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Best Tax Softwares of 2022

Best Tax Softwares of 2022

The task of filing taxes is frequently the one on your to-do list that you least look forward to, but effective online tax software can make the process easier. If you choose to file your taxes online, you should pick software that is simple to use, either free or inexpensive. We’ve ranked the best tax softwares for 2022, including best free file, best for investors, best for landlords, best for deductions, and more

Also Read:- How Are Business Management Software Useful?

Cash App Taxes, TaxSlayer, H&R Block, and TurboTax* are four of the best online tax software programmes that we tested and reviewed. We evaluated each company’s free tax filing options, usability, and level of customer support in order to identify the best of the best. Here are our top picks for 2022. Prices and other details are accurate as of Aug 2022.

Best Tax Software Of 2022

BEST TAX SOFTWARE FOR EASE OF USE (TurboTax Deluxe)

Our top choice for user-friendly online tax software is TurboTax Deluxe, whose straightforward design makes it easy to manage your tax return and enter all the required information. Additionally, you can immediately input your tax paperwork into the programme.

TurboTax Deluxe provides several useful resources to assist you in preparing your tax return, including explainer videos, questions to assist you in identifying tax deductions and credits, and justifications for why you could owe taxes. For someone who feels mainly confident filing their taxes but needs some assurance they’re doing it correctly, we found this to be quite helpful.

To file your tax return, you may effortlessly switch between categories thanks to TurboTax’s user-friendly layout.

Although TurboTax is simple to use, there is one significant drawback: upsells. Throughout the filing process, TurboTax makes repeated attempts to upsell additional goods like help and support packages for audits, revised tax returns, and one-on-one time with experts.

The majority of taxpayers don’t need to pay for these extras in order to effectively do their taxes, but the upsells may give them the impression that they do and require them to take time away from filing in order to decline each offer.

In comparison to its rivals, TurboTax is also the most expensive. For filing federal income taxes, the costs range from $59 to $119 (without discounts or add-ons), plus an additional $49 for each state tax return filed.

Who Should Use It?

If your W-2 is more complicated (you have investment income and itemised deductions, for example), and you feel comfortable filing your own taxes but suspect you might occasionally require some help, you should.

Cons

  • You can navigate to specific tax filing forms fast thanks to the straightforward, user-friendly UI.
  • Numerous useful tools, including EasyGuide and Explain Why, are included in TurboTax Deluxe. They provide you the opportunity to uncover extra tax breaks and credits and give you a brief justification for any potential tax liabilities.
  • When you upload your W-2, TurboTax will automatically fill in the necessary fields on your return.
  • It offers substitute safe login options so you can access your account without entering your password.

Pros

  • More than its rivals, TurboTax seeks to upsell you.
  • It costs more than the rival products.

BEST TAX SOFTWARE FOR CUSTOMER SUPPORT (TaxSlayer Premium)

Compared to its rivals, TaxSlayer Premium delivers superior customer service. It offers numerous methods for contacting customer service for help with tax filing, including phone, chat, email, and expert tax assistance. Although TurboTax also performs well in this area, TaxSlayer was our choice since it provides free tax expert support.

The wait time was under two minutes when we phoned TaxSlayer’s customer service number. Mardae, a courteous and knowledgeable customer care agent, answered our questions. We questioned him on how to submit 1099-NEC company income. He gave us step-by-step instructions on how to submit the form into the application and responded to our questions within minutes.

Who Should Use It?

Users that value outstanding customer care and want to pay a modest fee for a product with great support should choose TaxSlayer Premium. Taxpayers with the TaxSlayer Premium plan can use a special phone line. Along with more conventional options like live chat and email support, TaxSlayer also offers tax guidance over the phone and through chat.

Pros

It offers good customer service and offers a variety of ways to contact TaxSlayer, including phone, chat, email, and expert tax advice.

TaxSlayer Premium provides advice from a tax professional without charging extra.

Cons

Only the Premium and Self-Employed editions offer free tax advice.

BEST TAX SOFTWARE FOR THE SELF-EMPLOYED (TaxSlayer Self-Employed)

Because it provides outstanding customer support (including a priority phone line) and a platform that is simple and straightforward to use, even for more difficult returns, TaxSlayer Self-Employed (SE) was chosen by our team as the top option for self-employed filers. You have the option of choosing a guided interview, which will lead you step-by-step through the filing procedure.

One of the main benefits of TaxSlayer SE is that you may electronically submit your self-employed federal and state tax returns for less than $100. Other software, like TurboTax, can run you approximately $170 to file your federal and state tax returns, and then they’ll charge you extra if you want professional tax help.

You can click directly to specific tax forms to enter your income and deductions if you don’t require any additional assistance; this is a much faster option.

While using TaxSlayer’s guided experience can be beneficial, if you’re looking for a certain deduction or business expense, it might hold you down. For instance, a list of popular write-offs is offered once you click “Deductions.” Click “See More” to browse the remaining items if you can’t find the deduction you’re looking for.

Pros

Costs include assistance from tax experts to address any queries you may have.

It provides a guided experience to aid in your direct navigation to tax forms.

Cons

The tax specialists at TaxSlayer may not be certified public accountants, registered agents, or tax attorneys and have only received a limited amount of IRS VITA or internal training. However, the issue is escalated until it is settled if a tax expert is unable to address your inquiries.

BEST FREE TAX SOFTWARE (Cash App Taxes)

Cash App Taxes is the ideal tax software for you if your tax situation is straightforward—for example, if you only have one W-2 and a small number of deductions.

No matter how complex your return is, Cash App Taxes stands out from the competition in the tax software market by providing fully free tax filing. For uncomplicated returns, the majority of the major providers offer a free version; nevertheless, they charge for self-employed tax returns.

Although the application is free, you must download the app in order to use it. Additionally, Cash App offers very little in the way of customer support: users may only contact the company via email; there is no possibility to speak to a representative. It is therefore a fantastic free option for extremely easy tax returns, but we do not advise it for anyone with more sophisticated taxes unless they feel comfortable doing their own returns.

Who Should Use It?

Cash App Taxes is the ideal option if you need online tax software that is fully free and won’t charge you unexpected costs for any forms or circumstances, and you have a simple tax return (such a W-2 and a few standard deductions, like student loan interest). Also, using it is quick and simple.

Pros

It is totally free.

Cons

Phone assistance is not offered by Cash App Taxes.

For tax filing, you must download the Cash App.

Methodology

Nine well-known companies that offer online tax preparation software were the starting point of our examination: Cash App Taxes, eFile.com, Free Tax USA, File Your Taxes, H&R Block, TurboTax, Jackson Hewitt, TaxSlayer, and TaxAct.

Only online tax software providers that offer free tax preparation for straightforward submissions of both federal and state tax returns were included in our list of finalists in order to reduce the number of contenders. This whittled down our list to four: TaxSlayer, Cash App Taxes, H&R Block, and TurboTax.

We built three generic tax filing profiles and used the software to check each profile for usability, level of customer support, and free filing choices in order to assess the four finalists:

  • a single filer with student loan deductions and a fundamental W-2.
  • a married couple with a dependant, child care costs, and salary income.
  • a self-employed person who has company expenses and income.

For the purpose of determining which service offers the best online tax software, our analysis focuses on side-by-side comparisons of each provider’s features and prices. We examined each of the online tax preparation programmes to identify the top categories in the following:

Best Free Online Tax Software

In order to determine which company offered the best free online tax software, we looked at which one had the most impressive overall package of features, charged no fees for filing federal and state tax returns, had no restrictions on filing status or income, and provided the widest range of tax filing forms.

Best Online Tax Software for Ease of Use

For many consumers, an intuitive platform is crucial. In this area, we looked at each product to see which platform made it the easiest for consumers to complete their tax returns. We examined the Q&A tax interview choices offered by each company, checked to see if W2 forms could be uploaded and data entry could be automated, looked through all navigation menus, and estimated the time needed to do the tax return.

Best Online Tax Software for the Self-Employed. 

The income tax reporting process is typically more difficult for independent contractors than for employees. During tax season, it is crucial to make sure that online tax software meets the unique requirements of independent contractors and self-employed people. We assessed the pricing, support, state filing charges, deduction finder choices, and overall costs of each platform’s offering in this category.

Best Online Tax Software for Customer Service

Our investigation covered each platform’s support offerings in great detail. We looked into the user support options provided by the online tax software supplier and evaluated each one, including phone, live chat, email, and help articles. Additionally, we phoned customer service departments to evaluate their hold times and level of customer assistance.

Each category received a weighting and feature-by-feature score. The author, a certified public accountant (CPA) with more than 20 years of tax experience, finished all tax software testing by creating accounts with each supplier to carry out in-person assessments.

How To Choose an Online Tax Software Provider

When selecting the finest platform for you, three main factors should be taken into consideration: ease of use, price, and customer support.

Ease of Use

We are aware that submitting your tax return can be difficult. Some tax software companies, however, can make the procedure easier for you. The following questions should be taken into account before choosing a tax software provider:

  • Do the product’s menus make it clear where to enter tax filing information?
  • Do you have access to a Q&A tax interview that will direct you to the tax forms you need to complete your tax return?
  • Are there numerous support channels available to you, such as phone, email, live chat, and tax professional assistance?
  • Is it possible to test drive a product before buying it?

How To Choose an Online Tax Software Provider

When selecting the finest platform for you, three main factors should be taken into consideration: ease of use, price, and customer support.

Ease of Use

We are aware that submitting your tax return can be difficult. Some tax software companies, however, can make the procedure easier for you. The following questions should be taken into account before choosing a tax software provider:

  • Do the product’s menus make it clear where to enter tax filing information?
  • Do you have access to a Q&A tax interview that will direct you to the tax forms you need to complete your tax return?
  • Are there numerous support channels available to you, such as phone, email, live chat, and tax professional assistance?
  • Is it possible to test drive a product before buying it?

Costs and Fees

The key is choosing a product that not only meets your needs but also stays within your price range. Reviewing each product’s price while taking the following factors into account is a good idea:

Before choosing your product, take into account the following:

  • Which forms are accepted by the online tax software provider?
  • Is there a fee for filing a state tax return?
  • Are there any limits on the amount of income that may qualify someone?
  • Exist any available choices for support?

Customer Support Options

Make sure to go over help alternatives if you require more assistance while filing your taxes. Before choosing your product, think about the following queries:

  • Is it possible to call customer support? If yes, what are the business’s hours of operation?
  • Does the product offer email or live chat support while filing the tax return?
  • Is there an additional fee for more support? How much, if at all?
  • Does the product offer a tax professional option to help with tax filing?

IRS Free File

There are a variety of free tax filing choices available, but not all of them are created equal. Because Cash App Taxes has the most free forms overall, it was chosen as our top free selection after we evaluated the free versions of each of the four platforms.

There is another, less well-known option that gives free tax files with few restrictions and limitations, whereas many online tax solutions only offer a limited number of free filing possibilities.

If your adjusted gross income (AGI) is under $73,000, you can file your tax return for free under the IRS Free File programme. Because the IRS service supports additional tax forms for free, you might wish to choose it over the promised free filing through an online tax provider. You should browse each product category before using this service to see which free item suits your needs the best.

The current Free File providers are:

  • File 1040 Tax Return
  • File Your Taxes by Free File
  • Free Tax USA by TaxAct
  • IRS Free File Program by EZ Tax Return
  • TaxSlayer
  • 1040Now
  • Online Taxes

Even though this programme has been running since 2001, you might not be familiar with it. Only a small portion of taxpayers have used the programme, even though the IRS estimates that 70% of all taxpayers qualified for it.

Questions and Answers (FAQs)

When were taxes due for the 2022 tax filing season?

Monday, April 18, 2022, was Tax Day.

How much does it cost to use tax software?

You might be able to file simple taxes for free using online tax software. However, “do it yourself” internet tax solutions can cost anywhere between $17 and $119 for tax returns requiring additional tax forms. You can anticipate paying a fee to file your state tax return in addition to the federal filing fee; this fee can be anywhere from $40 and $49 per state return.

What happens if you miss the tax deadline?

You should think about submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, if you anticipate needing additional time to file.

Remember that while a tax extension extends the deadline for filing, it does not extend the deadline for paying your taxes, which remain due on the designated tax day. You can be subject to additional fines and interest if you don’t file a tax extension request or pay your taxes by the deadline. It was possible to request an extension until April 18, 2022.

When should I consider hiring a tax professional?

There are some filing circumstances where you ought to work with a professional, says the former IRS agent and CPA. I have witnessed a lot of “do it yourself” tax returns that were examined by IRS auditors.

Here are some situations where you ought to think about working with a tax expert:

  • Your business was newly established in the 2021 tax year, or it has a complicated legal form like an S-corporation, partnership, or corporation.
  • You work for yourself or with others.
  • Your tax circumstance has changed recently (such as your marital status, dependents, a job change, moving to a different state)
  • During the 2021 tax year, you sold a property.
  • You had jobs in several states.

How do I claim my Economic Impact Payment (aka stimulus check) on my tax return?

You might claim your third Economic Impact Payment (also known as a stimulus check) if you didn’t get it by using the Recovery Rebate Credit on your 2021 tax return. Your tax refund will go up or your tax obligation will go down as a result of the credit (and the credit will apply for both the first and second stimulus payments).

Refer to your Letter 6475, Your Third Economic Impact Payment, which includes the stimulus payments you received, to establish the amount of your claim. Early in 2022, postal notices were sent out.

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