Online Tax Software Review

Do you want the largest refund possible as fast as possible? If so, you should eFile your returns using online income tax software. In fact, even the IRS recommends eFiling as the most accurate, efficient way to file your 2012 federal tax return. To ease the burden on taxpayers, many can file federal returns online free of charge. The majority of taxpayers only need to pay for their state eFiling. The best online tax software includes all updated IRS forms as well as the forms required for you to eFile your state taxes.

If you need to prepare a complex tax return such as a 1040 with itemized deductions, or if you need to claim self-employment income, online tax preparation software can guide you through the process. The best online tax software easily helps you know what deductions and credits you can claim, as well as the income sources you need to report. For most, using one of these tax preparation services is more affordable than hiring a professional tax preparer, and just as accurate. In addition, when you eFile your taxes online, the IRS receives your return as quickly as possible.

The best online tax preparation services and tax preparation software products guide you through the filing process and will ask you all the questions necessary to help you maximize your deductions and credits. They also check for inconsistencies and inaccuracies. On our site, you will find helpful articles on online tax software as well as comprehensive reviews on TurboTax, H&R Block and TaxACT, our top three choices.

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Online Tax Software: What to Look For

When testing tax software we looked for two major necessities: accuracy and ease of use. We rated highest the tax preparation services that can easily guide you to an accurate return regardless of your tax knowledge. We tested every tax service with the same tax scenario to compare refund amounts and ease of use. We also gathered numerous screenshots and current pricing so you can easily decide which online tax software will work best for your tax situation.

Accuracy
Many online tax services tout that they can provide the largest refund; however, the largest refund (or lowest owe amount) results from an accurate return, not a hidden tax loophole that only they know about. eFiling with a good online tax service is one of the best ways to ensure that your return is correct with the most up-to-date forms and tax law changes included. Even the IRS endorses eFiling as the "safest, fastest and easiest way to submit" individual tax returns. We rated highest those that created an accurate return which also included tools for preventing errors.

Ease of Use
Since panic attacks mixed with math anxiety and general confusion seem to pervade tax time, we ranked higher the easiest-to-use tax eFiling services. Using the best tax software, you should be able to create an accurate return tailored to your unique circumstances without having extensive tax knowledge. The best tax software should complete all math computations for you and be designed to catch common entry errors. Top tax preparation software should not be more difficult to use than answering a few life event questions and filling in the blanks. Most services also provide useful tools such as tax calculators and tax estimators to assist you.

Help & Support
Though the online tax software should be simple to use, adequate customer and technical support should be readily available if you need it. Please note that eFiling services can only provide limited tax support after you file. For the most part, after you file you will be communicating with the IRS or state tax division unless you simply need to file an amendment. Most online tax services will help you file an amendment for free if you originally filed using their service. The best tax services provide telephone, email and chat support during extended business hours as well as extensive tax information posted online to answer general tax questions before you file.

Tax time does not have to be painful. Using an online eFile tax service, most taxpayers can create accurate federal and state returns within minutes. If you have a complex tax situation, the top-rated online tax software can guide you through your earned credits and deductions and income declaration requirements to create the most beneficial return as possible.