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Best Tax Preparation Services: Top 5 Tax Filing Companies of 2022

Norcal Marketing

tax prep

* This article does not provide financial advice. Please seek help from a financial advisor if you need financial assistance. 

(Ad) When it comes time to file taxes, the best tax preparation services can maximize your deductions and help you get the biggest tax refund possible. Tax preparation services can help you file your federal and state taxes online or by mail, making the tax-filing process as seamless as possible.

There are a variety of tax preparation options on the market, ranging from tax software to professional tax preparers. We've reviewed the top tax prep options to help you find the best solution for your needs.

Here are our picks for the best tax preparation services of 2022.

The 6 Best Tax Preparation Services of 2022

#1. Liberty Tax: Best Tax Prep Service Overall

liberty tax

If you want professional tax preparers to do your taxes for you, Liberty Tax is one of the best places to go. Since 1997, Liberty Tax has helped millions of Americans prepare and file their tax forms.

The company currently has over 2,700 locations throughout the United States and Canada, making its services widely accessible. If you do not have time to find or walk into one of its offices, Liberty Tax also offers online filing services. You can even take advantage of the mobile app, which allows you to virtually talk to a tax pro, scan documents, and access records.

Advantages

Liberty Tax is one of the fastest-growing tax firms in the country. However, it makes this list of best tax preparation services for several reasons, including the facts that the company:

  • Allows you to file your taxes in person or online
  • Provides personal and business tax preparation services
  • Has an easy-to-use mobile app to track your tax forms
  • Offers a send-a-friend benefit that pays you up to $50 when you refer a friend to Liberty Tax

Pricing

Liberty Tax offers three levels of tax filing services, each with different prices and service packages:

$45.95 Basic: The basic tax service package covers simple tax situations for those who are single, married, or have no dependents.

$65.95 Deluxe: This service package is ideal for more complex tax returns for those who own a home, are in college, have investment income, or have children.

$85.95 Premium: The premium package is for self-employed filers like freelancers or independent contractors. The premium package is also ideal for those with less common types of income.

Conclusion: A Versatile Way to File Tax Forms

Liberty Tax is an excellent resource for those looking to hire a tax professional. Since it offers online or in-person filing, you can take advantage of professional tax preparation regardless of your schedule. In addition, its innovative mobile app allows you to use your mobile device to access your tax documents easily, talk to a professional, and more.

Overall, Liberty Tax is one of the most versatile tax pro services, making it an excellent resource for the upcoming tax filing season.

Click Here to Learn More About Liberty Tax

#2. H&R Block: Great Variety of Tax Filing Options

h&r block

One of the most widely recognized names regarding tax prep services is H&R Block. H&R Block is one of the best tax services around because of its versatile filing options, reputable tax pros, and overall easy process.

H&R Block helps millions of taxpayers each year organize documents and file federal and state returns. One reason people love relying on H&R Block is its multiple filing options.

It allows you to use independent online tax filing or in-person tax preparation services. In addition, you can drop off your documents at a local office, allowing you to go about your day while a professional handles your taxes.

Advantages

H&R Block is one of the best overall tax preparation services for numerous reasons. Aside from multiple filing options, taxpayers can also enjoy the following benefits:

  • H&R Block tax experts have an average of ten years of experience.
  • It offers a max refund guarantee that makes your tax preparation service free if you can find a bigger refund somewhere else.
  • It has the MyBlock app for mobile devices that allows you to manage your documents, connect with a tax professional, and more.

Pricing

Pricing for H&R Block services varies depending on the method you choose. Fortunately, it offers upfront pricing, so you can expect the following:

  • You can file your own taxes for free online if you have a simple tax situation.
  • You can file with a virtual or in-person tax prep professional, starting at $80 plus any additional state fees.
  • You can file expatriate taxes online or via a tax advisor for $99.
  • You can download H&R Block’s tax software, which costs $29.95.

Conclusion: Most Tax Prep Options

H&R Block's tax preparation software and professionals are among the best in the industry. Since it offers a wide range of tax preparation options, taxpayers can easily choose the method that fits their budget and schedule best.

H&R Block also offers several additional services, such as Tax Identify Shield, Second Look Review, and Peace of Mind, which protect your tax information and help ensure you do not miss anything.

Overall, H&R Block is one of the best tax software and in-person professional providers. With additional services and flexible filing options, the company makes it easy for anyone to prepare and file their taxes.

Click Here to Learn More About H&R Block

#3. TaxAct: Best Online Tax Software

taxact

TaxAct provides one of the best ways to file your taxes independently and confidently. Even if you have a more complicated tax situation, TaxAct makes it easy to organize and file documents using its innovative online platform and free advice from tax professionals.

TaxAct has helped over 85 million tax filers since 2000 file their documents online. With its easy-to-navigate tax software and knowledgeable CPAs (certified public accountants), TaxAct helps taxpayers easily file their own taxes for the maximum refund.

Advantages

Whether you need tax advice from a certified public accountant or just want an easier way to file federal and state taxes, TaxAct has everything you need. However, its advantages extend beyond innovative DIY tax software:

  • Active-duty military can file for free.
  • TaxAct offers a $100,000 accuracy guarantee.
  • Tax filers can enjoy unlimited access to their returns for seven years.
  • TaxAct Bookmarks make it easy to navigate tax returns.
  • It offers a calculator that helps you easily calculate your returns.

Pricing

Taxpayers can enjoy free tax software for simple federal filing and professional tax advice. However, TaxAct offers three other services for federal and state filing, including:

$46.95 Deluxe: The Deluxe filing option is ideal for those with children and loans. It also comes with expert tax advice but can cost more, depending on state filing.

$69.95 Premier: Those with investments can use the Premier tax filing software.

$94.95 Self-Employed: Small business owners, contractors, and other self-employed individuals can use this service for simpler tax filing.

It is important to remember that these costs can change, depending on the state filing requirements and associated expenses.

Conclusion: Free Advice and Easy-to-Navigate Tax Software

TaxAct makes it easy for people to file on their own while ensuring they get the maximum tax return. With free tax advice from qualified CPAs, you can be more confident in your tax prep efforts, making tax day less frustrating.

Overall, TaxAct offers some of the best tax software for those who want to file independently. Combined with expert advice and competitive pricing, it's no wonder why TaxAct is among the best tax preparation software options.

Click Here to Learn More About TaxAct

#4. TurboTax: Best for Seniors

turbotax

When it comes to the best overall tax preparation services, TurboTax makes the top of the list. It uses innovative tax preparation software and expert advice to help filers prepare for the upcoming tax season and get maximum tax returns.

With TurboTax, you can file independently or with the help of a tax expert. Most customers praise the company for its ease of use and multiple filing options.

Advantages

Whether you want to file on your own, enlist the help of a tax expert, or have someone else do it for you, TurboTax has numerous options for filing state and federal taxes. Intuit TurboTax is among the top names for tax filing because it offers several advantages, such as:

  • Active duty, National Guard, and reserve members can file for free.
  • You can report your annual cryptocurrency gains and losses.
  • TurboTax offers a 100% accuracy guarantee by paying any IRS penalties if there is an issue with your tax documents.
  • Tax filers can enjoy a maximum refund guarantee.
  • The CompleteCheck feature double-checks your documents before filing to ensure there are no errors.
  • You can manage your forms on the TurboTax mobile app.

Pricing

TurboTax offers tax preparation services for independent and professional filing. Each has a different list of service offers and pricing.

TurboTax independent filing options include the following:

Free Edition: The online Free Edition is for simple returns only, whether state or federal.

$59 Deluxe: This option is ideal for those with slightly more complicated tax situations.

$89 Premier: Those with investments in bonds, stocks, real estate, and other vehicles should use the Premier package.

$119 Self-Employed: If you own a business, are an independent contractor, or are otherwise self-employed, you can easily upload your 1099-NEC and file for greater tax breaks.

To file with an expert, you can expect the following pricing options:

  • Basic: $79
  • Deluxe: $119
  • Premier: $169
  • Self-Employed: $199

Conclusion: Easiest Way to Self-File

Although TurboTax allows you to file with professional tax assistance, it provides one of the best tax software options for independent filing. The only downside is that TurboTax is more expensive than other filing options.

Click Here to Learn More About TurboTax

#5. TaxSlayer: Affordable Tax Software for Self-Employed

taxslayer

Owning a business or being self-employed offers several benefits and unique challenges. Tax day adds to this by making self-employment filing more expensive than other tax preparation options. Fortunately, TaxSlayer offers affordable tax preparation software that even self-employed individuals can benefit from come tax day.

TaxSlayer makes independent filing easier by offering free, unlimited support via phone or email. Additionally, one of the software's more unique features allows you to deduct the cost of filing from your refund instead of paying out of pocket.

However, it is important to note that the service is only available to those with a taxable income of less than $100,000.

Advantages

TaxSlayer is one of the most affordable tax preparation services out there. Aside from competitive pricing and round-the-clock support, tax filers can also take advantage of the following benefits:

  • It offers a maximum accuracy guarantee.
  • It supports every major IRS schedule and form.
  • It offers knowledgeable customer service and tax help.
  • The Ask a Tax Pro to Audit Defense feature helps ensure that your documents have everything necessary for proper filing.
  • The mobile app allows you to file taxes, access resources, and get tax advice on the go.
  • It makes online filing fast and easy.

Pricing

TaxSlayer offers four online tax filing options:

Simply Free: Those with simple tax situations using a basic 1040 form can enjoy the free version.

$29.95 Classic: The Classic package is excellent for any tax situation.

$49.95 Premium: Those with more complicated tax situations like investments and rental income can enjoy this package, plus Ask a Tax Pro Live Chat.

$59.95 Self-Employed: Contractors and other self-employed individuals can easily file their 1099, Schedule C, and personal and business expenses and income.

Conclusion: Most Affordable Tax Software

Although people with simple tax filing needs can easily find a free version to file independently, those with more complex tax situations often pay fees to ensure they file everything correctly. Self-employed filers generally have to pay the most, making tax day another expense to plan for during the year. TaxSlayer is one of the most affordable tax software providers, making it easy for anyone to file and save money.

Click Here to Learn More About TaxSlayer

#6. Jackson Hewitt: Recommended for Back Taxes and Unfiled Returns

jackson hewitt

Jackson Hewitt is one of the best tax software options for year-round tax concerns. From preparing for the upcoming tax filing season to resolving IRS issues, Jackson Hewitt offers a wide range of services.

Its online software is one of the best for unlimited state returns due to its low one-time filing fee, so you can file multiple state tax returns without additional fees.

Jackson Hewitt allows tax preparers to file online independently or with the help of a professional. With multiple pop-ups and office locations, you can easily find a Jackson Hewitt tax pro.

Advantages

Jackson Hewitt offers affordability and flexibility for federal and state tax filing. You can also enjoy the following advantages when using these tax services:

  • Jackson Hewitt offers free assistance for IRS audits.
  • Tax filers can take advantage of the Lifetime Accuracy Guarantee, which protects against unexpected interest or penalties.
  • It allows you to use its online tax software, drop-off, or in-person services.
  • It provides assistance for unfiled returns, back taxes, and other IRS-related issues.
  • Jackson Hewitt tax pros offer free refund rechecks to ensure you receive the maximum refund.

Pricing

Although the company has a reputation for affordability, how much you pay depends on your chosen service.

With Jackson Hewitt, you have the following options:

  • Online tax software: You can file unlimited federal and state returns for a flat rate of $25.
  • $69 Standard Tax Pro from Home: This option covers simple tax returns (federal and state).
  • $179 Deluxe Tax Pro: Those with student loan interest and other complex tax situations can file using this service.
  • $249 Premier Tax Pro: If you have investments or need more tax filing help, you can file with Premier Tax Pro.

Conclusion: Best Tax Software for a Flat Rate

While certain tax services offered by Jackson Hewitt are more expensive than others, the flat $25 rate for simple and unlimited online tax returns is hard to beat. It also offers the biggest refund guarantee, giving you $100 plus your tax preparation fees back if you find that you can get a better refund somewhere else.

Click Here to Learn More About Jackson Hewitt

What Is a Tax Preparation Service?

Nearly every working adult in America must file a tax return every year. Unfortunately, not everyone has the time or know-how to do so effectively without help. Tax preparation services help you file your tax return correctly and get the maximum refund using tax experts.

When using a tax preparation service, a tax professional looks over your documents and files for you. This service is highly beneficial if you do not have the time to file yourself or do not fully understand how to do it.

A tax preparation service is also an excellent way to ensure that you list all the relevant tax deductions, adjusted gross income, tax credits, and other crucial form information. Incorrectly filed documents can lead to problems with the IRS or a smaller tax refund. Tax experts have years of experience filing different types of tax forms and can help make sure you do not miss anything.

Tax preparation services allow you to file state and federal tax returns in multiple ways. For example, you can meet with a professional in person or virtually. Some companies also offer drop-off services, allowing you to drop off your documents and come back for final signatures later.

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What Is Tax Preparation Software?

While some prefer someone else to complete the tax prep process, others like to do it themselves. If you want to file your tax return on your own, you can use online tax software.

People often avoid tax software because they do not fully understand the various tax codes or how the preparation and filing process works. Fortunately, the best online tax software makes it easy for anyone to maximize deductions and refunds.

Tax software companies help you file independently by providing an easy-to-navigate platform with step-by-step filing instructions. In some cases, the tax software platform will also have human double-check services and tax advice to help you file more confidently.

Types of Tax Software

Tax software providers all have unique features. However, you can generally find two types of tax software: interview-based and form-based.

Interview-based tax software is one of the easiest ways to file your own tax return. It works by using a question-and-answer system. These questions help the system identify crucial information, placing it in the right spots on the tax form for you so that you do not have to know where specific information has to be on a form.

Conversely, form-based tax software requires you to fill out the documents. However, it allows you to do this online, making the entire process significantly easier.

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What Does Tax Software Include?

The best tax software will consist of multiple features to make filing taxes online easy and fast. The most common features you will come across include the following:

  • Customer support: While the software's design is to help you file independently, most will offer support from tax experts to help if you have questions.
  • Long-term tax return storage: Most software providers store your income tax returns in the cloud so that you can easily access them later.
  • Suggestions for tax deductions and credits: Most tax software will make suggestions for which deductions and credits you might qualify for.
  • Electronic filing: Instead of submitting physical papers, you can submit your tax return online, which is faster and more secure.
  • State returns: All free tax software offers federal returns, and most offer state tax filing for an additional charge.
  • Diagnostic services: The best tax software will alert you if your document is missing information.

How Much Does It Cost for Tax Preparation?

Many companies offer free federal tax filing online for simple tax situations. The free version is ideal for single individuals or married couples with no dependents or outstanding loans. However, if you have investments, self-employment income, business income, rental property, or other complex tax situations, you may not be able to use free tax filing services.

Hiring a certified public accountant to do your taxes for you will generally cost more than filing them on your own. In 2021, the average cost of hiring a CPA was $220. Keep in mind that this applies to those filing a simple Form 1040 with no itemized deductions, like a student loan or mortgage interest.

Meanwhile, the average cost to file a Form 1040 with itemized deductions and a state return was around $323.

Generally, the more complicated your tax situation is, the more it will cost you to file. This same rule applies to filing online, although costs will be slightly lower. Costs for using tax software to file complex tax forms can be around $150 and increase with complexity.

Although hiring a CPA or using software to file complex tax documents costs more, it is highly worth it, considering the potential tax liability and penalties you could face for filing inaccurate forms.

How to Choose a Good Online Tax Preparation Software

If you decide to file your tax return on your own, finding a reputable online resource is essential. The best tax software will make it easy to file while ensuring you get the maximum refund.

If you are looking for the best tax software to use this upcoming tax return season, consider the following factors.

Ease of Use

Ease of use is one of the most important characteristics to look for in online tax services. Filing a tax return is already complicated, especially if you are unfamiliar with tax codes. Finding software that is easy to use can reduce the traditional tax day headache.

When considering ease of use, look for the following in tax software:

  • Clear navigation menu options
  • A question-and-answer setup that guides you through the correct forms and completion process
  • Customer support from live professionals via email, phone, or live chat

Costs and Fees

The best free tax software will not charge you anything to file for simple tax situations. However, if you have dependents, outstanding loans, or investments, you should pay close attention to the site's costs and fees.

For example, some sites charge extra for multiple-state filing, while others charge a flat rate for unlimited-state filing.

Find out if the "best free tax software" provider offers additional services like live tax help from a professional, tools for identifying deductions, and other add-ons.

Filing Options

Reputable online tax software providers will offer multiple easy-filing options. Generally, using this tax preparation option means filing to the IRS online.

If you file a simple tax return with a W-2 and minimal tax deductions, like a student loan interest deduction, then this is free. Otherwise, you will likely need to pay a fee.

However, the IRS Free File program allows you to file for free if your adjusted gross income falls below $73,000. If you want to take advantage of this filing option, it is crucial to find a tax software provider that supports it. From the list above, these providers include TaxAct and TaxSlayer.

Frequently Asked Questions About Tax Prep

Who Should Use a Tax Preparation Service?

You should consider using a tax preparation service if you do not have the time or do not want to complete your own taxes. Tax professionals have the knowledge and experience to adequately assist with federal and state filing.

When looking for a tax preparer, ask the following questions:

  • Do you have a Preparer Tax Identification Number?
  • What experience do you have in tax preparation and filing?
  • What documents do you need from me?
  • What fees can I expect?

Asking these questions and taking the time to find a reputable CPA can help boost your confidence come tax day.

How Long Does It Take for a Tax Preparer to Do Your Taxes?

According to the IRS, it takes an average of 13 hours for a person to file a 1040-SR or Form 1040. This time frame comprises record keeping, tax planning, and form completion.

If you have business income, you could expect this time frame to extend to 22 hours.

CPAs may require a shorter time due to their experience; however, no two CPAs are the same. If you utilize a tax prep service, ask your tax expert how long they estimate it will take to complete your taxes.

Should I Hire a Tax Preparation Service or Use Tax Prep Software to Do it Myself?

Deciding whether to file using tax software or a CPA's help ultimately depends on your preference, schedule, and tax needs. For example, you may appreciate the time-saving advantage of hiring a tax professional if you have a complex tax situation and a hectic schedule. Additionally, if you do not fully understand the tax preparation process, a CPA could provide much-needed relief and clarification.

However, if you need to file a Form 1040 with little to no itemized deductions, you may prefer to take the time to file for free using available software.

Final Thoughts

Tax preparation is something most people dread, yet it's essential for most American income earners. As April approaches, it's important to find the best tax software or professional tax expert.

After thorough research, we concluded that the following are the top six tax preparation services:

We narrowed down hundreds of options to these six by comparing each software's ease of use, costs and fees, and available filing options.

Choosing the right tax filing service depends on your tax situation. For example, you will have a more complicated tax situation if you have various medical expenses, unemployment income, rental property income, multiple investments, or other personal finance concerns. In this case, you will likely need to pay a fee for filing.

Meanwhile, if you only need to file a Form 1040, you could file it for free using online software.

Tax season does not have to be stressful. Utilizing reputable tax services like those listed above, you can easily complete and file your tax documents while ensuring that you get the maximum refund.

*This article is provided by an advertiser and not necessarily written by a financial advisor. Investors should do their own research on products and services and contact a  financial advisor before opening accounts or moving money. Individual results will vary. Foreign companies and investment opportunities may not provide the same safeguards as U.S. companies. Before engaging with a company, research the laws and the regulations around that service, and make certain the company is in compliance. For comprehensive guidance on U.S. investments and financial regulations, visit the Securities and Exchange Commission (SEC)’s Investor.gov.

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Norcal Marketing