In its current ad campaign, tax software giant TurboTax insists that you don’t need to be a Nobel Prize-winning physicist—or any kind of genius—to do your taxes, as long as you use TurboTax. For once, we see truth in advertising: Indeed, TurboTax and its competitors simplify the chore of filing your taxes. They’ll do the math for you, alert you to tax breaks you might overlook, and flag questionable data entries that could raise eyebrows at the IRS. See Also: But do-it-yourself taxpayers face numerous potholes when navigating tax filing programs. Extra costs aren’t always clearly disclosed, so you could end up spending more than you planned.

1. Internet Tax Preparation Programs

H&R Block online tax software makes tax preparation and filing easy, and it can be used for federal and state income taxes. Learn more in our review. In this online tax preparation software review, Consumer Reports compares TurboTax Deluxe, H&R Block Deluxe, and TaxAct for the 2017 tax season. Featured Tax Preparation Software Reviews: Intuit TurboTax Deluxe 2018 (Tax Year 2017) Review MSRP: $59.99.

Baseline prices may even rise by the time you finish filling out your forms. (All prices cited here are as of February 16.) Some programs rely too heavily on tax jargon or offload you to jargon-filled IRS documents, rather than explaining them in plain English for you. And despite recent efforts to improve security, hackers and identity thieves continue to look for ways to penetrate these mother lodes of sensitive data. TaxSlayer and TaxAct recently disclosed that customer data was stolen in late 2015. Last year, identity thieves hacked into the IRS database of prior years’ tax transcripts and stole information about 350,000 taxpayers. So it’s more important than ever to use hard-to-crack passwords and update antivirus programs before you embark on this annual chore.

This year, we reviewed five online versions of tax-filing programs. (You can download software versions rather than filling out your forms online, but doing so is generally more expensive unless you prepare more than one return.) We gave our hypothetical taxpayer a mortgage, some modest investments and a health savings account (HSA), an increasingly popular tool for workers with high-deductible health insurance plans. HSA account holders who take money out for medical expenses are required to report it on their tax return; failure to do this could trigger a large penalty. Here’s what we found: TurboTax Intuit's product continues to impress with its easy navigation, clear instructions and ability to import thousands of documents from employers, investment firms and other institutions.

Although other software programs also allow you to import documents, none are as comprehensive as TurboTax, which imports information from more than 1.4 million employers and financial institutions. TurboTax handled our hypothetical taxpayer’s HSA with aplomb, which wasn’t true of some of the other programs we tested.

Similarly, the reporting requirements under the Affordable Care Act are easy to follow. Pros: TurboTax is the most user-friendly program we tested. If you discover you’ve omitted something—a charitable contribution, for example, or interest from a small bank account—it’s easy to go back and update your entries. We tested the online version of TurboTax Deluxe, which costs $34.99, plus $36.99 for a state tax return. If you have investment income, other than interest and capital gains distributions from mutual funds, you must upgrade to TurboTax Premier, which costs $54.99 for a federal tax return, plus $36.99 for a state tax return.

Prices could rise as the tax filing deadline approaches. H&R Block This program is a breeze to navigate, and we especially like the checklists - such as a list of commonly missed tax forms to look for prior to filing your return. Block wants to make sure you have the documents you need. The program also does an excellent job of explaining the new ACA requirements. Throughout most of our test drive, Block seemed to anticipate our questions and provide links to answers. The “Learn More” icons next to sections such as mortgage deductions and real estate taxes are clear and comprehensive.

Pros: H&R Block’s Deluxe version, which costs $34.99 for a federal tax return ($36.99 for a state return), allows you to report investment income, making it a better deal than TurboTax Deluxe. In the unlikely event that you’re audited, Block will provide an enrolled agent, at no cost, to help you “manage the entire audit experience.” Cons: The search function is disappointing. A search for “health savings accounts” produces a generic description of HSAs, instead of guidance on where to report contributions and distributions. TaxAct has long been popular with budget-minded taxpayers, but it’s not as cheap as it used to be. If you itemize, you’ll need to use TaxAct Plus, which costs $14.99, plus $14.99 for a state tax return. That’s still a good deal compared with the cost of filing a state and federal return with some of its competitors. TaxAct’s summaries of income, deductions and credits allow you to review your work.

However, if you realize you’ve left out some information, such as a charitable donation, you’ll have to traverse some of the ground you’ve already covered before you can update the entry. Pros: New security features are rigorous and reassuring. For example, if you start the program and take a break to walk the dog, TaxAct will log you out after a few minutes of inactivity.

TaxAct offers a “Price Lock Guarantee,” which means the price of your program won’t increase between the time you start the program and the time you file. Cons: Updating entries is time-consuming.

TaxAct doesn’t provide as much hand-holding as some other programs. Jackson Hewitt Deluxe This program shows some promise.

We like the document checklist, and you can export previous years’ returns filed with TurboTax, H&R Block or TaxAct. But aside from that, things go downhill in a hurry. Some of the language is sloppy, and help is scarce. While filling out the section on deductible mortgage interest, we were asked if we had a Mortgage Credit Certificate but received little guidance as to what that might be. (It’s a certificate offered by some state and local governments that allows homeowners to claim a tax credit for a portion of their mortgages.) In the section on individual retirement accounts, we were told that we made an excess contribution in 2015, which was just wrong. Pros: The Deluxe version, which costs $34.95, allows you to report most deductions and investment income.

A state return costs $36.95, and you get a $20 Walmart e-gift card. Cons: In addition the problems detailed above, the program is buggy (we were kicked off several times).

We were unable to get a response to a question about our purportedly excess IRA contributions from the support team or the “answers” section. TaxSlayer TaxSlayer’s program doesn’t have a lot of frills, but it’s clean and easy to navigate. You can have the program guide you through the forms, or, if you’re feeling confident, skip the hand-holding and do it yourself. It’s easy to review your work and make changes. Pros: For a bargain price of $12.99, plus $14.99 for a state return, TaxSlayer Classic supports all major IRS forms, including forms used to report investments (Schedule D), profit or loss from a business (Schedule C) and rental income (Schedule E).

However, TaxSlayer reserves the right to change its prices without notice. Cons: Help is limited. For example, when we typed in “health savings accounts penalties,” TaxSlayer only offered a bunch of links with generic information about HSAs. If you want live chat support or would like to pose a question to a tax pro, you must upgrade to TaxSlayer Premium, which costs $34.99 ($14.99 state).

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Internet Tax Preparation Programs

We've reviewed online software from the biggest players in the DIY tax industry. To help you find the best tax software for your situation, we scrutinized pricing; tested the user interfaces, simulating how they guide you through the process; and dug into support offerings, including what happens should you get audited. Taxes are confusing enough without the added stress of figuring out which tax software is the best, so we did the research to help you choose the ideal option. We focused on well-known and widely used tax preparation software, and while their underlying math is the same — the tax code is the tax code — there is a crucial difference between paying for what you could use and paying for stuff you don’t need.

Best Tax Software TurboTax and H&R Block are our best overall tax-software providers 2018, leading the pack by virtue of their features, ease of use and support options. Here is a list of our winners by category:. TurboTax Best overall & for ease of use. H&R Block Best overall & for support. TaxSlayer Budget pick. TaxAct Budget pick Easiest to use: TurboTax If you’re going to do your taxes by yourself, your software should make the experience as easy and clear as possible.

On this front, TurboTax stands out from the crowd. At TurboTax's secure website TurboTax stands out for its design and flow, making it easy to enter all your tax information, more so than other providers we looked.

It’s pricier than most, but while confident filers may not need the bells and whistles, many people will find the experience worth a few extra dollars. The user-friendly, interview-style Q&A is like having a chat with a tax preparer who asks questions in plain English and knows where to put the answers on your return. Paid users can get free, real-time help via SmartLook, which connects you to a tax specialist via one-way video using the TurboTax mobile app or your computer (but users of the free version have to pay extra for this), and there’s a large repository of answers and research. It’s become increasingly clear to the industry that even DIYers want a human to talk to now and then.

New this year is TurboTax Live — a high-end package that handles virtually every form the IRS can throw at you, plus you get a one-on-one review with a human CPA or Enrolled Agent before you file, as well as unlimited live tax advice from an on-screen CPA or EA. TurboTax doesn’t have a network of brick-and-mortar locations like H&R Block, where you can sit down with a professional in person if you like; for many, TurboTax Live is the next best thing. One negative for TurboTax is that it’s expensive compared with other options. You can easily spend over $100 on software and state-return preparation, depending on the version you choose. If you’re audited, the company offers free guidance, but if you want actual representation before the IRS, you’ll need to buy an add-on product called Audit Defense that runs $44.99. Budget picks: TaxSlayer and TaxAct If your was less than $66,000 for the 2017 tax year, you probably qualify to use the IRS’ Free File program, which gets you access to free tax-prep software. (.) If your income was more than that, or you want other options — but want to pay as little as possible — then these might be for you.

At TaxSlayer's secure website TaxSlayer is a bargain compared to much of the competition, plus its interface is as handsome as other, more expensive versions on the market. It has a mobile app that allows customers to take pictures of their W-2s instead of keying in tons of numbers, plus there’s an online knowledge base. Though phone and email tech support are free, the more valuable kind of support —tax help — is free only for Premium and Self-Employed users (Classic users can upgrade for an extra $22, but it might be cheaper to just buy the Premium version, which has it included, if that’s what you’re after). TaxSlayer Premium and Self-Employed come with free audit assistance (users of other versions can buy it for $29.99), which helps you prepare for an audit but won’t represent you in front of the IRS. And note that freelancers or anybody else filing a Schedule C won’t qualify for audit assistance. State returns also aren’t covered.

The coverage applies for three years from the date you buy the software. There is no audit defense available. TaxAct is also less expensive than most of the competition. The Plus version, for example, is less than half the cost of TurboTax’s or H&R Block’s comparable products.

TaxAct will hook you up with a CPA or Enrolled Agent over the phone or via live chat if you need help. Free tax help via phone (for paid users) is a rare find, especially for software at this price point. At TaxAct's secure website Some competitors spent part of the year tweaking design elements and color palettes, but TaxAct has largely stuck with what worked last year — and that’s just fine. It has all the basics, such as importing last year’s returns, a W-2 import, a donation assistant and some planning tools and calculators.

And because the software is online, you can log in from other devices if you’re working on your return here and there. TaxAct redesigned its mobile app, and new this year is the ability to start and file your return on any device.

All of the company’s products are available via mobile, and this year the app also has smart camera functionality so you can capture your W-2 instantly. TaxAct’s audit assistance consists of a FAQ page on its website. But customers can buy help from a partner company. It includes three years of audit services for this year’s return, and TaxAct says it includes comprehensive response and resolution strategy, IRS and state correspondence, help with denied credits, and tax debt and tax fraud assistance.

That service is included in the Premium package and runs $39 for everyone else. For those who want more support: H&R Block It’s inevitable that while preparing your taxes you’ll run into something or have a question. If you think this is especially likely, you’ll want the most robust support options, and we think H&R Block has an edge here.

At H&R Block's secure website First, about the software: H&R Block’s free software files all three versions of the 1040 this year (1040EZ, 1040A and regular 1040 with a Schedule A). Finding the 1040 included in the free version of software is a rarity in the marketplace. There is a rub, though: H&R Block’s paid software runs on the high end, price-wise. Back to support. H&R Block users enjoy the ultimate security blanket — some 12,000 brick-and-mortar offices staffed with humans who can help you if you utterly and completely screw up your return. The cost of that help isn’t included with the software, but better perhaps to have it and not need it than to need it but not have it. Deluxe and Premium package users also get free online chat with a tax professional.

H&R Block is also coming after TurboTax hard this year with its Tax Pro Review offering. It’s an add-on that costs between $49.99 and $89.99 depending on which software version you buy. The people who provide tax support and review tax returns submitted for Tax Pro Review are graduates of H&R Block’s 60-hour Income Tax Course and must complete at least 18 hours of continuing education and an average of 20 hours of skills training on policies and procedures every year. The tax pros handling Tax Pro Review returns are “certified at H&R Block’s highest levels and are our most tenured and experienced tax professionals,” according to the company.

» Expecting a tax refund? Summary: Best tax software.

How to choose tax software Deciding which package you need If your tax situation is simple — you worked for wages, got a W-2 form and you’re not a stock-trading maven — you’ll probably do fine with a basic or free version of software. Depending on your income,. But add kids, houses, freelance gigs, rental properties, tons of or other curveballs, and you’ll need to up the ante — and pay a little more. Using a first can help you identify the capabilities you’ll need when it’s time to evaluate your software options. The best tax software excels at walking users through even the most complex situations, but if you’re still not confident or worry you might miss something, consider instead.

Psp game. What if I’m audited? It’s unlikely — the IRS audits less than 1% of the tax returns it receives. Still, and want to purchase protection, you should understand what your software provides. In general, there are two levels of service: guidance (which basically means helping you understand what’s happening) and representation (which means a skilled human will speak with the IRS on your behalf).

Most preparers offer free guidance, but you’ll likely have to pay for representation. Here’s a brief summary of what each provider offers:.

H&R Block: Offers a sort of combo product called Worry-Free Audit Support. This gets you one-on-one contact with a tax professional to help guide you through an audit. It costs $19.99 and includes IRS correspondence management, audit preparation and in-person audit representation.

TaxAct: Audit support consists of a FAQ page on its website. But customers can buy “audit and inquiry assistance services” from a partner company. That service is included in the Premium package and runs $39 for everyone else. TaxSlayer: Premium and Self-Employed software packages come with free audit assistance (users of other versions can buy it for $29.99), which helps you prepare for an audit but won’t represent you in front of the IRS. There is no audit defense available. TurboTax: If you get an audit notice, you’ll get free guidance about what to expect and how to prepare.

But if you want someone to actually represent you in front of the IRS, you’ll need to buy TurboTax’s Audit Defense product when you file. That runs $44.99.