TurboTax, H&R Block, TaxAct, And TaxSlayer Pricing Comparison

Changes For 2023

All of the major software providers increased the usability of their products this year. H&R Block and TurboTax specifically focused on ensuring filers understand the American Rescue Plan. TaxSlayer has the biggest change with a huge improvement in usability while still maintaining good prices. TaxAct’s improvements focused on general usability.

From a pricing perspective, the big change this year is TaxAct's decision to charge for state filing at the Free level. While TurboTax, H&R Block, and TaxSlayer continue to offer free federal and state filing to qualified people, TaxAct only offers free federal filing. Users will have to pay at least $39.95 to file their state taxes.

The other major change is H&R Block's expansion of the Deluxe tier. Normally, this tier is a huge waste of money for filers that don't fit the criteria for free filing. However, H&R Block opened up this tier to people with income from "gig work" or any business with less than $5,000 in annual expenses. Thanks to this change, we're recommending the Deluxe tier for the first time to select filers.

Features

However, many filers won’t qualify for these company’s Free tier. The table below shows what is always included, never included, and sometimes included.

Pricing

For a comparison of "Free" tiers, you'd except to see a lot of $0s. And that's mostly what you'll find in the table below. But remember - it's not always about price, but also what features are included in the free tier.

However, as previously noted, you will have to pay $39.95 (per state) if you need to file a state return with TaxAct this year.

Recommendation For 2023

Both the TurboTax and TaxSlayer free tier are quite restrictive. For TurboTax specifically, it's limited to simple tax returns only and not all taxpayers qualify. H&R Block continues to offer the most expansive free tier which is why we recommend it again in 2023. 

For the first time, we recommend that people avoid TaxAct even on the free tier. The cost of state filing is excessive.

Comparing The Online "Deluxe" Tax Filing Software

The Deluxe pricing tier is typically targeted toward people who want to “maximize deductions and credits.” A lot of people think this means people who itemize their taxes, but many tax filers who take the standard deduction will still find that they need to upgrade to the Deluxe tier of their tax filing software for various reasons.

Features

"Deluxe" is the most common tier for people who have child care expenses, who contribute to an HSA, or who want to deduct their student loan interest. Here's a closer look at what's always included, never included, and sometimes included.

However, TaxSlayer Classic (which is the second pricing level, equivalent to Deluxe) includes all forms and situations, which makes it very compelling.

Pricing

Typically, the Deluxe tier is the worst value for these software packages. However, H&R Block is bucking the trend and offers incredible value for gig workers who have income from a 1099-NEC. H&R Block is the only company to support 1099-NEC income on the Deluxe level.

Recommendation For 2023

This is where TaxSlayer's competitive edge really shines. At the Classic level, TaxSlayer includes all forms and tax situations for a significantly lower price than the limitations of the other brands.

TurboTax Deluxe, H&R Block Deluxe, and TaxAct Deluxe are 30% more in price, and all have limitations on situations like investing.

TaxSlayer is our recommendation here, but users may also consider FreeTaxUSA, which is also a strong contender in this tier.

Comparing The Online "Premium" Tax Filing Software

The Premium pricing tier is the tier that supports “investors”. All software packages support stock and crypto trading, and they have built-in calculators for landlords.

Features

This tier is where third-party integrations become extremely important. TurboTax supports the largest number of third-party integrations. For example, it has a direct integration with Coinbase which makes it easy for cryptocurrency traders to report their gains or losses in terms of US Dollars. The other software packages don’t host such integrations.

TurboTax, H&R Block, and TaxAct have some (or many) integrations with major brokerages like TD Ameritrade and Fidelity. These ensure that users can quickly and easily calculate their capital gains and losses.

This is one of the big downsides of TaxSlayer. They don't have any integrations to automatically import your trades. As such, if you have a lot of transactions (especially crypto), it won't be a good choice for you.

If you’re a landlord, both TurboTax and H&R Block offer easy-to-use depreciation calculators that make it easy to claim the right deduction. I find TaxAct’s to be a little clunkier, but overall it offers a reasonable experience.

Pricing

This is a tier where you really do get what you pay for. TaxSlayer Premier is the lowest priced, but at the same time, it doesn't offer any integrations with financial services firms to help you with your taxes.

If you need to import transactions, H&R Block Premium and TurboTax Premier are likely where you want to be. If you just have traditional investments, I'd pick H&R Block. If you have crypto, I'd probably select TurboTax.

Recommendation For 2023

Comparing The Online "Self-Employed" Tax Filing Software

The self-employed filing software is required for anyone who had Schedule C (self-employment) income. Given the rocky economic conditions of the last year, I suspect that a lot of people have done some gig work this year. All of those side hustlers may need to upgrade to this tier for their filing.

Features

As previously noted, H&R Block Deluxe supports users who want to declare Schedule C income, but don’t have significant expenses to report. However, those with significant expenses will need to upgrade to this level.

In terms of usability, TurboTax leads the pack. It integrates seamlessly with Quickbooks, offers plenty of options for imports, and makes it easy to depreciate your business assets.

If your business doesn’t have assets, you may not need TurboTax or any of these software options. TaxSlayer Classic offers similar functionality at a much lower price.

Pricing

The Self-Employed tier is always the most expensive filing tier for these companies. It supports anyone with self-employment income. That could be someone who walked a few dogs, or it could include someone who earns all of their income from self-employment.

Recommendation For 2023

Given the close pricing at the highest tier, TurboTax has the advantage due to the integrations. But at this level, I would encourage filers to check out TaxSlayer which has incredible functionality at a lower price.

Comparing The Downloadable Editions Of TurboTax, H&R Block, and TaxAct

Tax filers have the option to choose downloadable products rather than using the cloud-based options. Theoretically, downloadable software may be more secure. The only direct risk of hacking is when you e-file your returns. However, these products aren’t risk-free. If your computer has malware, a hacker could steal your information from your computer rather than from a cloud-based server.

Also, we see a lot of issues of people failing to save their return, computers crashing, and more. As such, we typically recommend everyone use the online version.

The downloadable function is the same as the corresponding online software, and they typically cost more. If you’re watching prices, you might have some luck shopping on Amazon.com. Choosing the downloadable software is almost always easier and higher-quality than buying a similar product in the store. Plus, Amazon sometimes offers 3% boosts if you choose to accept your return on an Amazon gift card.

Note: TaxSlayer doesn't offer a downloadable version of their product.

Comparing Downloadable Basic Editions

At this point, H&R Block is the least expensive option among the basic software packages. While its still fairly expensive, it's the option we recommend this year.

Across the board, the Deluxe edition brings more functionality at a lower price point (compared to the Basic edition).

If you'll have to file a state return, H&R Block's downloadable Deluxe edition will actually cost you less than it's Basic software download. Given the dramatic disparity in pricing, H&R Block is again the winner for downloadable Deluxe software.

*First state is free.

At the Premium level, H&R Block still holds the title of the low-cost leader. The overall price of H&R Block Premium is within a few dollars of its online offering.

*First state is free.

Comparing Downloadable Self-Employed Editions

Consistent with other tiers, H&R Block is still the low price leader. Clocking in at under $100, the H&R Block downloadable software is quite a steal. If you’re going to use H&R Block Self-Employed, you may save money by choosing to download.

*First state is free.