Best Tax Software in 2024
Filing taxes is difficult especially if you’re not a tax expert but tax software makes it easier than ever to prepare and file your taxes accurately without breaking the bank. Whether you’re a freelancer juggling multiple income streams, a student filing for the first time, or a small business owner managing deductions, there’s a solution tailored to your needs. We’ll explore the best tax software in 2025 , highlighting features, pricing, and user-friendly options so you can find the perfect tool for your tax situation. Plus, we’ll show you how to take advantage of free filing programs like the IRS Free File program and discounts from top brands.
What is tax software?
Tax software is designed to guide users through the process of preparing and filing their taxes. It simplifies tax law for personal and business use by automating calculations, providing fillable forms, and ensuring compliance with current tax codes. From self-employed individuals to large enterprises, there's a solution tailored to every need.
Why use tax software?
1. Software minimizes human errors by providing precise calculations.
2. Automates routine tasks, saving time and effort.
3. Regular updates reflect the latest tax laws and regulations.
4. It is generally cheaper than hiring a tax professional.
5. Identify potential deductions and credits to maximize your refund.
Free Tax Filing Options
For taxpayers earning less than $79,000, the IRS Free File program offers guided tax preparation through partner companies like TaxAct. This initiative allows eligible users to file their federal taxes for free while ensuring compliance with the latest tax laws. Additionally, the IRS is piloting its Direct File program in 12 states, enabling taxpayers to file directly with the IRS at no cost. If your income exceeds $79,000, you can still use the IRS's Free File Fillable Forms, which are electronic versions of paper forms. These tools are ideal for those comfortable preparing their own taxes without step-by-step guidance.
Best Tax Software in 2025
To help you decide, we've detailed the most popular tax software. Each has been evaluated based on user interface, features, price, and suitability for different user types (from individuals to large businesses).
1. Drake Tax Software
Phil Drake founded Drake Software in 1977 in Franklin, North Carolina. The company started out as a small operation, focusing initially on providing accounting firms with software to simplify the tax preparation process. Over the years, Drake Tax Software has grown substantially, becoming one of the most trusted names in the tax software industry. The software is known for its comprehensive coverage of tax situations, robustness, and reliability. It offers professional-grade tax preparation tools designed primarily for tax professionals rather than consumers, which differentiates it from many other tax software products on the market.
Features:
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Comprehensive tax preparation services are suitable for all states.
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Integrated electronic filing with both state and federal authorities.
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Detailed reporting tools and real-time processing allow for quick tax calculations.
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Strong customer support with a reputation for quick response times.
Utilization by SK Financial
With over 23+ years of experience in the financial services sector, we effectively leveraged Drake Tax Software to enhance our tax preparation services. As a company we are committed to simplifying complex financial processes for our clients, We appreciate the robustness and reliability that Drake offers. The software enables us to manage multiple client files efficiently, ensuring accuracy and compliance with the latest tax regulations. This experience and expertise allow us to provide a seamless and stress-free tax filing experience, catering to a diverse range of client needs, from individual tax filings to more complex corporate tax situations.
2. TurboTax by Intuit
TurboTax originated in the mid-1980s, developed by Michael A. Chipman of Chipsoft, based in San Diego. The software quickly gained popularity due to its ease of use. In 1993, Intuit, the maker of QuickBooks and other financial software, acquired Chipsoft, enhancing TurboTax with Intuit's robust financial software technology. Over the years, TurboTax has continuously evolved, integrating cutting-edge technology such as artificial intelligence and data import capabilities to streamline the tax filing process and customize user experiences, maintaining its position as one of the market leaders in tax software.
Features:
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Detailed step-by-step guidance.
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Option to consult with tax professionals.
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Covers various tax situations, from simple to complex.
3. H&R Block
H&R Block's history dates back to 1955 when brothers Henry W. and Richard Bloch founded the company in Kansas City, Missouri. Initially, the company focused on bookkeeping services for small businesses but quickly pivoted to tax preparation services after discovering the demand among their clients. Over the decades, H&R Block has grown into one of the largest tax service providers in the world, offering both in-person and digital tax services. The company has also expanded internationally, operating in Canada, Australia, and India, adapting to the digital age with its online tax software, which complements its vast network of retail locations.
Features:
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Physical branches for in-person assistance.
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Free audit support.
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User-friendly online platform.
4. TaxAct
A group of seasoned tax professionals and software developers in Cedar Rapids, Iowa, founded TaxAct in 1998. Their mission was to make tax filing as affordable and as straightforward as possible. TaxAct distinguished itself by being one of the first to offer affordable digital-only tax filing solutions, appealing to do-it-yourself taxpayers. Over time, TaxAct has expanded its offerings to include a variety of tax filing products tailored to different tax situations, including federal and state filings, always maintaining a focus on providing value through competitive pricing and useful features.
Features:
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Different editions are tailored to specific needs.
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Enhanced user interface.
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Educational tools and resources.
5. TaxSlayer
TaxSlayer began as a part of a family-owned company called Rhodes-Murphy, which started offering tax preparation services in 1965. The company launched TaxSlayer, a fully-fledged tax software, in 1998 from its headquarters in Augusta, Georgia, aiming to provide an easy and affordable way for individuals to electronically file their taxes. Over the years, TaxSlayer has grown significantly, partly due to its sponsorship of college football bowl games, which helped increase its visibility and brand recognition nationwide.
Features:
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Special editions for military and self-employed.
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Direct email support from tax professionals.
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Quick filing process.
6. e-File.com
e-File.com was launched in 2013 as part of the TaxWork LLC group, which aimed to provide an affordable and efficient online tax filing solution. Located in Virginia, e-File.com focuses on simplifying the tax filing process with an easy-to-use platform that offers competitive pricing, especially attractive to first-time filers and those with straightforward tax situations. Despite being newer to the market than some of its competitors, e-File.com has established itself as a reliable resource, particularly valued for its affordability.
Features:
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Low-cost federal tax return filing.
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Intuitive interface and easy navigation.
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Free chat support.
7. FreeTaxUSA
A group of CPAs and software developers founded FreeTaxUSA in 2001 with the goal of offering a free federal tax filing service that could handle even complex tax situations. The company is headquartered in Provo, Utah, and was one of the pioneering services to offer free tax filing with the support of the IRS Free File Alliance. FreeTaxUSA has grown by maintaining a commitment to providing free federal tax return services while ensuring security and accuracy, and it has filed millions of tax returns since its inception.
Features:
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Free federal filing, including for complex returns.
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Affordable state returns.
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Audit assistance options.
Pricing and Promotions Comparison
To help you make an informed decision, here’s a summary of pricing and promotions for the top tax software options:
|
Software |
Federal Filing Fee |
State Filing Fee |
Promotions/Discounts |
Best For |
|
TurboTax |
$0–$219 |
$0–$64 |
N/A |
Investors |
|
H&R Block |
$0–$195 |
$0–$50 |
20% off (ends April 18) |
Students |
|
TaxSlayer |
$0–$64.95 |
$0–$39.95 |
SAVE15 code |
Budget-conscious users |
|
Cash App Taxes |
Free |
Free |
N/A |
Free filers |
|
E-file |
$0–$49.99 |
$29.99 |
Discounts available |
Simple returns |
Take advantage of these promotions to save on filing fees while accessing professional-grade tools.
Tax Software for Specific User Groups
Freelancers
Freelancers need tools that simplify Schedule C filings and track deductible expenses. Platforms like Found offer automatic write-off tracking, real-time tax estimates, and a tax savings account to set aside funds for estimated payments. Alternatively, TaxSlayer provides affordable pricing and live chat support for complex questions.
Students
Students looking to claim education credits should consider H&R Block, which includes common forms like Form 1098-T (Tuition Statement) in its free tier. The software also supports deductions for student loan interest.
Small Businesses
Small business owners require robust tools to handle depreciation, payroll taxes, and profit/loss statements. TaxAct and Drake Tax Software excel in this area, offering comprehensive coverage for business income and deductions.
Budget-Conscious Users
For those seeking affordable options, TaxSlayer, E-file, and FreeTaxUSA provide low-cost solutions without compromising essential features. Use promo codes like SAVE15 to further reduce costs.
Additional Resources for Tax Filers
In addition to tax software, several tools can simplify your tax preparation process:
- Simplifi by Quicken is a budgeting app that helps track deductible expenses and plan for tax season.
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FlyFin AI an AI-powered app that scans bank accounts for potential deductions, ideal for freelancers and gig workers.
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Found is a platform designed for freelancers, offering automatic write-off tracking, tax savings accounts, and real-time tax estimates.
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HomePay by Care.com tool for managing household payroll and taxes if you employ a nanny or housekeeper.
These resources complement tax software by providing additional insights and simplifying financial management throughout the year.
Our Evaluation Process
We evaluated each tax software based on several key criteria to ensure we recommend only the most reliable and effective options. First, we considered ease of use , assessing how intuitive the interface is and whether it effectively guides users through the tax preparation process. Next, we analyzed pricing and value , determining whether the features offered are worth the cost and whether there are any promotions or discounts available to enhance affordability. We also examined the features of each software, ensuring they cover a wide range of tax situations, including those specific to freelancers, investors, and small business owners.
Customer support was another critical factor, as we looked for software that provides readily available assistance, including audit support, to help users navigate complex issues. Finally, we checked whether the software stays up-to-date with the latest tax laws and regulations, ensuring compliance and accuracy. This rigorous evaluation process ensures that our recommendations are well-rounded, reliable, and tailored to meet the diverse needs of taxpayers.
Conclusion
Choosing the right tax software depends on your unique needs, whether you're a freelancer, student, small business owner, or budget-conscious filer. By leveraging the tools and insights provided in this guide, you can confidently prepare and file your taxes with accuracy and ease.
Need personalized assistance? Contact SK Financial CPA today for expert tax preparation services. Our team uses Drake Tax Software to ensure compliance and maximize your refund. Get started now!
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