Best Free Tax Software

Granted, these free solutions only give a taste of what these tax programs are capable of, but such software is known for having many faces, including the availability of various offers through which taxpayers can prepare and file tax returns without paying anything out of pocket.

The best free tax programs and apps

Limitations of free tax software

Admittedly, using tax software is always free of charge, making it an effective method for calculating accurate tax refunds but unfortunately if it is then used to file those calculated returns, then only a select type of user can truly enjoy tax prep solutions completely for free. The main reason behind this is that even if innovative features like W-2 capturing with the mobile app or importing data from returns created by competing software are included by default in most products, the free versions of tax programs usually provide only the most basic features. This means that you can say goodbye to many credits and deductions, but in most cases you won’t even be able to import last year’s return from the previous edition of the program either. It’s worst for taxpayers with more complex tax situations, however, who have no choice but to opt for paid programs.

Thankfully, these complex tax situations can still usually be covered by the most basic paid products, the cost of which is around $30-$40. Still, there are certain means of using paid tax programs for free since it’s possible to deduct the prep fees from your earned tax refund. Granted, this is cheating a bit because technically whichever software you use still needs to be paid for, however this method means that in exchange for reducing the amount of expected refunds there is no out-of-pocket expenses.

Free tax calculators

While it is easy to end up being stuck with tax situations that aren’t covered by free tax software at all, there is actually an alternative plan to consider: using free tax calculators available at many of these tax companies. Although these calculators are nothing more than simplified versions of tax software – asking for only basic information like personal data, income, deductible expenses, and any credits that you’re eligible for – they still use the same thorough tax database, resulting in an accurately prepared estimation of your refunds or taxes to be paid. As a matter of fact, a tax calculator is a perfect tool for those who prefer to fill out forms manually after having them downloaded from the IRS’s website since it’ll still help them to speed the preparation process up.

It’s still worth remembering that while tax calculators are viable alternatives to paying for tax software, it’s perhaps worth the low cost of tax prep software for just the convenience. The issue with tax calculators is their biggest shortcoming, namely the fact that they are nothing more than calculators. Simply put, their only purpose is to reveal just an estimated, potential amount of refund due or tax to be paid, whereas tax software can be more accurate and can then even be used to prepare the necessary forms and then file it to the IRS with a single click.