Tax season is approaching, and the thought of April 15th can be stressful when considering filing your personal return. Choosing the right tax software can be daunting, especially for seniors and retirees with unique tax situations involving retirement income, Social Security benefits, and required minimum distributions. To help you get ready for the 2025 tax season, we’ve identified the top tax software options that offer a balance of ease of use, accuracy, and value.
We have narrowed down the best tax software for you to file confidently. These options cater to a range of needs, from simple returns to more complex situations. Here is a breakdown of our top picks and who they are best suited for:
1. Best for free tax filing: FreeTaxUSA
– Costs:
– DIY federal tax return: $0
– Assisted federal tax return: $8 to $40
– Pros:
– Free federal filing for all tax situations
– Low-cost options for help from a tax professional
– Simple pricing structure with no upsells
– Cons:
– Fewer tips and explanations compared to competitors
2. Best for in-person and live support: H&R Block
– Costs:
– DIY federal tax return: $0 to $86
– Assisted federal tax return: $36 to $86
– Pros:
– Covers various tax situations, including retirement income
– User-friendly interface
– Wide network of physical locations
– Support from a tax professional included in the paid version
– Cons:
– No support for estate tax forms
– Additional fees for in-person support
These top tax software solutions offer a range of features to address your specific needs. Whether you are looking for free filing, in-person support, comprehensive guidance, simplicity, or overall value, there is an option that can meet your requirements. Take a closer look at each recommendation to decide which one aligns best with your tax filing needs.
H&R Block provides tax support at over 12,000 physical locations in the U.S. and worldwide. The company offers a free DIY tax return option covering W-2 and retirement incomes, as well as more tax situations than TurboTax. Premium options range from $36 to $86, offering support for investments and self-employment income, including online assistance from a tax professional at no extra cost.
Why Choose H&R Block:
– Extensive network of global locations
– Option for online filing or in-person support
– Easy-to-use online software with helpful tips
– In-person guidance for life changes like retirement
Areas H&R Block Can Improve:
– Does not support forms needed for estate filing
– In-person support comes with separate fee schedule
TurboTax offers comprehensive tax guidance with an easy-to-use interface and various service tiers. The free version caters to simple tax returns, while premium options are suitable for self-employed individuals, business owners, and those with investment income. TurboTax excels in handling benefits like pensions and Social Security.
Why Choose TurboTax:
– User-friendly interface and detailed explanations
– Document import tool saves time
– Expert assistance available for additional cost
Areas TurboTax Can Improve:
– Free version supports limited tax situations
– Costs for premium features can be high
For more information, visit H&R Block and TurboTax respectively.
Tax Returns Made Easy with EzTaxReturn
EzTaxReturn is a trusted partner of the IRS that provides a streamlined experience for filing your tax returns. Offering a budget-friendly solution, EzTaxReturn is ideal for taxpayers with simple tax situations. The software is user-friendly, with a clean interface that avoids clutter and upgrade prompts.
Costs:
– DIY federal tax return: $0 to $30
– Assisted federal tax return: Unavailable
Pros:
– Free version covers several simple tax situations
– Affordable paid version supports most common tax situations
Cons:
– No support for certain uncommon tax forms
– Lack of online or in-person help from a tax professional
EzTaxReturn is a great option for individuals with straightforward tax situations, such as those receiving retirement income or Social Security benefits. The free version caters to standard deductions on regular income below $50,000, while the paid version accommodates more complex tax situations at a lower cost compared to other providers like TurboTax and H&R Block.
However, EzTaxReturn may not be suitable for those with more intricate tax scenarios, as it does not support certain less common forms and lacks guidance from tax professionals during the filing process.
To learn more about what EzTaxReturn offers, visit their website.
TaxAct strikes a good balance between features and affordability, although its guidance may not be as thorough as pricier options. Throughout the filing process, you may encounter frequent prompts to upgrade or purchase additional services, which can be distracting and potentially confusing. For more information, visit TaxAct’s website.
How Tax Software Works:
Tax software simplifies tax filing by walking you through questions about your income, deductions, and credits. It collects your answers to fill out IRS tax forms, saving you time and effort. The software also handles calculations for your total income from various sources and determines your tax liability or refund. Additionally, it offers features like error checking, electronic filing, and secure storage of your tax information.
Choosing Tax Software:
When selecting tax software, consider the complexity of your tax situation and ensure the software can handle all aspects of your taxes. Look for accessibility, ease of use, and professional support features. Opt for software that provides accuracy guarantees and audit assistance for peace of mind after filing your taxes.
Tax Situations for Seniors:
Seniors or those nearing retirement should use tax software that covers specific situations, such as reporting Social Security benefits correctly, handling pension and annuity income, calculating required minimum distributions, and claiming medical expense deductions.
For more details on how all 50 states tax retirement income and common tax situations for seniors, explore further resources on tax planning for retirement.
Is it worth investing in a tax service? When it comes to filing your taxes, you have a range of options available, from completely free services to paid premium options. While paid services offer various features and upgrades, many taxpayers may find that free tax software meets their needs.
When free tax software is sufficient:
– Free tax software, such as those provided through the IRS Free File program, can be a great choice for many individuals.
– These options are suitable if your adjusted gross income (AGI) is $79,000 or less, making you eligible for guided options under the IRS Free File program.
– They work well for straightforward tax situations, covering common scenarios like regular income and standard deductions, with some offering additional support for retiree income sources.
– If you are comfortable with a do-it-yourself approach and do not need to file a state return, free tax software can be a good fit.
Benefits of upgrading to a paid version:
– Paid tax software often provides more comprehensive customer service, including chat and phone support, as well as a final review of your tax documents.
– They typically support more tax forms and can handle complex situations like income from rental properties or self-employment.
– Paid software usually includes enhanced accuracy checks to catch potential errors that could lead to an IRS audit.
– Some paid options offer audit protection and assistance in case your return is audited by the IRS.
– Additional features in paid software may include tools like prior-year comparisons, data imports from investment accounts, and tax-planning resources.
In conclusion, while free tax software can be sufficient for many taxpayers, there are valid reasons to consider upgrading to a paid version for more comprehensive support and additional features tailored to complex tax situations.
Household income tax brackets for 2025 are as follows:
10% tax rate:
– Single: $0 to $11,925
– Married filing jointly: $0 to $23,850
– Married filing separately: $0 to $11,925
– Head of household: $0 to $17,000
12% tax rate:
– Single: $11,926 to $48,475
– Married filing jointly: $23,851 to $96,950
– Married filing separately: $11,926 to $48,475
– Head of household: $17,001 to $64,850
22% tax rate:
– Single: $48,476 to $103,350
– Married filing jointly: $96,951 to $206,700
– Married filing separately: $48,476 to $103,350
– Head of household: $64,851 to $103,350
24% tax rate:
– Single: $103,351 to $197,300
– Married filing jointly: $206,701 to $394,600
– Married filing separately: $103,351 to $197,300
– Head of household: $103,351 to $197,300
32% tax rate:
– Single: $197,301 to $250,525
– Married filing jointly: $394,601 to $501,050
– Married filing separately: $197,301 to $250,525
– Head of household: $197,301 to $250,500
35% tax rate:
– Single: $250,526 to $626,350
– Married filing jointly: $501,051 to $751,600
– Married filing separately: $250,526 to $375,800
– Head of household: $250,501 to $626,350
37% tax rate:
– Single: $626,351 or more
– Married filing jointly: $751,601 or more
– Married filing separately: $375,801 or more
– Head of household: $626,351 or more
For long-term capital gains tax rates in 2025:
– 0% tax rate applies to income up to:
– Single: $0 to $48,350
– Married filing jointly: $0 to $96,700
– Married filing separately: $0 to $48,350
– Head of household: $0 to $64,750
– 15% tax rate applies to income from:
– Single: $48,351 to $533,400
– Married filing jointly: $96,701 to $600,050
– Married filing separately: $48,351 to $300,000
– Head of household: $64,751 to $566,700
– 20% tax rate applies to income of:
– Single
Tax-filing options encompass a range of services designed to cater to different needs. It’s important to note that our assessment did not cover every software solution on the market. We recommend utilizing our curated selection as a starting point for conducting your own research to identify the most suitable tax software for your specific circumstances.
Frequently Asked Questions: Navigating Tax Returns
Filing taxes can seem daunting, but having a grasp of the fundamentals can greatly streamline the process. Below are answers to some of the most common tax-related queries.
Should I hire someone to handle my taxes?
For individuals with relatively straightforward tax situations, utilizing software that offers step-by-step guidance may be sufficient for filing taxes independently. Conversely, if your tax affairs are intricate due to multiple income sources, ownership of a business, or diverse investments, engaging a tax professional could be prudent. A tax expert can offer personalized guidance and potentially uncover deductions or credits that might be overlooked if you were to file on your own.
What constitutes a simple tax return?
The definition of a simple tax return can vary depending on the tax software being used. In general, a simple tax return typically comprises uncomplicated income sources like W-2 wages or Social Security benefits, standard deductions, and a limited number of additional IRS forms or schedules. Your tax return may not be considered simple if it involves various investments, business activities, or the need to itemize deductions.
What are the repercussions of missing the tax filing deadline?
If you fail to meet the standard tax filing deadline on April 15, the consequences hinge on whether you owe taxes or are entitled to a refund. In cases where taxes are owed, penalties and interest will accrue on the outstanding amount. The failure-to-file penalty typically amounts to 5% of the unpaid taxes for each month your return is overdue, up to a maximum of 25%. If you are due a refund, there is no penalty for filing late, though you will not receive your refund until your tax return is submitted.
I am contemplating leveraging my expertise for consulting in retirement. How should I proceed?
Embarking on a consulting venture in retirement can offer a range of financial advantages beyond simply earning an additional income, such as reducing tax liabilities and potentially boosting Social Security benefits. One approach could involve exploring freelance opportunities within your former industry. To ensure you maximize the benefits of this new phase in your career, begin by consulting our comprehensive guide on launching a consulting business, which covers various business structures that can safeguard your assets and optimize tax savings.
About the Author
Yahia Barakah is a seasoned personal finance writer at AOL with over ten years of experience in finance and investing. Holding certification as a personal finance educator (CEPF), he melds his expertise in economics with a commitment to enhancing financial literacy to demystify intricate retirement, banking, and credit concepts. Yahia is passionate about empowering individuals to make well-informed financial decisions that enhance their day-to-day lives and long-term financial well-being. His insights have
