Best tax software?

[muel87]

I just finished using H&R block (free for military) and I know that the 1099-R income is wrong but dont know where / how to fix it (it was almost all rollovers, but it's adding all of them to my income). It's also an utter mystery to me why some of the numbers are slightly off my estimates. It doesnt seem like their math adds up but the calculations are completely opaque so I cannot tell what they are doing wrong. They also tried to add my schedule C income to my net investment income... why????

Any recommendations on software? Any that will allow you to see the final return before paying?

[stan1]

I use desktop versions of tax software and enter all data from the PDFs I download myself rather than having the tax software download it.

The desktop software is purchased in advance. You can make as many changes as you want before you file.

[livesoft]

I recommend HRBlock tax-prep software downloaded on to your computer/laptop. You can see all the forms you want. Cost is about $20 a year.

Also the IRS recommends that you read the instructions to its forms before filling them out. Very educational.

[tibbitts]

I recommend HRBlock tax-prep software downloaded on to your computer/laptop. You can see all the forms you want. Cost is about $20 a year.

Also the IRS recommends that you read the instructions to its forms before filling them out. Very educational.

I also use HRB download, but we should qualify the price: Bogleheads pay $20 only because they invest hours of their time every year researching strategies to get the best price. Everybody else pays more like $35.

Agree on the instructions although I haven't read most of them in years.

[Tattarrattat]

Struggled with the HR Block software this year, download deluxe version. Very hard to figure out how to enter things, opaque instructions, did not do a good job with K-1, antiquated ugly user interface. At one point I called with question about the K-1 issues, spent an hour on the phone with them, they escalated, got a call back a week later where we sorted it out. While I was waiting for them to call back I figured I'd try something else, so entered my data into TaxHawk (same software as FreeTaxUSA, alternate branding). Big difference. Clean, clear, modern interface, easy to enter things, easy to find things. handled K-1 effortlessly. Much better layout, the helps were more clearly written. Better in every way. Filed with them for Federal and State, will use them going forward. Can't auto import data from banks/brokerages, if that's important to you, doesn't matter to me.

[tibbitts]

I just finished using H&R block (free for military) and I know that the 1099-R income is wrong but dont know where / how to fix it (it was almost all rollovers, but it's adding all of them to my income). It's also an utter mystery to me why some of the numbers are slightly off my estimates. It doesnt seem like their math adds up but the calculations are completely opaque so I cannot tell what they are doing wrong. They also tried to add my schedule C income to my net investment income... why????

Any recommendations on software? Any that will allow you to see the final return before paying?

Are you sure the version you're using supports operating a business?

I don't know how much your 1099 numbers are off but it seems that tax software takes unusual approaches to rounding, so sometimes indeed the numbers just don't seem match or add up to the exact dollar. I assume that since this has been discussed for years and years on support forums and apparently hasn't been fixed the IRS doesn't care.

[Apathizer]

I've been using fileyourtaxes.com for the past 5 years without any problems. My taxes are fairly simple.

[Soaky]

I just finished using H&R block (free for military) and I know that the 1099-R income is wrong but dont know where / how to fix it (it was almost all rollovers, but it's adding all of them to my income).

Did your 1099-R have a distribution code of "G" in box 7 (rollover distribution )? If so, did you input that into HRB?

[FIRWYW]

Although I like HRblock downloaded best, I double check online with TurboTax if any new tax situation but file through hrblock. Ie first time I contributed to my 457b because of the weird way of entering, it almost cost me an extra $4000 in taxes that TurboTax caught. However, at some point in the past I remember TurboTax also was making some mistake that would’ve cost me a not insignificant amount. (Mistake might be wrong wording for both- more that poor wording on their instructions lead to mistakes errors)

[cacophony]

I highly recommend checking out freetaxusa.

In 2021 I bought the offline version of H&R Block and found it so terrible that I ended up looking for other solutions. I discovered freetaxusa, which I found significantly better. The interface is far more intuitive and easier to navigate. You can check the filled in pdf tax forms at any time, so it's more clear what's actually happening as you enter data.

[eukonomos]

I recommend HRBlock tax-prep software downloaded on to your computer/laptop. You can see all the forms you want. Cost is about $20 a year.

Also the IRS recommends that you read the instructions to its forms before filling them out. Very educational.

I also use HRB download, but we should qualify the price: Bogleheads pay $20 only because they invest hours of their time every year researching strategies to get the best price. Everybody else pays more like $35.

Agree on the instructions although I haven't read most of them in years.

https://www.newegg.com/h-r-block-2022-d ... 6832732169

$17 off of the $35 using the promo code.

[jebmke]

I recommend HRBlock tax-prep software downloaded on to your computer/laptop. You can see all the forms you want. Cost is about $20 a year.

Also the IRS recommends that you read the instructions to its forms before filling them out. Very educational.

Same. I always read the IRS instructions for any form that is new for me (or my TaxAide clients). I still refer back to the 1116 instructions even though I've filed it many times on my returns.

The other resources I've found very helpful are the IRS instructions to payers for some forms (especially 1099-R and W2). When I get a 1099-R or W2 that looks odd or unfamiliar I look at what the instructions are to the payers for completing this form. That helps me spot the occasional incorrect form.

[aristotelian]

I'd give FreetaxUSA a shot. They try to charge you to file state but you can do that yourself online or paper.

[patrick]

For most cases I would recommend TaxHawk aka FreeTaxUSA. I used it in earlier years without trouble, and once I get the corrected 1099-DIV from Public I plan to file the 2022 federal return with TaxHawk as well. They are free for federal returns regardless of income level, but charge for state returns. Here in Connecticut, it is fairly simple to file the state return free on the government's web site so I'm using that for the state return.

[tibbitts]

I recommend HRBlock tax-prep software downloaded on to your computer/laptop. You can see all the forms you want. Cost is about $20 a year.

Also the IRS recommends that you read the instructions to its forms before filling them out. Very educational.

I also use HRB download, but we should qualify the price: Bogleheads pay $20 only because they invest hours of their time every year researching strategies to get the best price. Everybody else pays more like $35.

Agree on the instructions although I haven't read most of them in years.

https://www.newegg.com/h-r-block-2022-d ... 6832732169

$17 off of the $35 using the promo code.

Yes but the discussion of this year's pricing started back in October, and it seems like cheating to have not followed along with all those hundreds of posts in real-time.

[WaffleHouse]

Like others here, I'd also recommend freetaxusa.

OP, to directly answer your question, they allow you to see the final return in PDF form before paying. (albeit with a humongous watermark on it)

For me personally, what I like best is the simple and easy to use/understand interface. Especially how it pretty much stays consistent from year to year so I don't have to re-learn where everything is from year to year. I also like how it shows my numbers from last year side by side (in certain areas) so I can easily compare and contrast to help make sure I'm not missing any steps I did last year and stuff.

[bobcat2]

This is my favorite free tax prep source. At the site you have a choice of several 'truly free' tax preparation programs.
Link- https://www.turbotaxsucksass.org/

Here is a video explaining the genesis of the website.
Link - https://www.youtube.com/watch?v=7xQQkzWhMOc

BobK

[BionicBillWalsh]

What do these free programs get out the transaction? User data and the most personal information possible?

[bobcat2]

What do these free programs get out the transaction? User data and the most personal information possible?

There are two things they obviously get out of the transaction.

1) They may be able to get you to upgrade to a paid federal version because your return is 'difficult'. Or, they have only a paid state version.

2) Probably more importantly, they keep the IRS from creating their own free tax prep software, which would put many of these profitable companies out of business or, at a minimum, make them much less profitable. BTW, in nearly all other wealthy countries the government has tax prep software and most people just check the results and sign off. You can read more about this in the following links.

Link - https://www.nytimes.com/2017/04/14/opin ... -here.html

Link - https://www.latimes.com/business/story/ ... s-for-free

Link - https://www.nytimes.com/2021/07/19/opin ... iling.html

Link - https://www.bloomberg.com/news/article ... n-funding

Link - https://www.nytimes.com/2015/04/16/tech ... rite.html

Link - https://www.propublica.org/series/the-turbotax-trap

BobK

[LookinAround]

I use desktop versions of tax software and enter all data from the PDFs I download myself rather than having the tax software download it.

The desktop software is purchased in advance. You can make as many changes as you want before you file.

Why do you fill it in yourself vs having the software download it? just curious....

[jeffyscott]

I highly recommend checking out freetaxusa.

In 2021 I bought the offline version of H&R Block and found it so terrible that I ended up looking for other solutions. I discovered freetaxusa, which I found significantly better. The interface is far more intuitive and easier to navigate. You can check the filled in pdf tax forms at any time, so it's more clear what's actually happening as you enter data.

The free cash app tax (formerly credit karma) also let's you see pdf of forms at any time. Is that not a feature of tax software that people actually pay to use?

Cash app tax handled rollovers and Roth conversions for us with no issues. Free to file both federal and state. The only minor issue for me was that it has an odd way of dealing with HSA contributions by both spouses.

[neurosphere]

Any recommendations on software? Any that will allow you to see the final return before paying?

Are you cost conscious?

The desktop version of TaxAct is what I've been using for 13+ years. I've trialed HRB, TT, and many other "pro" versions and never switched. Is taxact perfect? Of course not. But I think it works best for those who are "tax savvy" and know what their return needs to look like. Their forms mode (in my opinion) is the quite good compared to many others and saves a ton of time vs going through an interview or similar walkthrough. This is HIGHLY subjective of course. That said, I'm currently infuriated with taxact because it's forcing me to declare that a person who has an abode in NY but spent less than 184 days in NY is a NY resident which is not true. Their support on this particular point has been un-helpful and it may require a paper return. No software is perfect!

[neurosphere]

I use desktop versions of tax software and enter all data from the PDFs I download myself rather than having the tax software download it.

The desktop software is purchased in advance. You can make as many changes as you want before you file.

Why do you fill it in yourself vs having the software download it? just curious....

I 've stopped importing forms. I've seen so many errors. The time I spend ensuring the download is accurate is more than the time I spend to hand-enter forms. By the time I go through the steps to "import" the form I've already typed all that info in.

[cacophony]

I highly recommend checking out freetaxusa.

In 2021 I bought the offline version of H&R Block and found it so terrible that I ended up looking for other solutions. I discovered freetaxusa, which I found significantly better. The interface is far more intuitive and easier to navigate. You can check the filled in pdf tax forms at any time, so it's more clear what's actually happening as you enter data.

The free cash app tax (formerly credit karma) also let's you see pdf of forms at any time. Is that not a feature of tax software that people actually pay to use?

Cash app tax handled rollovers and Roth conversions for us with no issues. Free to file both federal and state. The only minor issue for me was that it has an odd way of dealing with HSA contributions by both spouses.

IIRC the only in-progress forms I could bring up with the H&R Block software looked more like clunky web based forms from 1995 and had no resemblance to the actual IRS pdf forms. But the UI was such a mess it's possible I just didn't figure out how to do it.

It looks like Cash App Tax doesn't support many common situations: https://taxeshelp.cash.app/s/article/Fo ... ot-support. I'd personally pay the $15 to FreeTaxUSA to get the better customer support and what looks like a significantly more rigorous privacy policy.

[jeffyscott]

I highly recommend checking out freetaxusa.

In 2021 I bought the offline version of H&R Block and found it so terrible that I ended up looking for other solutions. I discovered freetaxusa, which I found significantly better. The interface is far more intuitive and easier to navigate. You can check the filled in pdf tax forms at any time, so it's more clear what's actually happening as you enter data.

The free cash app tax (formerly credit karma) also let's you see pdf of forms at any time. Is that not a feature of tax software that people actually pay to use?

Cash app tax handled rollovers and Roth conversions for us with no issues. Free to file both federal and state. The only minor issue for me was that it has an odd way of dealing with HSA contributions by both spouses.

IIRC the only in-progress forms I could bring up with the H&R Block software looked more like clunky web based forms from 1995 and had no resemblance to the actual IRS pdf forms. But the UI was such a mess it's possible I just didn't figure out how to do it.

It looks like Cash App Tax doesn't support many common situations: https://taxeshelp.cash.app/s/article/Fo ... ot-support. I'd personally pay the $15 to FreeTaxUSA to get the better customer support and what looks like a significantly more rigorous privacy policy.

In any case, I would certainly only want to use something that allows you to easily see the forms as you go. Seems like some of the more premium products, like H&R don't.

I already know pretty much what things should look like, so seeing the forms is an easy way to verify that there's probably no errors by either me or the software.

[cacophony]

I highly recommend checking out freetaxusa.

In 2021 I bought the offline version of H&R Block and found it so terrible that I ended up looking for other solutions. I discovered freetaxusa, which I found significantly better. The interface is far more intuitive and easier to navigate. You can check the filled in pdf tax forms at any time, so it's more clear what's actually happening as you enter data.

The free cash app tax (formerly credit karma) also let's you see pdf of forms at any time. Is that not a feature of tax software that people actually pay to use?

Cash app tax handled rollovers and Roth conversions for us with no issues. Free to file both federal and state. The only minor issue for me was that it has an odd way of dealing with HSA contributions by both spouses.

IIRC the only in-progress forms I could bring up with the H&R Block software looked more like clunky web based forms from 1995 and had no resemblance to the actual IRS pdf forms. But the UI was such a mess it's possible I just didn't figure out how to do it.

It looks like Cash App Tax doesn't support many common situations: https://taxeshelp.cash.app/s/article/Fo ... ot-support. I'd personally pay the $15 to FreeTaxUSA to get the better customer support and what looks like a significantly more rigorous privacy policy.

In any case, I would certainly only want to use something that allows you to easily see the forms as you go. Seems like some of the more premium products, like H&R don't.

I already know pretty much what things should look like, so seeing the forms is an easy way to verify that there's probably no errors by either me or the software.

Agreed, it's incredibly useful for those of us that know what needs to happen in the forms.

[HappyPappy]

I use TurboTax home and business. Probably more out of inertia than anything else. It’s what I started with and I only do taxes once a year and I never feel excited to try and learn a new program.

I can toggle between interview and form views.

It’s a bit clunky if you want to navigate forward and backward through the interview.

The only error I’m aware of that has occurred over the past ten years and that the IRS became aware of, was entirely my fault.

I would never use an online/cloud based tax software fwiw.

I like the built in tool that shows me at the end how my taxes due would change depending on any last minute IRA contributions.

I also like the way it shows income, deductions, credits and taxes due side by side for the current and previous year. It’s interesting to see those numbers, plus it’s a good quick check to see if anything changed drastically from one year to the next.

[yosemite_mountain]

I just finished using H&R block (free for military) and I know that the 1099-R income is wrong but dont know where / how to fix it (it was almost all rollovers, but it's adding all of them to my income). It's also an utter mystery to me why some of the numbers are slightly off my estimates. It doesnt seem like their math adds up but the calculations are completely opaque so I cannot tell what they are doing wrong. They also tried to add my schedule C income to my net investment income... why????

Any recommendations on software? Any that will allow you to see the final return before paying?

Bumping.

I also had so many issues with HR block this year - especially with 1099R's!
It kept giving me this error for a mega backdoor Roth:"Code G indicates a direct transfer; therefore, box 2a should be zero. If there is an entry greater than zero in box 2a, contact your plan administrator. Please verify the code entered.” Does anyone know how to fix this error

[stan1]

I use desktop versions of tax software and enter all data from the PDFs I download myself rather than having the tax software download it.

The desktop software is purchased in advance. You can make as many changes as you want before you file.

Why do you fill it in yourself vs having the software download it? just curious....

1. Because it only takes a few minutes in most cases (a few numbers off each form). The exception would be if I had pages and pages of 1099-B stock sales to report (which I don't have)
2. Because I am responsible for filing an accurate return. I'd have to download the PDFs, review them for errors, and check the data anyways to make sure it was accurate.
3. Because I do not want to pay any more tax than I legally owe. I'd have to check the data anyways to make sure it was correct.
4. Because sometimes there are sync issues between the brokerage and the tax software. After working IT for 40 years, data conversion, interface and sync issues between systems are one of the most common sources of error (even in 2023, not bas bad as it was in 2003 or 1983). For example, in Feb 2022 (just last year) for the 2021 tax year there was a data sync snafu between tax software companies and the IRS that prevented a Form 1116 from being e-filed for several weeks until the IRS and the tax software companies worked out an error in the data interface.
5. I have to dive into the data anyways to calculate foreign tax credit, government obligation interest, and state tax exempt thresholds (data not provided by brokerage for download). So it actually would take more time to download/validate AND go through the PDF forms a second time.

We just have mutual funds and ETFs, nothing more complicated. In summary it is easier and less time consuming in my situation to download PDF and do it myself.

[Monster99]

I use desktop versions of tax software and enter all data from the PDFs I download myself rather than having the tax software download it.

The desktop software is purchased in advance. You can make as many changes as you want before you file.

Why do you fill it in yourself vs having the software download it? just curious....

1. Because it only takes a few minutes in most cases (a few numbers off each form). The exception would be if I had pages and pages of 1099-B stock sales to report (which I don't have)
2. Because I am responsible for filing an accurate return. I'd have to download the PDFs, review them for errors, and check the data anyways to make sure it was accurate.
3. Because I do not want to pay any more tax than I legally owe. I'd have to check the data anyways to make sure it was correct.
4. Because sometimes there are sync issues between the brokerage and the tax software. After working IT for 40 years, data conversion, interface and sync issues between systems are one of the most common sources of error (even in 2023, not bas bad as it was in 2003 or 1983). For example, in Feb 2022 (just last year) for the 2021 tax year there was a data sync snafu between tax software companies and the IRS that prevented a Form 1116 from being e-filed for several weeks until the IRS and the tax software companies worked out an error in the data interface.
5. I have to dive into the data anyways to calculate foreign tax credit, government obligation interest, and state tax exempt thresholds (data not provided by brokerage for download). So it actually would take more time to download/validate AND go through the PDF forms a second time.

We just have mutual funds and ETFs, nothing more complicated. In summary it is easier and less time consuming in my situation to download PDF and do it myself.

+1 for #5 -
Gov obl. Reduce my state tax so I have to calculate it for each fund anyway. Might as well input the numbers at the same time....

[Toons]

So many choices
I have been pleased with
TaxAct for years

[Toons]

So many choices
I have been pleased with
TaxAct for years

[scoothome]

Five years ago I switched from TurboTax to FreeTaxUSA and have stuck with FreeTaxUSA ever since. I found it easier to use and it is certainly much less expensive.

[RetiredAL]

I use TurboTax home and business. Probably more out of inertia than anything else. It’s what I started with and I only do taxes once a year and I never feel excited to try and learn a new program.

IMO, it is important to use what you are comfortable with. Knowing how to use it is a big part of that comfort factor.

20+ years ago, I started with TT. When it got to be what I considered too expensive, I switched to TaxAct. A few years ago, I switched to HRBlock, as it does 5 Fed efiles, and I do the 2 grandkids tax returns -- UTMA Accounts.

[obgraham]

Using e-file.com since 2019. No problems at all. Mrs O as a former cpa liked it. Your choice to download or manually enter. Quite responsive phone support.
As a returner, 50% off, $27 for Fed. Our return is now very simple. I have no opinion regarding more complex returns.

[palmetto0]

Another vote for FreeTaxUSA. I switched 2 years ago after using H&R Block Tax Cut for many years and TurboTax before that. I had to switch when Tax Cut didn't bother supporting the Covid IRA withdrawal with 3 years to pay the taxes. FreeTaxUSA is much better, more thorough, faster and easier to use. Everything is free for a Federal filling, and it's $15 to file state online if you want to do that. You can try it and generate the returns to compare to whatever other software you are considering. You can save everything as PDF's. Highly recommend!