Top 5 Tax Preparation Software Programs

Every year American's face a dizzying array of documents and instructions when it comes time to file taxes. Fortunately there are several software products for filing taxes that take the mystery out of tax preparation. Here are the top 5 software products for taxes.

TurboTax

Arguably the best of the bunch, TurboTax has been helping people use their computer to file their taxes for over a decade. TurboTax gathers information about your tax situation then guides you step by step through every IRS form and schedule you will be required to file. Help is always available either by asking other TurboTax users or from a TurboTax customer service representative. While TurboTax is powerful and easy to use, it is the most expensive of the tax software programs listed here, but every package comes with free electronic filing.

TaxAct

TaxAct has gained a loyal following by offering free federal tax return preparation and electronic filing. Everything from the 1040EZ to the full 1040 long form can be prepared and filed for free through TaxAct. If you wish to use the TaxAct software for your state taxes or wish to have more powerful guidance and tools when preparing your federal return, then there is additional costs involved. Because of the free federal filing and the easy to use interface, TaxAct has many loyal fans who swear by the product.

H&R Block At Home

H&R Block At Home tax preparation software starts the user off with an interview to determine their personal tax needs and then presents the user with the appropriate schedules and forms that need to be filled out. Every screen has a "Learn More" button that allows the user to dig deeper into the form they are on to understand what is going on behind the scenes with regard to the tax laws. If a user becomes completely lost, help can be obtained from H&R Block professionals free of charge either online or via the phone. All of this extra support and features comes with a larger price tag than the other tax preparation software products listed here though.

CompleteTax

CompleteTax offers free tax filing for anyone who is filing just the 1040EZ. For people with children and more complicated tax returns, CompleteTax offers a range of products to help users file their taxes online. The Basic package is good for small families who do not have a lot of complicated investments. For users with investments or rental properties, CompleTax offers more advanced packages that provide more features, though at a higher price.

OnePriceTaxes

While not as well known as the others on this list, OnePriceTaxes offers comparable features at price points competitive with the more well known tax preparation software. All of the screens on OnePriceTaxes have been designed for ease of use, you should have no problem filling out your forms. However if you do need help you will have to rely on email to contact the company to get your answers and may have to pay to get an anwer. This is one big drawback for this product that really puts a damper on an otherwise fine product.

Conclusion

Thanks to the Internet, filing taxes is easier now than ever before. By choosing one of the tax preparation software programs listed here you don't have to worry about whether your return is right or if it is going to make it to the IRS on time. No matter which product you choose, always make sure that the information you enter is complete and accurate to ensure that you get the most of your returns and avoid any chances of a costly and time consuming tax audit.