The Success Guardian

Best Tax Software of 2024: Comparing TurboTax, H&R Block, and FreeTaxUSA

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Filing taxes can feel like decoding a secret message—unless you have the right software. In 2024, the three most popular consumer tax platforms are TurboTax, H&R Block, and FreeTaxUSA. Each has different strengths: TurboTax for slick design and guided help; H&R Block for in-person support and solid value; FreeTaxUSA for low-cost returns with capable features. This guide breaks down real prices, major features, and which software is best for different types of filers.

Quick summary: top picks

• Best overall: TurboTax — easiest interface and best guidance for complex returns; expect to pay $59–$119 for federal plus ~$49 per state.
• Best for face-to-face help: H&R Block — strong hybrid of online and in-person services; about $49.99–$109.99 federal and ~$45 per state.
• Best budget option: FreeTaxUSA — the federal return is free for most users, state filing around $14.99, and add-ons for a few dollars.

How I compared these services

To choose the best for 2024, I compared each platform across a consistent checklist:

• Pricing (federal + state) for common tiers
• Ease of use and guided support
• Importing W-2s, 1099s, and investment data
• Self-employment and rental property support
• Audit support and accuracy guarantees
• Customer service options (chat, phone, in-person)

I also tested specific scenarios (example filers below) and checked the latest published pricing directly from each provider as of early 2024.

Pricing and feature comparison

Note: Prices vary by promotions and can change during tax season. The figures above reflect common posted prices early in the 2024 filing season.

In-depth: TurboTax

TurboTax is the market leader and for good reasons: it offers an exceptionally clean interface, step-by-step walkthroughs, and strong import tools. The platform asks simple questions, provides plain-language explanations, and automatically picks up deductions you might miss.

Example: If you’re a homeowner with mortgage interest and charitable donations, TurboTax Deluxe (about $59) will walk you through itemized deductions and connect to your mortgage provider to auto-fill Form 1098. “TurboTax’s strength is its clarity. For clients with moderate complexity, it reduces mistakes,” says Tom Alvarez, tax technology analyst.

In-depth: H&R Block

H&R Block is a strong middle ground: better pricing than TurboTax for some tiers, plus the advantage of in-person offices if you prefer face-to-face help. Their online interface is solid and closely matches what you’d get in a storefront appointment.

Example: A couple with rental income, a 1099 contractor side gig, and a few investment accounts might choose H&R Block Premium or Self-Employed (~$79.99–$109.99). You can do it online, or if it gets hairy, book a local appointment and hand everything to a tax pro.

In-depth: FreeTaxUSA

FreeTaxUSA is the budget champion. Its base federal filing is free for most taxpayers, and the state filing fee is modest (~$14.99). The interface is less glossy, but it covers most forms filers need—W-2s, 1099-NEC, 1099-B, Schedule C, and more.

Example: A freelance graphic designer with $45,000 in self-employment income, deducting $8,000 in business expenses and paying quarterly estimated taxes, could file easily with FreeTaxUSA’s free federal return and $14.99 state filing. Adding priority support for around $6.99 gives extra peace of mind.

Which software is best for your situation?

• Simple W-2 filer, no dependents: FreeTaxUSA or TurboTax Free — both work fine and save money.
• Homeowner or lots of deductions: TurboTax Deluxe or H&R Block Deluxe — better guidance for itemized deductions.
• Investments/stock sales (1099-B) or rental property: TurboTax Premier or H&R Block Premium — they have good import and capital gains tools.
• Self-employed or 1099 contractors: TurboTax Self-Employed or H&R Block Self-Employed — both help with Schedule C, depreciation, and mileage. FreeTaxUSA can work if you’re confident doing it yourself.
• Want hands-on expert help: H&R Block (in-person) or TurboTax Live (online CPA/EAs).
• On a tight budget: FreeTaxUSA — best value for many filers.

Real-world examples (with numbers)

Below are three realistic scenarios showing cost and recommendations.

Example 1: Alex — a single W-2 employee

• Income: $55,000 W-2
• Standard deduction: $13,850 (single for 2023 filing year)
• Needs: Simple filing, fast refund

Best choice: FreeTaxUSA free or TurboTax Free. Cost: $0 federal, $0–$15 state depending on choice. Time: under 30 minutes if using import.

Example 2: Maria & James — married, homeowner

• Combined income: $120,000
• Mortgage interest $8,200, charitable donations $3,000
• They want to itemize to reduce taxable income

Best choice: TurboTax Deluxe (~$59) for excellent mortgage import and deduction prompts, or H&R Block Deluxe (~$49.99) for similar features at slightly lower cost. State filing extra (~$45–$49).

Example 3: Sam — freelance web developer

• Self-employment income: $85,000
• Business expenses: $25,000 (home office, software, travel)
• Has 1099-NEC and a few 1099-B trades

Best choice: TurboTax Self-Employed ($119) or H&R Block Self-Employed ($109.99) for Schedule C guidance, retirement contribution suggestions, and help with estimated taxes. FreeTaxUSA can be used for a low-cost option: free federal plus priority support ($6.99) and state ($14.99) if you’re confident handling depreciation and expense categories manually.

Audit support and guarantees

All three vendors offer accuracy guarantees (they’ll cover penalties/interests if their software makes a calculation error). Audit support varies:

• TurboTax: provides audit guidance; full audit defense is available as an add-on (paid service).
• H&R Block: offers in-person audit support and usually includes some level of audit guidance with paid plans; deeper defense services may come at extra cost.
• FreeTaxUSA: supplies audit guidance for free and sells audit defense through partners; not as comprehensive as full in-person defense.

“Audit probability is low for most filers, but complexity raises risk,” notes Erica Johnson, former IRS examiner. “If you’re claiming large self-employment losses or unusually large credits, consider a plan with stronger audit defense.”

Tips for choosing the right software

• Map your tax needs: investments, self-employment, rental, itemized deductions — match that to the software’s plan level.
• Check import options: if your brokerage or payroll provider supports direct import, that saves time and reduces errors.
• Look at total cost: base price + state + live help/add-ons. A “cheap” federal product can get expensive if you add live CPA review or audit defense.
• Read the guarantee fine print: check what the accuracy and max refund guarantees cover and any exceptions.
• Consider hybrid help: H&R Block lets you start online and switch to in-person if needed — handy for uncertain situations.

Common questions

Is the free version really free?

Yes, for simple returns most providers offer a free federal option: W-2, limited credits, and standard deduction. Be careful—if you add itemized deductions, investments, or self-employment income, you’ll likely need a paid tier.

Can I switch between providers mid-season?

Sometimes. You can start on one platform and export/import data to another using PDF copies, but direct transfer of in-progress returns is usually not seamless. Decide after a quick trial, and be ready to re-enter some data if you switch.

Does buying the exam defense or live CPA guarantee the accuracy?

It reduces risk. Live tax professionals can catch mistakes, suggest missed deductions, and provide documentation strategy for audits. However, the final responsibility for accurate information rests with the taxpayer.

Final recommendation

If you want the easiest, most guided experience and are comfortable paying for convenience, TurboTax remains the go-to. If you value a balance of in-person support and better pricing, H&R Block is a great choice. If saving money is your priority and you’re comfortable doing a bit more yourself, FreeTaxUSA delivers the best value.

Remember: the best tax software for you depends on your specific tax situation and comfort with DIY tax filing. Start with the free tier to preview your return before committing to a paid plan—most providers let you see your refund estimate first.

Further reading and next steps

• Gather your documents (W-2s, 1099s, mortgage statements) before you start.
• Compare the final estimated cost (federal + state + add-ons) across platforms.
• Consider scheduling a short consultation with a CPA if you have significant life changes (marriage, home purchase, business start).

Choosing tax software doesn’t have to be stressful. With the right match to your situation, you’ll file confidently and possibly save money. Good luck with your 2024 filing season!

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