What To Consider When Choosing The Tax Software
When it comes to online tax software programs, there may not be many differences in the software itself. After all, the US tax code is the same regardless of the software a taxpayer uses to file their return. With that said, one thing that is certainly different is what tax software companies charge their customers.
Some companies will charge well over $100 for software to prepare and file a federal and state tax return. Other companies, such as E-file.com, charge as much as 57% less depending upon the software you are using to file your tax return.
Given the significant price differences, it is recommended to compare tax software options before making a decision.
It's important to understand that even though various providers may offer software versions with the same name, such as Free Federal Edition, Deluxe Edition, and Premium Edition, the eligibility criteria for using each version and the features included can vary.
You can see how some of the more popular programs compare here:
 |
TurboTax®* |
H&R Block®* |
TaxAct®* |
|
|---|---|---|---|---|
| Basic Software |
yes |
yes |
yes |
yes |
| Deluxe Software |
$25.49 $29.99
with coupon code FED15OFF |
$79.00 |
$65.00 |
$59.99 |
| Premium Software ("Premier" Edition for TurboTax® & TaxAct®) |
$42.49 $49.99
with coupon code FED15OFF |
$139.00 |
$95.00 |
$99.99 |
| State Filing Fee |
$32.99
|
$64.00 |
$49.00 |
$54.99 - 64.99 |
| Start A Return | ||||
| TurboTax®, H&R Block® and TaxAct® are registered trademarks of their respective owners. They are not affiliated with this website or E-file.com LLC. | ||||
The prices shown here do take into account the 15% off promotion for the federal filing software on E-file.com. To take advantage of this offer, you must use the coupon code "FED15OFF" at checkout. For more information on how to do this please see the page on How to Use a Coupon.
What Makes Tax Software "the Best"?
When comparing tax filing software, there are several important features to consider. First, check which forms are supported and whether the software offers a free-tier option. Additionally, evaluate the pricing for the tier you actually need and the level of support available. It's also crucial to ensure that the IRS authorizes the tax filing software.
Is There Free Tax Software for Simple Federal Returns?
There are several free options to file your federal taxes in 2026. Some tax filing software, like E-File, offer a free tier for their basic software. Along with popular filing software companies, the IRS offers a free file option for individuals with adjusted gross income under $89,000. The IRS offers both guided tax software and fillable forms.
Why Are Some Tax Filing Software Programs More Expensive Than Others?
There is no single answer to the price difference, but the price of a tax software program is affected by the software's origin. Many tax return filing applications began as out-of-the-box software, and there are significant costs associated with producing and distributing CD-based software.
Consider the resources required to produce and package CDs, including cardboard for packaging, plastic for shrink wrap, fuel for delivery, and the costs of creating all promotional materials. A lot goes into out-of-the-box software.
Programs that are entirely online and cloud-based tax filing applications do not have these associated materials costs and can pass the cost savings on to their customers.
While pricing may not be all that matters when you select an online tax software program, it is certainly nice to save as much as possible, and E-file.com charges less than most competitors.
Which Software Tier Do You Actually Need?
E-file.com offers three software tiers for its users, each with different features.
- Basic Software - The Federal Basic Software is the default option. This option lets you e-file your tax return for free for both single and joint tax filing. Online filing support is available. This is a great way to get your refund fast with a free printed copy of your tax return.
- Deluxe Software - Allows you to file your tax return along with any dependents. This is a preferred option for tax filers with income up to $100,000 per year who want to include retirement income on their return and need to deduct mortgage interest. The deluxe option offers both phone support and online support.
- Premium Plus Software - The service includes itemized tax deductions and supports all credit schedules. It effectively handles both business and personal income, ensuring comprehensive coverage. Additionally, full telephone support is provided, along with assistance in the event of an IRS audit.