For the fourth year, we're pleased to present the winners of our annual Readers' Choice Awards. In a survey we conducted on Kiplinger.com in January and February, more than 4,200 readers rated the financial products and services they use in 13 categories, from credit cards and banks to brokers, wealth managers and annuity providers. The results here offer valuable insight into the everyday experiences that Kiplinger readers have with their financial providers.

Respondents made their judgments on such criteria as their interactions with customer service, the likelihood they would recommend the product or service to others, and their overall satisfaction with it. They also had the option to leave comments about their providers, and we have shared some of them here (remarks may be lightly edited for length and clarity).

For each category, we've listed an overall winner that earned the highest total score as well as other providers that earned above-average ratings for the various criteria that readers assessed. Our thanks to all of you who participated in the survey.

Kiplinger Readers' Choice Awards: Tax Software

Tax-preparation software guides taxpayers through the complex process of preparing and filing an accurate income tax return. A good program should be easy to use and give users confidence that they've maximized all the tax benefits available to them.

We asked readers to rate their preferred tax-filing software based on ease of use, how likely they would be to recommend the service to others and overall satisfaction with the software.

OVERALL WINNER: FreeTaxUSA

Outstanding for:

• Ease of use
• Most recommended
• Overall satisfaction

FreeTaxUSA is Kiplinger readers' top choice for the fourth year in a row.

One reader says that it is "low-cost, accurate and user-friendly," while another appreciates that they experienced no "bait and switch" on the pricing. Preparing a federal return really is free, and the prices for state returns and any other services are transparent and up front.

Readers also repeatedly praised the tax software for how simple it is to use and how easily they could pull up data from previous years when filing out their return.

Highly-rated providers

TaxAct

Outstanding for:

• Ease of use
• Most recommended
• Overall satisfaction

Readers called TaxAct’s software "easy to navigate" and "efficient, thorough and accurate." Those are important features to look for in any tax-prep software.

TaxAct offers a range of pricing and service add-ons, including the option to get unlimited help from an expert while you prepare your return.

H&R Block

Outstanding for:

• Ease of use
• Overall satisfaction

H&R Block excels in support options for tax filers, especially those with tricky or niche tax situations. "I stay with it because it is easy to use and handles every kind of tax situation I've had," says one Kiplinger reader. "It finds tax savings that I would not have found on my own and has prevented errors I would have made," reports another.

Kiplinger Readers' Choice Awards Categories

• Readers' Choice Full-Service Brokers*
• Readers' Choice Wealth Management
• Readers' Choice Cash Back Credit Cards*
• Readers' Choice Airline Credit Card Rewards Programs*
• Readers' Choice National Banks*
• Readers' Choice Internet Banks*
• Readers' Choice Auto Insurance Companies
• Readers' Choice Homeowners Insurance Companies
• Readers' Choice Annuity Providers*
• Readers' Choice Tax Software*
• Readers' Choice Peer-to-Peer Payment Services
• Readers' Choice Awards Travel Rewards Credit Cards*

How Readers Chose the Winners

Kiplinger readers were invited to take the Readers’ Choice Awards survey on Kiplinger.com between January 22 and February 19, 2026. The survey asked respondents to choose the financial product or service that they most frequently use in 13 categories: brokerage firms, wealth managers, IRA providers, cash-back credit cards, travel rewards credit cards, airline credit card rewards programs, national banks, internet banks, annuity providers, homeowners' insurers, auto insurers, tax software and peer-to-peer payment services.

We asked readers to rate each provider they selected on a scale of one to 10 based on a few criteria. In many categories, readers rated the strength of customer service, how likely they would be to recommend the product or service to others, and how satisfied they are overall with the provider. In some categories, we included more nuanced criteria. With wealth management firms, we asked respondents to rate the trustworthiness of a firm’s advisers and the quality of its financial advice and retirement-planning services. For IRA providers, respondents assessed the mix of investment choices available to them. For peer-to-peer payment apps and tax software, respondents evaluated ease of use, and for auto and home insurance companies, readers judged the competitiveness of rates and strength of the claims experience.

We calculated an average (mean) score for each criterion with each provider. We also calculated an overall mean score for all providers for each criterion we asked readers to judge. We compared individual provider mean scores with the overall mean, and the three highest-scoring providers that had a score above the overall mean won an “outstanding” accolade; in cases of a tie, more than three providers are named, and if fewer than three qualifying providers achieved an above-average score, only those providers are named “outstanding.” In each category, providers are generally listed in descending order by the number of criteria for which they received the “outstanding” designation — so a product or company that is deemed “outstanding” in three areas, for example, is listed before a provider with one or two “outstanding” awards.

To choose an overall winner in each category, we added together the mean scores for each criterion rated for each product or service. The provider with the highest total score in each category took the prize for overall winner.

*Because of a technical issue during the 2026 survey data collection, some providers that readers evaluated in certain categories, marked with an asterisk, were ranked using patterns from the 2025 consumer survey data.Affected were three of 18 brokerage firms, six of 20 cash-back credit cards, two of 15 travel rewards credit cards, one of 13 airline credit card rewards programs, three of 33 banks, two of 14 annuity providers, and one of eight tax-software products. All other categories fully reflect 2026 data. All results represent actual Kiplinger reader feedback.

Kiplinger readers are a savvy bunch, especially when it comes to making smart choices with their money. So for the third year running, we asked you to rate financial providers based on your experiences with them. More than 2,700 readers completed our survey earlier this year, judging the products and services they use in 13 categories, from brokers and wealth managers to annuity providers, tax software, and home and auto insurance companies.

In the survey, respondents scored providers on certain criteria, such as their experience with the company’s customer service team, the likelihood they would recommend the product or service to others, and their overall satisfaction with it. Readers also had the option to leave comments about their experience, and we have shared some of them in the full category guides (remarks may be lightly edited for length and clarity).

For each category, we’ve listed an overall winner that earned the highest total score. We’ve also listed other products and services that earned above-average scores for the various criteria we asked readers to assess. Many thanks to all of you who participated in the survey.

Kiplinger Readers’ Choice Awards Categories

Best Full-Service Brokers

We asked readers to evaluate brokerage firms whose offerings run the gamut of services to customers, whether online, by phone, through in-person assistance at brick-and-mortar branches, or some combination. Readers rated the strength of their broker’s customer service, how likely they are to recommend the firm to others and their overall satisfaction with the broker.

The overall winner is Fidelity Investments.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best full-service brokers.

Best Wealth Management

These firms take a holistic look at your finances and offer advice tailored to you. Beyond assisting with investment strategies, advisers may help you manage credit and debt, savings, estate and tax planning, and more. Readers rated wealth managers based on the quality of financial advice they received, the trustworthiness of the advisers, how likely they would be to recommend the firm to others and their overall satisfaction with the wealth manager.

The overall winner is Fidelity Wealth Management.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best wealth management services.

Best Cash Back Credit Cards

Cash back cards usually offer simple terms and the opportunity to earn rewards on everyday purchases. We asked readers to rate cash back cards on the responsiveness of customer service, how likely they would be to recommend the card to others and their overall satisfaction with the card.

The overall winner is Fidelity Rewards Visa.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best cash back credit card.

Best Travel Rewards Credit Cards

These cards typically offer extra points or miles on travel spending. And many heap on additional perks, such as statement credits for hotel, airline or dining purchases. Readers rated travel rewards cards on the strength of customer service, the likelihood they’d recommend the card to others and overall satisfaction.

The overall winner is the Platinum Card® from American Express.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best travel rewards credit card.

Best Airline Card Rewards Programs

Airline credit cards reward brand loyalty. You’ll get miles or points for every flight you book with the airline, and with some programs, you can earn free airline tickets, access to airport lounges and other travel perks. We surveyed readers in three areas: strength of customer service, whether they would recommend the credit card program to others and overall satisfaction.

The overall winner is the Southwest Airlines credit card rewards program.

Read our full guide: Kiplinger Readers' Choice Awards 2025, airline credit card rewards programs.

Best Hotel Credit Cards Rewards Programs

As with airline card programs, hotel credit card programs reward you for being loyal to a particular hotel chain. The more you stay, the more perks you can receive, such as free nights, upgraded rooms, late checkouts and more. These hotel credit card programs earned top marks from our readers, who rated the programs on the strength of customer service, the likelihood they’d recommend the program to others and overall satisfaction.

The overall winner is the Marriott Bonvoy credit card program.

Read our full guide: Kiplinger Readers' Choice 2025, Hotel Credit Card Rewards Programs.

Best National Banks

These large institutions have a presence in many states and offer branches where you can conduct transactions. We assessed readers’ overall satis­faction with their bank, their opinion of its customer service and the like­lihood they would recommend the bank to others.

The overall winner is Chase Bank.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best national banks.

Best Internet Banks

Internet banks often provide higher yields than their brick-and-mortar counterparts. The reason? Internet banks don’t have physical locations, so their overhead costs are lower, allowing them to pay out better rates. Survey respondents judged these institutions on customer service, how likely they would be to recommend the bank to others and how satisfied they are overall with the bank.

The overall winner is Charles Schwab Bank.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best internet banks.

Best Auto Insurance Companies

We asked readers to weigh in on auto insurance, judging their primary provider based on how competitive the rates are, their experience with filing claims and how likely they are to recommend the insurer to others. The following companies stood out from the rest in our survey.

The overall winner is USAA.

Read our full guide: Kiplinger Readers' Choice Awards 2025, auto insurance companies.

Best Homeowners Insurance Companies

Readers rated their homeowners insurance provider based on how competitive the rates are, how positive the experience is when filing a claim and how likely they would be to recommend the insurance company to others. Most of the providers that collected accolades for homeowners insurance are also honorees for their auto insurance services.

The overall winner is USAA.

Read our full guide: Kiplinger Readers' Choice Awards 2025, homeowners insurance companies.

Best Annuity Providers

Annuities are contracts that allow you to pay an amount up front or over time in exchange for the opportunity to create a steady stream of income in retirement; they may be fixed or variable, and they may provide income immediately or in the future. We asked readers to assess their annuity provider based on customer service, their overall satisfaction with the company and how likely they are to recommend it to others.

The overall winner is New York Life.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best annuity providers.

Best Tax Software

These programs guide taxpayers through the ins and outs of preparing and filing a tax return. The offerings vary depending on your return’s complexity and whether you want help from a tax pro. We asked readers to rate their preferred tax-filing software based on ease of use, how likely they are to recommend the service to others and overall satisfaction with it.

The overall winner is FreeTaxUSA.

Read our full guide: Kiplinger Readers' Choice Awards 2025, tax software.

Best Peer-To-Peer Payment Apps

Peer-to-peer payment apps allow you to digitally send and receive money with friends and family from your smartphone. We asked readers to evaluate their preferred payment app’s ease of use, their overall satisfaction with it and how likely they are to recommend it to others.

The overall winner is Apple Cash.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best peer-to-peer payment apps.

How Readers Chose Their Winners

Kiplinger readers were invited to take the Readers’ Choice Awards survey on Kiplinger.com between February 20 and March 21, 2025. The survey asked respondents to choose the financial product or service that they most frequently use in 13 categories: full-service brokerage firms, wealth managers, cash-back credit cards, travel rewards credit cards, airline credit card rewards programs, hotel credit card rewards programs, national banks, internet banks, auto insurers, homeowners insurers, annuity providers, tax software and peer-to-peer payment services.

We asked readers to rate each provider they selected on a scale of one to 10 based on a few criteria. In many categories, readers rated the strength of customer service, how likely they would be to recommend the product or service to others, and how satisfied they are overall with the provider.

In some categories, we included more-nuanced criteria. With wealth management firms, we asked respondents to rate the trustworthiness of a firm’s advisers and the quality of its financial advice. For peer-to-peer payment apps and tax software, respondents evaluated ease of use, and for auto and home insurance companies, readers judged the competitiveness of rates and strength of the claims experience.

We calculated an average (mean) score for each criterion with each provider. We also calculated an overall mean score for all providers for each criterion we asked readers to judge. We compared individual provider mean scores with the overall mean, and the three highest-scoring pro­viders that had a score above the overall mean won an “outstanding” accolade; in cases of a tie, more than three providers are named, and if fewer than three qualifying providers achieved an above-average score, only those providers are named “outstanding.”

In each category, providers are generally listed in descending order by the number of criteria for which they received the “outstanding” designation — so a product or company that is deemed “outstanding” in three areas, for example, is listed before a provider with one or two “outstanding” awards.

To choose an overall winner in each category, we added together the mean scores for each criterion rated for each product or service. The provider with the highest total score in each category took the prize for overall winner.

Kiplinger Readers' Choice Awards Categories

• Readers' Choice Full-Service Brokers
• Readers' Choice Wealth Management
• Readers' Choice Cash Back Credit Cards
• Readers' Choice Travel Rewards Credit Cards
• Readers' Choice Airline Credit Card Rewards Programs
• Readers' Choice Hotel Credit Card Rewards Programs
• Readers' Choice National Banks
• Readers' Choice Internet Banks
• Readers' Choice Auto Insurance Companies
• Readers' Choice Homeowners Insurance Companies
• Readers' Choice Annuity Providers
• Readers' Choice Tax Software
• Readers' Choice Peer-to-Peer Payment Services

About the Kiplinger Readers’ Choice Awards 2025
The Kiplinger Readers’ Choice Awards aim to recognize and celebrate the best products and services in the personal finance arena. We asked you, our Kiplinger community, to help us name the products and services you think have delivered excellent value in the past year.

The survey results, which we’re sharing here in our second annual Readers’ Choice Awards, offer valuable insight into which providers shine when it comes to your everyday interactions and experiences with them. Our Awards recognize excellence in everything from credit cards, banks and brokers to insurers, tax software and financial apps. For each category, we’ve listed an overall winner that earned the highest score. We’ve also highlighted other products and services that earned above-average scores for various criteria we asked readers to assess.

By voting, our community has helped us form our guide to the very best financial products. These are the products and companies that you think stand out from the crowd.

Kiplinger Readers' Choice Awards: Tax Software

These programs guide taxpayers through the ins and outs of preparing and filing an income tax return. We asked readers to rate their preferred tax-filing software based on the ease of use, how likely they are to recommend the service to others and overall satisfaction with the software.

OVERALL WINNER: FreeTaxUSA

Outstanding for:

• Ease of use
• Most recommended
• Overall satisfaction

For the third year in a row, FreeTaxUSA is the top choice among tax software programs.

“Customer support is excellent, and the cost is the best available. The software handles investment options that I would have to pay extra for at other providers,” says one reader. Says another, “It’s a great service. It handles stock sales, rental properties and more!”

FreeTaxUSA charges no fee for federal tax returns and $15 for state returns. For personalized tax advice, users can opt for the Pro Support add-on, which costs $40 and provides access to tax professionals via live chat, phone, or screen sharing.

H&R Block

Outstanding for:

• Ease of use
• Overall satisfaction

Survey respondents like H&R Block for its ease of use. “It is simple to use, with FAQs for each section, and a live chat feature is available if needed. I have used it for over 20 years, and it's well worth the money,” says one reader, echoing the sentiments of many others.

H&R Block provides free federal and state online programs for those with simple returns as well as various paid versions, depending on the taxpayer’s situation.

The free version covers Form 1040, the earned income tax credit, child tax credit, student loan interest deduction, and retirement plan distributions. The Deluxe version is for more complex returns and recently charged $60 for a federal return and $49 for a state return. In addition to the above programs, which operate online, H&R Block also offers a menu of downloadable tax software.

TaxSlayer

Outstanding for:

• Most recommended

TaxSlayer offers several packages that provide varying levels of assistance and support. The standard package, which starts at $42.95 for a federal return, covers simple tax situations. For $62.95, you can get tax advice from an expert. Meanwhile, for those dealing with personal and business income and expenses, 1099s, and Schedule C, TaxSlayer offers the Self-Employed package, which starts at $72.95 for a federal tax return.

Kiplinger Readers' Choice Awards Categories

• Readers' Choice Full-Service Brokers
• Readers' Choice Wealth Management
• Readers' Choice Cash Back Credit Cards
• Readers' Choice Travel Rewards Credit Cards
• Readers' Choice Airline Credit Card Rewards Programs
• Readers' Choice Hotel Credit Card Rewards Programs
• Readers' Choice National Banks
• Readers' Choice Internet Banks
• Readers' Choice Auto Insurance Companies
• Readers' Choice Homeowners Insurance Companies
• Readers' Choice Annuity Providers
• Readers' Choice Peer-to-Peer Payment Services

This tax season has been rife with disruptions and layoffs set off by the Trump administration, now the president reportedly plans to eliminate the IRS’ Direct File program. The program is available to over 30 million taxpayers this year.

The tax prep software, which is under scrutiny, was successfully piloted last year under the Biden administration and allows taxpayers to prepare and file their federal taxes for free with the IRS. However, Republican lawmakers and commercial tax preparation companies like H&R Block and Intuit’s TurboTax say the program is “wasteful” because there are already reputable third-party free filing options available.

It should be noted that the Federal Trade Commission (FTC) has previously flagged companies like H&R Block for pressuring people to overpay for tax prep services and making it harder to downgrade to cheaper filing options. Intuit’s TurboTax has also been cited for engaging in deceptive advertising practices, which have fooled consumers into believing they were eligible for “free” tax products and services.

GOP lawmakers allege that Direct File can create confusion for state taxpayers. Meanwhile, Elon Musk declared that he had “deleted” 18F, the digital services agency responsible for developing the IRS Direct File system in early February. More planned layoffs at the IRS could impact the program further.

The comments come despite favorable feedback from taxpayers who used Direct File. A study found that 90% of users rated their experience as positive and said the software was easy to use and trustworthy during the pilot.

Even though the federal deadline to file and pay 2024 taxes was April 15, taxpayers in 25 participating states have until Oct. 15, 2025, to file through IRS Direct File.

But the permanence of the Direct File remains largely uncertain under the Trump administration, sources say. Here’s what taxpayers had to say about the program.

Taxpayers are interested in Direct File

According to the Tax Policy Center, more taxpayers would like to use Direct File if the free tax-filing program is available in their state. Among those who filed a tax return last year:

• 73% of respondents across all age groups, education, and race said they would be interested in using Direct File if they were eligible for the program.
• 69% of those who paid to file taxes said they were interested in Direct File.
• 85% of people who filed for free last year said they would like to file directly with the IRS via Direct File.

Still, there was some hesitancy among respondents. Two-thirds of tax filers, or 68%, said they didn’t know enough about Direct File to feel comfortable using it. The study found that 88% said that their most recent filing method met their needs.

How many people used Direct File during its pilot?

For fiscal year 2023, over 140,000 tax filers with simple tax situations used Direct File across 12 states during its pilot, which ran from February 1 to April 20, 2024. According to an analysis by the Treasury Inspector General, more than 35,000 tax returns were rejected due to various reasons.

The rejections were mainly due to two reasons:

• Mismatches between prior year adjusted gross income (AGI)
• Inability to reconcile advance payments of the Premium Tax Credit (PTC). This was because the IRS did not include Form 8962 for the PTC in its Direct File pilot.

Why choose Direct File

Last year, the IRS announced that Direct File would be a permanent option for filing federal tax returns as of the 2025 tax season.

“The clear message is that many taxpayers across the nation want the IRS to provide more than one no-cost option for filing electronically,” former IRS Commissioner Danny Werfel said in a statement.

As reported by Kiplinger, the program was expanded to residents of 25 states this year and could be used by as many as 30 million eligible taxpayers. The move to make Direct File permanent came after multiple lawmakers and organizations urged IRS leaders to renew the program.

Today, Direct File offers live support from IRS staff Monday through Friday from 7 a.m. to 10 p.m. ET. You can also file from your smartphone, tablet, or computer if your state is eligible. Assistance is offered in Spanish and English.

Separately, the IRS Free File also offers taxpayers the option to file their federal income tax returns directly with the agency. There’s one caveat: Your adjusted gross income (AGI) must be 84,000 or less to qualify.

IRS online Free File also offers eight private-sector partners you can choose to file with.

GOP lawmakers target Direct File

A report from the Economic Security Project found that Direct File could save taxpayers $8 billion in filing fees and an additional $3 billion in time costs each tax season. That’s $11 billion in savings.

Additionally, the analysis found that the program could spare more than 400,000 filers a year from enduring the stress of IRS correction proceedings and audits. Finally, Direct File could close long-standing credit gaps for people who unknowingly miss out on tax benefits like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC).

Still, 29 GOP lawmakers urged President Trump to immediately end Direct File.

Mainly, some Republicans claim the program would cause taxpayers to miss their refunds or suffer penalties if they were unaware that they must file their state taxes separately from their federal taxes.

As reported by Kiplinger, tax preparation companies H&R Block and Intuit’s TurboTax have opposed the IRS launching a free tax preparation program.

Ending Direct File would be a gift for big corporations, said supporters of the free filing program.

The Institute on Taxation and Economic Policy (ITEP) characterized Trump’s plans to end Direct File as a move to ramp up private profits for big corporations that have lobbied to prevent the IRS from providing free filing options to taxpayers for years.

“Ending Direct File is another gift from this administration to large corporations, this time to the multibillion-dollar tax prep industry that wants to make money off of you filing your taxes,” said ITEP Executive Director Amy Hanauer. “This is yet another piece to the ongoing attack on the IRS at the benefit of the wealthy and exploitative tax preparers.”

What’s next for Direct File?

Elon Musk declared on his social media platform X that he had “deleted” 18F, the digital services agency responsible for developing the IRS Direct File system. The CEO of Tesla echoed sentiments from GOP lawmakers who alleged that the program would create confusion for state taxpayers and was a waste of government spending.

Direct File is expected to remain operational for the 2025 tax season, per Treasury Secretary Scott Bessent. As mentioned, taxpayers in 25 participating states have until Oct. 15, 2025, to file their 2024 federal tax return with IRS Direct File.

However, with layoffs threatening the IRS workforce, there is no telling if the program will be impacted. Internal sources have also told the Associated Press that the Trump administration plans to eliminate the program.

Stay tuned to our latest coverage on the matter on our live tax blog.

Related Content:

• Why Some States Won’t Participate in IRS Direct File for 2025
• IRS Direct File Will Be Permanent, Competing With TurboTax, H&R Block
• IRS Free File Is Now Open for 2025: Are Your Taxes Eligible?

The deadline is looming for the 2026 tax season, so if you haven’t filed yet, it’s time to start thinking seriously about which tax prep software you’re going to use. If you’re not sure what kind of support you need, H&R Block is a good place to start.

The tax prep service offers guided tax filing software along with a variety of ways to connect with a tax pro if you need to. You can start filing on your own with your preferred online or desktop H&R tax software. Then, add on various levels of expert assistance if you get stuck.

And if you don’t want to deal with your taxes at all, just gather up your forms and hand them off to an H&R Block tax preparer to do it for you.

Keep reading for our breakdown of the key features that come with H&R Block tax prep software. You’ll also get tips on how to choose the edition that makes the most sense for your tax situation.

H&R Block features to make your tax filing painless

Using H&R Block tax prep software is a fairly seamless experience. The guided software walks you through the filing process via a series of conversational questions. It feels more like you’re chatting with a tax preparer rather than trying to decipher cryptic tax codes.

While you’ll see a similar user-friendly experience with TurboTax, H&R Block shines in its support options. When you compare the various tiers of both tax software packages side by side, H&R Block typically gives you more access to expert support for the price than TurboTax.

For example, if you’re eligible for the H&R Block Online Free Edition, you can add tax pro review for $55 (and your state return is still free). With TurboTax, the cheapest edition that includes expert assistance is TurboTax Expert Assist Deluxe, which costs $129 for the federal return plus $69 per state.

Say this is your first time filing taxes after moving overseas and you don’t even know where to start. You can work with an H&R Block tax pro online and let them do your taxes for you.

In short, it’s easy to find the right balance of cost and support with the many options and add-ons H&R Block offers.

How to choose the right H&R Block Online Edition

There are many editions of H&R Block tax software along with various tiers of expert support. Here’s a breakdown of the key differences between different versions of H&R Block online tax filing software:

• H&R Block Free Edition: This free version only supports a limited range of simple tax situations. You can find more details on which filers qualify for this edition on the website. If you are eligible, you can e-file both your federal and state tax returns for free.
• H&R Block Deluxe: For $65 (plus $37 per state), Deluxe is the version most filers probably need. In addition to the basic tax situations included in the free edition, Deluxe adds support for filers who want to claim tax credits or deductions for homeowners, childcare expenses and hundreds of other situations. You can also report self-employment income (but can’t claim business expenses). If your itemized deductions would be higher than the standard deduction or you earned some extra freelance income on the side, get H&R Block Deluxe.
• H&R Block Premium: For $105 (plus $37 per state), Premium includes all tax situations from the free and deluxe editions as well as various investment incomes. If you own rental properties, stocks, bonds, or crypto, H&R Block Premium is the version you need.
• H&R Block Self-Employed: This version costs $130 plus $37 per state. It includes all tax situations from previous versions as well as support for self-employed filers who want to deduct expenses. Note that you can use Deluxe to claim income if you’re self-employed, but you can’t deduct business expenses from that income unless you upgrade to H&R Block Self-Employed.

If you’re still not sure which version you need, H&R Block lets you start filing with the free edition. It will then prompt you to upgrade if you need to add a form that’s not included in the free tax prep software.

Just be wary of which upgrades you’re agreeing to. For example, you might need to upgrade to H&R Block Deluxe to claim certain homeowner deductions. But that doesn’t mean you need to upgrade to H&R Block Deluxe with Tax Pro Review.

If you do accidentally agree to an upgrade you don’t want or need, you should be able to connect with a chatbot or online customer service representative to downgrade.

How to choose the right version of H&R Block desktop software

The desktop version of H&R Block tax prep software functions pretty much the same as the online version. The difference is that your data is stored on your computer rather than online if you download H&R Block to your desktop.

There’s also no free version of the desktop software. But all versions do include e-filing of up to five federal tax returns for free. This is a definite bargain if you have family members (or friends) who also need to file taxes this year.

Most desktop versions also include one state return for free, though e-filing that return costs an extra $19.95. If you want to skip the extra e-filing fee, you can print out the state return for free and file it by mail.

Here’s a quick glance at all the desktop versions of H&R Block tax software:

• H&R Block Basic: For $50, this version includes guided software for simple tax situations. You can e-file up to five separate federal tax returns at no extra cost. No state returns are included, so you’ll need to pay $39.95 extra per state to fill out your state tax return. Add $19.95 per state return to e-file it with H&R Block.
• H&R Block Deluxe + State: For $70, this version includes everything in Basic plus support for filers who own their home and have investments. It also includes one state return for free, so you can skip that $39.95 fee. But you’ll still pay $19.95 if you choose to e-file your state return through H&R Block.
• H&R Block Premium: For $95, this version includes everything in Deluxe plus support for those who own rental properties, are self-employed, or do freelance work on the side.
• H&R Block Premium & Business: For $115, this version includes everything in Premium plus support for those who own a business.

Are you eligible for the H&R Block Online Free Edition?

H&R Block offers free online tax filing for some filers. According to its website, approximately 52% of filers will qualify for the free version.

Eligibility is based entirely on how simple your taxes are. If you’re a W2 employee with no freelance income and you’re planning to take the standard deduction, you probably qualify.

Here’s a complete list of tax situations that are included in the H&R Block Online Free Edition:

• W-2 income
• Up to $1,500 in interest and dividend income
• Unemployment income
• Qualified retirement plan distributions from Form 1099-R
• Student loan interest deduction
• Child Tax Credit
• Earned Income Tax Credit

If your taxes involve anything more than what’s on that list, you’ll need to upgrade to one of the paid versions of the tax prep software.

Who should use H&R Block tax software?

H&R Block tax software is easy to use for just about anyone, but it offers the best value for filers with complex or unusual tax situations. That’s because the software can handle pretty much any situation you can throw at it. It also offers a lot of flexibility in the amount of support you get.

However, if your taxes are relatively straightforward but not quite simple enough to qualify for the free version of H&R Block, you might be able to save by opting for another tax prep software that’s either free or charges less than H&R Block for your tax situation.

Shop around and compare your options to find the most affordable tax prep software that still offers all the features and support you want.

Related content

• TurboTax: Features, Pricing and Filing Options for This Tax Season
• TaxAct Review: Pricing, Features and What to Expect
• Not Ready to File Taxes? Eight Things to Do Now to Prepare
• 2026 State Tax Changes to Know Now: Is Your Tax Rate Lower?

TaxAct has been part of the online tax filing landscape for more than two decades, positioning itself as a lower-cost alternative to larger competitors such as TurboTax and H&R Block. While it may not offer the same level of visual polish or built-in guidance as some rivals, it provides the core tools many filers need to prepare and submit a return.

Founded in 1998, TaxAct has supported the filing of more than 105 million tax returns. Over the years, the platform has focused on straightforward pricing and tiered plans that allow users to choose a version based on the complexity of their finances.

From basic W-2 income to freelance work, homeownership or investment income, TaxAct offers several filing options designed to handle a range of tax scenarios. Here’s a closer look at how it's pricing works, what features are included and who may want to consider using it this tax season.

How much does TaxAct cost?

TaxAct stands out with competitive pricing that undercuts popular tax software providers like TurboTax and H&R Block. TaxAct offers five filing tiers, each tailored to different tax situations.

Here’s a breakdown of TaxAct’s 2026 plans:

TaxAct does run promotions throughout tax season. For example, AAA members can receive 25% off both federal and state tax filings for consumer and business tax products.

TaxAct's features and benefits

TaxAct offers several helpful features designed to make the tax filing process smoother. If you need additional time to file, you can submit a tax extension directly through the platform — no extra forms or third-party tools are required.

TaxAct also backs its software with a 100% Accuracy Guarantee, promising to cover any difference in your tax liability, up to $100,000, if an error results from using their system.

Additionally, the Maximum Refund Guarantee ensures that if you find a larger refund using a different provider with the same information, TaxAct will refund the cost of your software.

While TaxAct has fewer upsells than larger competitors, it does offer live assistance. Xpert Assist gives you access to live help from a tax expert for an additional $25. This feature includes unlimited questions and the option to request a quick review of your return before filing. This type of support is good for those filers who want a second set of eyes without committing to full-service tax preparation.

How to file your taxes with TaxAct

You can choose between two main filing methods: TaxAct Online or TaxAct Download.

With the online version, you create an account and complete your return directly in a web browser. Your data is saved securely in the cloud, and you can access your return from any internet-connected device. Each online account supports one return.

For those who prefer to work offline or need to file for multiple people, the TaxAct Desktop software is a better fit. It allows you to save returns locally to your computer or flash drive and supports preparing and printing multiple tax returns, making it ideal for households with more than one taxpayer.

Filing with TaxAct follows a familiar step-by-step process, much like other tax software. The platform guides you through a series of questions about your income, deductions, and life events to help populate the correct tax forms and identify potential credits.

As you enter information, a real-time tracker updates your estimated refund or balance due, giving you immediate insight into how your input affect your return.

What to know before filing with TaxAct

TaxAct is a solid choice for those seeking a no-frills, cost-effective filing experience. One of its advantages is transparent pricing with minimal upselling.

While other platforms often nudge users toward more expensive tiers or add-ons, TaxAct largely avoids that, keeping things straightforward for users who know what they need.

Compared to TurboTax, TaxAct remains a more budget-friendly solution, particularly for those with more complex filing needs like freelancers, gig workers, and investors.

Is TaxAct worth it?

TaxAct is a good option for filers who want reliable tax prep tools without paying premium prices. While it may not offer all the bells and whistles of more expensive platforms, it delivers a user-friendly experience, essential features and flexible plan options.

The platform’s clear pricing, minimal upselling and support for complex tax situations make it a smart pick for those who prioritize value over flashy extras. Just keep in mind that state filing costs can add up, and live expert help comes at an additional charge. If you’re comfortable navigating your taxes with a bit of guidance, TaxAct is worth a closer look this tax season.

related content

• The Best Tax Prep Software for Every Tax Situation in 2026
• Not Ready to File Taxes? 8 Things to Do Now to Prepare
• TurboTax: Features, Pricing and Filing Options for This Tax Season

The Amazon Big Spring Sale is over, but the savings don't have to be. You can still save on filing your taxes this week, just in time to get that return filed before the April 15 deadline. The latest TurboTax software is up to 30% off right now, including TurboTax Deluxe, Premier and Home & Business.

If you’re on the hunt for an easy-to-use tax prep software, but not thrilled about potentially forking over hundreds to use it, check out these TurboTax deals at Amazon right now.

How much can you save on TurboTax at Amazon?

The retailer slashed up to 30% off the price of four popular TurboTax desktop software products. TurboTax Deluxe, for example, normally retails for $80. But you can get the best selling tax prep software for just $56 on Amazon this week.

For those who were considering the online version of TurboTax, the savings are even bigger. If you were to use TurboTax Deluxe online, you’d pay $69 or more for one federal tax return plus an additional $59 per state return.

If you take advantage of the Amazon deal to get TurboTax Deluxe for desktop, that $56 price includes filing up to five federal tax returns. That means you and your whole family can do their taxes for just $56.

It also includes one free state tax return form, which you can either print for free to file by mail or pay an extra $25 per return to have TurboTax e-file it for you. Either way, you’re paying less for your state return than you would online.

While there’s plenty to love about TurboTax online, it’s hard to beat those savings if you’re helping your kids or grandkids with their taxes this year.

Other versions of TurboTax desktop software are on sale at Amazon, too. Here are all the TurboTax deals the major online retailer is offering this week:

• TurboTax Deluxe 2024 Tax Software, $56 (originally $80)
• TurboTax Premier 2024 Tax Software, $83 (originally $115)
• TurboTax Home & Business 2024 Tax Software, $96 (originally $130)
• TurboTax Business 2024 Tax Software, $144 (originally $190)

Related content

• TurboTax: Features, Pricing and Filing Options for This Tax Season
• The Best Tax Prep Software for Every Tax Situation in 2025
• Tax Season 2025 Is Here: Key IRS Changes to Know Before You File
• A Bunch of IRS Tax Deductions and Credits You Need to Know

Tax season can feel overwhelming, but the right software can simplify the process. TurboTax is known for its user-friendly interface, step-by-step guidance, and features designed to help filers maximize refunds while minimizing errors.

TurboTax is especially well-suited for people filing simple tax returns — think W-2 income, student loan interest and a few common tax credits. While its free version works well for basic needs, paying for a higher tier can be worth it for the added support if your return is a bit more complicated.

Here’s what to know about TurboTax’s features, pricing and how it compares to other filing options.

How to choose the right version of TurboTax

Selecting the right TurboTax option depends on your tax situation. The goal is to get the features you need — without paying for upgrades you don’t.

The online version offers the flexibility of accessing your tax information from any internet-connected device, with data securely stored in the cloud. You can switch back and forth between TurboTax online and the app seamlessly.

You can use the app to snap a pic of your W-2 and other documents and your information will be automatically entered in your return. It’s important to note that the mobile app doesn’t have access to the print center or tax tools.

The desktop version is installed on your computer, allowing for offline access and local data storage. Both versions support state tax returns, though additional fees apply.

TurboTax provides various support levels, ranging from self-service to live assistance and full-service options where a tax expert manages your entire return. The following are of some of the available options:

TurboTax software can be downloaded directly from the TurboTax website, or purchased from popular retailers like Costco and Best Buy.

These retailers often offer bundles or limited-time discounts, so it’s worth comparing prices before you buy.

There are several discounts and free filing options available for those who qualify. USAA members can access exclusive savings when purchasing TurboTax through the USAA website.

While active-duty and reserve military members may be eligible to file their federal and state tax returns for free.

TurboTax features that help maximize your tax refund

TurboTax offers several features designed to simplify tax preparation. One standout feature I like is the ability to import W-2s, 1099s and investment income reports directly from financial institutions.

This can save time and reduce errors, especially for users with multiple income sources — though not all financial institutions are supported.

TurboTax offers a tool called the Deduction Maximizer, which helps users uncover tax breaks they might otherwise miss. It scans for eligible deductions and credits, including mortgage interest, student loan interest and charitable contributions.

While this tool can boost refunds, it may occasionally encourage upgrades that aren't necessary for every tax situation.

For those seeking additional help, TurboTax Live connects users with tax experts for real-time assistance. This service is ideal for complex returns but comes at an added cost, which may not be worthwhile for simpler filings.

TurboTax also includes an accuracy guarantee and audit support. While these features offer peace of mind, it's important to note that audit support is limited to guidance rather than full representation.

What to know before filing your taxes with TurboTax

While TurboTax simplifies the tax filing process, there are a few considerations to keep in mind. Before filing with TurboTax, it’s important to know that not all versions are free.

The free version is designed for simple tax returns and may not cover more complex situations like itemized deductions or certain types of income. If your tax situation involves freelance work, rental properties or investment income, you’ll likely need to upgrade to a paid version.

Finally, users can file state tax returns through TurboTax for an additional fee in most cases. However, some states offer free filing options, so it's worth checking local requirements before paying for the add-on.

Is TurboTax the right tax software for you?

TurboTax takes much of the complexity out of tax preparation by offering a guided, user-friendly experience that supports a wide range of tax situations.

Whether you’re filing a basic return or juggling multiple income streams, TurboTax provides tools and guidance to help you file accurately.

Features like document import and deduction-finding tools can help maximize your refund, but it’s important to consider whether you actually need the higher-tier upgrades or expert help. Not every filer will benefit from these paid add-ons, so review your tax situation carefully before choosing a version of the software to file your taxes.

related content

• The Best Tax Prep Software for Every Tax Situation in 2026
• Not Ready to File Taxes? 8 Things to Do Now to Prepare
• A Bunch of IRS Tax Deductions and Credits You Need to Know

The Kiplinger Readers’ Choice Awards aim to recognize and celebrate the best products and services in the personal finance arena. We asked you, our Kiplinger community, to help us name the products and services you think have delivered excellent value in the past year.

The survey results, which we’re sharing here in our second annual Readers’ Choice Awards, offer valuable insight into which providers shine when it comes to your everyday interactions and experiences with them. Our Awards recognize excellence in everything from credit cards, banks and brokers to insurers, tax software and financial apps.  For each category, we’ve listed an overall winner that earned the highest score. We’ve also highlighted other products and services that earned above-average scores for various criteria we asked readers to assess.

By voting, our community has helped us form our guide to the very best financial products. These are the products and companies that you think stand out from the crowd.

Kiplinger Readers’ Choice Awards Categories

Best Wealth Management

Readers rated wealth managers based on the quality of financial advice they received, the trustworthiness of the advisers, how likely they would be to recommend the firm to others and their overall satisfaction with the wealth manager. 

The overall winner was J.P. Morgan Wealth Management. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best wealth management services winners.

Best Donor-Advised Funds

We asked readers to assess the donor-advised funds they use based on how suitable the investment options are, the likelihood they would recommend the fund to others and their overall satisfaction with the fund.

The overall winner was Fidelity Charitable. Read our full guide to Kiplinger Readers' Choice Awards 2024 best donor-advised funds to see all of the winners.

Best Cash Back Credit Cards

Many of those who use a rewards credit card prefer simple, straightforward rewards in the form of cash back. That's no surprise, given that a cash back credit card is the simplest and most effective way to earn credit card rewards. We asked respondents to rate their cards on the strength of customer service, how likely they would be to recommend the card to others and how satisfied they are overall.

Our overall winner was Fidelity Rewards Visa. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best cash back credit card winners.

Best Travel Rewards Credit Cards

These cards provide the greatest value to frequent travelers, who can redeem points or miles for flights, hotel reservations, car rentals and more. Some come with perks such as rental car insurance and access to airport lounges. Readers judged travel rewards credit cards on the strength of customer service, how likely they would be to recommend the card to others and how satisfied they are overall with the card. 

Our overall winner was Capital One Venture X. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best travel rewards credit card winners.

Best Airline Credit Card Rewards Programs

Airline cards provide miles or points on purchases, which passengers can put toward flights. Readers evaluated airline card programs on customer service, how likely they would be to recommend the card program to others and how satisfied they are overall with the card program 

Our overall winner was the Alaska Airlines credit card rewards program. Read our full guide to the Kiplinger Readers' Choice Awards 2024 airline credit card rewards programs winners.

Best Hotel Credit Cards Rewards Programs

Readers evaluated hotel card programs on customer service, how likely they would be to recommend the card program to others and how satisfied they are overall with the card program. 

The overall winner was the World of Hyatt credit card program. Read our full guide to the Kiplinger Readers' Choice 2024 Hotel Credit Card Rewards Programs winners.

Best National Banks

These large brick-and-mortar institutions have a presence in many states, and they offer a range of products and services, including checking accounts, savings accounts, certificates of deposit and loans. We assessed readers’ overall satisfaction with their bank, their opinion of its customer service, and the likelihood they would recommend the bank to others. 

Our overall winner was KeyBank. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best national banks winners.

Best Internet Banks

Survey respondents judged these institutions on customer service, how likely they would be to recommend the bank to others and how satisfied they are overall with the bank.

Our overall winner was Discover Bank. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best internet banks winners.

Best Full-Service Brokers

We asked readers to assess brokerage firms that offer a breadth of services, whether online, by phone, through in-person assistance at branches, or some combination. Readers rated the strength of their broker’s customer service, how likely they would be to recommend the firm to others and their overall satisfaction with the broker.

Our overall winner was Fidelity Investments. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best full-service brokers.

Best Auto Insurance Companies

Readers weighed in on their auto insurance provider based on how competitive the rates are, their experience with filing claims and how likely they would be to recommend the insurer to others.

Our overall winner was Erie Insurance. Read our full guide to see all the winners of the Kiplinger Readers' Choice Awards 2024 auto insurance companies.

Best Homeowners Insurance Companies

Readers assessed their homeowners insurance provider based on how competitive the rates are, how positive the experience has been when filing a claim and how likely they would be to recommend the insurance company to others. Several of the winners here are also winners in auto insurance, making it easier for you to select a bundled service with one outstanding company.

The overall winner was USAA. See Kiplinger Readers' Choice Awards 2024: Homeowners Insurance Companies to learn more about the companies you chose as winners.

Best Peer-To-Peer Payment Apps

Peer-to-peer payment apps have developed a wide reach as they have become faster and easier to use. Readers rated the P2P service that they use most based on ease of use, the likelihood they would recommend it to others and their overall satisfaction with the service.

Our overall winner was Apple Cash. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best peer-to-peer payment apps.

Best Tax Software

We asked readers to rate their preferred tax-filing software based on ease of use, how likely they would be to recommend the service to others and overall satisfaction with the software.

Our overall winner was FreeTaxUSA. Read our full guide to the Kiplinger Readers' Choice Awards 2024 tax software winners.

How Readers Chose Their Winners

Kiplinger readers were invited to take the Readers’ Choice Awards survey on Kiplinger.com between February 20 and March 15, 2024. The survey was fully completed by 4,528 people. 

The survey asked respondents to choose the financial product or service that they most frequently use in 13 categories: full-service brokerage firms, wealth managers, donor-advised funds, cash-back credit cards, travel rewards credit cards, airline credit card rewards programs, hotel credit card rewards programs, national banks, internet banks, auto insurers, homeowners insurers, tax software and peer-to-peer payment services. (Because of a scripting error, the survey did not collect scores for Wells Fargo in the national banks category. We apologize for the omission.) 

We asked readers to rate each provider they selected on a scale of one to 10 based on a few criteria. In many categories, readers rated the strength of customer service, how likely they would be to recommend the product or service to others, and how satisfied they are overall with the provider. In some categories, we included more nuanced criteria. With wealth management firms, we asked respondents to rate the trustworthiness of a firm’s advisers and the quality of its financial advice. For donor-advised funds, respondents evaluated the suitability of investment options. For peer-to-peer payment apps and tax software, respondents evaluated ease of use, and for auto and home insurance companies, readers judged the competitiveness of rates and strength of the claims experience. 

We calculated an average (mean) score for each criterion with each provider. We also calculated an overall mean score for all providers for each criterion we asked readers to judge. We compared individual provider mean scores with the overall mean, and the three highest-scoring providers that had a score above the overall mean won an “outstanding” accolade; in cases of a tie, more than three providers are named, and if fewer than three qualifying providers achieved an above-average score, only those providers are named “outstanding.” In each category, providers are generally listed in descending order by the number of criteria for which they received the “outstanding” designation — so a product or company that is deemed “outstanding” in three areas, for example, is listed before a provider with one or two “outstanding” awards. 

To choose an overall winner in each category, we added together the mean scores for each criterion rated for each product or service. The provider with the highest total score in each category took the prize for overall winner.

Kiplinger Readers' Choice Awards Categories

• Wealth Managers
• Donor Advised Funds
• Cash Back Credit Cards
• Travel Rewards Credit Cards
• Hotel Rewards Credit Card Programs
• Airline Rewards Credit Card Programs
• National Banks
• Internet Banks
• Full-Service Brokers
• Tax Software
• Auto Insurance Companies
• Homeowners Insurance Companies 
• Peer-to-Peer Payment Services

About the Kiplinger Readers’ Choice Awards

The Kiplinger Readers’ Choice Awards aim to recognize and celebrate the best products and services in the personal finance arena. We asked you, our Kiplinger community, to help us name the products and services you think have delivered excellent value in the past year.

The survey results, which we’re sharing here in our second annual Readers’ Choice Awards, offer valuable insight into which providers shine when it comes to your everyday interactions and experiences with them. Our Awards recognize excellence in everything from credit cards, banks and brokers to insurers, tax software and financial apps.  For each category, we’ve listed an overall winner that earned the highest score. We’ve also highlighted other products and services that earned above-average scores for various criteria we asked readers to assess.

By voting, our community has helped us form our guide to the very best financial products. These are the products and companies that you think stand out from the crowd.

Kiplinger Readers' Choice Awards: Tax Software

These programs guide taxpayers through the ins and outs of preparing and filing an income tax return. We asked readers to rate their preferred tax-filing software based on ease of use, how likely they would be to recommend the service to others and overall satisfaction with the software.

OVERALL WINNER: FreeTaxUSA 

Outstanding for:

• Ease of use
• Most recommended
• Overall satisfaction

For the second year in a row, FreeTaxUSA is the top choice among tax software programs. “It is very user-friendly and free for federal returns. What’s not to like?” says one reader. Some also spoke highly of the program’s ease of use — even for complicated returns — coupled with unmatched value. “It is just as good as TurboTax at a fraction of the cost,” says one reader.

FreeTaxUSA charges no fee for federal tax returns and $14.99 for state returns. If you sign up for the Deluxe Edition ($7.99), you get assistance from a tax specialist, priority support if you have questions and unlimited amended returns.

 H&R Block

Outstanding for:

• Ease of use
• Most recommended
• Overall satisfaction

Along with in-person assistance from tax professionals at thousands of branch locations, H&R Block offers online tax programs for do-it-yourselfers, too. Survey respondents remarked on its effectiveness and reasonable pricing.

H&R Block provides free federal and state online programs for those with simple returns; it also offers various paid versions, depending on the taxpayer’s situation. The Deluxe version ($35 for a federal return), for example, assists with child and dependent care expenses and itemizing deductions; Premium ($65) adds on rental income, investments and cryptocurrency trading. The paid versions charge $37 per state return.

Online Taxes

Outstanding for:

• Overall satisfaction

OnLine Taxes offers free federal and state tax returns for anyone with an adjusted gross income of $45,000 or less; active-duty military members with an AGI of $79,000 or less also qualify. If you don’t meet the income requirement, your federal return is still free, but you’ll pay $12.95 to prepare a state return. 

Kiplinger Readers' Choice Awards Categories

• Wealth Managers
• Donor Advised Funds
• Cash Back Credit Cards
• Travel Rewards Credit Cards
• Hotel Rewards Credit Card Programs
• Airline Rewards Credit Card Programs
• National Banks
• Internet Banks
• Full-Service Brokers
• Tax Software
• Auto Insurance Companies
• Homeowners Insurance Companies
• Peer-to-Peer Payment Services

Federal income tax rates didn’t increase in 2023, so if your personal finances didn’t change much last year, you probably won’t pay much more in taxes. There’s a good chance, though, that you’ll pay more to file your taxes. 

The average cost to have a tax professional prepare an individual federal tax return in 2023 was $248, an increase of more than 16% from 2021, according to a survey by the National Association of Tax Professionals. The price hike primarily stems from inflation and the increased complexity of tax returns, says Jennifer Van Elzen, director of member relations and analytics for the NATP. 

Tax preparers charge for their services in multiple ways, including by the hour or based on the number of tax forms you’re required to file. If your return is fairly simple — you’re claiming the standard deduction instead of itemizing, for example — you may pay less than the average cost. But when it comes to hiring a tax preparer, finding a reputable professional is critical. 

Start by looking for a preparer who is credentialed — a certified public accountant, an enrolled agent or an attorney. CPAs are licensed by state boards of accountancy, studied accounting at a college or university, and have passed a rigorous exam. Enrolled agents, who are licensed to appear before the IRS, must pass a rigorous test and meet annual continuing-education requirements. 

At a minimum, look for a preparer who participates in the IRS’s annual filing season program, a voluntary program the IRS offers to encourage uncredentialed preparers to take continuing-education courses.

In her recent annual report to Congress, National Taxpayer Advocate Erin Collins cited uncredentialed tax preparers as one of the most serious problems facing taxpayers. Unscrupulous operators use the tax-preparation process as an opening to sell high-priced loans or hijack personal information to commit identity theft, says Collins. 

Senior citizens with low-to-moderate income are eligible for free tax assistance from the AARP’s Tax-Aide program, which provides trained tax volunteers at sites around the country. You can also arrange for an AARP volunteer to coach you if you want to file online. 

Deals for DIY tax filers

You can save money by using tax software to prepare and file your taxes, and depending on your income, you may be able to do it for free. If your 2023 adjusted gross income (AGI) was $79,000 or less, you can use IRS Free File to prepare and file your federal tax return (and in some cases your state return) for free. Free File is a partnership between the IRS and tax software providers who have agreed to make their software available at no cost to eligible taxpayers. 

There are some drawbacks. Participating providers are allowed to impose their own criteria, based on age, AGI, state of residency or other factors, so you probably won’t qualify for all of them. More significantly, the major tax software providers, TurboTax and H&R Block, no longer participate in Free File. 

Most tax software providers offer free versions of their programs, but scrutinize the fine print before you start plugging in your numbers. Although these programs allow you to start preparing your return for free, you could be required to upgrade to a paid program for multiple reasons — you contributed to a health savings account, for example. 

In January, the Federal Trade Commission issued an order barring TurboTax from marketing its services as free unless it makes its product free to all taxpayers. The FTC said TurboTax’s advertising is deceptive because two-thirds of taxpayers are ineligible for the free product. “Most taxpayers do not have ‘simple tax returns,’ as defined by [TurboTax parent company] Intuit, and thus do not qualify to file for free using Free Edition,” the FTC said in its order. TurboTax called the order “deeply flawed” and said it will appeal. 

For its part, H&R Block says its 2023 free version includes 43 different tax forms, which will enable even more taxpayers to qualify for the product than in the past. At the same time, the company said that many Americans have complex filing situations that don’t qualify for the free version. Taxpayers who have health savings accounts, for example, must upgrade to H&R Block’s Deluxe product.

You can save money by using products that aren’t as well known as TurboTax and H&R Block. FreeTaxUSA will prepare and e-file your federal tax return for free, even if the return is complex. The company makes money by charging for state tax returns ($14.99 per state). TaxSlayer’s classic version supports all federal tax forms, deductions and credits for $22.95, plus $39.95 for a state tax return (prices here are as of press time and could change). 

If you’re a committed TurboTax or H&R Block software user, look for deals. Many banks and brokerages offer their customers discounts on tax software, and you can also find coupons at websites such as Coupons.com and RetailMeNot.com.

What to know about filing directly with the IRS

Meanwhile, the IRS is testing a program that would allow taxpayers to file their federal tax returns directly with the IRS, at no cost. The pilot program, which is being tested in 12 states, is limited to low- and moderate-income taxpayers with simple returns. (To find out whether you qualify, go here.) 

The IRS says Direct File is not intended to replace any of the existing tax preparation programs. Still, the program has faced pushback from tax software providers. In a statement, TurboTax said Direct File was a “solution in search of a problem” because many taxpayers can already file for free.

Related Content

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• Withholding Tax From Your Social Security Benefits
• Who is Required to File a Tax Return?

​Listen Now

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David Muhlbaum: We are rolling into the heart of tax filing season, and so we’ll dig deep into the annual questions: Can you file yourself? Which software? And, could you do it for free? Also new content from our friend Brandon Copeland and the perks of stock ownership. That’s all coming up on this episode of Your Money’s Worth. Stick around.

David Muhlbaum: Welcome to Your Money’s Worth. I’m senior editor David Muhlbaum, joined by my cohost, senior editor Sandy Block. Sandy, how are you doing?

Sandy Block: I’m good, David. I understand you’re in a yurt, which I think is like a New England word for trailer, but I’m not sure.

David Muhlbaum: It’s Mongolian.* But yes, I have decamped yet again to work remotely, this time from another undisclosed location in yes, New England.

Sandy Block: A yurt with wifi. This is how we live now.

David Muhlbaum: Exactly. Also for this week, we don’t have a guest. It will just be our dulcet tones you’ll hear. However, we’re going to make a lot of references to someone we did have on as a guest here last year. And he has continued to be a vibrant Kiplinger contributor.

Sandy Block: Professor Cope!

David Muhlbaum: That’s right. Brandon Copeland, New England Patriots linebacker. He has a number of University of Pennsylvania connections as well. He’s a graduate and has taught a class in personal finance there. We really enjoyed talking to him, and I encourage listeners to download that chat too.

Sandy Block: Sadly, he got hurt after his appearance on Your Money’s Worth. Not during his appearance on Your Money’s Worth.

David Muhlbaum: Yeah, yeah. That’s true, too. He tore his pectoral muscle about halfway through last season and ended up on injured reserve. I don’t think there’s any connection, Sandy.

Sandy Block: No. I don’t know any other guests that have ended up in the hospital. So we take no responsibility, but we also wish him a speedy recovery.

David Muhlbaum: But in truth, we may have benefited a bit because Professor Cope probably got a bit more time to work on his projects with us. Surgery, PT, Kiplinger videos. His latest is about money anxiety, which as it happens is something both old and new. Old in that people have been worrying about money since there was money, and new because right now worries about money are running particularly high.

Sandy Block: Sure. I mean for obvious reasons, but he’s a well-compensated NFL player. Some people are going to hear, “Pro linebacker, what’s he got to worry about,” or, “Where does he get off telling me what to think about money worries?” Maybe the money worry is that everyone knows how much NFL players make. Like, it’s right out there on the internet, by individual.

David Muhlbaum: True. Plus they get thousands of people judging whether they’re worth that money every week or day. I mean, that’s got to be stressful. And in fact, the question of salary disclosure, I think that came up when we talked to Brandon before. But you’re right, those money anxieties are kind of unique to the professional athlete. Well, corporate executives, elected officials, they kind of feel that heat too. In fairness, he does talk a lot about sports and the challenges, money and otherwise, of a professional athlete.

His guest, co-host really, is a guy named Joe Holder. The two of them played ball at Penn together. Now, unlike Copeland, Holder didn’t go pro. But he’s a Nike master trainer, among other things. And he’s the creator of The Ocho System, which is about holistic wellness. It’s going to take a whole segment alone to explain that, and I’d still be giving it short shrift. So the link to Brandon and Joe’s video is in the show notes, and I bet you’ll enjoy it.

David Muhlbaum: And if you’re not into what my older daughter used to call, dismissively, sportsball, I think you’ll appreciate it anyway. But I’ll give you a cheat code. The money anxiety talk? That shows up around 1:14.

When we return, paying money to pay your taxes. Seems cruel. Maybe you don’t have to.

David Muhlbaum: Welcome back to Your Money’s Worth. Tax season is upon us. By the time you’re hearing this, the IRS will have opened the window to accept returns. It came a bit later this year, February 12th, as the government had to deal with processing stimulus payments among other issues. As usual, Sandy and others at Kiplinger have been busy testing all the tax software available to help you complete your returns. Competition for those apps is pretty vigorous and every year requires a fresh look.

No doubt you’ll be getting all kinds of email and other contact from whatever platform you used last year. I’m sure they’d like you to use them again. And while there are advantages to continuing on with your old favorite, it could pay to re-shop. But we’re not going to run down Kiplinger’s Best Values in Tax Software. And not just because we want you to click, click, click on that piece of content.

Sandy Block: No, we’re doing you a favor. It doesn’t make compelling audio. And frankly, part of what I think makes our advice so useful is that we dig into which software is best for your situation, because we know they vary a lot. Are you self-employed? Do you have investment income, or a simple return? Etc. But we will be naming some names today. So don’t despair. What we want to do is look at ways you can file your federal taxes, and sometimes even your state taxes, for free.

David Muhlbaum: Allow me to grump for just a moment that it’s kind of a crazy world where many of us have to pay money so that we can pay the government money. It reminds me of the hated dealer processing fee on a car. Hey, I’m going to give you a lot of money and you’re going to charge me a fee to ring it up?

Sandy Block: Right? And actually, a lot of people really hate the fact that they have to pay to file their taxes, and in other countries they don’t. Their version of the IRS just sends you a bill. And if you like it, you send the money and you don’t have to do this. So, a uniquely American thing.

But in fact, anybody can use the free fillable forms that the IRS provides on its site for free. Although that requires a certain... There’s no hand-holding there. It’s just filling in the boxes and doing the math. So just about anybody can file for free that way, but doing things the old way on paper is rarely the smart option. That’s where people will make a lot of errors and it really slows down getting your refund, which you’ll get very quickly if you use software and file electronically. So the software can add value, just like hiring an accountant.

David Muhlbaum: Yeah. That reminds me of a license-plate surround my father-in-law has on his car. On top it says “certified public account.” And underneath it says “never underestimate the value.” Catchy, huh?

Sandy Block: Oh yeah. We’re here all week.

David Muhlbaum: Accountant humor. Yes, well, okay.

Sandy Block: Some people do need a CPA or an enrolled agent or some kind of tax professional. And I know I’m going on a bit of a tangent here, but we do have a good piece about finding a good tax advisor.

David Muhlbaum: Yeah. I’ll put a link in the show notes, but let’s get back to filing for free. Your tax situation needs to be relatively simple then? You get to file for free. You don’t get a CPA for free.

Sandy Block: No, not necessarily because the hard and fast rule for being able to file for free, no matter how complex your return, is that you must’ve had adjusted gross income of $72,000 or less in 2020. And that actually covers a big chunk of tax filers.

David Muhlbaum: Okay. Because it’s using AGI, adjusted gross income, which allows you adjustments, particularly if you’re self-employed. But what if I don’t know my AGI going in? Say I’m on the bubble, somewhere between $70K and $75K, how’s that going to work for me?

Sandy Block: Well, the way for me to answer that is to back up to how people should be going about filing for free or seeing if they can. The place to start is called IRS Free File. Those three words are important: IRS Free File. The reason I’m repeating myself is that there’s a lot of language out from various companies using the word free, but not every pitch, whether it’s an email or whatever with the word free in it means that you’ll be able to file for free.

So you could be in a situation where you tediously type in lots of personal information and income and deductions, and then, uh oh, it’s very much not free.

David Muhlbaum: It’s a trap!

Sandy Block: It is a trap, right? Thank you, Admiral Ackbar. And so two ways to not fall for it. One is I said before – twice actually – is to go to IRS Free File and start from there. There are nine companies currently participating. Some of them are offerings from big names in the field. Some you might not have ever heard of. And within those nine, there are further distinctions. Some might have a lower income threshold. Some will let you do state filings for free. Some are only available to certain ages. So the IRS has a tool you can use to find one that matches your situation.

David Muhlbaum: At IRS Free File.

Sandy Block: Right. It’s very transparent, to use the buzzword. The terms are up front. That said, there are other ways to file for free than IRS Free File, which is useful if you make more than $72,000. One is Credit Karma Tax, which is a site and service people might know best for its credit monitoring and guidance since that’s right in its name.

David Muhlbaum: Yeah, no. These guys I know and have used -- not personally but professionally. So, over the last few years, the interns and I filled out literally hundreds of returns for Kiplinger’s Middle-Class Tax Map and the Retiree Tax Map. We just kept changing the state and rerunning out our sample filers as if they lived in Vermont or Colorado or South Carolina, just over and over and over. And frankly, I always wondered if someone at the other end over at Credit Karma would notice something weird going on. I don’t think they really pay that kind of attention, but it would have been weird because we just kept changing the states. Didn’t pay a cent. But well, we gave them a credit line though.

Sandy Block: That was big of you. And that was because Credit Karma will let you file a state tax return for free. But the point here is, one return. You get one state tax return.

David Muhlbaum: To file one.

Sandy Block: Right. It’s an important distinction because a lot of people this year moved from one state to the other and might have to file more than one state tax returns and Credit Karma’s program just can’t process multiple state tax returns.

David Muhlbaum: Okay. How about some others?

Sandy Block: Well, another one that we like is Free Tax USA, which offers a free federal tax return even for complex returns. A state tax return costs just $13, which is pretty cheap. And then there are two offers from the big players that are also worth considering. If you only have W2 income, income from unemployment, or you qualify for the earned income tax credit or child tax credit, you can get a free federal and state tax return from Turbo Tax Free Edition. But be careful, if you claim the student loan deduction, which a lot of people with pretty simple tax returns claim because you don’t have to itemize to claim it, you’ll probably be required to upgrade to a more expensive addition.

H&R Block Free Online also offers a free state and federal tax return for straightforward tax returns. And you can use it even if you deduct student loan interest. However, if you have a health savings account, you’ll have to upgrade to H&R Block Deluxe, which costs $30 plus $37 for a state tax return. And I think a lot of people would not think that a health savings account makes their tax return complicated. They have a health savings account because they have a high deductible insurance plan. So that’s something you got to really read the fine print on these so-called free additions.

David Muhlbaum: Or you use those three words we keep saying: IRS Free File. But I still don’t know what I’m supposed to do if I think I’m around, maybe over, maybe under that magic $72,000 AGI. Did you tell me that?

Sandy Block: No. Well, I mean, a lot of folks can look at last year’s tax return and figure out if things changed a little bit, suppose it did. You made a lot more money, you got married or something like that. I’d say, start with Credit Karma Tax, just like you did for your sample testing. You don’t have to get all that terribly far in to figure out your AGI. And then once you’ve figured that out, you can either plow ahead with Credit Karma Tax, if you like it, or figure out which of the free file offerings would be best for you.

David Muhlbaum: Sandy, one thing we talked about off mic was the gap between the number of people who are eligible for Free File – I think essentially there’s like legislation that says what percentage of the filing population has to be eligible – and the percentage of people who actually do. Basically, more people could be filing their taxes for free than they do. What is going on?

Sandy Block: Oh yeah. And this is a little geeky history here, but basically Free File was an agreement between the IRS and software providers that the IRS would not offer free tax software, not go into the business.

David Muhlbaum: Right. Because it could just cut them all off at the...

Sandy Block: Yeah, it could cut everybody off.

David Muhlbaum: Could be like those foreign countries you were talking about.

Sandy Block: Like France. We could be like France. Yeah. And there’s something to admire about that. But as part of this agreement, the IRS said, “Okay, you have to offer your programs for the entirety of Free File.” Something like 70% of the population must be eligible to file their taxes for free by using IRS Free File, and that’s where that AGI comes from.

So on paper, a whole lot of people should be able to use Free File. Hardly anybody does. I mean, I think in the past few years it’s been maybe 5% or less. And there’s all kinds of reasons for this. One is that IRS Free File is not promoted that much. And another reason frankly is because people get confused. They Google “free Turbo Tax” or “free H&R Block” or “free tax software.”

David Muhlbaum: Oh, and then you just drown in returns on that.

Sandy Block: Right. And then they get all these commercial offerings and they think that’s what that is. And they go down that road and sometimes people get very aggrieved because they find out it’s not really free at all. And that’s why we keep repeating IRS Free File. And we will put the link in the show notes because a lot of people could be using this who are not using this. And if you qualify and you find a program that you’re eligible for, it’s really hard to see the downsides, because they are not allowed to force you to upgrade if you have investment income or you claim the student loan deduction. There’s no trap doors here. It really is free. You just got to go look for it.

David Muhlbaum: Actually that reminds me that I took advantage of one of those last year. My daughter, who made some money slinging vegetables at the farm stand and had some withholding. We used IRS Free File to essentially get her a refund back and she didn’t pay a cent.

Sandy Block: Yeah, it works great. I think it’s really great for young people. I mean, these are good programs, but if your tax return is... If you don’t want a lot of hand-holding and you qualify, I just don’t see any downside to using IRS Free File. There really are no trapdoors here.

David Muhlbaum: Welcome back. And we’re going to close out with a taste of something that caught our eye the other day. Shareholder perks. Not executive perks, shareholder perks, like, something you get for being a shareholder other than hopefully price appreciation and maybe a dividend.

Sandy Block: That’s right. And maybe we should have written about this before, and maybe we will in the future. But frankly, it was a pitch from a company called Tiicker, with two i’s.

David Muhlbaum: So Teecker.

Sandy Block: No, just Tiicker. So what they do is connect people who own shares with companies that have programs that provide perks to shareholders.

David Muhlbaum: Okay. Like what?

Sandy Block: A couple they mentioned include discounts on vehicle purchases for Ford shareholders, and Royal Caribbean Cruises offers shareholders up to a $250 onboard credit during their cruise.

David Muhlbaum: Ah, but you have to be a Royal Caribbean Cruises’ shareholder. And eh, I don’t know about that...

Sandy Block: That maybe it’s a value stock. But I’ll tell you this because I looked it up, Royal Caribbean Cruises, that ticker RCL, has tripled, since it fell off a cliff almost a year ago. Tripled. People are going to cruise again. In fact, people are cruising again.

David Muhlbaum: Not Americans.

Sandy Block: Nope. Not Americans. Discounts or no.

David Muhlbaum: No, but back to the perks. This is giving me a bit of a flashback. I mean, I feel like when I was a kid, my parents were shareholders of a big tobacco company. And along with the annual report, they got literal cigarettes in the mail.

Sandy Block: Yeah. Well that was once the thing. I mean, cigarettes. Wow. That must’ve been a long time ago.

David Muhlbaum: What are you saying? Yes, it was a long time ago.

Sandy Block: And then there was Wrigley’s gum and Topps baseball cards, but that’s gone. No, this spin is very 21st century. You tie up your investing account to Tiicker, and then they tell you what you’re eligible for. To the consumer, it’s free.

David Muhlbaum: Well, okay. What if you don’t want to play along? What if you just want to do it DIY?

Sandy Block: Well, that’s not impossible because near as I can tell the list of companies offering perks with appreciable value isn’t stupendously long and a whole lot of them are associated with Warren Buffett’s Berkshire Hathaway.

David Muhlbaum: Oh yeah. Right. Speaking of a man who knows something about brand loyalty. I take it this is part of why the Berkshire Hathaway annual meeting, Woodstock for capitalists, is such a big deal.

Sandy Block: Right. But you don’t have to truck out to Omaha to get all of the breaks. If you own some Berkshire stock, you can get an 8% discount on Geico Automotive Insurance premiums. Geico, of course, is a Berkshire Hathaway company. But what Tiicker would tell you is that they’re trying hard to get more firms to play the game. And if your interest in a stock perk is kind of niche, well, maybe they’ll make the connection for you.

David Muhlbaum: Interesting. A brand-building exercise for everyone. Maybe a way to get more people to invest.

Sandy Block: And now since it’s so cheap on Robinhood and things like that to buy shares, it’s easier than ever. But it’s not a reason to invest in a given stock. Don’t let the perks tail wag the fundamentals dog.

David Muhlbaum: My god, we’re just going to have to close on that metaphor.

Sandy Block: Yes, we are.

David Muhlbaum: Thank you, Sandy.

David Muhlbaum: That will just about do it for this episode of Your Money’s Worth. If you like what you heard, please sign up for more at Apple Podcasts or wherever you get your content. When you do, please give us a rating and review. If you’ve already subscribed, thanks. Please go back and add a rating or review if you haven’t already.

To see the links we’ve mentioned in our show, along with other great Kiplinger content on the topics we’ve discussed, go to kiplinger.com/podcast. The episodes, transcripts, and links are all in there by date. And if you’re still here because you want to give us a piece of your mind, you can stay connected with us on Twitter, Facebook, Instagram, or by emailing us directly at podcast@kiplinger.com. Thanks for listening.

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Links and resources mentioned in this episode:

• Meet Brandon Copeland: NFL Linebacker, New Kiplinger Contributor
• Get Rid of Your Money Anxiety in 2021
• Kiplinger’s Best Values in Tax Software
• 5 Tips for Finding a Tax Preparer
• File Your Federal Taxes Online for Free (IRS Free File)
• Tiicker

* Yurt is actually the Turkic word for the round, portable structure that traces its roots to Central Asia. The Mongolian word for it is “ger.” -- DM