It may be true that Intuit’s Turbotax which people use over the years to pay taxes causes some complications. Does this make you dislike TurboTax? Luckily, there are free alternatives that you can use to pay taxes that do not carry TurboTax’s complications.
This alternative software that you can use to pay tax, offer the best services that you can ever think of. Do you want to experience a new means of paying your taxes? If yes, we have compiled the best alternatives to TurboTax. Some of these alternatives are affordable (if not free).
From a recent survey, complaints from people show that the TurboTax software has several articles covering the topic. This keeps people wondering if the articles were reviewed.
In addition, the price increases suddenly when you think it’s about to reduce. Once this happens, you will have to upgrade to more expensive pricing either halfway through your taxes or towards the end.
As a result of all these, most people now seem to hate Intuit’s TurboTax software which has been in use since the mid-’80s. They now seek alternatives to pay taxes other than TurboTax.
The table of contents below shows the highlights of this article.
TurboTax is a software application that is used for preparing American income tax returns. This software was produced by Intuit Inc and it is the leading tax payment platform among all others.
According to a 2016 report, TurboTax spent $2 million on lobbying against the IRS by creating its own online system of tax filling.
A part of an agreement between TurboTax and the IRS allows individuals that make less than $66,000 a year to use a free version of TurboTax.
The software has a free version that users who don’t register their taxes or intend to take any credits can use. However, TurboTax offers three versions that consumers can pay for. They include Deluxe, Premier, and Self-Employed.
These versions cost between $40 and $90 and they enable consumers to save money through deductions and charitable contributions.
All versions of the TurboTax software offers consumers audit support. In other words, consumers will not be left to fend for themselves if they are audited for any reason.
TurboTax software also offers live support. If you need this, you will have to get one of the paid versions of the TurboTax software.
A Quick Comparison of TurboTax with Other Alternatives
In the table below, you will see the features which TurboTax has and the features of other free alternatives that you can use to pay your taxes.
|Free Version Details||The free version of TurboTax lets consumers file a 1040 and a state return provided they don’t register. However, the free version does not allow consumers to file Schedules 1-6.||H&R Block’s free version allows consumers file a 1040 and Schedules 1-6, making it ideal for people with uncomplicated taxes.||The free basic version lets consumers file a 1040 and their state taxes.||TaxAct’s most limited free version allows consumers file a 1040 and state return if they have no dependents.|
|Starting Price||TurboTax offers multiple online options that start at $40. The plan at this price known as Deluxe comes with guidance to help consumers maximize their deductions, live customer support, etc.||Deluxe’s online tax filing with H&R Block starts at $29.99. If consumers wish to visit the physical office to get help, it will cost them $59.99.||TaxSlayer’s Classic version starts at just $17. This basic tax program includes features like support with deductions and credits, IRS Inquiry Assistance, and easy online uploads. The top tier Premium software starts at just $37.||TaxAct offers some very cheap entry-level tax software, including a Deluxe+ package for just $29.95. Even their top tier “Premier” tax software costs only $39.95 for federal only.|
What are the Best Alternatives to TurboTax?
If you do not want to use the TurboTax software anymore, don’t worry yourself because there are other means that you can use to sort out your taxes.
Below are the best alternatives to TurboTax software that you can use and they are affordable (if not free):
- H&R Block
- Credit Karma Tax
#1. H&R Block
H&R Block continues to be in use over the years. This software which serves as an alternative to TurboTax has a free version that supports child and dependent care expenses, student loan interest deduction, tuition and fees statements, and health coverage exemptions.
TurboTax software differs from H&R Block such that its free plan allows consumers to file one state return for free while H&R Block allows consumers to file multiple states for free.
On the other hand, the paid versions of H&R Block software is like TurboTax including:
- Free basic version
- $29.99 deluxe version
- $49.99 premier version
- $79.99 self-employed version
Although H&R Block offers online customer support, it has physical offices where you can visit if you need a grasp while they work through their unique tax situation. This makes it unique because most of the other companies on this list are online only.
TaxSlayer which serves as an excellent alternative to TurboTax offers consumers with different tax situations many tiers of software.
Its Classic and Premium versions enable consumers whose tax issues are a bit complicated than the average filer who files only 1040.
TaxSlayer’s self-employed software offers special features to filers that have complicating issues with deciding what to they can and cannot deduct. It also helps small business owners that have other tax issues.
Finally, TaxSlayer’s Ultimate product offers the best of all their features including identity theft and restoration services, premier audit defense, and unlimited phone, email, or chat support.
TaxSlayer has an edge over TurboTax such that it is less expensive because it offers fewer perks and features. Here, filers can access all tax forms at their lowest price point. This enables intelligent filers to save more.
In addition to this, it does not have more critical reviews including math errors and customer service issues on Trustpilot, unlike other platforms.
TaxAct software is very affordable although the software has a top-tier online product. Interestingly, the software offers a 100k Accuracy Guarantee. What this means is that the software covers the difference if a filer has a higher tax liability.
In doing this, they will pay every necessary legal and auditing costs provided the filer is up for an audit.
The cons of TaxAct
- It does not offer consumers one-on-one or physical customer support.
- The software’s free tier is one of the most limited of all free file tax software options.
FreeTaxUSA software normally offers federal income tax returns for free but the platform charges a fee of $12.95 for online filing state income tax returns.
TurboTax has some things in common with FreeTaxUSA, however, FreeTaxUSA contains the forms required by self-employed persons, rental income, K-1 forms (from an LLC, partnership, or S-Corp), or need to take the home office deduction.
The Deluxe version of FreeTaxUSA software helps filers that have a more complicated tax situation who cannot use the free version. To get the Deluxe version, it will cost you a little fee of $6.99. For slightly more complicated tax returns, FreeTaxUSA appears to provide its solutions.
If you compare the Deluxe and Free versions of FreeTaxUSA, you will find out that the former offers more support.
The Deluxe version lets consumers have live chat, priority support, and Audit Assist if they receive correspondence from the IRS. It also offers filers free amended federal tax returns.
The cons of FreeTaxUSA
Although FreeTaxUSA appears to solve more complicated tax returns, it does not import data from payroll processors or banks.
However, other tax preparation platforms offer this service but the only challenge is that filers cannot import W-2 or 1099-INT information into their return. In a situation whereby filers have stock transactions, they will register it manually.
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#5. Credit Karma Tax
People know the Credit Karma Tax as a free online credit score and monitoring service. Over a few years ago, the platform included tax preparation as one of the services that they offer.
This alternative to TurboTax is free for federal and state taxes. Credit Karma Tax has similar things in common with TurboTax Free Edition including auto-import W2, earned income & child tax credits, 1099-DIV, and 1099-INT forms.
The software offers services that TurboTax Free Edition does not offer including:
- Mortgage interest deduction
- Schedule B: Interest & dividend income
- Property tax deduction
- Schedule C: Profit or loss from business
- Schedule E: Rental property income
- Other itemized deductions
- Schedule D: Capital gains and losses
- Schedule SE: Self-employment tax
Credit Karma Tax does not support the following
- Multiple states return: If you earned income in over one state and have to file multiple returns, Credit Karma Tax does not support it.
- Part-year state returns: A case where you or your spouse lived in a state for only part of the year
- Nonresident state returns: If you earned income out of the state of residency
- Married filing separately in community property states
- Form 1040-PR: This is for self-employed persons that live in Puerto Rico
- Filing state taxes without filing federal taxes
Although TurboTax has been in existence for so many years, most people find some of its services complicating. However, the software continues to be one of the best because of the good value it offers and it is affordable.
Other alternatives have similar features in common with TurboTax, although, there could be few differences. For example, TurboTax’s free plan allows consumers to file one state return for free while H&R Block allows consumers to file multiple states for free.
The bottom line is that no tax software is perfect for everybody. All the tax software has its pros and cons. On the other hand, some tax software has features that offer more customer service in different tax situations.