Best Online Tax Softwares 2021

Filing tax returns is not only confusing but quite cumbersome and expensive. This fact is undisputed, especially in 2021 following the unprecedented circumstances of 2020, where the pandemic pushed millions of Americans out of jobs and businesses.

Most Americans had to rely on stimulus money and auto title loans to cover the rising bills. Besides, most people who received unemployment benefits moved to different states or changed jobs. These events could further complicate the tax filing process causing difficulties in tax filing marked with unexpected tax upgrades that require taxpayers to file extra.

Picture 1 of Best Online Tax Softwares 2021 Picture 1 of Best Online Tax Softwares 2021

Online tax software comes in handy to assist individuals and owners with little or no experience tax filing knowledge to seamlessly and accurately file their taxes. In turn, users avoid IRS audits plus receive their own refunds. Below we look at the best online tax software to guide you through the complex tax filing process.

1. TurboTax

Cost- $0 to $170 federal, $0 to $50 per state

For years now, TurboTax has been the leading online tax software and is the most widely-used tax software available. It was developed in 1984 by Intuit-the same company that developed the popular suite of Quicken accounting software. The software makes filing taxes a breeze thanks to its user-friendly UI, upgradable tax support with DIY and live assist plans.

TurboTax packs plenty of handy features, including enabling users to import W-2 and 1099 via a snapping tool. It also supports the importation of a PDF of a previous return to start a new return. Users also can have their tax returns reviewed by a CPA or a qualified tax agent to ensure accuracy.

The tax software comes with various pricing plans, including Free Plan, Deluxe Plan, Premier Plan, and Self-Employed Plan.

2. H & R Block

Cost- $0 to $144.99 federal, $0 to $36.99 per state

Established in 1955, H & R Block is another outstanding online tax software to assist you file taxes in 2021. The software offers virtually everything offered by TurboTax but for a much less price. sIt's very comprehensive; intuitive, plus it helps taxpayers claim the relevant income, deductions, and credits. It's suitable for individuals as well as small businesses with a sort of complex tax return structure. Users have the option of speaking to a tax expert with more than ten years as well as unlimited on-demand chat or video support with Online Assist plans. Like TurboTax, H&R Block also offers three paid plans: Deluxe, Premier, and Self-Employed.

3. TaxAct

Cost- $0 to $139.95 federal, $4.95 to $44.95 per state

TaxAct is quite affordable compared to other online tax software. It offers a range of products that suits all types of taxpayers. TaxAct is best known for its best accuracy guarantee as it offers refunds and reimbursement on the difference in liquidity. It also supports imports, including W-2 forms from the most popular tax software. While it doesn't offer direct access to a tax expert, TaxAct offers free and unlimited phone, email, and online chat support. Apart from the three paid plans, the platform offers a free plan for simple returns and support.

4. TaxSlayer

Cost: $0 to $139.95 federal, $4.95 to $44.95 per state

TaxSlayer is a renowned online tax software launched in the early 1990s. It's among the best tax software as it offers comprehensive, DIY tax filing plans at affordable prices. It boasts of a simple user interface, W-2 import support as well as easy access to technical support via phone and email. The platform also offers a 100% accuracy guarantee plus reimburses its users in case of any interest charges or federal/state penalties. It offers a free plan and three plans: Classic plan, Premium plan, and Self-Employed plan.

5. Credit Karma

Cost: $0 federal and state.

The best thing about Credit Karma is that it's completely free to use. The software was launched in 2007 and offers free credit reports and scores. It supports imports, including a photo of W-2 form from other tax software. The platform has a wide range of filing options, including property tax, mortgage interest, interest deductions, and student loans. The platform's major downside is that it doesn't support every tax form, plus it doesn't have phone support. Nonetheless, it's among the best online tax software considering that it offers genuinely free tax filing service for both complex returns and simple returns and provides audit defense for its customers.

Conclusion

Filing taxes can be one hell of a task, especially if you lack any knowledge on the same. Online tax filing software makes filing taxes a five-finger exercise by guiding you through every step of the process. Better yet, most online tax software offers 100% accuracy guarantee with refunds and reimbursements on federal/state penalties as well as interest charges. With online tax software, you can be sure to file taxes in an accurate, hassle-free manner and avoid hefty penalties.