But tax software can get expensive, too. Although most major providers offer free programs for taxpayers who claim the standard deduction, earn modest income and have no dependents, you may be forced to upgrade to a more expensive version if you contributed to a health savings account or deducted interest on a student loan.
To help you find the program that’s right for you, Kiplinger reviewed the most popular programs and ranked them based on cost, ease of use, tax help and more. We used two fictional tax returns: one for a single taxpayer with income reported on Form W-2, and a second for a married couple with a young child and a mortgage who itemized deductions. (For more on our methodology, see the box below.)
Prices quoted here are as of February 14. Many tax prep providers engage in surge pricing, which means the cost could rise as the tax filing deadline approaches. For a rundown of all nine programs we reviewed, go to kiplinger.com/links/taxsoftware20.
1. Credit Karma Tax
PROS: Easy to navigate; free with no exceptions, even for complex returns
CONS: Won’t process multiple state tax returns www.creditkarma.com/tax
The credit monitoring and credit card site tops our value rankings. Even for our hypothetical couple who itemized, Credit Karma Tax supported all the forms they needed.
This story is from the April 2020 edition of Kiplinger's Personal Finance.
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This story is from the April 2020 edition of Kiplinger's Personal Finance.
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