How to Choose Tax Software (and When It's Free)
Tax software can make filing quick and cheap, but prices vary a lot depending on your situation and the version you need. This guide covers the free ways to file, which version fits your return, what really drives the price, the upsells to skip, how to switch software and when to get a professional instead.
By Pond.com editors Updated 3 min read
Quick answer
- If your income is $89,000 or less, start with IRS Free File, which offers free guided software from IRS partners.
- Most "free" versions only cover simple returns; itemizing, investments, rental income or self-employment usually mean a paid version.
- State returns often cost extra, and prices usually rise as the April deadline gets closer.
- Skip add-ons you don't need, especially paying your fee out of your refund, which can cost $40 or more.
- The IRS's own Direct File program isn't available any more, so free options now come from partners and volunteers.
Most Americans now file their taxes with software, and for many, it can be free. But "free" versions have limits, prices change through the season, and it's easy to pay for upgrades and add-ons you don't need.
This guide is general information, not tax advice. Rules and income limits change every year, so check IRS.gov for current details.
Free filing options and the main online tax software, with what the free version covers and what paid versions and state returns cost.
| Option | Free version | Paid federal from | State return | Live expert help | Details |
|---|---|---|---|---|---|
| IRS Free File, opens in a new tab Start from the IRS Free File page, not a company's own site, or you may be offered paid versions. | Guided software from IRS partners for incomes of $89,000 or less | Free | Free with some partners | Varies by partner | Start from the IRS Free File page, not a company's own site, or you may be offered paid versions. Visit site IRS Free File, opens in a new tab |
| FreeTaxUSA Online, opens in a new tab | All federal returns, including self-employment and investments | Free | $15.99 | Paid add-on | Visit site FreeTaxUSA Online, opens in a new tab |
| Cash App Taxes, opens in a new tab Doesn't support some situations, such as multiple state returns. | Federal and one state for most common situations | Free | Free (one state only) | None | Doesn't support some situations, such as multiple state returns. Visit site Cash App Taxes, opens in a new tab |
| H&R Block Online, opens in a new tab | Simple W-2 returns with the standard deduction | $35 | $37 | Paid add-on | Visit site H&R Block Online, opens in a new tab |
| TurboTax Online, opens in a new tab Prices often rise later in the season. | Simple Form 1040 returns only | $79 | About $40 to $64 | Paid versions | Prices often rise later in the season. Visit site TurboTax Online, opens in a new tab |
| TaxAct Online, opens in a new tab | Simple returns; state not free | $29.99 | $39.99 | Paid add-on | Visit site TaxAct Online, opens in a new tab |
How we chose these
Our method: we include the IRS's own free option, the best-known paid online software and the main low-cost alternatives, and order them by cost for a typical return with one state. We check each provider's current prices before each update. Pond.com isn't paid by any company listed here.
Prices shown are from the 2026 filing season (2025 tax returns) and often rise as the season goes on. New season prices are usually published in December and January. Check the price at checkout before you file.
For information only, not a recommendation. Rates and terms change often and may depend on where you live; check the details with the provider before you apply. Pond.com isn't paid by any provider listed here.
Start with the free options
| Option | Who it's for | What you get |
|---|---|---|
| IRS Free File | Incomes of $89,000 or less (2026 filing season) | Free guided software from IRS partner companies |
| Free File Fillable Forms | Anyone, at any income | Free electronic IRS forms, with no step-by-step help |
| VITA | Usually incomes of $67,000 or less, people with disabilities and limited English speakers | Free in-person preparation by IRS-certified volunteers |
| TCE / AARP Tax-Aide | Mainly people 60 and older | Free preparation focused on pensions and retirement |
| MilTax | Military members and their families | Free software and help through Military OneSource |
| Companies' free versions | Simple returns | Federal filing, sometimes state |
Always start IRS Free File from IRS.gov. Going straight to a company's own website may land you in a paid version instead. Income limits are updated each year.
Which version do you need?
| Your situation | What you're likely to need |
|---|---|
| W-2 job, standard deduction, common credits | A free version |
| Itemizing deductions, HSA, student loan interest | A mid-level ("Deluxe") version |
| Investments, crypto or rental property | A higher ("Premium") version |
| Freelance, gig or business income | A self-employed version |
The form your situation needs, such as Schedule C for self-employment, decides the version, not how much you earn. See side hustle taxes.
What drives the price
- The version: one extra form can push you to a higher tier.
- State returns: often $15 to $65 each, and not always included in "free."
- Timing: many companies charge less early in the season and raise prices closer to April.
- Live help: chatting with or handing your return to a tax expert costs extra.
Add-ons to think twice about
- Paying from your refund: a "refund transfer" can cost $40 or more. Paying by card is usually cheaper.
- Audit defense: few people are audited, and the IRS usually starts with a letter you can answer yourself.
- Upgrades you don't need: if the software suggests a higher version, check whether you really have the forms it needs.
How to compare tax software
- Does it support all your forms, including your state?
- What does the free version exclude?
- What will the total be with your state return and any help you want?
- Can it import last year's return and your W-2s?
- What accuracy guarantee does it offer?
- Does it have a good mobile app, if you'll file on your phone?
When to use a professional instead
Consider a tax preparer if you've had a big life change, own a business with employees, sold property, received a large inheritance, or have an IRS problem. See should you file your own taxes?
Get ready to file
Gather your W-2s, 1099s, prior-year return and records of deductions first. See the tax season checklist. Protect your account with two-step verification, and consider an IRS Identity Protection PIN. See what to do after a data breach.
Common questions
If your return is simple, often not. Free options cover W-2 income, the standard deduction and common credits. Paying makes more sense when you have investments, rental property or self-employment income and want step-by-step help, or when you'd value live expert advice.
Yes. Most programs can import last year's return from a PDF, and some import directly from a competitor. Download a PDF of last year's return before you lose access to your old account.
Reputable free options, like IRS Free File partners and established online software, use the same security as paid versions. Use a strong, unique password and two-step verification, and only start IRS Free File from the IRS website.
The IRS ended its free Direct File program, which let people in some states file directly with the IRS, before the 2026 filing season. Free options now include IRS Free File partners, Free File Fillable Forms, volunteer programs and some companies' free versions.