4 Best Tax Programs You Don’t Know About

Elyssa Kirkham for GoBankingRates.com writes: Americans are living more and more of their lives online. If we shop, read, work, date and bank online — why not file taxes online too? Filing your own taxes might seem intimidating, but tax-filing software has taken much of the guesswork out of the process.

The convenience and ease of electronic filing, or e-filing, means more taxpayers choose this method each year. During the 2013 tax season, the IRS reported that almost 83 percent of all tax returns were e-filed. In all, 45.2 million tax returns were personally efiled by taxpayers, rather than by professionals.



The best news is that e-filing can also be the cheapest option for filing a tax return — especially when compared to the average cost of paying a professional tax preparer’s fee of $261, according to a survey from the National Society of Accountants.

4 Cheap Tax Programs to File Your Taxes for Less Than $50

Intuit’s TurboTax is the ubiquitous choice for preparing taxes, popular for being one of the earliest and easiest-to-use tax return programs. TurboTax is called the “market leader in this niche” of self-prepared tax return software by The New York Times — but its prices are far from the best.

The “deluxe” version of TurboTax, which includes both federal and state tax returns and standard options for mortgage and claiming dependents, is priced at $70. This isn’t a one-time cost, however; users must pay that fee each year to use the latest, updated version of the software.

Tax season is the last time taxpayers should have to shell out cash; so, to help readers save money, GOBankingRates has rounded up four tax programs that are cheaper alternatives to TurboTax.

1. TaxACT

• Great for: Taxpayers looking for the cheapest overall option.
• Cost: For both federal and state returns, TaxACT offers in-browser versions from $14.99 to $24.99, as well as downloadable PC program for $21.99 and $28.99. TaxACT also has a free federal-only tax return app for mobile devices.

TaxACT has set itself apart by consistently offering quality, easy-to-use tax filing software on par with TurboTax, but with a much smaller price tag. TaxACT offers free filing for federal tax returns to all users through its Free Federal version, with an additional charge of $19.99 for filing a state return. The Deluxe Version costs $14.99, with state returns adding $10 for a total of $24.99.
TaxACT’s program includes a number of extra tools for users –great for those who really want to understand how each part of their return affects their overall refund or amount owed. The added information can also slow down users, however, and filing with TaxACT might take a bit longer than with other programs.

2. efile.com

• Great for: Taxpayers filing state returns for more than one state.
• Cost: State returns are a flat fee of $19.95, regardless of how many need to be filed. Federal filing options include a free basic option, $29.95 for deluxe and a $39.95 premium version.

Efile.com’s three versions mean that users don’t have to pay for more programs than they need. The free version is ideal for taxpayers who need to file only a basic return. The deluxe version ($29.95) offers features to help filers who have a mortgage, children or retirement income to consider. The premium is the most expensive version, at $39.95, but covers all the bases for filers who are self-employed, itemizing deductions, or using specialized forms and schedules.
Efile.com offers savings to taxpayers who need to file more than one state return by charging a base rate for unlimited state returns.

3. eSmart Tax

• Great for: Taxpayers who want to spend as little time as possible on their returns.
• Cost: Free simple version, $29.95 for deluxe and $49.95 for premium. State returns are an additional $29.95.

eSmart Tax offers a clean, updated interface that streamlines tax filing to quickly move users through the process. A standout feature is the ability to import previous years’ tax information from other programs, including TurboTax, TaxACT, H&R Block and others. Live chat assistance is easily accessible in eSmart’s interface, so it’s easy to get quick answers to tax questions.
According to Reviews.com, eSmart Tax’s deduction discovery section is lacking — this might be a program for taxpayers who already have a clear idea of which deductions they plan to claim. But this just underlines eSmart Tax’s position as the choice for filers who don’t want or need to spend a lot of time on their return, and therefore don’t need to go through a deduction discovery questionnaire.

4. Free File

• Great for: Those with incomes under $58,000.
• Cost: Free for federal, up to $15 for state.

The IRS offers Free File as a service to low-income taxpayers — defined as those with an annual income below $58,000. Recent reports have shown that tax preparers often target low-income taxpayers, who end up paying high fees for professional help.
Through Free File, the IRS subsidizes the cost of self-prepared tax return software, offering tax preparation products from 14 companies free to low-income taxpayers — including TurboTax and other programs on this list. Some of these programs may charge an additional fee for filing a state return, typically around $15.
The IRS also offers Free File Fillable Forms to all taxpayers, regardless of income. These are a version of the IRS tax forms that can be filled out electronically, and include functions like automatic calculations. Unlike tax preparation software, however, Free File Fillable Forms provide only basic guidance and are best for those who are already familiar with filing and know how to do their own taxes.
Visit IRS.gov for a guide to programs available through Free File and for the Free File Fillable Forms.

Follow GoBankingRate @: @GoBankingRates on Twitter | GoBankingRates on Facebook

You can follow the author Elyssa KirkhamTwitter Here.