The Best Tax Software 2020: What’s The Best Tax Program For Me?

The start of tax filing season is right around the corner. You might have already received some of your tax paperwork in the mail. And you're probably thinking about which tax software option is the best for you?

Well, we've been reviewing all the major options this season, including TurboTax, H&R Block, TaxAct, TaxSlayer, Credit Karma Tax, and more. Because of all the options, there is no "one-size-fits-all" for the best tax software. It all depends on what you have to file on your taxes. 

We're breaking down the categories for each "type" of filer and which software makes the most sense for your situation. There's nothing worse than spending 30 minutes thinking your taxes will be free, only to find out you need to upgrade to file!

If there's something you think we've missed, or don't quite know which is best for you, let us know in the comments! We've seen them all, so we'll try to point you in the right direction.

Note: The tax prep offers that appear on this site are from companies from which The College Investor receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The College Investor does not include all tax prep companies or all tax prep offers available in the marketplace, although we are always striving to keep our content updated.

Best Overall: H&R Block is our choice for the best overall tax software. It's either "best" or "runner-up" in most categories. And while other select products may niche down, most tax filers will find the combination of robust offerings, price, and the ability to go in-store if needed as a huge win. Check out H&R Block here >>

Best Free Tax Software

If you qualify for free file, you need to be taking advantage of it. The problem is, many tax programs advertise free file, but many don't deliver. Even some of the major programs hook you with free file, only for you later to find out you don't qualify because you have kids, or you have too many deductions, etc.

Winner: Credit Karma Tax

Why: Credit Karma Tax is one of just two major tax software programs that provide free state and Federal filing for most tax situations. Credit Karma Tax is our top pick for free tax software this year because it has upgraded to a “semi-guided navigation” and fixed a lot of the issues that have plagued the service over the past few years. We’re still keeping an eye on the customer service, but the overall roll-out seems to be smooth so far.

Credit Karma Tax has one of the most robust free file options. The software is easy to use, and it only has a few limitations. The service even offers a free audit defense from a third party.

Best Tax Software For Student Loan Borrowers

In the United States, filers can deduct interest on student loans as an adjustment to income. That means you don’t need to itemize your taxes to claim the deduction.

This year, we found two services that allow student loan borrowers to claim their deduction for free. Read our full guide to tax software for student loan borrowers.

Winner: H&R Block Online

Why: H&R Block Online Free Online Tax Filing offers simple navigation navigation, and it allows you to deduct student loan interest for free. H&R Block is really easy to use, and it even offers an app where you can snap pictures of your forms. Then, H&R Block will figure out the numbers for you.

Best Tax Software For Itemizers 

If you’re a homeowner or a charitable giver (or both), you may see a benefit from itemizing your taxes.  Most of the time, people who are itemizing will need to pay for an upgraded service. However, our top choice in this category is actually free for all filers.

Winner: Credit Karma Tax

Why: Credit Karma Tax allows users to file free state and Federal returns, even when you have to itemize your taxes. The software is easy to use, and a good alternative to paying $50 or more for a relatively straightforward return. The service offers a free audit defense from a third party.

Runner Up: FreeTaxUSA

Why: FreeTaxUSA is a decathlete of tax software services. It rarely tops the list, but it offers bargain basement pricing. Users who need to itemize taxes, will find that FreeTaxUSA is easy to use and simple to navigate. With FreeTaxUSA, Federal filing is free, and state filing costs just $12.95 per state.

Best Tax Software For Crypto Investors

The IRS released guidance for cryptocurrency investments in 2014, but it’s only been in the last year that it has clarified the guidance.

That means that tax software systems are playing catch-up to help crypto traders file their taxes. Plus, there is a new question this year on everybody's taxes that ask if you've ever mined or traded cryptocurrencies.

These are the services that have delivered fastest and best results for crypto investors.

Winner: TurboTax Premier

Why: TurboTax makes it easy for Coinbase customers to import transactions into the tax software. Once you import your transactions, TurboTax does the math to help you declare profits and losses. As of this point in the year, TurboTax is the only major tax software service to create this partnership. You will need to upgrade to TurboTax’s Premier level to access this software.

Best Tax Software For Stock Market Investors

Investors and traders typically want (or need) tax software that allows for import of 1099s issued by banks and investing brokers. Especially for investors with a large amount of transactions, it can be extremely tedious to manually enter everything into the computer. Furthermore, it also opens you up for more potential errors.

Winner: TurboTax

Why: TurboTax is the winner for investors and traders because of the ease it is to import everything into TurboTax. Plus, TurboTax connects with the most banks and brokers that we've seen. 

If you're concerned about importing a large number of investing transactions, TurboTax is your best bet. This also applies to individuals who use robo-advisors like Betterment or Wealthfront who may see hundreds of transactions per year due to tax loss harvesting.

Runner Up: H&R Block

Why: H&R Block is a close runner up to TurboTax when it comes to importing investment information.  It also has a wide variety of import features that make it easy to use an appealing for investors.

If you've used H&R Block in the past and want to continue to use it as an investor, you really can't go wrong. It's going to save you about $20 versus using TurboTax, and has many (but not all) of the import options. Not sure whether H&R Block will work for you?  Start your free filing on the site to see if it will work.

Runner Up: Credit Karma Tax

Why: Credit Karma Tax isn’t as slick or easy as TurboTax, but it is free. Landlords who have just a few rental properties may see a ton of value from using the free service. The depreciation and expense calculators in Credit Karma are accurate and fairly easy to understand. While you can’t import information into Credit Karma Tax, you can enter the right information relatively quickly (for a few properties).

Best Tax Software For Side Hustlers

This year, we're separating side hustlers from small business owners because there is a difference we've been noticing in how returns can be handled for each. Side hustlers, in our tax definition, are people who are working in the gig economy on the side, or have small income on the side from selling stuff on eBay, etc.

The interesting thing about side hustlers is that they use different expense tracking apps (like Everlance), and they may be eligible to file a Schedule C-EZ. 

Winner: TaxSlayer Classic

Why: TaxSlayer has a great, easy to use interface very similar to TurboTax and H&R Block, but side-hustlers will pay half the cost or less compared to the premier software services.

When you have just a few hundred dollars of extra income, and relatively easy to understand expenses, you don’t need to upgrade to the highest cost options.

Runner Up: Credit Karma Tax

Why: Credit Karma Tax allows side-hustlers to prepare their tax returns for free. If you’ve never dealt with self-employment income before, you may be a little confused using Credit Karma at first. However, Credit Karma does a great job serving up information bubbles throughout the software to allay your fears. 

Best Tax Software For Small Business Owners

Small business owners have a lot to think about when it comes to their tax returns. Beyond just entering income and expenses, there are considerations around business structure, asset depreciation, individual retirement plans, and more.

While many small business owners would likely benefit from an accountant, those that want to DIY it need to have software that is up for the challenge. 

Winner: TurboTax

Why: TurboTax has held the title of best tax software for small business owners, and it continues the trend. TurboTax is great for many reasons, but we love the easy to use interface, the connectivity with Quickbooks, and the ability to easily calculate the maximum contribution you can make to a solo 401k. Plus, when you use Turbo-Tax self-employed you’ll get free access to Quickbooks in 2020.

Runner Up: FreeTaxUSA

Why: FreeTaxUSA doesn’t have the guidance that TurboTax and H&R Block have, but it is easy to use even for small business owners. The built-in depreciation and expense calculators make a lot of sense to less experienced filers.

Since none of the more expensive software services have connections to accounting software, you may as well get a bargain as a small business owner. FreeTaxUSA costs just $12.95 per state.

Best For Those Looking For A Tax Refund Anticipation Loan

While we don't recommend you get a tax refund anticipation loan, we also know we're not your mother and can't tell you what to do. Over 10 million people will get a tax refund anticipation loan - and historically that's meant going into a physical H&R Block or Liberty Tax office and filing your return.

However, a few companies are changing the game this year, allowing for eligible filers to get a tax refund anticipation loan online if they qualify. This is a game changer because it significantly lowers the cost to filers. When filers go into a branch, they'll typically pay over $300 to process their return. Online, you can get this done for $17!

Winner: H&R Block

Why: The H&R Block Tax Refund Advance is available up to $3,500, and is available starting January 4, 2020 in stores. You can get $25 off your tax prep by showing this coupon special to College Investor readers. Download here >>

Here’s what else you need to know about the Tax Refund Advance:

• 0% Interest
• No Fees
• Five loan amounts ($250, $500, $750, $1250, $3,500)
• Same Day Approvals
• Advance is issued on a Emerald Card

Best Value For Experienced Filers

If you're an experienced filer, maybe you don't care about a good user interface, easy navigation, and helpful knowledge articles and tutorials. Maybe you just want the forms, and want them for the cheapest price possible!

Well, if you're simply an experienced tax filer that wants the best value, here you go.

Winner: FreeTaxUSA

Why: FreeTaxUSA doesn’t have the guidance that TurboTax and H&R Block have, but it is easy to use and offers access to all major tax forms. With free Federal filing, and $12.95 for state filing, you’ll be hard pressed to find a better deal (although you may qualify for Credit Karma Tax). FreeTaxUSA offers consistently great software at a low price.

Runner Up: Credit Karma Tax

Why: Credit Karma Tax is completely free, and is an amazing software product for experienced filers and beginning filers alike. The one drawback to Credit Karma Tax is that it doesn’t cover all tax situations. If you moved in the middle of the year, or you have a K-1 form, or you have foreign investments, you’ll need to consider other options. But outside of those scenarios, we’re impressed by Credit Karma Tax this year.