{"id":19158,"date":"2025-01-09T15:30:56","date_gmt":"2025-01-09T15:30:56","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/best-tax-software-2025-awards-and-comparisons\/"},"modified":"2025-01-09T15:30:56","modified_gmt":"2025-01-09T15:30:56","slug":"best-tax-software-2025-awards-and-comparisons","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=19158","title":{"rendered":"Best Tax Software 2025 [Awards And Comparisons]"},"content":{"rendered":"


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When selecting the best tax app for your annual filing, there is no \u201cone-size-fits-all\u201d answer perfect for everyone. For the 2025 tax season (taxes for 2024), we\u2019ve looked at the best and worst features of each online tax software program we cover, from price to ease of use and everything in between.<\/p>\n

For the first time in several years, we have new winners in top categories. While we still like TurboTax<\/a> for ease of use and Cash App Taxes<\/a> for being free, we\u2019ve reconsidered the apps we suggest for college students, investors, business owners, and beyond.<\/p>\n

Remember, the tax filing deadline this year<\/a> is April 15, 2025. Give yourself plenty of time to complete your tax return before the deadline. The sooner you file, the sooner you\u2019ll get that refund!<\/p>\n

Here’s our picks for the best tax software:<\/p>\n<\/div>\n

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Best Tax Software Overview<\/strong><\/strong><\/p>\n<\/div>\n<\/th>\n<\/tr>\n

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Best value for typical tax filers<\/p>\n<\/div>\n<\/td>\n<\/tr>\n

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The free version includes student loan interest as well as tuition and fees for students<\/p>\n<\/div>\n<\/td>\n<\/tr>\n

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Easy imports of tax forms and data<\/p>\n<\/div>\n<\/td>\n<\/tr>\n

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Easy imports of crypto tax data from crypto-specific tax apps<\/p>\n<\/div>\n<\/td>\n<\/tr>\n

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Manage real estate investments with reasonable pricing<\/p>\n<\/div>\n<\/td>\n<\/tr>\n

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It’s free and works for many part-time business owners<\/p>\n<\/div>\n<\/td>\n<\/tr>\n

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Better pricing than competitors for similar features<\/p>\n<\/div>\n<\/td>\n<\/tr>\n

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Competitive cost for access to a human tax expert<\/p>\n<\/div>\n<\/td>\n<\/tr>\n

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Online tax prep backed by thousands of physical locations<\/p>\n<\/div>\n<\/td>\n<\/tr>\n

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Tax Refund Anticipation Loans<\/p>\n<\/div>\n<\/td>\n

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Get up to $4,000 with no fees or interest<\/p>\n<\/div>\n<\/td>\n<\/tr>\n

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Tax Liability Calculators For Crypto And NFT Traders<\/p>\n<\/div>\n<\/td>\n

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Useful for crypto taxes and year-round crypto portfolio tracking<\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

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Best Overall Tax Software<\/h2>\n

The best overall tax software category represents the software that best meets the needs of a majority of filers. You may have to pay more for premium programs, but they make tax filing faster and more straightforward.<\/p>\n

Winner: FreeTaxUSA<\/h3>\n

After a long streak, TurboTax has lost its top ranking to FreeTaxUSA<\/a>. While we still think TurboTax is one of the easiest way to do taxes, the high cost and lack of clear, upfront pricing made us reconsider the best option. For the average filer without too many investment accounts, we find the value and features at FreeTaxUSA too compelling to overlook.<\/p>\n

All users get free federal filing, and states cost just $14.99 each. You can upgrade to get technical support with the app for $7.99, and support from a tax professional costs $39.99. You\u2019d pay that multiple times over with most premium-priced competitors.<\/p>\n

While it doesn\u2019t include the option to import tax data from banks and brokerage firms and you must manually type in tax form details, it\u2019s still easy to use and very good for the cost.<\/p>\n

If someone from FreeTaxUSA is reading this, we\u2019d like to see the ability to import all of our 1099 PDFs in the future.<\/p>\n<\/div>\n

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Runner-Up: TurboTax<\/h3>\n<\/p>\n
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TurboTax<\/a> is the easiest tax software to use. It\u2019s pricier than others but makes tax filing easier than most competitors. In many cases, TurboTax users can import PDF and spreadsheet files with tax data or connect directly to your employer, bank, or investment company to automatically download your tax data.<\/p>\n

While we don\u2019t love the high price (and the fact that they aren’t very transparent about what you’ll pay up front), TurboTax is the 900-pound gorilla of the industry. The ability to download financial data is a huge time saver for anyone with multiple bank and investment accounts.<\/p>\n

If you\u2019re looking to get your taxes done as quickly and easily as possible without typing in a lot of details and don\u2019t mind paying more, TurboTax could be your best pick.<\/p>\n<\/div>\n

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2nd Runner-Up: H&R Block<\/h3>\n

We\u2019re impressed by H&R Block\u2019s<\/a> high-quality tax filing experience and functionality. Filers can import most tax PDF forms, so adding W-2 and 1099 forms is fairly painless. H&R Block doesn\u2019t have the same integration functionality as TurboTax. However, due to a huge network of physical H&R Block locations, it offers the best option to convert from DIY tax software to in-person human support.<\/p>\n

The clean user interface and question-and-answer guidance make H&R Block online an excellent option for most people. H&R Block is a bit less expensive than TurboTax but still quite a bit more than our winner, FreeTaxUSA. The forms and features are excellent but fall short of the ease of TurboTax. Nonetheless, most people would have a positive overall experience with H&R Block Online.<\/p>\n<\/div>\n

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Best Free Tax Filing Software<\/h2>\n

Unlike in many other countries, free filing<\/a> is almost unheard of in America. Only one company, Cash App Taxes<\/a>, offers truly free filing for all users in 2025, but support is extremely limited, and not all tax situations are covered. If you qualify for Cash App Taxes, it can save you up to a hundred dollars or more on tax preparation compared to an accountant or premium DIY options.<\/p>\n

Don’t assume you qualify for free filing in 2025 with other tax software. Read up on supported credits and deductions to determine if you\u2019d be forced to upgrade. Even the new IRS Direct File<\/a> is very limited.<\/p>\n

Warning:<\/em><\/strong> If you start filing taxes through a link at the IRS Free File website, you won\u2019t be able to upgrade later to a paid version, per program rules. If you think you might need to upgrade to a paid version, be sure to start at the tax software vendor\u2019s website, not the IRS Free File site.<\/p>\n

Winner: Cash App Taxes<\/h3>\n

Cash App Taxes<\/a> is the only major software program providing free state and federal filing for all covered tax situations. The semi-guided navigation and \u201cfreebies\u201d like Audit Defense make Cash App Taxes tough to overlook. Cash App Taxes is owned by Square, the payment processor and owner of Cash App.<\/p>\n

Cash App Taxes doesn\u2019t work for households filing in multiple states. You’ll need to look elsewhere if you moved during the year or earned income in multiple states. Active traders may also run into limitations, as Cash App Taxes doesn’t have any brokerage integrations. But most other filers will likely the price and the well-designed user experience.<\/p>\n<\/div>\n

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Runner-Up: H&R Block Free<\/h3>\n

In 2025, H&R Block Online Free<\/a> has the same excellent user experience as the paid version, but with more limited tax situations covered. Filers can snap a photo of their W-2 and complete filing in just a few minutes. The Free tier also supports Social Security and unemployment income. The Child Tax Credit, the Earned Income Credit (EIC), education credits, and student loan interest deductions are part of the free version, whereas many other tax apps require an upgrade if you have those needs.<\/p>\n

Remember, not everyone will qualify for free filing with H&R Block. For example, those with daycare expenses or HSA contributions, rental income, self-employment income, or capital gains will have to pay to upgrade to a higher tier.<\/p>\n<\/div>\n

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Best Tax Software For Student Loan Borrowers\u00a0<\/h2>\n

The\u00a0<\/span>student loan interest deduction<\/span><\/a> allows you to lower your taxable income without itemizing. However, many student loan borrowers still need more than they\u2019d get with the basic tier from most tax software providers.<\/span><\/p>\n<\/div>\n

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Winner: TaxSlayer<\/h3>\n

TaxSlayer offers a balance of features and cost, with more affordable pricing than the industry leaders. If you\u2019re a recent grad with student loan interest and taxes that are not overly complicated, TaxSlayer could be a winner.<\/p>\n

It doesn\u2019t have great importing features for active traders, but most others will find TaxSlayer does an excellent job guiding them through their tax prep experience without breaking the bank. <\/p>\n

For example, if you only have a W-2 and bank account interest, plus student loans, TaxSlayer is a standout choice. If you\u2019re already on a tight budget due to student loan payments, TaxSlayer can save you money while giving you the necessary features for an accurate tax return.<\/p>\n<\/div>\n

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Runner-Up: H&R Block<\/h3>\n<\/p>\n
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H&R Block’s<\/span><\/a> free tier supports student loan interest and other educational credits. The easy-to-use software makes tax filing a snap, and the free version also includes tuition deductions.
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However, filers need to watch out for limits to the free tier that could trigger a required upgrade. Most credits and deductions aren’t supported at the free level. People who contributed to an HSA, a traditional IRA, anyone with dependent care expenses, and those who made charitable contributions will need to upgrade.
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2nd Runner-Up: Cash App Taxes<\/h3>\n

Cash App Taxes<\/a> is completely free. It\u2019s not our top choice for active investors, business owners, or multi-state filers, but students with only W-2 income and a few 1099s should do just fine.<\/p>\n<\/div>\n

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Best Tax Software For Investors<\/h2>\n

Filers who only place a few trades per year have several tax filing options. For example, TaxHawk<\/a> or Cash App Taxes can easily handle these situations. However, people with 100 trades will likely not want to enter every detail manually.<\/p>\n

Unfortunately, our two preferred providers for active investors and traders are the most expensive. However, they make tax filing simple for stock market investors, so sometimes, the time saved is worth the slightly higher cost.<\/p>\n

Winner: TurboTax<\/h3>\n

TurboTax allows you to import trade details from most large brokerage account providers with just a few clicks. For others, you can upload your trade data and add them to your tax return with just a few clicks.<\/p>\n

If you have multiple investment accounts or cryptocurrency trades, TurboTax may be worth the extra cost compared to H&R Block and other tax providers. You\u2019ll have to weigh the costs and time commitment to decide which is best for you.<\/p>\n<\/div>\n

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Runner-Up: H&R Block<\/h3>\n<\/p>\n
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H&R Block Premium<\/a> allows users to upload tax forms from their brokerages<\/a>. H&R Block will then use those forms to determine the filer\u2019s taxable income. It imports 1099-B Forms, among others.<\/p>\n

H&R Block then calculates your capital gains and taxable income. H&R Block Premium isn\u2019t cheap, but the time savings are well worth the price.<\/p>\n

H&R Block\u2019s pricing and features are reasonable if you have one or two brokerage accounts.<\/p>\n<\/div>\n

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Best Tax Software For Cryptocurrency<\/h2>\n

If you dabble in digital currencies, you likely know that the tax laws for cryptocurrency investments<\/a> are somewhat similar to stocks. Accurately summarizing and reporting crypto income, capital gains, and other details on your tax return is required by law.<\/p>\n

Major cryptocurrency exchanges report to the IRS, so don\u2019t think you\u2019ll get away with cheating Uncle Sam on your crypto earnings.<\/p>\n

While most tax software includes some basic questions about cryptocurrency, they typically don\u2019t offer easy integrations with crypto exchanges<\/a> or wallets<\/a>. Because it comes with better support for digital currencies, we picked TurboTax as the winner. We also reviewed a \u201chelper\u201d option that can help you pull together cryptocurrency tax forms from your exchanges and wallets.<\/p>\n

Winner: TurboTax<\/h3>\n

TurboTax<\/a> makes it easy for Coinbase<\/a> customers to import transactions into the tax software. Once you import your transactions, TurboTax does the math to help you declare profits and losses. You will need to upgrade to TurboTax\u2019s Premium level to access cryptocurrency features, including the Coinbase import tool.<\/p>\n

TurboTax also allows users to upload spreadsheet versions of IRS Form 8949 from other cryptocurrency tax tools. Filers who use a tax calculator (such as the software listed below) can import their reports into TurboTax directly.<\/p>\n<\/div>\n

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Runner-Up:\u00a0<\/strong>TaxAct<\/h3>\n

TaxAct<\/a> doesn\u2019t have many third-party integrations, but it does have a method for calculating crypto-related capital gains. Filers can upload IRS Form 8949 and summarize their total capital gains in a single line.<\/p>\n

Admittedly, this method feels unintuitive, but it’s the one provided by TaxAct and its tax liability calculators.<\/p>\n<\/div>\n

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Best Tax Software For Landlords<\/h2>\n

Landlords<\/a> have some of the most complicated returns. Tracking a property’s income, expenses, and depreciation can be tedious, but it’s essential for tax time.<\/p>\n

We looked for software that simplifies calculating depreciation and allows for easy import of prior-year information to ensure continuity across returns. There\u2019s also some preference given to software that allows filers to import from the previous year\u2019s taxes. The prior year’s numbers help landlords understand whether variances from the previous year\u2019s numbers make sense or are due to miskeying information.<\/p>\n

Winner: TaxSlayer<\/h3>\n

TaxSlayer Classic<\/a> supports all major tax forms, including Schedule E for rental income. Landlords will appreciate TaxSlayer\u2019s easy-to-use interface and the jargon-free articles that explain how deductions can be claimed. Plus, it\u2019s cheaper than TurboTax and H&R Block for similar features.<\/p>\n

Those with specific questions can upgrade to TaxSlayer Premium to ask a tax professional how certain expenses should be classified. TaxSlayer supports competitor imports and has excellent summary sections that make reviewing easy.<\/p>\n<\/div>\n

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Runner-Up: Cash App Taxes<\/h3>\n

Although Cash App Taxes<\/a> is free, it has useful depreciation calculators that simplify taxes for rental income. Landlords can use the guided interface to claim legitimate deductions and depreciation accurately.<\/p>\n

Filers can also import prior year information from H&R Block, TurboTax, and TaxAct, making it easy to compare year-over-year claims.<\/p>\n

The only drawback is that if you have properties in more than one state, you’ll need to use another tax prep application.<\/p>\n<\/div>\n

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Best Tax Software For Side Hustlers<\/h2>\n

We like to separate side hustlers from other small business owners because there\u2019s a difference in how full-time business owners handle taxes from side hustlers. We define side hustlers as people working in the gig economy or who earn a part-time income from small businesses outside of a full-time job.<\/p>\n

The interesting thing about side hustlers is that they often use different expense tracking apps (like Everlance<\/a>) and may be eligible to file a Schedule C-EZ tax form instead of a full Schedule C.<\/p>\n

Winner: Cash App Taxes<\/h3>\n

Cash App Taxes<\/a> allows side hustlers to prepare their tax returns for free. While filers can\u2019t import information, the software serves up helpful info bubbles throughout the software to smooth the tax filing experience. The free price tag and usability make Cash App Taxes a great choice for side hustlers without complicated expenses. It doesn\u2019t work with K-1 income, which is more common for full-time self-employed business owners.<\/p>\n<\/div>\n

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Runner-Up:\u00a0<\/strong>TaxSlayer<\/h3>\n

TaxSlayer Classic<\/a> gives users access to all tax forms. Given the low price point and extremely robust software, it’s a great deal. Unfortunately, Classic doesn\u2019t include Pro Support or Audit Defense. But it\u2019s an excellent deal for filers who want a great user interface but don\u2019t need the extras.<\/p>\n<\/div>\n

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Don\u2019t Forget About Bookkeeping Apps If You Own A Business<\/h3>\n

No discussion about tax filing is complete without discussing bookkeeping apps. Filing a Schedule C for your business is easy if you keep good records. Our team uses two apps for side hustle income and expense tracking: Tiller Money<\/a> (for expense tracking) and Everlance<\/a> (for mileage tracking). These apps are highly recommended if you don\u2019t use a full bookkeeping suite like Quickbooks, Xero, or Freshbooks.<\/p>\n

Last year, we reviewed Keeper Tax<\/a> for the first time. The text-message-based interface is perfect for people who hate bookkeeping. The $11 monthly subscription includes access to a bookkeeper who manually reviews your expenses. And at tax time, you can pay $39 for a summarized expense report.<\/p>\n<\/div>\n

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Best Tax Software For Small Business Owners<\/h2>\n

Beyond just entering income and expenses, small business owners need to consider business structure, asset depreciation, individual retirement plans, and more.<\/p>\n

While many small business owners would likely benefit from an accountant, those wanting to DIY need to have software that is up for the challenge.\u00a0<\/p>\n

Winner: TaxSlayer<\/h3>\n

TaxSlayer<\/a> offers premium tax filing software at a much lower price point than H&R Block and TurboTax. Small business owners who need to categorize unique expenses can get on the phone with a self-employment expert.<\/p>\n

TaxSlayer is about two-thirds the price of our runner-up and offers more valuable perks. It doesn’t, however, automatically generate W-2 or 1099-NEC forms for employees. Small business owners who need these forms may need to consider TurboTax instead.<\/p>\n<\/div>\n

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Runner-Up: TurboTax<\/h3>\n

TurboTax<\/a> Premium boasts an easy-to-use interface and many supported connections for imports. It also allows self-employed people to figure out the maximum contribution they can make to a solo 401(k)<\/a> or Roth IRA.<\/p>\n

As it\u2019s owned by the same company as QuickBooks<\/a>, it\u2019s easy to bring your information over from the leading bookkeeping app to the leading tax app.<\/p>\n<\/div>\n

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Best Support From Tax Pros<\/h2>\n

Tax filing time can be a challenge, especially for filers facing new tax situations. Trying to figure out what you can legally deduct is important, but tax filers can end up overpaying to have pros file their taxes for them.<\/p>\n

We\u2019re recommending companies that offer \u201cask a tax pro\u201d options for their online filers (sometimes called live assist). These companies allow filers to set appointments to get their personalized tax questions answered.<\/p>\n<\/div>\n

Winner: FreeTaxUSA<\/h3>\n<\/p>\n
\tFreeTaxUSA Pro Support<\/a> costs $39.99, a bargain compared to most others. It involves unlimited phone, live chat, or screen share support with a tax expert. If you\u2019ve got questions, these experts can give you an answer. FreeTaxUSA\u2019s pricing and support options are tough to beat for this level of service.
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Runner-Up: TaxSlayer Premium<\/h3>\n

TaxSlayer Premium<\/a> is moderately priced software with massive value for filers who need support. It comes with unlimited \u201cAsk a tax pro\u201d options, where you can get support from a tax professional (either an enrolled agent or a CPA). It also comes with audit defense and unlimited technical support.<\/p>\n<\/div>\n

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Best Virtual Tax Preparation<\/h2>\n

Virtual tax prep was rolled out a few years ago by a few of the leading tax software companies. However, the service has become increasingly popular since the COVID pandemic. Here are our two favorite virtual tax prep service providers for 2025.<\/p>\n

Winner: H&R Block<\/h3>\n

Upload your tax documents to H&R Block<\/a> through a secure online portal, and a CPA or Enrolled Agent will handle the filing from there. The software will even provide an estimated time until completion when you select your tax professional. You may need to answer a few questions via phone or email, but the process is simpler than filing yourself.<\/p>\n

If you want in-person tax prep, you can also use H&R Block in-person or drop-off services (where, instead of uploading your documents, you can just drop them off at a local office).<\/p>\n

Readers of The College Investor can also get $25 off in-person tax preparation with this coupon >><\/a><\/p>\n<\/div>\n

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Runner-Up: TurboTax<\/h3>\n

The TurboTax Full Service<\/a> option allows users to upload tax documents and have a tax expert handle filling in tax forms from there. If you prefer not to file your own taxes but want to stick with the TurboTax brand, consider TurboTax\u2019s Full Service option.<\/div>\n

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Best For Tax Refund Loan<\/h2>\n

If you need your tax refund to pay the bills, a tax refund anticipation loan may be on your radar. Unfortunately, too many lenders charge high interest rates for an advance. We don\u2019t recommend tax refund anticipation loans<\/a>, but filers who qualify may appreciate TurboTax\u2019s interest-free option.<\/p>\n

Winner: TurboTax<\/h3>\n

TurboTax<\/a> is one of only a few tax filing companies issuing tax refund advance loans this year. Filers can qualify for up to $4,000, which is received in minutes after the IRS accepts your electronically filed tax return.
Here\u2019s what you need to know about TurboTax\u2019s advance:<\/p>\n