Which Tax Software Is Right for You? An Honest 2024 Comparison

Choosing Tax Software: What Actually Matters

The tax software market is crowded, and marketing claims can make it difficult to distinguish between products. The truth is that all major tax software programs produce accurate returns for the vast majority of filers—the calculations aren’t different. What differs is cost, user experience, depth of guidance, customer support, and how well each handles specific situations like self-employment or investments.

Understanding the real differences helps you avoid overpaying for features you don’t need or choosing a free option that forces unexpected paid upgrades halfway through your return.

TurboTax: Best User Experience, Highest Cost

TurboTax, made by Intuit, is the market leader in consumer tax software with consistently high user satisfaction ratings. Its step-by-step interview process is the most polished in the industry, and its help content is thorough and easy to understand. TurboTax’s AI assistant and live expert features can be helpful if you have questions while filing.

Pricing (approximate for 2024 returns):

• Free Edition: $0 federal, $0 state – only for the simplest returns (W-2 only, no schedules)
• Deluxe: $69 federal + $59 per state – itemized deductions, mortgage interest, charitable contributions
• Premium (formerly Self-Employed): $129 federal + $59 per state – freelancers, investors, rental income
• Live Assisted plans: add $100–$200 for CPA/EA access

Best for: People who value a premium experience and don’t mind paying for it; complex situations with multiple income streams; those who want on-demand tax professional access.

Drawbacks: The most expensive option by far. The Free Edition is extremely limited—most real-world returns require the paid Deluxe or Premium tier. State filing fees are high.

H&R Block: Strong Middle Ground

H&R Block offers a solid product that combines competitive pricing with the added benefit of brick-and-mortar office support if you need it. Its interface is user-friendly, and its free tier is more generous than TurboTax’s.

Pricing:

• Free Online: $0 federal + $0 state – covers W-2, interest, dividends, student loan interest, earned income credit, child tax credit
• Deluxe: $55 federal + $37 per state
• Premium: $75 federal + $37 per state
• Self-Employed: $110 federal + $37 per state

Best for: A balance of price and features; filers who might want to switch to in-person help at an H&R Block office; those who want a free tier that covers more than TurboTax’s.

Drawbacks: Still significantly more expensive than FreeTaxUSA. The free tier has limitations that will push some users to paid.

FreeTaxUSA: Best Value for Most Filers

FreeTaxUSA is consistently underrated and underused. It offers free federal filing for almost all tax situations—including self-employment (Schedule C), rental income (Schedule E), capital gains (Schedule D), and itemized deductions. State filing costs $14.99 per state.

Pricing:

• Free: $0 federal for nearly all situations including self-employed
• Deluxe: $7.99 federal, $14.99 state – adds priority support and amended returns

Best for: Anyone looking for the best value; self-employed filers who don’t want to pay $100+ for Schedule C support; experienced filers comfortable navigating a no-frills interface.

Drawbacks: The interface is functional but less polished than TurboTax or H&R Block. In-product guidance is lighter. Not ideal for first-time filers who need a lot of hand-holding.

TaxAct: Solid Middle Option

TaxAct offers a middle-ground experience between the premium feel of TurboTax and the bare-bones efficiency of FreeTaxUSA. It handles most tax situations well and is priced moderately.

Pricing:

• Free: $0 federal for basic returns
• Deluxe: $47.95 federal + $54.95 state
• Premier: $69.95 federal + $54.95 state
• Self-Employed: $99.95 federal + $54.95 state

Best for: A balance of guidance and cost; filers with moderately complex situations who want more guidance than FreeTaxUSA but don’t want to pay TurboTax prices.

Cash App Taxes (formerly Credit Karma Tax): Truly Free

Cash App Taxes offers completely free federal and state tax filing with no hidden fees, no upgrades, and no paid tiers. It handles a surprising range of situations including self-employment, capital gains, and rental income.

Best for: Filers who want truly free filing (including state) and have a moderately complex return. The product has fewer bells and whistles but handles the math correctly.

Drawbacks: Only one state return included. Less guidance than premium products. No live support options.

Side-by-Side Feature Comparison

• Self-employed support for free or low cost: FreeTaxUSA wins ($0 federal), Cash App Taxes (free), TurboTax costs $129+
• State filing: Cash App Taxes (free), H&R Block ($37), FreeTaxUSA ($14.99), TurboTax ($59)
• Live CPA/EA access: TurboTax and H&R Block have live expert options; others do not
• Import W-2s from employers: All major products support this
• Import prior year return: All major products support this
• Mobile app: TurboTax and H&R Block have the best mobile apps

Which Tax Software Should You Choose?

The right answer depends on your situation and priorities:

• Simple return, want free: IRS Free File, IRS Direct File, or Cash App Taxes
• Self-employed, want free or cheap federal: FreeTaxUSA ($0 federal, $14.99 state)
• Want the best guided experience and can afford it: TurboTax Deluxe or Premium
• Want a balance of quality and cost: H&R Block or TaxAct
• Need access to a tax professional: TurboTax Live or H&R Block Online with Tax Pro Review

One practical tip: never purchase tax software directly. Wait for seasonal discounts through Costco, Amazon, or the software company’s own sale events. TurboTax and H&R Block regularly discount their paid products by 20–40% during January and February. You can also start your return in TurboTax, see the final cost, and then move to a cheaper alternative if the price is too high—just don’t pay or file until you’re committed to a platform.