Marcus Marion, CMA™ It can be challenging to complete your taxes because so many other tasks are competing for your attention. Luckily, online tax software can assist you through tax filing and answer any doubts if you feel overwhelmed by the deadline.
However, if you want in-person assistance, you may request an extension using online tax software, giving you additional time to schedule a consultation with a tax expert. Avoiding setbacks in your refund or liabilities from the IRS is worth the effort to submit on time.
So make sure you choose an online tax software that is user-friendly, affordable, backed by reliable customer support, and capable of finding every deduction you qualify for this tax season. For most people, this software is TurboTax.
But today, we’ll look at the best alternatives for TurboTax for independent contractors, self-employed individuals, and 1099 workers.
1. H&R Block
One of the leading free tax preparation tools is H&R Block; it’s superior to TurboTax’s free edition because it lets you file your state and federal taxes for free. For an additional $69.99, you may upgrade to the Premium Plan and have access to certified professionals whenever you need them.
It has features similar to TurboTax, its main competitor, but they cost less. It’s one of the most popular options for tax preparation software because of its user-friendly layout, thorough guidance through each tax form, and reputation for reliability.
The best thing yet is that this software guarantees 100 percent accuracy. The creators must pay a fine of around $10,000 if the software is found to be defective. In addition, it provides free audit assistance if you are subject to an audit. Simple W-2 photo uploads get you started with H&R Block, where you’ll get free access to Earned Income Credits.
However, you’ll need to shell out $49.99 for the Deluxe edition, $69.99 for the Premium, and $109.99 for the Self-employed edition.
Overall, we picked H&R Block as a worthy alternative to TurboTax because it gives you four modes for filing your taxes, which include e-filing by yourself or with a tax pro’s help.
2. TaxAct
TaxAct helps many different types of taxpayers, such as companies, employees, estates, and trusts. The primary benefit of this TurboTax substitute is that it offers a free version with more solutions than TurboTax does, and in addition to that, it is more cost-effective.
Among the various substitutes to TurboTax, TaxAct lets users file their federal taxes for free, provides expert advice for maximizing tax deductions, and makes switching from a different tax software as easy as uploading a PDF of the previous year’s returns.
In addition to being easy to use, it costs $0 to file federal taxes and $39.95 at the state level. The Deluxe plan costs $47.95 per month, the Premier plan is $71.95, and the Self-Employment plan is $94.95 monthly.
Ultimately, TaxAct ranks highly because its all-inclusive plan for self-employed individuals covers a wide range of situations, making it an excellent choice for small business owners.
Thus, TaxAct is an ideal software to think about if you have more than one source of income, run your own business, work as a contractor, or are self-employed. Earnings from freelance work (1099-NEC included), farming, running a business, and depreciation are all handled under the “Self-employed” version.
3. E-file
If you only need the bare minimum to file, e-file is the way. The procedure for filing is straightforward: E-file will produce your tax return once you’ve created an account and entered your tax information. The default user interface allows you to import data from the previous year and includes a sidebar with helpful information.
The webpage for E-file highlights speed, claiming that users with uncomplicated tax returns can use the website’s online software to submit their forms digitally in less than 15 minutes. It’s fast and usually cheaper than other ways to get your taxes done. For filing federal taxes, e-file offers a free alternative in addition to Deluxe Plus and Premium Plus, which cost less than $40. It also takes discount codes.
If you want to submit your taxes electronically, the program will save your work as you go along. Despite the platform’s emphasis on digital submissions, users can still print out paper copies of their tax documents to mail in. If you have any questions, the company also provides paid support by phone or email.
Due to its extensive filing-related discounts offered year-round, we determined that E-file deserves a place on this list.
4. FreeTaxUSA
The research led this write-up to conclude that FreeTaxUSA is among the best low-cost options because it allows free tax filing for users free regardless of whether they are married, have children, pay passive income taxes, own a home, take standard deductions, work for themselves, are investors, rent out a property, is recipients a scholarship, or any combination of these factors.
When comparing TurboTax vs. FreeTaxUSA, you’ll realize this service is exclusively available online. It is ideal for filers confident in preparing their tax return independently with little or no help and searching for affordability.
In other words, Free federal tax filing is possible with this program regardless of your complex or straightforward tax situation. There is a one-time fee of $14.99 for filing state returns, irrespective of how complicated your return may be.
The software also simplifies importing data from competing tax preparation software like TurboTax, H&R Block, and TaxAct. On the other hand, it lacks a document import feature, so you must manually input part of your tax information. When you file your tax return, FreeTaxUSA immediately saves it as a PDF for the next seven years.
The company that makes this tax app also says that it helps people in the military receive the most return possible. In addition to excluding nontaxable combat pay, it also allows for the deduction of moving costs, uniforms, reservists’ travel, job-hunting expenses, and Earned Income Tax Credits for war Veterans.
5. TaxSlayer
Since it is so cheap and offers a variety of features, this list would be incomplete without TaxSlayer.
The fact that TaxSlayer is less expensive than several of its competitors is, without a doubt, the most significant advantage it offers to self-employed people who need to file their taxes.
The highest-priced of the company’s three paid tiers of online tax preparation services include live chat support from tax professionals and reminders to make estimated tax payments. This tier costs approximately sixty dollars.
The company’s free filing tool may benefit independent contractors whose tax returns aren’t too complicated. While it may lack the bells and whistles of more feature-rich free alternatives, it does provide all you need to complete a basic 1040 tax return efficiently.
Furthermore, you only need to file one return to get the federal and state tax returns that employ this TurboTax alternative. With its built-in tax reform calculators, the software ensures you receive the maximum return. It helps you submit your taxes by referencing data from the previous year, saving you time and providing you with user-specific recommendations. Not to mention, it offers unrestricted professional assistance for filing your taxes.
If you currently serve in the military, you can access Taxslayer’s free federal tax filing for any income, deductions, or credits via the homepage. However, you will be required to pay to file your state taxes, which cost $39.95 for each state.
6. Jackson Hewitt
Since Jackson Hewitt’s one inexpensive charge covers an infinite number of state filings, we decided it was a valid opponent for TurboTax, depending on the end-user.
Famous for its seasonal pop-up storefronts and kiosks in shopping centers and supermarkets, Jackson Hewitt now offers online software for those who prefer to pay their taxes independently. You can do as many state and federal returns as you want for $25.
It provides complete customer service, in addition to the in-person options that are available at your local mall throughout the tax season.
It is one of the most practical TurboTax alternatives since it provides audit assistance with the Internal Revenue Service (IRS) at no additional cost, and it also provides a Lifetime Accuracy Guarantee® that protects you from unwanted interest or penalties.
On the other hand, the website for the software is sluggish, you can’t upload files and tax forms, and customer service is lacking, but nothing is perfect.
7. Cash App Tax
Cash App Taxes, previously called the Credit Karma Tax, is a quick, straightforward, and 100% free solution for submitting your state and federal taxes with no hidden costs, penalties, or hassles. Millions of people have used Cash App throughout the years, and reviewers have given it an average rating of 4.82 stars.
Regarding privacy, security, and business practices, Cash App Taxes meets or exceeds all requirements set forth by the IRS. It employs 128 bits or more encryption to keep data safe during transmission and allows two-factor authentication.
It uses procedures, physical security, and electronic security measures to protect taxpayer information. Finally, it features a specialized on-site security crew in the unlikely event of an emergency.
Summary
TurboTax has been making tools to help people do their taxes for a long time. Due to its time-saving features, it has become the go-to program for filing taxes. However, several affordable competitors to TurboTax provide similar functionality. You can look through this post and choose any of the several excellent alternatives to TurboTax for preparing your taxes.
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