Most Affordable Tax Service in 2022

If you’ve ever complained about the cost of filing taxes, you are not alone. The process of submitting taxes is stressful enough without an added expense. We’re here to help make the tax filing process easier and more cost-effective, so we compiled a list of software that allows you to choose the most affordable tax service.

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1. H&R Block

If you’ve decided that you’ll be doing your own taxes from now on and you’re willing to pay for top-notch service, then H&R Block is the right choice for you. The company simplifies the tax-filing process, and if you get stuck at any point you can seek the help of a tax professional! Full Review

  • Accuracy and tax expertise of the highest level
  • Clear instructions
  • Easy to import documents
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If you’ve decided that you’ll be doing your own taxes from now on and you’re willing to pay for top-notch service, then H&R Block is the right choice for you. The company simplifies the tax-filing process, and if you get stuck at any point you can seek the help of a tax professional! Full Review

Speed

4/5

Ease of Use

5/5

Price

4/5

Extra Services

5/5

2. TaxSlayer

TaxSlayer is an affordable tax service that offers on-demand tax help. It’s constantly updated to meet the current tax laws, so you’ll never unintentionally break the law when using this service. If you’re looking to save money when filing your taxes, this is the right service for you. Full Review

  • The most affordable software
  • Excellent match for tax professionals
  • On-demand tax help
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TaxSlayer is an affordable tax service that offers on-demand tax help. It’s constantly updated to meet the current tax laws, so you’ll never unintentionally break the law when using this service. If you’re looking to save money when filing your taxes, this is the right service for you. Full Review

Speed

5/5

Ease of Use

5/5

Price

5/5

Extra Services

4/5

3. Liberty Tax

Liberty Tax offers one of the most affordable tax solutions available to US citizens. The service promises a maximum refund - and if you can’t find your way around by yourself, you can always pay them a visit at one of their locations. Full Review

  • Suitable for first-time filers
  • Tax law changes calculator
  • Covers all US states and Canada
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Liberty Tax offers one of the most affordable tax solutions available to US citizens. The service promises a maximum refund - and if you can’t find your way around by yourself, you can always pay them a visit at one of their locations. Full Review

Speed

4/5

Ease of Use

4/5

Price

4/5

Extra Services

3/5

4. TurboTax

TurboTax is a good option for everyone that wants to rest assured that their taxes are professionally handled. Although the tax preparation services at TurboTax are a bit pricier, the software offers a plethora of features, and it allows you to use as many as three mobile apps. Full Review

  • A good choice for individual taxpayers
  • Ideal for small companies with not a lot of revenue
  • User-friendly
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TurboTax is a good option for everyone that wants to rest assured that their taxes are professionally handled. Although the tax preparation services at TurboTax are a bit pricier, the software offers a plethora of features, and it allows you to use as many as three mobile apps. Full Review

Speed

4/5

Ease of Use

5/5

Price

3/5

Extra Services

4/5

5. Jackson Hewitt

If you need unlimited returns, Jackson Hewitt is the place for you! The filing process is extremely simple, and you can even do it on your phone. If you’re not 100% confident in doing it yourself, you can just go visit them on location. Full Review

  • 6000 office locations
  • Fixed-price
  • Unlimited state returns
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If you need unlimited returns, Jackson Hewitt is the place for you! The filing process is extremely simple, and you can even do it on your phone. If you’re not 100% confident in doing it yourself, you can just go visit them on location. Full Review

Speed

4/5

Ease of Use

5/5

Price

3/5

Extra Services

3/5

6. TaxAct

When you’re looking for a safe, reliable software to file your taxes, head over to TaxAct. You can file your taxes in a simple way at a low cost, while knowing that all your sensitive information is secure and encryption-protected. Full Review

  • Accurate and reliable
  • Enhanced security
  • Additional Xpert Help support
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When you’re looking for a safe, reliable software to file your taxes, head over to TaxAct. You can file your taxes in a simple way at a low cost, while knowing that all your sensitive information is secure and encryption-protected. Full Review

Speed

3/5

Ease of Use

5/5

Price

4/5

Extra Services

5/5

Our Methodology

We approached researching this subject strategically, taking into consideration several important factors to rank the best tax software available. While looking through all available options, we concluded that the main factors that must be considered were tax assistance, liability, free version, ease of use, customer support, and price.

Detailed Reviews

H&R Block
H&R Block
H&R Block

Best for Students & Basic Filers

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  • Good value for your money
  • Accuracy and tax expertise of the highest level
  • Clear instructions
  • Easy to import documents
  • Confusing interface
  • Time-consuming filing process

Overview

H&R Block’s Free version is far superior to free versions provided by other tax filing software. It’s the best option for students who need to utilize the free filing option or need step-by-step guidance through the filing process.

The best feature offered by H&R Block is the free version of the software/app, accompanied by the fact that the service is available on various platforms without some of the high filing fees for specific forms.

Pricing and Plans

The company offers you the option of filing with a tax professional; You can meet them in person or schedule a video chat. Another popular option H&R Block offers is filing taxes online. There are four versions you can choose from, beginning with a free version that contributes to H&R Block being considered the best online tax service.

Online filing:
  • Free – Federal & State
  • Deluxe – Federal – $49.99; State – $44.99
  • Premium – Federal – $69.99 ; State – $44.99
  • Self-employed – Federal – $109.99; State – $44.99
Filing with a tax professional:
  • From $199 to $999
  • $0.99 fee for additional expenses

Mobile App

One of the ways you can access H&R Block is via the mobile app MyBlock. It offers all the same features as the website and you can do your taxes without a computer!

Customer Reviews

In one tax software review, customers positively reviewed this service, praising the helpful treatment they received from customer support and the assistance they got in cases when they decided to collaborate with a tax preparer. Some customers complained of glitches in the software that make the filing process more difficult for users filing from home with no additional help.

TaxSlayer
TaxSlayer
TaxSlayer

Best for Regular Filers & Professional Tax Advisors

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  • On-demand tax help
  • The most affordable software
  • Multiple refund options
  • Excellent match for tax professionals
  • Hard to navigate
  • No bank synchronisation

Overview

TaxSlayer is a Cloud-based software that aims to cover the needs of experienced taxpayers at a low cost, becoming an affordable tax prep for those looking to maximize their refund and don’t mind manual entry of data.

TaxSlayer is objectively the most affordable income tax service, offering the lowest prices on the market. In addition, it’s suitable for students by providing student-loan interest deduction and education credits and is regularly updated with ever-changing tax laws. It is, however, more time-consuming than using a different, more expensive software.

Pricing and Plans

TaxSlayer offers four plans at reasonable prices:

  • Simply Free – Federal and State
  • Classic – Federal – $24.95; State – $39.95
  • Premium – Federal – $44.95; State – $39.95
  • Self-Employed – Federal – $54.95; State – $39.95

People looking to save money on their taxes should turn to TaxSlayer because it provides the most affordable online tax service. It is suitable for individual filers and small businesses that don’t report a lot of revenue. It is even used by professional tax advisors, ranking among the best tax software for tax preparers!

Mobile App

With TaxSlayer, you can file your taxes by using your smartphone if you install the app, which is available for all devices. The app has built-in calculators that help autofill your income and wages by simply uploading a W-2 form and a prior-year return.

Customer Reviews

Customers were satisfied with their accuracy guarantee that promises users all possible credits and deductions they are entitled to, although some users complained of the quality of the software compared to others.

Liberty Tax
Liberty Tax
Liberty Tax

Best for Families and Homeowners

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  • Tax law changes calculator
  • Suitable for first-time filers
  • Promises a maximum refund
  • Covers all US states and Canada
  • No free filing option
  • Limited customer support

Overview

Among tax preparation companies, Liberty Tax ranks as one of the most affordable and user-friendly options, aided by the promise of a maximum refund and pleasant customer experience. One of the more striking complaints made against this software was the lack of rules and guidance embedded within the software and mobile app, so users were forced to search for instructions elsewhere.

Pricing and Plans

Provides affordable tax solutions for US and Canadian citizens. Users can choose from three offers, all requiring payment. 

  • Basic – Federal – $44.95; State – $34.95
  • Deluxe – Federal – $64.95; State – $34.95
  • Premium – Federal – $89.95; State – 34.95

According to online tax software reviews, Liberty Tax stands out with its user-oriented experience, rewarding customers with $50$for referring a new customer to their company, and unlike other software, this one is available in Spanish.

Mobile App

This tax return software can be equally useful for individual filers and small-business owners. If you’re filing your taxes, a good option is a mobile app that offers free installation, but you have to conduct an in-app purchase to use a plan.

Customer Reviews

One of the selling points for Liberty Tax users was the possibility to seek tax expert support in one of their storefront locations, which is not provided by all tax service providers. One of the problems customers faced when using this software was the overly complex interface that could use improvement to provide an easier navigation process.

TurboTax
TurboTax
TurboTax

Best for People Looking to Maximize Their Return

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  • User-friendly
  • A good choice for individual taxpayers
  • Simple filing process
  • Ideal for small companies with not a lot of revenue
  • Shaky customer support
  • No physical office

Overview

TurboTax has the best tax filing software, based on its system of tax filing designed after-tax models used by wealthy countries. Doing taxes with TurboTax has been deemed the best option for anyone aiming to maximize their tax return.

Pricing and Plans

TurboTax is an online tax software that offers four DIY options for tax filers, with the most popular being the Deluxe Edition, the lowest-paid option available.

  • Free Edition – Federal and State
  • Deluxe Edition – Federal – $60; State – $50
  • Premier Edition – Federal – 90$; State – $50
  • Self-Employed Edition – Federal – $120; State – $50

If you opt for the TurboTax Live option, where a tax professional does your taxes for you, the prices are significantly higher.

  • Live Basic – $130
  • Live Deluxe – $200
  • Live Premier – $260
  • Live Self-Employed – $290

Mobile App

What differentiates TurboTax from its competitors is the number of mobile apps it offers – The TurboTax Mobile App, TaxCaster, and ItsDeductible (iOS only) for Android and iOS users.

Customer Reviews

People using TurboTax were satisfied with the option of importing information from other tax preparation services, and with explanations provided in the software explaining everything they needed to know, as well as the ease of navigation of the software and app. A big plus is technical support available for users in the form of a TurboTax Assistant, a chatbot, or a contact form, while paid users get access to a TurboTax tax specialist. The biggest downside is the high prices customers are required to pay for TurboTax’s service unless they qualify for the free edition of the software.

Jackson Hewitt
Jackson Hewitt
Jackson Hewitt

Best for People Filing Multiple State Returns

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  • Unlimited state returns
  • 6000 office locations
  • Fixed-price
  • Refund Advance
  • High prices
  • No audit support

Overview

The best feature offered by Jackson Hewitt is the low cost to file state returns, followed by the simple process of filing with no additional fee and the number of locations you can visit for help. The only negative aspects of filing with Jackson Hewitt are the lack of a free option and that online filers have no access to live tax support.

Plans and Pricing

You get the option of filing in an office with a tax professional or online, either with help or by yourself. If you decide to file online, this tax preparation service offers only one option, the One-Size-Fits-All Edition for $49. If you choose to file online with Jackson Hewitt, the price includes federal and unlimited state returns. If you opt for filing on-location, the price might be higher depending on your tax situation.

Mobile App

The possibility of filing unlimited state returns for one price is ideal for people who need to file returns in multiple states; The accessible, uncluttered interface the software offers are what makes Jackson Hewitt unique among other low-cost tax services. An even simpler way to file your taxes is with the Jackson Hewitt app, available for both Android and iPhone. Since there is no free edition, you still have to pay the $49 fee.

Customer Reviews

Customers are satisfied with the service provided by Jackson Hewitt, which is evident from the number of state returns filed with the company every year – over 2 million, making it the most popular choice among all the other tax programs currently available on the market.

TaxAct
TaxAct
TaxAct

Best for Small Businesses & Self-Employed Filers

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  • Accurate and reliable
  • Additional Xpert Help support
  • Affordable
  • Enhanced security
  • No audit support
  • Costlier state return

Overview

The most alluring quality of TaxAct is the number and quality of services as well as the low cost, combined for affordable tax preparation. The tax provider also allows you to pay for the costs of filing with your tax refund for an additional fee, meaning that you file without spending any money. Where both the software and app are lacking is with explanations for certain steps during the process.

Pricing and Plans

A good DIY tax solution for experienced filers, with four available plans and expert help available for an additional cost. 

  • Free -Federal; State – $34.95 
  • Deluxe – Federal – $44.95 ; State – $54.95 
  • Premier – Federal – $69.95 ; State – 54.95$
  • Self-employed – Federal – $79.95 ; State – $54.95 

The affordable tax services provided by TaxAct are what draws in new customers year after year; It offers similar services and virtually identical results as other competing providers for a significantly lower cost, ensuring that TaxAct stays in business.

Mobile App

The mobile app provided by TaxAct can be installed on Android and iPhone for free and includes all four available plans.

Customer Reviews

The interview process was highly praised by customers, stating that it was helpful in the process of choosing the right plan for their tax situation. In addition, customers are reassured of the safety of their confidential information; TaxAct vouches for their security measures with data encryption, making it popular among self-employed filers.

How Does Tax Software Work?

Tax software automates the tax filing process by serving as a step-by-step guide accompanied by a calculator, storage unit, and organizer for your tax documents. This type of software uses algorithms to calculate the exact amount of your federal and state returns and whether you are eligible for deductions.

Tax software offers two types of interface:

  • Form-based – With this interface, you are required to fill in the blanks of documents and forms with corresponding information from the boxes on your tax documents.
  • Interview-based – This interface is the more common and easiest tax software available for use. It is more user-friendly in comparison to the form-based software since it just has simple questions you have to answer. The software automatically fills in the correct information on the right form in its place, without requiring the user to have any preconceived knowledge of tax forms and the process in general.

A Buyer’s Guide to the Most Affordable Tax Service

Why are taxes that complicated?

This is a question you often hear among regular taxpayers. If you decide to file with the help of tax software, the whole process becomes a lot less complicated – the only thing you need to do is choose the right software from a reliable provider. The crucial point in choosing your preferred tax company is that you have all the necessary information so you can choose the best option for you and your tax situation.

Things to Know About Tax Service Providers

Before deciding to commit to a certain provider, you must look for the most important elements of the tax filing process and see if the provider you are considering has these services.

  • Tax Support

Most tax filers (especially first-time filers) need affordable tax solutions that not only provide the necessary software but some form of expert support to get you through the complicated process at a reasonable price.

  • Updates

Being up-to-date on tax laws is a must for any tax service provider. In case the provider has not updated its policies, the users filing with their company may receive less in deductions than they are entitled to, and might even carry some tax liability!

  • Tax forms

Before you make a decision, make sure this tax preparation service has all the forms you need. All providers allow you to fill out the 1040s forms, but if you need something more specific like the 1099 form, you need to check if the provider has it.

  • State return option

Some states require that you file state taxes separately, which usually means that you have to pay separately for that service. You should check with the provider if it allows for state returns, and if so, if that is included in the price.

  • Federal return option

Any online tax software allows you to file for your federal return. The only factor to be considered here is the cost and if the provider has all the necessary forms to cover your needs.

  • Audit support

The main distinction you have to be careful about is audit support vs audit defense. Most tax providers offer audit support, meaning that they can only offer you counsel if you get audited by the IRS. Audit defense is full representation in case of an audit, so you don’t have to worry about a penalty. However, this defense usually costs more and has to be bought as a separate service.

  • Storage

When filing the current year’s return, you need to submit it from the previous year. If you filed with a tax provider, they should store your prior year’s return and show it when necessary. Most providers offer this service, with some even guaranteeing customers tax storage up to seven years.

How to Choose the Right Tax Software

Choosing an affordable tax service that will cover all your needs requires a little research of what is available on the market, and more importantly, what is the most suitable option for you. Unless you are willing to learn how to do your own taxes, you should decide on tax software to use. 

  • What your tax needs are

You need to clearly outline your tax needs every year to determine the best tax prep software for the upcoming year based on any changes.

  • Find what options there are

Explore all options available on the market. By researching, you can determine exactly what you need and don’t need, and instantaneously exclude anything that seems redundant.

  • Find the ones that suit you

Select a few different top tax service companies, and choose a software package that fits all your needs.

  • Read reviews to double-check

To be 100% sure before making any purchases, read reviews of tax software, both professional and customer reviews of the selected product. Doing so might make you aware of any troubling aspects.

  • Buy tax software

The final step is to buy the tax software selected, begin the filing process, and make sure you file your taxes on time! The right choice of tax software is important because it can help you discover a good tax minimization strategy.

How Much Does It Cost to File Taxes?

Filing taxes with an affordable tax service is much cheaper than hiring a certified tax preparer to file for you. The price of software varies depending on your income, the source of income, whether you’re filing for federal or state taxes (or both), and any credits and deductibles you’re eligible for.

Tax preparation software reviews confirm the fact that the majority of tax providers offer a free option for filing, with some offering free federal only, and others adding state taxes to the free option. You need to check if you qualify for the free filing option, for example, in 2022, if you’re covered by the CARES Act you can deduct 100% of your adjustable gross income (AGI).

By using tax software, you can even file your taxes at no cost whatsoever! However, if you have more specific filing needs, you will probably have to choose one of the paid tax preparation software packages, ranging from $25 (with TaxSlayer, the cheapest tax software) to upwards of $100. It depends on your situation, the filing plan you choose, any add-ons you want to buy, and whether or not you’ll need assistance from a tax professional.

Cost-Efficient Tax Services at a Glance

Company Price Free version BBB rating Best for
H&R Block From $49.99 to $109.99 Yes A+ Students & basic filers
TaxSlayer From $24.95 to $54.95 Yes A+ Regular filers & professional tax advisors
Liberty Tax From $44.95 to $89.95 No Not Accredited Families and homeowners
TurboTax From $60 to $290 Yes People looking to maximize their return
Jackson Hewitt $49 No A+ People filing multiple state returns
TaxAct From $34.95 to $79.95 Yes A+ Small businesses & self-employed filers

Wrap Up

The best tax preparation software is one that transforms the tax filing process into a quick, easy, and stress-free experience. Anyone using tax filing software – an unemployed person filing for the simplest return, a freelancer, a person with high income, or even a business owner – can benefit from using software instead of all by themselves. It costs less than hiring a CPA (certified public accountant), and it is less time-consuming than attempting it yourself!

FAQ

Who is the cheapest tax service?

The cheapest tax software is offered by TaxSlayer. Despite its low prices, it also offers a comprehensive free plan that allows you to file both federal and state returns for free.

How much does it usually cost to get your taxes done?

If you hire a CPA, the cost of filing taxes can range from $150 for simple returns to $450 with more complex situations. Using tax filing software is less expensive and shouldn’t cost you more than $130, even for more complicated returns.

Can I do my taxes myself?

In certain situations, you can file your taxes with no additional help; For example, if you only have one job, no dependents, and no other sources of income. However, if your situation is more complicated, you should use tax software or a CPA.

What is the best tax software?

TurboTax is generally considered to be the best and most affordable tax service for 2022, based on ease of use, customer support, and the variety of offered features. Close contenders are H&R Block and TaxSlayer, each being unparalleled in certain aspects.