If you’re like most Americans, you file your own taxes and likely file them online. The 2022 income tax season is now upon us. So what’s your plan this year?
There are plenty of options for filing your taxes on line this year: IRS Free File, TurboTax and even some do-it-yourself methods.
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Our sister site CBS Essentials has put together a guide on the leading online-filing services and programs. Even though the Tax Day deadline has been extended to April 18, the IRS says there may be delays processing tax returns and refunds if you don’t file online and filee early.
So what are your options? Some are 100% free. Some charge fees – fees that buy you tips from real-live tax pros and other perks. What’s the best option for you? We’ve got you covered – read on!
IRS Free File
In 2020, a U.S. watchdog agency found that fewer than 3% of the 104 million U.S. taxpayers who could’ve filed free online returns through IRS Free File took advantage of the program. Don’t leave free services on the table this year. If you’re looking to e-file your federal return, then you may want to make IRS Free File your first stop. As CBS News noted, the IRS-backed program is the “only sure way” to file a free federal return.
This year, IRS Free File is open to all U.S. taxpayers whose 2021 adjusted gross incomes were $73,000 or less. And it doesn’t matter if you’re reporting unemployment income or capital gains: If you meet the program’s income eligibility, then IRS Free File will find you an online service that’ll do your tax math, answer so-called “simple” questions and submit your returns – all for free.
One important note: The IRS says some of its IRS Free File partners may have lower income thresholds than $73,000. But the bureau pledges that it’ll get at least one match for everyone who earned up to $73,000. And if you’re active-duty military? Then, provided your income was $73,000 or less, all IRS Free File programs will be open to you. For the 2022 tax season, eight companies are participating in IRS Free File, including some names you may recognize, such as TaxAct and TaxSlayer.
The easiest way to see what’s available to you via IRS Free File is to go to the IRS website. Enter your age, state of residence, adjusted gross income and a couple of other details. The system will show you which of its tax-prep partners are a match for you. Some of the affiliated providers will even do state returns for free.
TurboTax
Intuit’s TurboTax is the giant in the tax-prep space, scoring 73% of sales in last year’s tax high season, per the data analytics outfit Bloomberg Second Measure. Its services are basically divided into two areas: do-it-yourself online taxes; and tax-pro-assisted online taxes.
In the do-it-yourself bucket, you can e-file a federal return for $0 via its “Free Edition” service – provided, that is, the only form you need to file is a 1040. If you’ve got itemized deductions, schedules, or unemployment income (as reported on a 1099-G), then you’ll probably need at least the TurboTax “Deluxe” tier, currently being offered for $39 (regularly priced at $59).
Other TurboTax packages are “Premier” ($69, currently marked down from $89) and “Self-Employed” ($89, currently discounted from $119). As its name indicates, “Self-Employed” is recommended for those reporting self-employment income and expenses. All the do-it-yourself tiers, from “Deluxe” on up, carry additional fees for e-filing state tax returns.
If you want a more guided experience, TurboTax offers its “Basic,” “Deluxe,” “Premier” and “Self-Employed” tiers with either access to a tax pro who’ll give you advice (the cheaper option, called TurboTax Live), or a tax pro who’ll straight up do your taxes for you (the more expensive option, called TurboTax Live Full Service).
If you are filing one of those super-simple, 1040-only returns, then you can get TurboTax’s “Basic” package for free in any of its forms, from do-to-yourself all the way up to TurboTax Live Full Service. Take note: The $0 offer for TurboTax Live Full Service is only for returns that are filed by Feb. 15.
All TurboTax packages, including “Deluxe,” “Premier” and “Self-Employed,” are billed as “start for free,” which appears to mean no money is paid up front. (“Pay only when you file,” the site says.)
TurboTax file-your-own-taxes packages, $0 to $89
H&R Block
H&R Block offers four online filing options. They’re called “Free Online,” “Deluxe,” “Premium” and “Self-Employed.”
“Free Online,” which is billed as costing $0, is for those with super-simple returns, such as W-2 income only. Unlike TurboTax, H&R Block’s no-charge tier works for people with unemployment income, too. The H&R Block site says the cost of a state return at this level is likewise $0.
For those with itemized deductions, a Health Savings Account (HSA) and/or real-estate deductions, H&R Block customers will want to look at the “Deluxe” level and above. Live tech support is included in the “Deluxe,” “Premium” and “Self-Employed” packages; all three are currently on sale, too. Like TurboTax, H&R Block bills all of its pay packages as being “start for free.”
TaxAct
After TurboTax and H&R Block, TaxAct is the next-biggest tax-prep software service. Among the big three, TaxAct is the only one currently affiliated with IRS Free File. In addition to providing that service to qualified taxpayers, TaxAct boasts a range of online-filing packages for any and all customers, regardless of income bracket.
Like TurboTax and H&R Block, TaxAct has a free tier (literally named “Free”) that covers those with straight-forward returns – W-2 income, unemployment income and the like. A state return at this level costs $35 per state filed.
The other TaxAct packages are: “Deluxe” ($25); “Premier” ($35); and, “Self Employed” ($65). At each of these levels, a state return, if requested, costs $45 per state filed.
All four packages, including “Free,” come complete with access to over-the-phone tax experts. And, yes, all of TaxAct’s premium packages are billed as being “start for free.”
Free File Fillable Forms
Free File Fillable Forms is a sister service of IRS Free File; it’s open to all taxpayers, including those who made more than $73,000 in 2021. Like IRS Free File, it’s a completely free online-filing option.
A seasonal program, Free File Fillable Forms is open every year from roughly mid-January to mid-October. It’s an online repository of every and any form you’ll need for a federal return. Once you’re finished with your work, you may electronically sign the return, and submit it via the site.
Free File Fillable Forms definitely has its limitations: It doesn’t give advice; it doesn’t do state returns; it doesn’t allow you to do federal returns for anything but the current tax year; it doesn’t let you do revisions once you’ve filed; and, as the IRS cautions, it doesn’t do an “extensive” math check on your numbers.
