Photograph Credit: TurboTax
As so many companies creatively use marketing to lure customers to their products, I wanted to find out how tax preparation companies compare.
Focusing only on the ones that claim free federal income tax filing, I limited my research to TaxACT, H&R Block, and TurboTax.
Among these three options, we have looked at TaxACT and H&R Block. Today, I turn to TurboTax.
Free Option – Cost $0
The free option includes a simple/1040EZ preparation and e-filing. State tax filing is an additional cost.
Deluxe Option – Cost $29.99
Best for those with children, own a home, and have lots of deductions, this deluxe option claims to maximize your tax deductions. Any state tax filing comes at an additional cost.
Premier Option – Cost $49.99
Suggested for investors of stocks, bonds, and/or mutual funds and rental properties, the premier option prepares your federal return and e-files. State tax filing costs more.
Home and Business – Cost $74.99
Designed for business owners, contractors, and consultants, the home and business option combines both into one tax return, including e-filing. Any state tax filing carries an additional charge.
Honestly, I’m thankful that these comparisons are over as the prices continue to escalate. Having only filed our taxes through TaxACT, I really did not know what to expect from the other companies.
Through this research, I am confident in our decision to file with TaxACT. Not only do we get the e-filing for the federal, but also the state preparation and e-file for under $20.
TIP: The only resource I know that can beat TaxACT is TurboTax’s Military Edition offering free federal and free State preparations and e-filings for active military personnel and reservists ranked E-1 to E-5.
During this tax season, most families are looking for every deduction and refund option. Carefully consider your tax preparation service.
Hopefully, this series opened your eyes, like it did mine, that not all companies that claim free federal income tax filing options are equal in comparison. Though I am not changing our tax service, I’m glad to confirm the choice we made two years ago is still the right choice for us. Happy savings!
Question: What option do you prefer to use for filing your taxes?