1040.com Pros and Cons

Pros: 1040.com is the easiest online tax preparation program I reviewed. The program doesn’t ask irrelevant questions. Lowest cost at under $20 without additional fees. Bank products offered, but not invasive. Questions answered by a local tax professional. Audit protection is handled by local experts.

Cons: No free file. You should at least know what a 1040 is if using 1040.com. You don’t need to be a pro, but a little understanding goes a long way.

TaxBrain Pros and Cons

Pros: Audit services include payment of up to $4000 in federal and state assessments in an audit. The questionnaire and worksheets are easy to fill out, making preparation a cinch.

Cons: Audit service agreement has enough outs to save Taxbrain from paying most tax assessments. Very expensive preparation fees at $69.95, plus $29.95 for states.

TaxAct Pros and Cons

Pros: Business and individual returns are offered with a money-back guarantee. Free file is available for very simple returns. Free email and phone support. Previous year’s software available.

Cons: Price is right at $17.95, but annoying bank loan features cost significantly more. Audit support only. You will need a solid understanding of taxes to prepare your return with TaxAct. Still, a solid value for most.

TaxSlayer Pros and Cons

Pros: Active duty military people can file their taxes for free. Tax return cost starts at $9.95 plus $4.95 for unlimited states.

Cons: TaxSlayer is a low grade tax program. For easy returns, the price is right. Audit assistance only. Ouch.

TurboTax Pros and Cons

TurboTax, like all software reviewed, guarantees accuracy and the maximum refund. TurboTax is published by Intuit, maker of QuickBooks.

Pros: TurboTax has a comprehensive service that includes online preparation of corporations, partnerships, and LLCs, in addition to individual income tax returns. Limited free filing service is available. They also have an audit support center. TurboTax has the best free file program.

Cons: TurboTax has a more cluttered feel to their website. They are cheaper than HRBlock, but still charge up to $74.95, plus additional charges for state returns. The TurboTax website is slow at times and adds to frustrations. Like HRBlock, they offer overpriced and unneeded bank products.

RapidTax Pros and Cons

Pros: RapidTax has an open and easy to use platform starting at under $15, more for states, and is user friendly. You can file returns from previous years. Live chat and email support are a bonus with RapidTax.

Cons: Audit support and professional review add to the cost. States are expensive at $19.99 and are in addition to fees for the federal return that max out at 34.99.

H&R Block and TaxCut Pros and Cons

HRBlock advertises the most and is the most popular online tax service. You can import previous tax data from TurboTax and TaxCut.

Pros: HRBlock online tax software offers 5 choices of service at different costs. They offer a limited free filing service. Audit coverage is provided at a cost. Advanced tools are available on more expensive plans.

Cons: The extra choices add to an already complex software with too many choices. It seems like HRBlock has worked hard to maximize revenue at your expense. Several annoying requests for refund loans and similar services add to your cost if purchased. At a cost of up to $99.95 (extra for state returns), HRBlock is not a value. At this price you can have an accountant do it for you beginning to end.