- Cost: Free consultation and varies
- In-person service: Yes
- Refund advance: Yes
- 5,200 office locations including 2,600 inside of Walmart stores
- Appointments and walk-in tax preparation supported
- Upload or drop-off forms to have your taxes prepared by a pro
- Offers refund advance loan
- Minimum tax preparation fee of $150 for federal returns
- Pricing not clear and transparent on website
- Not all preparers are CPAs
Jackson Hewitt makes tax preparation easy with several options to file either online or through a network of 5,200 locations, giving it the win for ease of use. If you want to have your taxes done while you shop for groceries, you may want to use one of the 2,600 locations inside Walmart stores. Many locations have evening and weekend hours, so you can have your taxes done on a schedule that works for you. Jackson Hewitt is headquartered in Jersey City, NJ.
For in-person tax prep, you can start by uploading your tax forms through the Jackson Hewitt website. You can even use your phone’s camera to take a photo and upload forms. If uploading proves to be problematic for you, head to a Jackson Hewitt location to drop off your tax documents and return later for your full tax review session. In-person meetings can be done by appointment or as a walk-in. Prices depend on how many forms are required to complete your return, so additional fees may apply for more complex tax situations.The company also has a year-round feature, Jackson Hewitt Tax Resolution Services, which serves customers in 48 states (excluding Minnesota and New Hampshire) and can help with issues including back taxes, tax notices, and property liens. It comes with a free consultation, additional pricing varies based on your needs, and eligible customers may qualify for an advance on their refund that can be directly deposited to their bank account.
With flexible hours and the option to drop off or sit with a tax specialist to prepare your return, Jackson Hewitt is a good choice for those who want a simple tax experience that works on their schedule.Best Online Experience : TurboTax Live
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- Cost: $119 and up
- In-person service: No
- Refund advance: Yes
- Have your taxes prepared by a professional without leaving home
- Three pricing tiers correlate to the complexity of your tax return
- Option to start your taxes on your own and upgrade to a professional preparer
- Self-employed taxes with one or more state can become expensive
- No option for in-person support
- Not all professional preparers are CPAs
Best for Self-Employed : EY TaxChat
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- Cost: $199
- In-person service: No
- Refund advance: No
- Get matched with a preparer who has experience handling tax needs like yours
- Work with a tax pro with access to unlimited advice
- Easy tax document submission using your phone or computer
- Pricing may be high for those with simple or basic tax preparation needs
- No option for in-person meetings or support
- Not all preparers are CPAs
Ernst & Young is well known as one of the “Big Four” accounting, tax, and legal consulting firms trusted by some of the biggest businesses in the world. For individual tax filers, Ernst & Young offers a digital filing experience through its app, EY TaxChat, that makes more complicated self-employed taxes easier, thus winning this category.
With EY TaxChat, your taxes are prepared and filed for you. Before filing, you will work with a tax professional online. You will also submit all tax documents through your phone or via the secured web portal. EY TaxChat includes unlimited advice from a tax professional who you are matched with based on your specific tax situation, which gives you more specialization than you may get elsewhere. Pricing starts at $199 and can go up depending on your needs and the forms that need to be filed. While EY TaxChat can handle simple taxes, this Big Four tax firm is particularly attractive for independent contractors, sole proprietors, landlords, and other business owners who have more complex tax situations. EY, which stands for Ernst & Young, is based in New York, NY.Filing Taxes Yourself Vs. Using a Tax Prep Service
Deciding whether to file your own taxes, either through using tax software or completing physical tax forms in paper form or online, can be a difficult decision. It's certainly less expensive to do your own taxes compared to paying a prep service but that's not always the main consideration. Most people start out preparing their taxes when they first begin working and can get by using the standard redesigned 1040 form that replaced the 1040 EZ form in 2018.
However, once their financial lives get more complicated with home ownership and mortgage interest deduction, investment income, and itemizing multiple deductions, it can make sense to consider using the services of a tax preparation service or CPA. Still, according to the IRS, almost half of Americans who e-filed tax returns did so themselves vs. using a paid tax preparation service. Depending on your income, you can prepare and file your taxes at no cost through the IRS Free File program.
Tax software has made the burden of self-filing much easier but many people don't feel they have the time or the inclination to file their taxes correctly and sometimes fear they may be spending too much for their tax bill by not being aware of the intricacies of the ever-changing tax code and taking advantage of things that a tax preparer might be able to uncover.Free Tax Filing Software vs. Paid Tax Software
For those with relatively uncomplicated tax returns free filing software can be an excellent time-saving option and can help avoid tax form completion mistakes and ease the filing process. Many tax software companies offer a free version of their for basic federal income tax returns and the IRS offers their own for those taxpayers with $79,000 or less in adjusted gross income (AGI).
The paid software options provided by tax software companies are appropriate for those with more complex tax returns that can rival the services offered by professional tax preparers and tax professionals, like CPAs. Paid software can handle more complex taxation situations such as itemized deductions, capital gains and losses, investment real estate transactions, and 401(K) required minimum distributions for federal and state income tax returns.
The Bottom Line
There are many options when looking for tax software and services. Some companies focus on small-to-mid-sized businesses, while others work only with individuals. Overall, H&R Block offers the best tax prep service on the market. A highly trusted name in the tax prep world, H&R Block has a massive network of 11,000 branches across North America, offers both in-person and drop-off services, and provides an online option for filing your taxes. H&R Block stands out not only for these reasons but also for its affordable fee-based services and offers a no-fee refund advance to qualified individuals.Compare the Best Tax Preparation Service Providers
| Company | Cost | In-Person Services | Refund Advance | Free Self Filing Option |
|---|---|---|---|---|
| Best Overall | $89 and up | Yes | Yes | Yes |
| Best for Ease of Use | Variable | Yes | Yes | No |
| Best Online Experience | $119 and up | No | Yes | Yes |
| Best for Self-Employed | $199 | No | No | No |
Frequently Asked Questions
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What Is a Tax Preparation Service?
Tax preparation services are full-service offerings to complete your annual tax filing forms for the IRS and, if needed, state tax agencies. Unlike online and desktop tax preparation software where you do your own taxes, a tax preparation service will review your tax forms and complete your taxes.
Some tax preparation services are available in person at local offices, and others give you access to a preparer or team of preparers online through a mobile app or website. -
Who Should Use a Tax Preparation Service?
Whether you’re looking to save time, don’t know how to handle a complex tax situation, or just don’t like doing math or using computers for your finances, a tax preparation service becomes a good choice for you.
It’s important to note that you can likely save money doing your own taxes manually or with tax preparation software. Depending on your income and tax complexity, you may even have the option to do your taxes online for free. -
How Much Does a Tax Preparation Service Cost?
Tax preparation service costs vary based on the provider you choose and the complexities of your taxes. Of the services we reviewed, there were limited options under $100 and those would only work for basic taxes with no state filing. Most tax filers should expect to pay around $150 or more for federal and state tax preparation. Some tax preparers charge a flat rate, while others may charge a fee per the additional form you submit. -
How Is a Tax Preparation Service Different From Tax Preparation Software?
Tax preparation services and tax preparation software get you to the same finish line, but the path there is very different.
With tax preparation services, you hand over your taxes to someone else to complete your tax forms. All you have to do is sign everything at the end and pay.When you use tax preparation software available via web and mobile apps, you enter the details from your tax forms into an online system that turns your tax data into finalized tax forms. Pricing typically varies depending on your needs but is often less than you would pay someone else to prepare your taxes.
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Can You Deduct the Cost of Tax Preparation Fees?
No. You cannot deduct the cost of tax preparation fees unless you are self-employed. Prior to 2018, it was possible to deduct these fees, but Tax Cuts and Jobs Act (TCJA) that Congress signed into tax law on December 22, 2017, effectively removed that deduction from 2018 through 2025.
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Is Tax Preparation and Tax Software Safe?
Yes, the companies we recommend all offer strong data security with multiple levels of protection, including industry-standard data centers, networks, and servers, to protect your personal information and robust privacy policies. -
What is the Best Software to File Taxes
We reviewed the top tax software companies available and chose Intuit's TurboTax as the best for online experience with its tax software based on its ease of use and its extensive level of software options that include live access to tax professionals. -
Companies we Reviewed
We reviewed the following tax preparation services: H&R Block, Jackson Hewitt, TurboTax Live, EY TaxChat, TaxAct, TaxSlayer, and FreeTaxUSA
How We Picked the Best Tax Software and Services
To pick the best tax software and services, we looked at 11 different tax services and narrowed down the list based on file fees, services offered, reputation, and the number of locations available for in-person tax preparation, if applicable. Lower-priced tax services earned higher marks, though higher pricing was justified in some categories for specific types of service or higher levels of service. The winning tax preparation companies offered services that would appeal to a wide range of needs with competitive, reasonable pricing. The winning services demonstrate notable expertise within the specific categories reviewed.Learn More About Tax Software and Services
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