What is the Cheapest Way to Do Your Taxes?
How much should tax preparation cost? How much should you spend on H&R Block, TurboTax, or FreeTaxUSA? Those are the three main questions that people ask themselves when filing their taxes. To help answer these questions, we’ve put together this guide to help you decide which option is best for you. If you don’t know where to begin, you can download the IRS Free File form.
FreeTaxUSA
There are some drawbacks to FreeTaxUSA as a tax filing tool. You can file federal returns for free, but you can also upgrade to the Deluxe version at $6.99. Upgrades to the Deluxe version include priority chat support, audit assistance, unlimited amended returns, and unlimited audit assistance. However, it isn’t worth the extra money if you don’t have a lot of knowledge about taxes.
H&R Block
H&R Block is the best place to start if you aren’t sure what to do with your tax refund. H&R Block offers refund advance loans up to $3,000 and a 0% interest cash advance on the expected tax refund. If you decide to use the service, you can load this advance on your reloadable prepaid debit card in 48 hours. H&R Block also stores your tax documents up to six years.
TurboTax
While many of the major tax preparation software programs will charge you for their services, TurboTax is among the cheapest ways to file your taxes. TurboTax Basic is free to download and import your previous year’s taxes. The fee-based Deluxe and Self-Employed versions of TurboTax are, however, available. TurboTax may be the most cost-effective way to file taxes, but many users find it difficult to use and confusing.
IRS Free File
There are many reasons you should use the IRS Free File service. The most obvious is the fact that it is completely FREE. Leading tax software companies now offer their online products for free as part of a 20 year partnership with the Internal Revenue Service. If you earn less than $73,000, or if married filing jointly with the IRS, IRS Free File is available to you. However, some states still require you to pay a fee for e-filing, so you should use an alternative method of filing your taxes.
Jackson Hewitt
Jackson Hewitt’s guaranteed maximum refund is a key selling point. If they fail to meet your expectations, they’ll refund the money you paid. If you don’t have a tax refund, they’ll cover any fees and interest they may owe to the IRS. You can reach them via live chat or email for any questions. Jackson Hewitt is the only company that offers a full refund for any monies owed over last year.