TurboTax vs. H&R Block vs. TaxAct vs. TaxSlayer: Which Tax Software Wins?

TurboTax vs. H&R Block vs. TaxAct vs. TaxSlayer

TurboTax (turbotax.intuit.com)

TurboTax was developed in 1984 by Intuit, the company behind the popular suite of Quicken accounting software. Today it is the most widely-used tax software available. The features are ease of use, live support options, and purpose-based pricing.

TurboTax makes it easy for first-time or inexperienced tax filers to get started. Users are first asked to choose their situation, like “I want to maximize deductions and credits,” “I have a job (received W-2,” etc. This helps TurboTax determine which pricing plan is right for the user. The software then uses plain-language questions to walk users through every part of the tax filing process and includes quick explanations of confusing terms or processes.

TurboTax also offers many other conveniences, including importing a PDF of a previous return to start a new return, importing W-2 and 1099 forms by snapping a picture of them, and the ability to file taxes using the TurboTax mobile app. Users also have the option to get their return reviewed by a CPA or agent before they file as well as unlimited live tax advice for an extra fee.     

TurboTax guarantees accuracy or they’ll pay your IRS or state penalty and interest charges due that are caused by a TurboTax calculation error. While we don’t recommend going toe-to-toe with the IRS, for beginners, this is a major plus. It also guarantees the largest refund or smallest tax amount due based on your circumstances, and it offers audit support from tax professionals all year long. 

TurboTax offers a variety of pricing plans. Users can choose from one of four DIY TurboTax plans or four TurboTax Live plans. Fees for all plans are only due at the time of filing.

Note, however, that the tax professional can’t represent you or provide legal advice unless you upgrade to a paid service. 

Pros and Cons

Pros

• Leader in the tax preparation software industry

• Well-designed software with a great user experience

• Different package options to choose from based on your needs

• Ability to speak with a CPA or EA if you upgrade to TurboTax Live

• Easy information upload and import options

• Guarantees for accuracy and maximum refund

• Support responds quickly as long as you don’t wait until the last minute

Cons

• Except for the free version, software prices are usually higher than competitors

• Free and low priced packages don’t work for complicated tax situations

• Talking to a CPA or EA requires a higher-priced TurboTax Live package

• Your tax situation may upgrade the online version of the software but not tell you the final price until you file

• Manual information inputting takes time

• No progress bar

Available Packages and List Prices

One note about prices: Providers frequently change them. You can verify the latest price by clicking through to TurboTax’s site.

Ease of Use/Design

Creating an account and inputting information with TurboTax is relatively seamless, though time-consuming. You enter in your basic information—name, email, phone number—and a confirmation code is sent to your cell phone to ensure security. 

If you have a PDF of last year’s return (you should hold onto those), TurboTax automatically populates your address, previous year’s income, AGI, and applicable tax breaks. But if you don’t, you can select the manual option, which allows you to type in your information.

In lieu of filling out a boring questionnaire to input your marital status, number of dependents, and other information, TurboTax makes use of an interactive card-based website design, which improves the user experience. 

Once you answer a few questions, TurboTax gives you a rundown and then provides a list of the necessary documents you need to file, such as a 1098-E for student loan interest or a W-2 for your job. You can print this page, which may be helpful for those who are a bit less diligent about personal record-keeping.

You continue by inputting your and your dependents’ information. Since claiming dependents can be complicated, the tidbits of information shared along with the questionnaire help. 

Once you’re done inputting your information, which takes about 30 minutes depending on how complicated your background is and your typing speed, TurboTax moves on to your federal return, then state return. Then, you review your return and file it.

Customer Support Options

TurboTax offers support in many ways depending on the product you use to file your return. All products, including TurboTax Free, let you view TurboTax’s extensive database of FAQs and tax-related articles to help you understand potentially confusing concepts. You can get free help from their online community of TurboTax specialists and customers, too. Take this advance with a grain of salt, though. Customers may not always provide accurate information which could cause problems with your taxes.

TurboTax’s desktop products offer U.S. based phone support with TurboTax specialists. These specialists should be able to help you with your problems, but they’re probably not CPAs or EAs.

TurboTax’s online series of products offers one-on-one support with TurboTax specialists. These professionals can draw on your screen to help you fix any issues you have, but they’re not certified tax experts, such as CPAs or EAs.

TurboTax’s Live lineup of products offers assistance from CPAs or EAs. These tax professionals have certifications that prove their tax knowledge. This should make you feel comfortable that you’re getting the right answers when you ask detailed questions about your tax situation. You can share your screen with these professionals so they can guide you to solutions faster or see what may be causing problems with your return. 

Throughout the tax filing process via TurboTax, there’s an option to get support via a small blue button in the top right-hand corner of the screen. There’s a pop-up that reminds you that help is available, which is less annoying than your usual pop-up since let’s face it, filing taxes is hard. 

If you get stuck, you select the help option, then you are given the choice between searching the help center for the answer to your query, or setting up a call with a tax professional if your version includes this option. If you choose the call option, you’re matched with a tax professional and a timed callback window.

TurboTaxLive’s CPAs are prompt (during testing, a callback was received in less than 5 minutes), polite, and knowledgeable. Another bonus: While you receive a phone call, there’s a video chatting window that pops up. This means you can actually see who you’re chatting with. There’s a screen sharing option for those with more complicated tax questions, too.

While the wait time was minimal, it’s likely that the wait times increase as the tax deadline approaches. TurboTax offers Audit Defense, in case you’re audited. In collaboration with TaxResources, Inc., an agency of tax experts, you’ll be walked through the audit, and they even prepare documents and represent you in IRS meetings. It’s a paid add-on. 

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H&R Block (www.hrblock.com)

H&R Block has offered professional tax services since 1955, giving them over 60 years of experience. H&R Block has grown to become the most recognized tax preparation firm for small businesses. The company operates over 12,000 offices worldwide as well as online tax preparation, payroll, and business consulting services. 

H&R Block offers practically everything that TurboTax does for a little less. Users get a similar interface that walks them through the tax preparation process, popup explanations, and the ability to have a return reviewed by an accountant for an extra fee. Unlike TurboTax, however, users can also go to a brick-and-mortar H&R Block office to talk to an expert in person.

Like TurboTax, H&R Block lets users get started quickly by importing taxes from a previous year and uploading a photo of their W-2 form. It also offers a free plan for simple tax returns like TurboTax but with the added benefit of being able to file Schedule 1 through 3 forms which allow users to report business income, alimony, deductible student loan interest, and more. 

Like TurboTax, H&R Block splits its offering between the DIY File Online and Online Assist plans. All plans include on-demand chat, screen sharing, and an online help center.

With H&R Block, customers can do online tax filing with software on a computer or through a mobile phone (iOS and Android apps). 

Pros and Cons

Pros

• Recognizable name brand with a long history of tax preparation experience

• Pricing mostly lower than the top tax preparation software brand

• Relatively easy-to-use software

• Eight software options to choose from based on your need for assistance and tax situation

• Help options include live chat and phone support for every tier but Free Online

• Can upgrade to Assist products to receive advice from tax professionals

• Can import previous returns and certain tax forms

• Guarantees basic audit support, maximum refund, and 100% accuracy

• Support responds reasonably fast as long as you don’t wait until the last minute

• Access to six years of past tax returns for every tier but Free Online

• Progress bar is a good add-on

Cons

• Pricing can be higher than less-polished competitor options

• User experience not as seamless

• Free and low priced packages don’t support complicated tax situations

• Online Assist packages don’t guarantee you’ll talk to a CPA or EA

• Setup for mobile app can take a few moments

• Manual information inputting takes time if you don’t use import features

Available Packages and List Prices

One note about prices: Providers frequently change them. You can verify the latest price by clicking through to H&R Block’s site. 

Ease of Use/Design

While H&R Block’s user experience may feel clunkier than some of its competitors, it’s still relatively seamless. There are also some bits of personalization sprinkled in, such as the progress bar which shows you which section of your tax return you’re working on. It’s also nice because it helps lessen the stress associated with filing taxes.

Another perk of H&R Block as a tax filing option? If you’re not quite sure of your selection, many options have clickable questions/qualifiers, so you can ensure that you are selecting the most accurate representation of your tax situation.

Customer Support Options

H&R Block offers multiple layers of support depending on the package you choose. All levels come with access to expert articles in the help center, which offers a plethora of information and commonly-asked questions about W-2s, for example. 

Paid levels, including Deluxe Online and above, include technical support by chat or phone. This support isn’t necessarily designed to give you tax advice. Instead, it helps you answer questions about how the software works and how to get it to do what you want. 

The live chat has been updated from their outdated version to a slick modern chat window. The response time was only a few minutes. The chat representative was able to help answer our general tax question about the filing process. 

If you decide to pay for an Online Assist level of the software, you can ask a tax professional questions about your return and how to optimize it. This level also unlocks screen-share options, making it easier to figure out exactly what went wrong and how to fix it. Even so, the Assist version does not promise a CPA or EA, only a tax professional. 

And if you get audited, H&R Block offers a Peace of Mind extended service plan, which includes audit representation for the life of the tax return. With Peace of Mind, you’ll also get reimbursed up to $6,000 of additional taxes owed if H&R Block makes a mistake when filing your taxes. This costs money, unlike the free audit support guarantee. However, the Peace of Mind service plan provides much more help and hands-on assistance than the free audit support guarantee.

TaxAct (www.taxact.com)

TaxAct is less well-known among tax software providers, but it offers quality online software that generally costs far less than TurboTax or H&R Block. TaxAct was created in 1998 to offer affordable digital and download tax preparation services to individuals and small businesses. Since 2000, the company has helped electronically file over 65 million federal returns. We chose it as the best accuracy guarantee because it offers the most reimbursement for any difference in liability or refund of any provider we reviewed.

TaxAct offers nothing new feature-wise than most other tax software programs. Users can import W-2 forms as well as previous returns from other software and then use an online help wizard to answer questions and file their return. TaxAct also offers a downloadable version of its software for Mac and PCs for those who don’t want to prepare their taxes online.  

Despite its simplicity, TaxAct offers free and unlimited phone, email, and online chat support. Each plan also comes with a maximum refund and a 100% accuracy guarantee. Unlike other software that offers limited reimbursement options, TaxAct will refund the cost of the software and pay the difference in either the lower refund or higher tax liability, plus any legal costs or penalties, up to $100,000.   

TaxAct offers a free plan for simple returns and support as well as three paid plans which can handle increasingly complex tax filings and offer additional support options.

Pros and Cons

Pros

• Good navigation tools and data entry options

• New automated W-2 entry

• Deduction Maximizer

• Good help content in the Answer Center

• Enhanced review process and 2024 tax saving strategies

• New Xpert Help feature

Cons

• Some help links lead directly to IRS documents

• Help tools fragmented

• Expensive per-state filing

• Minor problem with mobile help

Available Packages and List Prices

One note about prices: Providers frequently change them. You can verify the latest price by clicking through to TaxAct's site.

Ease of Use/Design

The TaxAct website gets high marks for being simple to use. To get started with TaxAct, you first choose which online product you want to use, then create an account.

You'll need to enter your email address and verify your account using a code TaxAct provides. From there, you choose a username and password and select three security questions you want to answer. The final step is agreeing to TaxAct's terms and conditions.

When you get into your online account, you're automatically taken to the My Taxes screen, where you can add a new federal tax return.

Customer Support Options

TaxAct is happy to offer customer support by email or phone to answer questions or guide you through issues. 

TaxAct seems to sporadically offer live chat support for the online version. Sometimes, a live chat bubble pops up on the screen. When we filled out the information to request a live chat, they said that representatives were no longer available. Later, it appeared again and the software displayed there was a 10-minute wait.

As of December 2020, TaxAct was promoting a new feature to be launched in mid-January 2024. TaxAct Xpert Help provides unlimited help from tax experts during business hours for both federal and state tax return questions. The tax experts may be CPAs or EAs, but it’s possible they won’t be credentialed at all. Hours for this service are CST-based and are Monday through Friday from 8 a.m. to 8 p.m., Saturday 9 a.m. to 5 p.m., and Sunday 10 a.m. to 5 p.m. 

Special extended hours start on April 10 through the April 15 filing deadline. The service will be fee-based, but as of December 2020, TaxAct has not disclosed pricing.

TaxAct also offers a paid audit protection product called Protection Plus Audit Defense. The service helps if you receive an audit notice or inquiry from the IRS or your state. If you need help during an audit, Protection Plus Audit Defense will communicate with the IRS or your state tax filing agency on your behalf, assist with denied credits and tax debt relief, and assist with tax fraud. 

Assistance is available for federal and state audits and covers your return for three years after you enroll and file. It only covers the tax return you purchase it for, though, not all tax situations.

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TaxSlayer (www.taxslayer.com)

Founded in the 1960s, Georgia-based tax preparation company, Rhodes-Murphy & Co., launched an online tax preparation service for tax preparers and accountants called TaxSlayer in the early 1990s. 

TaxSlayer offers a simple interface like most of the providers we reviewed. Users just start by entering their tax situation (or importing last year’s tax return), enter their income, or import a W-2, and the software gets to work finding the best deductions. On-screen explanations aren’t as comprehensive as that of TaxSlayer’s competitors, but users can access phone and email tech support.

Unlike other providers, TaxSlayer offers limited options to access accountants or professionals who can review a tax return. 

TaxSlayer offers fewer products than its competitors, with its software only available online, not for download. However, other tax prep companies tend to vary their product levels based on the forms you need, whereas TaxSlayer allows for all forms with its Classic edition; its other editions go up in price depending on the professional assistance that you need. If you’re comfortable filing your taxes yourself, TaxSlayer’s Classic edition is the cheapest option for all forms at $17 for federal filing.

Nonetheless, the company offers a 100% accuracy guarantee and reimburses its customers for any federal or state penalties and interest charges. TaxSlayer also states that if their customers don’t receive the maximum refund they are entitled to, they will refund the applicable fees.

Pros and Cons

Pros

• Free filing for simple tax returns, including one free state filing

• W-2 import available for paid versions

• Relatively affordable add-on fee for state returns for versions other than Simply Free

• Free federal tax return version including all tax situations available for military members

• Phone and email support available for all pricing tiers

Cons

• Live chat support isn't available for all versions

• Doesn't support integrations with third-party apps

• No import option for information from brokerage firms, etc.

• No downloadable version

• Military version doesn’t include a free state tax return

Available Packages and List Prices

One note about prices: Providers frequently change them. You can verify the latest price by clicking through to TaxSlayer's site. 

Ease of Use/Design

TaxSlayer features a straightforward design and site layout. To get started, create a free account where you'll need to share your email address and create a password.

From there, you're taken to the TaxSlayer menu where you can begin your tax return. But first, make sure you read through and agree to TaxSlayer's use of information disclosure which details how TaxSlayer uses your information.

Next, select the version of the software you wish to use. The menu is laid out in a sidebar with six sections you can work through:

• Basic information

• Federal section

• Health insurance

• State section

• Summary/print

• E-file

The easiest approach is to start with entering your basic information, which includes your name, Social Security number, date of birth, mailing address, and occupation. You'll also enter your filing status and information for your dependents here as well as information about your Economic Impact Payment.

Next, you'll enter your federal tax information, including income, deductions, and credits. You'll also need to provide information about your health insurance. TaxSlayer transfers your federal return information automatically to complete your state return.

Customer Support Options

TaxSlayer offers unlimited email and phone support to Simply Free and Classic users. You can view the support phone number and current hours when you sign in. You can also send email questions to the support team directly from your account or forward them to support@taxslayer.com.

You'll need the Premium or Self-Employed software to get access to live chat help. You can also unlock Priority Support and the Ask a Tax Pro service with the Premium or Self-Employed versions. 

With Ask a Tax Pro, you can pose a tax question to a trained tax professional. Then, they'll contact you with an answer after researching your question. The upgrade cost to add this service is the $20 difference between the Classic and Premium software options or $37 between the Simply Free and Premium software options.

TaxSlayer's Knowledgebase includes answers to many common tax questions. If you don't want to wait for an email response or stay on hold over the phone, try searching the Knowledgebase to find the information you need.

You can also get support from TaxSlayer if you're audited. Audit Assistance is available for three years from the date you purchase your tax software for Premium customers. 

There are some limitations, however. TaxSlayer offers no audit assistance if you file Schedule C, K-1, or form 2555 with your return. The program doesn't extend to state returns, either.

Note: Audit Assistance is limited to preparing and resolving the inquiries, not representing you in an audit.

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Which online tax filing is the best?

H&R Block has the best online tax filing platform on the market right now. The ability to file online yourself, with the help of a tax expert, or in-person means H&R Block caters to every preference. Its user interface is modern and uncluttered.

If you're looking for tax software with the best live personal support, we recommend TurboTax by Intuit. 

TaxSlayer offers the best overall price and TaxAct offers the best accuracy guarantee.

The final choice of tax preparation software depends on your own needs. There is no absolute difference between good and bad.

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