Every year, more than three out of four Americans qualify for a tax refund. With refund checks averaging $2,766, many taxpayers qualify for a windfall that they won’t get any other time this year. For those who are eager to get their money back, early filing makes a ton of sense.
In 2022, early filing is going to be especially attractive for parents who didn’t receive their Advanced Child Tax Credit payments and those who didn’t receive their stimulus money in 2021.
Americans can legally start mailing in their tax returns on January 1, 2022, but e-filing officially opens on January 24, 2022. Despite the delay in e-filing, people hoping to get a jump on filing can start preparing their returns by late December.
This year, TurboTax, H&R Block, TaxHawk, TaxAct, and TaxSlayer have released their new software versions. We’re comparing these top companies for anyone seeking early filing options.
If you want to prepare to submit your taxes the day the IRS opens e-filing, these are the software companies to consider.
Are You Filing Your Taxes Too Early?
There are several things to consider when you start prepping your taxes early in the season. While early filing ensures you get a timely refund, there is such a thing as too early. These are a few reasons to wait before filing.
Although filing too early is a mistake, all six companies listed above are allowing users to start entering information today. Get a jump in the software, but wait until you’re sure before filing.
Note: Another option to early filing is a tax refund anticipation loan or tax advance loan. You can see our full guide to tax refund anticipation loans here.
Great Reasons To File As Early As Possible
While filing too early is problematic, filing as early as possible makes sense in most situations. These are a few reasons to get a jump on filing.
You need complete information, but getting a jump on collecting and entering that information can help you file as early as possible.
What You Can Expect If You File Early
Many taxpayers find they have all the information they need to file their taxes by mid-January. If you’re an early filer, you can expect importing functions and other “bells and whistles” to be available by the time you have your forms in hand. Early filers can typically e-file their federal returns a few weeks after the start of the new year.
This year, the IRS opens eFile on January 24, 2022. So if you file in early January with your tax software company, your tax return will be among the very first sent to the IRS for processing when they allow it. Then you can watch our Tax Refund Calendar to see when you can expect your tax refund to arrive.
State filing, unfortunately, isn’t always as easy. Each company opens state filing at different times in the new year. The companies have to make updates for all 50 states. If you live in a state that had big tax law changes this year, you can expect delays for state filing.
In some cases, state filing options may open as early as mid-January, while others could be delayed until early March. Keep in mind that users have the option to e-file their federal returns before filing their state returns.
Comparing Tax Software For Early Filers
When it comes to early filing, all of the major competitors came to play this year. We’re comparing five software options to help taxpayers decide which software is best for them.
To compare the top tax software for early filers, we judged the following criteria:
Please note, these companies have frequent releases and updates. Many of the missing pieces are expected to be released before Christmas, but some may not be ready until mid-January.
It is worth noting that TurboTax offers a free virtual review for qualified “Free” filers who complete their returns before March 31st. Filers who don’t qualify for the free review will need to upgrade to receive a virtual review.
You can read our full list of the best tax software here.
Header | TurboTax | H&R Block | TaxAct | TaxHawk | TaxSlayer |
|---|---|---|---|---|---|
Ease of Use | Easiest | Easy | Moderate | Easy to Moderate | Easy to Moderate |
What Works? | All income, credit and deduction sections worked, but states are still delayed. | Schedule C (Self-Employed income) doesn’t work yet. State filing will not be ready until late December. Importing not available until January. | All income, credit and deduction sections worked. State filing planners are ready, but software updates will continue through January. | All income, credit and deduction sections worked. State filing will not be available until the end of January | All income, credit and deduction sections worked. State returns are not currently available. |
Do You Need To Sign Up To Try? | Yes | Yes | Yes | Yes | Yes |
Any Technical Issues? | None | None | None | None | None |
Federal Pricing | Free: $0 $39 $69 | Free: $0 $29.99 | Free: $0 $24.95 | Free: $0 $6.99 | Free: $0 $24.95 Premier: $44.95 Self Employed: $54.95 |
State Pricing | Free: $0 $39 $39 $39 | Free: $0 $36.99 | Free: $0 $44.95 | $14.99 | Free: $0 $39.95 Premier: $39.95 Self Employed: $39.95 |
Cell |
You can read our full reviews here:
Top Choices For Early Filers
Early filers choose to start filing early for different reasons. We’ve ranked the top filing options based on features early filers are often seeking.
Best For Fast Refunds
TurboTax and TaxSlayer both have refund advance options for e-filers who use their software. Users who choose either product can have a proportion of their refund advanced to a prepaid debit card. In both cases, the loan is a 0% interest loan.
Easiest To Use
This year, TurboTax retains its title as the easiest software for early filers. The user interface helps users predict what will happen, and users can jump around in the software easily.
TurboTax makes filing taxes seamless from the point that users log in to the software, to the point where they see their results.
Best Low-Cost Option
TaxHawk offers excellent functionality for an extremely low price. Early filers, even those with complex filing situations can complete their federal filing for free.
State filing costs just $14.99 per state. TaxHawk is an excellent option for experienced filers who don’t want to upgrade just because they have daycare expenses or an HSA.
Best Value
H&R Block Premium and TaxSlayer Classic are both high-value picks.
H&R Block Premium is especially ideal for side-hustlers, landlords and people who dabble in stock trading. The software is incredibly easy to use, especially given the competitive pricing. Try H&R Block Premium >>
TaxSlayer Classic gives users access to every major tax form, so even complex filers can use it. The software is also easy to use, and full of great knowledge articles. TaxSlayer’s only real weakness is that it still doesn’t support W-2 or 1099 imports. Try TaxSlayer Classic >>
Final Thoughts
It's important to remember that this guide is our earliest snapshot of tax season and what software is available. In fact, we're not even going to be able to test some of them (like the highly anticipated CashApp Tax) until early January.
However, we also know that a good amount of Americans are looking to file their taxes as early as possible to claim their tax refunds. So, with that in mind, we wanted to make sure that these folks had the best information to make that decision.
If you're looking for more in-depth looks at each of these options, check out our YouTube tax software reviews here.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
