Free Tax Software

The ever-feared and ever-daunting Internal Revenue Services (IRS) had gone out of its way to do something exceptionally nice for many American taxpayers for the 2007 income tax filing season. In partnership with nineteen reputable software companies, the IRS will be featuring a new option that will enable users of the new Free File to prepared their income taxes and then file their returns for free. Free File is only available through the official IRS website.

The tax preparation software available through the Free File program had been scrupulously tested for their cost, their ease of use, their speed and their accuracy. The following are the results of this testing:

1. TurboTax. The TurboTax Free File Edition is highly recommended for its exceptional accuracy and is extremely fast and easy to use. Unlike many other Free File software programs that check numeric typos and miscalculations, TurboTax has an automatic “spell check” as well. TurboTax works best with Internet Explorer. I am sorry to say that TurboTax tends to frequently interrupt tax preparations with marketing information about a cost-bearing upgrade of its software and adding a state return costs $24.95.

2. H&R Block’s TaxCut Free File Version gives users free access to the full TaxCut Premium software. TaxCut is easy and fast to use and does not interrupt with marketing pressure for upgrades. TaxCut will only work with Internet Explorer, does not seem to have a very good “spell check” and adding a state return costs $24.95. Overall however, TaxCut is one of the very best Free File software programs available.

3. TaxAct. TaxAct is very easy and accurate with a good “spell check” in place. It tends to be a bit slow because of its countless question screens that pop up and it repeatedly interrupts with reminders to upgrade to a paid version of the TaxAct software. It is still a very good program and is highly recommended. Adding a state return costs $21.95.

4. CompleteTax. The CompleteTax Free File software quickly and accurately calculates tax preparations without the snazzy graphics that some other software programs have but then its interview-based format eliminates the troubles of trying to learn the software. Adding state return costs $9.95. CompleteTax is recommended.

5. TaxEngine. The TaxEngine Free File software automatically calculated payroll taxes which is a rare feature amongst Free File software programs. TaxEngine has a clear user interface that makes it easier to prepare tax returns quicker than with other Free File software products. In spite of the fact that TaxEngine does not have a very good “spell check” in place and adding a state tax return will cost $10, it is still recommended.

6. TaxSlayer. TaxSlayer Free File Edition makes tax preparation a breeze by cutting through much of the expected muddle. TaxSlayer does not charge extra for adding state tax return and is recommended.

7. Olt. Olt Free File has a few confusing sections and is only moderately fast.

8. Efiletaxreturns. Efiletaxreturns is difficult to navigate and a bit slow.

9. The following Free File software programs are confusing and slow and are not recommended: Online Tax Pros; FreeTaxUSA; 123EasyTaxFiling; CitizenTax.

10. The following are the worst Free File software programs because they are extremely slow, hard to understand and prompt for answers that they should not be asking. These are, of course, not recommended: FileYourTaxes; Average1040; 1040Now; EZTaxReturn; Free Tax Returns; ESmartTax; TaxSimple.

Posted in Tax Preparation & Software