The cost of tax-prep software can really add up, even for DIY types, but if you look hard enough you’ll find a lot that is free. Whether you want to cut costs or just don’t need a lot of extras, NerdWallet has researched your options in free online tax-prep software.
First, know that if your adjusted gross income is below a certain threshold ($62,000 for the 2015 tax year, for example), you may qualify to use the IRS Free File program. It lets you use basic tax-prep software from a consortium of about a dozen companies. Just answer a few questions on the Free File site, and the IRS will match you with free online tax-prep software.
But even if you make more than the limit — or just don’t want the IRS telling you what to use — you still have a lot of free options. Read on to see our categorized picks for free online tax-prep software.
Best for itemizers
Itemizing deductions can save some taxpayers a lot of money, but not all online free tax-prep software makes that possible. Most work only with Form 1040EZ or Form 1040A, which aren’t for itemizers. A few, however, also support Form 1040 and Schedule A, which do allow users with lots of deductions to maximize their savings by itemizing.
- Offers an intuitively designed interview process that keeps things on track.
- Fee to prepare a state return: $29.99
- Available support: Free live chat with a pro seven days a week.
- Refund options: Paper check, direct deposit, prepaid debit card, gift cards
- Confident filers will appreciate the straightforward, no-frills interface and Q&A.
- Fee to prepare a state return: $9.95
- Available support: Submit a help ticket via email or search the site’s knowledge base.
- Refund options: Paper check, direct deposit
Both H&R Block and OLT.com (which goes by OnLine Taxes) offer users the ability to itemize with a Schedule A, as well as an interview-style method for completing returns. Only federal returns are free, but the fees for preparing a state return are relatively reasonable. H&R Block’s user interface and available support top OLT.com’s relatively sparse offering, but more sophisticated users might appreciate OLT’s get-in-and-get-out approach.
Best for free state returns
If you live in a state that has an income tax, you’ll need to file a state return in addition to your federal return. These packages let you do that for free as well.
- TurboTax’s Absolute Zero program offers free federal and state return preparation, plus no fee to e-file those returns.
- Forms supported: 1040EZ, 1040A only
- Available support: Large online user community and searchable knowledge base, plus new this year is free real-time help via the SmartLook app.
- Refund options: Paper check, direct deposit, prepaid debit card
- Offers an organized user interface that allows users to prepare both returns easily, plus quick access to IRS form instructions and a TaxTutor Guidance tool.
- Forms supported: 1040EZ, 1040A only
- Available support: Free email help; online Answer Center
- Refund options: Paper check, direct deposit, U.S. savings bonds, prepaid debit card
Some free online tax-prep software providers charge as much as $31.95 per state, so both TurboTax and TaxAct offer big savings here. Neither free version supports Form 1040, however, which means you can’t itemize, and more complicated returns are out of the question. People who lived in two states during the year will likely need to pony up to file in that second state, too. But filers with simple returns can save some decent money.
Best for human help
The best things in life are free, but tax advice usually isn’t one of them. These packages have robust support options that help answer questions along the way and even connect users to actual humans.
- Offers free live voice support from a human.
- Availability: 9 a.m.-9 p.m. Eastern
- Format: Telephone
- Other support and guidance options: Email support (24-48 hours for a response during peak season)
- Offers unlimited sessions of live, personal tax advice with tax professionals via chat.
- Availability: 10 a.m.–10 p.m. Central weekdays; 9 a.m.–5p.m. Central weekends
- Format: Live online chat
- Other support and guidance options: Phone support; searchable knowledge base; taxpayers can visit one of the company’s 11,000+ brick-and-mortar locations, though that’s not free.
- Offers free live voice support from a human.
- Availability: 9 a.m.-9 p.m. Eastern
- Format: Telephone
- Other support and guidance options: Email support (24-48 hours for a response during peak season)
TurboTax’s free version includes real-time help via a new app that offers a human touch. Both H&R Block and TaxSlayer offer less flashy but still effective online chat and phone options. Though TaxSlayer and H&R Block offer attractive call-a-live-human phone options, their state prep fees are a hefty $23.99 and $29.99, respectively. H&R Block’s in-person access through its 11,000+ brick-and-mortar locations is a nice backup (though those visits aren’t free).
Tina Orem is a staff writer at NerdWallet, a personal finance website. Email: torem@nerdwallet.com.
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