What Determines How Much Online Tax Software Costs Me?

To estimate the price of the product that works for your situation, click on “What’s My Price?” in our comparison chart above. The total price of online tax software products typically ranges from free to more than $100, depending on two main points:

• First, your price depends on how complicated your tax return is. Most tax software companies offer multiple products, each of which is tailored to specific tax situations and supports specific tax forms. The price you pay to prepare and file your federal tax return gives you access to various capabilities, supported forms and deduction tools.
• Second, your price depends on whether you need to file a state tax return. To file a state tax return using online tax software, you must pay a fee in addition to the cost of filing your federal tax return. On one hand, online tax products require you to pay to access the state forms, but they let you e-file your state return for free. On the other hand, tax software download products include access to the state forms, but they require you to pay for e-filing your state return.

What Are 2011 Tax Software Products?

2011 tax software products can also be called 2010 tax software products because people will be filing their taxes during the 2011 tax season based on income earned during the 2010 tax year.  2010-2011 tax software products are the most up-to-date tax products on the market.

About 2010-2011 Tax Software Ratings

Our star ratings were scientifically calculated, using various criteria across four key categories:

Ease of Use:

Ease of Use includes the ease of navigating through and saving your return, the thoroughness of the error-checking system and other helpful features, such as audit triggers meter and refund calculator. Companies were rated relative to one another, with points awarded for features that stood out or were above average.

Tax Support:

Tax Support includes the help available to you when filing your taxes and the support offered in the event that you are audited. It is standard for tax companies to charge for tax support, but some companies offer free or discounted tax support at different tax product levels.  Read our full tax software reviews to see which companies offer helpful tax support.

Tech Support:

Tech Support focuses on how well a company’s support techs were able to answer questions about their products, as well as how available they were. We analyzed four main channels: phone support, live chat, email support and the online knowledgebase. We asked techs from each support line the same set of sample questions, and points were awarded for correct answers.

Reliability:

Reliability reflects the consistent quality of service of a given company. Criteria under this category include the number of years a company has been in business and whether they offer an Accuracy Guarantee and/or Maximum Refund Guarantee. An Accuracy Guarantee means that your tax software provider will pay penalties and interest caused by their system's calculation errors. A Maximum Refund Guarantee ensures you get the biggest tax refund possible.

Why Use Online Tax Software

• It’s inexpensive. Taking your tax return to an accountant can be a costly process. With online tax software, you can get help and support with filing your taxes at a fraction of the cost of hiring someone to prepare them for you.
• It’s easy. You will be guided through forms that are often hard to understand. And, if you use the same provider every year, you'll be able to transfer in data from a past year's return.
• It catches errors. Filling out a form incorrectly can lead to added stress or even a penalty from the IRS. Online tax software helps you avoid these mistakes.
• It helps maximize your deductions. You'll get help with claiming industry-specific deductions to help insure that you get the biggest refund available from your tax return.
• It helps you easily e-file. Calculating your tax return online makes it easy to file your return online (e-file) or file for an extension.

Common Features of Online Tax Software

Basic Product:

• Free federal e-file
• Pay for the product when you file
• Ability to add state tax return program
• Includes relevant tax forms (excludes self-employment and small business forms)
• Handles life changes (i.e. getting married, having a baby, changing jobs, buying or selling a home or receiving inheritance)
• Imports data from last year’s tax return (TurboTax and H&R Block At Home can import from each other’s programs as well as their own.)
• Imports 1099 and W-2 forms from select payroll providers and financial institutions
• Imports financial data from Quicken
• Saves your progress and allows you to skip to different sections
• Simplifies estimated tax payments and offers payment scheduling options
• Guarantees accurate calculations

How Does Tax Software Handle State Income Taxes?

You must file state income taxes unless you live in one of the following exempt states:  Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming.  Typically, you must pay an additional fee (ranging from $10 to $49.95 for the products we’ve reviewed) to file your state taxes. Online tax software guides you through the relevant state forms in much the same manner as it guides you through your federal return. Some tax software companies will automatically import any relevant information from your federal return to your state return, saving you time and effort.

Click on “What’s My Price?” in our above comparison chart to determine your cost of filing federal and state taxes with the top tax software products.

Why Use Tax-Compare.com

Tax-Compare.com was created as a result of our own frustration in choosing an online tax software product. In attempting to answer the question, "Will online tax preparation services work for my situation?" we found several different providers, which offer personal and business online tax software products, and sometimes a combination of the two. We help you to fully understand the differences in price, add-ons, supported forms, customer support and other relevant data, so you can make an "apples to apples" comparison, select a product, and get back to business.

We are committed to providing a quality resource to individuals and small business owners that will save time and money and eliminate the frustrations that we ourselves have experienced.