TurboTax is a tax preparation software produced by Intuit that individuals and businesses can use to file their Income Tax returns easily and quickly.
It is undoubtedly one of the most popular tax filing software in the United States.
TurboTax, however, is one of many tax preparation software in its field. There are other TurboTax alternatives that are available for use by taxpayers, including H&R Block, and TaxSlayer among others.
That said, the best TurboTax alternative is Liberty Tax. Not only is Liberty Tax more affordable but it also features additional products and services like loan options, debit card services, and tax preparation courses.
Why Explore TurboTax Alternatives?
TurboTax, like any other software, has its shortcomings.
One of the most significant drawbacks of TurboTax is its cost. Compared to other tax preparation software, TurboTax has one of the most expensive pricing models. In addition, users of this software may incur additional charges to access certain services or features.
While TurboTax has a user-friendly interface, users with complex tax situations may find the tax preparation process by TurboTax overwhelming.
Besides, for users who have to key in data manually, TurboTax’s limited import options, which do not support some tax information and forms, may be frustrating.
This is not to mention the controversies that surrounded TurboTax in 2022, where Intuit, the parent company, was on several occasions accused of misleading the public about the true nature of its tax preparation program.
As discussed earlier, several TurboTax alternatives in the market can make your tax preparation process smooth and easy.
For these reasons and many more, I did some research on other tax preparation software that offer similar, if not better, services than TurboTax and came up with the following list for you.
Let’s get started!
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Best TurboTax Alternatives
1. H&R Block
H&R Block, a tax preparation firm, is designed to assist small businesses and individuals in preparing and filing taxes in an accurate and efficient manner.
Founded in 1955, H&R Block has grown to become one of the largest tax service companies in the United States. The company operates in Canada and Australia as well.
H&R Block offers various tax preparation options, including in-person tax preparation services, online software, and DIY software.
The software features Online Assist which allows you to file your tax returns from the comfort of your home or office. You are able to interact with an online expert via live chat or video, which provides you with step-by-step guidance on how to file returns by yourself.
Interestingly, you can share your screen with a tax pro on any device to make the preparation and filing process much easier.
A unique feature of H&R Block that gives it an edge over TurboTax is the existence of brick-and-mortar offices spread across the United States.
If, for one reason or another, you decide midway through your online tax return that you’d rather have it done by an expert, you can simply visit their offices to set up an appointment or hand over your files for an expert to complete.
That’s not all.
If you have been filing returns with another company in previous years, you have nothing to worry about. H&R Block allows you to simply upload the tax return from the previous year, and in no time, you are switched to their platform.
The level of reassurance from H&R Block is unmatched. Whenever the tax preparation application has an error, the company offers a Maximum Refund Guarantee, letting you access a bigger refund or smaller liability.
You can find out more from their disclaimer and repayment page.
Don’t let a thief claim your refund. H&R Block offers complete protection and restoration from tax identity theft through its Tax Identity Shield feature.
In addition, H&R Block offers you audit and tax support services where you can meet an experienced professional virtually or in person to assist you in resolving any tax-related issue.
If you are a U.S. citizen living overseas, H&R Block offers Expat Tax Services that allow you to work with international tax advisors to accurately file your returns.
For small businesses, H&R Block has a Block Advisors feature that provides payroll, bookkeeping, and corporate and self-tax filing services.
H&R Block boasts upfront and transparent pricing. This means you are able to get their pricing modules before you begin the tax preparation process.
H&R Block’s free version offers more features than TurboTax. For paid services, the Deluxe package starts at $55, the Premium at $75, and the Self-Employed at $115.
An extra $49 is charged for filing state returns. More details can be found on their pricing page.
To access the mobile app, download it from the PlayStore for Android devices and App Store for iOS.
2. FreeTaxUSA
FreeTaxUSA is also another TurboTax alternative. An online tax preparation software, FreeTaxUSA was founded in 2001 by a CPA and a crew of software developers. Since its inception, it has grown to become one of the fastest-growing online tax websites.
As an authorized IRS e-file provider and member of the IRS Free File Alliance, FreeTaxUSA has securely filed over 50 million federal tax returns with the IRS.
FreeTaxUSA is known for its support of a wide range of common as well as less-used tax forms. Examples of common incomes supported include wages and salaries (Form W-2), interest and dividend income, social security benefits, and capital gain distributions, among others.
The platform also supports business incomes such as farm and rental real estate incomes as well as other less common forms of income like gambling income and royalty income. More information on the incomes supported can be found on their supported forms page.
What I love about FreeTaxUSA is its inclusivity. If you are in the military or a veteran, then FreeTaxUSA has you covered. The software provides military tax breaks that allow you to access the largest possible refunds.
Some of the tax breaks include uniform deductions, combat pay deductions, and moving expense deductions, among others.
According to the IRS, income earned or paid by selling, buying, mining, exchanging, or acquiring crypto is subject to taxation. You need not worry; FreeTaxUSA has you covered.
FreeTaxUSA features cryptocurrency tax software that allows you to e-file any income from crypto absolutely free.
You are simply required to add the information from your 1099-B form on FreeTaxUSA and follow the rest of the instructions. If you lack the crypto form, you can connect your exchange platform with FreeTaxUSA and import all crypto activities.
With FreeTaxUSA, you can also file for a free extension of the deadline so that you can file the tax return later.
However, it is important to note that filing an extension will only change the deadline for filing your return. Any taxes owed should be paid by the recommended date – April 18th of every year.
FreeTaxUSA guarantees data security and information privacy. Data stored is encrypted both in transit and at rest, meaning that any information entered is protected when tax data is entered and when it is e-filed.
FreeTaxUSA also features Multi-Factor Authentication adding an additional layer of protection to your information using a 2-Step Verification process.
Freelancers, sole proprietors, contractors, and gig workers are also included. FreeTaxUSA allows you to file your federal tax return for free.
TurboTax’s free edition only lets you file simple tax returns for free. However, the FreeTaxUSA software does more: it allows you to file all federal tax returns, including rental income, stock sales, and many others, at no cost.
You are, however, required to pay $14.99 for state returns which can be filed together with federal returns using FreeTaxUSA.
The Deluxe Plan is priced at $7.99 and comes with extra features. It lets you chat directly with a tax specialist when preparing your returns. With Pro Support, you can directly speak to an expert through a quick phone call.
The Deluxe Plan also enables you to make unlimited amendments to your returns at no extra cost. You can access more details on their pricing page.
The mobile app is only available on PlayStore.
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3. TaxSlayer
Another tool to use in place of TurboTax is TaxSlayer.
TaxSlayer is a DIY tax preparation software featuring all resources, forms, and calculations that allows you to file state and federal tax returns with the IRS electronically.
With over 50 years in the market, Tax Slayer strives to make the tax preparation process fast, accurate, and dependable with its easy-to-use technology.
Filing your basic 1040 tax returns with TaxSlayer’s Simply Free product is done at no cost. You are simply required to electronically complete and submit your returns directly to the IRS and wait for a response.
TaxSlayer allows you to upload the returns of a prior year so that it automatically captures your income information. Alternatively, you can simply upload your W-2 when switching from another software, and all data is imported.
E-filing with TaxSlayer guarantees you maximum refunds. If you pay a smaller tax due or receive a large refund using another tax preparation software, the applicable purchase price you had paid to TaxSlayer is refunded.
However, it is essential to note that the software’s Simply Free product is excluded from the guarantee.
Different refund options are available from TaxSlayer, like direct deposit or using checks. You can access more information on their refund options page.
If you are active-duty military, TaxSlayer allows you to file your federal returns absolutely free while covering all tax situations.
Apart from the basic 1040 form, TaxSlayer features a list of other common and uncommon federal tax forms supported by the software on the tax forms page.
TaxSlayer features four packages with different pricing tiers depending on your needs and requirements. The TaxSlayer premium plan is way cheaper than TurboTax’s premium plan.
The Simply Free Plan is completely free for filing simple tax returns. It also features one free state return.
The Classic Plan requires you to pay $34.95 and allows you to file all tax situations, including credits, deductions, and IRS forms.
With the Premium Plan, you can access all features of the Classic plan while also getting access to live chat and assistance from experts for $54.95.
The Self-Employed Plan assists small business owners, side hustlers, and contractors to file both a W-2 and 1099 and is available for $64.95.
Each additional state tax return is valued at $39.95. More details can be found on the pricing page.
TaxSlayer allows you to file your returns using your mobile phones from anywhere at any time. You can find the mobile app on the PlayStore and App Store for Android and iOS devices.
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4. TaxAct
TaxAct is a tax preparation software that allows individuals and businesses to file their returns digitally. Since its inception in 1998, TaxAct has been at the forefront of assisting over 90 million people with different complexities to easily and freely file their e-returns.
TaxAct offers simple step-by-step guidelines that help you file tax returns on your own in an easy and confident manner.
To switch from another tax provider, you are simply required to upload a PDF of the previous year of your return and let TaxAct take it from there.
With TaxAct, you can track the progress of any refunds from the IRS by using the “Where’s My Refund” tool to know how soon to expect the return. The software also allows you to use your refund to directly pay for filing fees.
You sometimes wonder what amount of tax you will be charged before filing your taxes, right? Well, TaxAct features several tax tools and calculators that allow you to calculate your expected tax amount simply by filling in your income information.
If you find yourself too busy to meet the tax return deadline, you may apply for a free tax extension from TaxAct by filling out the 4868 form. TaxAct also provides you with the steps required to file for a state return extension.
While filing your returns, TaxAct “ProTips” offers you important information to improve your financial wellness and tax outcome. Additionally, if any changes occur to the status of your return, the “E-File Concierge” feature keeps you up to date.
Interestingly, TaxAct communicates with the IRS on your behalf. This means that whenever you get audited by the IRS, tax professionals from TaxAct handle all the interactions on your behalf.
That’s not all.
With TaxAct, you are able to receive complimentary advice from experts on ways to improve the next year’s refund with a tax plan that is customized to your needs.
To improve your tax return process, TaxAct features a TaxAct Xpert Assist that allows you to connect one on one with tax experts who offer you solutions to any questions you may have. The expert can also have a quick review of your return just before you file.
While TaxAct offers almost similar features to TurboTax, it is a great alternative due to its relatively affordable pricing options.
The online edition of the Free version allows you to file simple federal returns at no cost. The Deluxe Plan is offered at $46.95, the Premier at $69.95, and the Self-employed at $94.95.
Additional payments are required for filing state returns. More pricing information can be found on their pricing page.
You can access the mobile app from the PlayStore for Android devices and App Store for iOS devices.
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5. Liberty Tax
Founded in 1997, Liberty Tax has grown exponentially to become one of the biggest tax preparation software boasting over 2,500 branch locations across the United States and Canada with over 12,000 tax professionals.
Liberty Tax allows you to remotely file your returns simply by uploading your tax documents.
From the Liberty mobile app, you are required to take a picture of your tax documents with your phone and upload it – as simple as that. Whether you are employed or not, there are always tax information forms that fit your situation.
From the web, you are only required to access the client portal and upload the tax documents from your computer.
After receiving your tax documents, Liberty Tax will reach out to you for any questions, and you will then receive the forms to sign online via DocuSign. It takes an average of three to five business days to file your taxes.
If you are interested in the in-person filing of returns, you can visit numerous Liberty Tax offices to receive expert advice and guidance.
Liberty Tax features a wide variety of tax tools, such as tax calculators and forms, that make tax return filing a smooth experience.
Liberty Tax has a blog page that contains helpful articles and news which provide you with up-to-date information on taxes and finances. You can also get solutions to Frequently Asked Questions.
For your small business, Liberty Tax provides bookkeeping services, such as payroll management, tax preparation, and advisory services that help you save time.
A unique feature that makes Liberty Tax better than TurboTax is the availability of tax lessons and training.
Liberty Tax features a tax school that trains you to become a tax preparer either from the comfort of your home or in person. It offers tax courses from top-notch instructors who cover tax credits, forms, and schedules that are filed with an individual tax return.
With Liberty Tax, you can worry less about your credit health. The company has partnered with Credit Saint, a credit repair company, to assist you in restoring your credit status and building a positive credit profile.
Moreover, Liberty Tax also offers debit and loan services via the Deepblue Debit Account and Liberty Loans services.
Liberty Tax has three-tier pricing options. The Basic Plan is offered at $45.95, the Deluxe Plan at $65.95, and a Premium Plan for $85.95.
You can get more pricing information and features from their pricing page.
The mobile app is available on PlayStore for Android devices and App Store for iOS devices.
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6. Cash App Taxes
Cash App Taxes (previously Credit Karma Tax) is one of the latest tax preparation software available in the market, with over nine million returns done.
The software is 100% free which is a good reason to consider it over TurboTax. This applies to both federal and state returns.
Cash App Taxes has no hidden fees and allows you to file all tax situations. Every return filed by the software includes a free audit defense in case of any query from the IRS.
With Cash App Taxes, you can file your returns from anywhere. You are only required to snap a picture of your W-2 and upload it while following the guidelines provided.
You don’t have to worry about refunds because Cash App Taxes offers you a Max Refund Guarantee meaning you can get your money back when they become due.
Cash App Taxes has no paid tiers but requires you to download the Cash App and create a Cash App Account for you to access the software.
The filing process requires you to answer a questionnaire that allows the tax filing to be more personalized. Cash App Taxes also allows you to import some of the W-2 forms while providing you with tax calculators and accessibility to a user-friendly interface.
You can find the Cash App Taxes on PlayStore and App Store.
Final Word
If I had to choose the best alternative to TurboTax, I would go for Liberty Tax.
Liberty Tax not only provides remote tax filing, but it also incorporates other products like loan services and credit status restoration.
Even though it is not free, it offers tier options with reasonable prices and is a good value for the money. I also like the training courses it offers for those who may be interested in becoming tax preparers.
Small business owners can also benefit from Liberty Tax’s bookkeeping services, including payroll management and tax preparation.
