Best Free Tax Software

Benzinga readers often turn to TurboTax for the best free tax software.

Tax season can be a stressful and challenging period for both individuals and businesses. Given the abundance of required documents and intricate tax laws, it's understandable why some people dread this time of year. Whether you pore over your form 1099, calculate your capital gains taxes or locate every possible credit and tax deduction, there are a number of free tax prep software options that can make filing your federal returns less of a hassle. The deadline for tax filing this year is Apr. 18. If you have not yet completed your tax return, it is not too late to file your taxes or request for an extension. We've compiled a list of the top free tax software options for 2024, taking into account their features, user-friendliness and customer reviews.

Quick Look: Best Free Tax Software This Year

• Best for Filing Taxes on a Budget: FreeTaxUSA
• Best for Live Tax Advice: TurboTax Free Edition
• Best for Live and Online Tax Services: H&R Block Free Federal Edition
• Best for Fast Returns: eSmart Tax Free File by LibertyTax

Best Free Tax Software for 2024

Check out some of our favorite free options when it comes to tax software, as well as some recommendations to help you find the next great free tax program.

1. Best for Filing Taxes on a Budget: FreeTaxUSA

FreeTaxUSA is an online platform that offers free federal tax filing services for individuals, regardless of their income level. The platform is designed to guide you through each step of the tax filing process, ensuring that you don't miss any important details. From entering personal information to inputting income and tax deductions, FreeTaxUSA's intuitive user interface makes it easy for consumers to navigate and complete their tax returns accurately.

FreeTaxUSA also offers a range of features to enhance the tax filing experience. One notable feature is the ability to import tax information from previous years if you have used other tax software or services in the past. This can save you a significant amount of time and effort, especially if you have complex tax situations or multiple sources of income.

Although the platform is designed to be self-service, FreeTaxUSA provides email and phone support during business hours, ensuring that you can get the help you need when you need it.

2. Best for Live Tax Advice: TurboTax Free Edition

One of the biggest names in tax preparation software, TurboTax’s Free Edition for simple tax returns only guides users through their return by using a direct Q&A style interview that’s very similar to the one you’d undergo with a tax expert. All versions of TurboTax’s software include audit support from a tax expert, which allows you to consult with a tax expert to determine what you can expect if questioned by the IRS.

However, if you’re looking for audit defense, you’ll want to purchase TurboTax’s Max Assist and Defend before you submit your return. You can’t tack it on later, so if you believe that there’s a strong possibility you’ll be audited, remember to add it to your cart before you file.

3. Best for Desktop and Mobile Filing: H&R Block Free Federal Edition

TurboTax’s main free competitor is H&R Block, which also offers basic free filing software for state returns. Early in the tax season, you can file your federal (Form 1040 only) and state return for free. Also, if you're switching from another tax filing service, HR Block will let you import last year's return from TurboTax, Credit Karma or another tax preparer. H&R Block’s user interface is easy to navigate, and the free software even offers a number of useful features that make filing less time-consuming. For example, you can use your smartphone to snap a photo of your W-2 and upload the data for faster filing.

H&R Block’s app offers a large amount of functionality and features of its website; if you’re filing a basic federal form, you can even complete your entire return through the mobile app. Because the software is online, you can also begin your tax return on one device and pick up where you left off on another device—something that’s not possible for downloaded software users. H&R Block Free Federal is a strong contender for basic tax filings, as it offers a  simple step-by-step guide to filing federal taxes and a number of unique benefits.

Remember, too, that H&R Block has offices nationwide where you can speak with a tax expert if you like.

4. Best for Fast Returns: eSmart Tax-Free File by LibertyTax

eSmart is Liberty Tax’s tax software, and the company claims that if you file a basic federal form, you can complete your filing in as little as ten minutes. If you’ve filed before and you don’t need a ton of hand-holding, eSmart’s simple system might be the right choice for you. eSmart’s free package can handle basic federal returns including childcare and dependency write-offs. The company also provides free chat support to all customers—and while in-person assistance is not included in the software’s free package, Liberty Tax operates over 4,000 tax help centers across the United States.

eSmart Tax Free File is surprisingly competent for a free tax program, able to quickly import previous tax data not only from prior versions of eSmart but also from TurboTax and H&R Block. You can import your W-2 or 1099 forms for a decreased chance of processing errors. eSmart also ditches the interview format and allows users to switch between sections. eSmart also offers an “add reminder” feature that allows users to flag sections that they need to head back to, which results in a more organized return.

What is Tax Software? Can Tax Prep Software Help?

The U.S. tax code is over 73,000 pages long. No human being could possibly memorize every in and out of the tax code, and even the best tax preparer requires some assistance when working on their year-end tax return. Those of us who are not a Certified Public Accountant (CPA) are even less likely to be able to effectively file our taxes on our own. If you have a simple employment situation, free tax software programs can help you. Unfortunately, even free tax software often comes at a price, and you may sacrifice some functionality for the sake of simplicity and a $0 price tag.

Tax software is formatted for the average Joe or Jane’s employment situation, a simple tax return that can be completed without much trouble. So, many tax software providers will remove in-depth functions and features from their free versions, forcing you to turn to a professional tax preparer or reach out to the software vendor for customer support.

If you need little to no help from a tax expert but would prefer that a software provider help guide you to the finish line, a free tax program will probably be unsuitable for your needs:

You are Self-Employed

If you’re self-employed, you will have a much larger number of deductions when compared to the average tax filer, ranging from costs associated with company vehicles to a percentage of your mortgage and utilities if you use a home office to small gifts that you’ve given to clients or major customers. Investing in a specialized tax program for self-employed individuals can help you maximize every possible deduction—a feature that’s often excluded in free software editions.

You may also want to speak to a tax expert about local tax law or how tax filers they work with typically handle their returns. This is where you might want to pay a little extra for that bit of customer support some software vendors offer.

You Make a Significant Amount of Money from Stock Trading

If you frequently trade stocks, you’ll need to handle a myriad of additional taxes, ranging from capital gains taxes to brokerages taxes, on your cash and margin accounts. Free tax software is often not sophisticated enough to handle these types of returns, and you will need several tax documents related to those investments. Even with expert help, these investments can make it difficult to complete your return.

You’ve Had a Major Life Change

Whether you’ve recently become a parent or you’ve decided to ditch your 9-to-5 to become an independent contractor, major life changes also affect major changes to your taxes. You might have experienced an increase in your adjusted gross income, new student loan interest payments, a change in your tax bracket, found a tax credit for which you are now eligible, added dependents to your family or had a significant change in your business income.

Free tax software programs often cut live customer support and assistance from their packages, which can make navigating a new tax form difficult. Depending on the change, you may be able to use free tax software next year to handle your returns—but for now, stick with a paid version that offers comprehensive support while you adjust to your new situation.

What to Look for in a Free Tax Software

Before you commit to a free tax software, you'll have to decide if it fits the bill. Not all tax filers are the same, and your income tax return could differ from someone else who might have recommended a software provider to you.

An Easy-To-Use Interface

Most free tax software editions limit you to filing only the 1040A or 1040EZ form, the most basic federal tax forms. There’s no reason why a free tax program should be difficult to use, even for technophobes. The best free tax software programs offer clear instructions and a straightforward approach to filing that makes the return process as stress-free as possible.

Options for Support

Most free software cuts the bells and whistles of its paid versions, and one of the first things to get the ax is usually live support. However, the best free software programs offer some form of independent support from a tax expert, ranging from a compilation of the most frequently asked questions to a searchable database of tax credits, standard deductions and codes that you can use to find an answer.

User Specifications That Fit Your Income Profile

Not everyone is qualified to use all free tax software programs. Most packages have specifications that outline who can and cannot use the program. For example, if you want to use TurboTax’s Federal Free Edition, you’ll need to earn less than $100,000 annually, not own any rental properties or collect rental income, not have any significant medical expenses to deduct, and not collect any revenue from the operation or maintenance of a business. Before you start your tax return, double-check your software’s exclusions to make sure you qualify.

File Your Taxes Stress-free

Though free software can be a useful and cost-effective tool for basic returns, you may be in need of greater tax firepower in order to maximize your returns. If you manage a rental property, recently opened a business or need to navigate investment taxes, you can lose money or pay more than you actually owe if you use free tax software. If you have any doubt in your mind that you may be missing credits or deductions, you’re better off using a paid software program; most of these also come with customer support from tax professionals or CPAs, who can help you better understand where you can save money on your return.

Frequently Asked Questions

Related content: How to Calculate Tax on 1099 Income