Best Tax Software for 2009

The best tax software this year depends largely on what kind of return you plan to file. Complicated vs. simple returns require comprehensive features not found in every software, as well as a capability to import data from other tax programs. If you'd like to go the "free" route, it won't be worth it unless you have basic filing needs. To help decide which is best for your' tax filing situation, four of the most highly recommended tax software programs/methods for 2009 are listed below.

#1 - Turbo Tax by Intuit

Turbo Tax has been a leading favorite for several years. It's the best tax software for complicated returns and proven to be quick and easy for simple tax returns. It's ranked highest for design and navigation with no accounting experience necessary. Turbo Tax gives in-depth tax information not found in other software.

Unique feature: Live online community for help and support.

Disadvantage: More expensive than other tax software.

Price: Free edition to Pro for $89.95

#2 - TaxACT by 2^nd Story Software

This is the best tax software for simple, straightforward tax returns for individuals and small businesses. Favored for help and explanations on every screen, ease of use and affordability.

Unique feature: Comes with the ability to prepare a FAFSA worksheet, (a college financial aid worksheet) for filling out FAFSA applications.

Disadvantage: None.

Price: Free for state filing at: http://www.taxact.com; $16.95 for federal filing

#3 - TaxCut by H&R Block

While TaxCut Premium is good for complicated returns, it's ideal for simple returns and for the self employed. It provides tax planning calculators for estimated taxes as well as retirement savings and has an easy navigation screen. Overall, it's excellent tax software at a low price.

Unique feature: "Worry-Free Audit Support", where a tax professional assists you in defending your return against an IRS audit.

Disadvantage: Not as novice-friendly.

Price: Basic begins at $19.95, up to $79.95

#4 - Free Tax Filing

The IRS offers free filing where you can prepare your taxes as well as file your tax return electronically. Free filing is not for everyone. It's only available to an Adjusted Gross Income (AGI) of $54,000 or less. In order to obtain the free filling service, you must begin at the IRS Free File page. http://www.irs.gov/efile

Unique feature: The government is offering something for free.

Disadvantage: You have to be eligible to use it.

Price: Free

Before you purchase tax software, make sure it's compatible with your computer, as different versions may vary.