6 Best Tax Preparation Services to File Taxes in 2023

(Ad) With the 2023 tax season creeping up, it's time to start considering which tax preparation service you'll use to file your federal and state returns. Unfortunately, the tax prep industry includes a long list of services, so choosing the right one may seem impossible.

If you find yourself struggling to determine the best tax preparation services, don't worry. We've reviewed the leading tax preparation companies to bring you a list of the top six services so that you can get the largest possible refund.

Consider the tax prep companies below. We'll explain the services each of our top choices offer, their key benefits, and their pricing models to help you find the best tax preparation company for your needs.

The 6 Best Tax Preparation Services of 2023

• Liberty Tax: Best tax preparation company overall
• H&R Block: Best for ease-of-use
• TaxAct: Best for small business taxes
• TurboTax: Best online tax software for DIY filing
• TaxSlayer: Recommended for self-employed
• Jackson Hewitt: Greatest guarantee

Review of the Top Tax Filing Companies

#1. Liberty Tax: Best Place to File Your Taxes Online or In-Person

Founded in 1997, Liberty Tax has a solid reputation for helping Americans get their maximum refunds. The company's core values include a customer-first focus, a commitment to providing talented tax professionals, ethical business practices, and giving back. With millions of happy customers, we're confident that Liberty Tax will provide a positive tax preparation experience.

Liberty Tax has a service to suit your needs, whether you want to file taxes yourself using an online portal or need personalized tax preparation.

Services Offered

This tax preparation service offers in-person filing at more than 2,500 locations across the U.S., as well as remote and online filing options.

Available tax services include:

• Online DIY filing: Liberty Tax's online tax software makes it easy to file your own taxes online quickly.
• In-person filing: If you need help from a tax professional, you can work one-on-one with an expert in-person at one of their retail locations.
• Remote filing: You can also work with a professional remotely by uploading your tax documents online.
• Easy Advance loans: Liberty Tax offers Easy Advance loans through Republic Bank & Trust Company, Member FDIC. If eligible, you may receive a fast loan in the amount of your expected tax return.
• ITIN assistance: Liberty Tax can help you apply for or renew your Individual Taxpayer Identification Number (ITIN).
• Servicios en Español: Spanish-speaking taxpayers looking for services in Spanish should consider Liberty Tax.

Key Benefits

• In-person filing discounts for active and retired U.S. military members
• Website and in-person tax prep services in Spanish
• Mobile app for online tax filing, scanning tax forms, accessing records, and talking to tax preparers
• Customer support in person and through email, chat, and social

Pricing

Liberty Tax offers pricing plans to suit a wide variety of tax situations, from married tax filers with many dependents to self-employed taxpayers.

1. The Basic plan costs $49.95 and best suits simple tax situations, such as single filers with no dependents with less than $100,000 in taxable income.
2. The Deluxe plan costs $65.95 and best suits taxpayers with dependents, retirement income, other investment income, or itemized deductions. You may choose this plan if you own a home or qualify for a student loan interest deduction.
3. The Premium plan costs $85.95 and best suits filers with self-employment income, income from a rental property, or who made more than $100,000.

These prices do not include the state tax return fee of $36.95.

Click Here to Learn More About Liberty Tax

#2. H&R Block: Variety of Tax Filing Options to Choose From

We can't create a list of the best tax preparation services without including H&R Block. Founded in 1955, this company has been offering tax advice and preparation for more than six decades, helping hundreds of millions of taxpayers get their maximum refunds. H&R Block professionals have an average of 10 years of experience, so they can help every customer regardless of their situation.

Services Offered

H&R Block has a service to suit many types of taxpayers, from single filers to small business owners.

Offered services include:

• In-person tax preparation: H&R Block has more than 9,000 retail locations in the U.S. Filers with little free time can leave their tax documents with a professional tax preparer and then approve the return online.
• Remote tax preparation: Taxpayers can also work with a tax professional virtually by uploading tax forms online.
• Online tax preparation: H&R Block's online portal and mobile app let taxpayers file their federal and state returns with ease.
• Downloadable tax preparation software: Filers can also download the company's tax preparation software to complete their tax returns offline.
• Small business tax preparation: Contractors, freelancers, and small business owners can get expert tax help from H&R Block's small business-certified preparers.
• Expat tax preparation: The company offers specialized tax preparation services for U.S. citizens currently living overseas.
• Tax extension filing: H&R Block can help you file for a tax extension.
• IRS audit support: This company also offers assistance with IRS letters, including audits and other tax issues.

Key Benefits

• One of the best free tax software options
• Transparent pricing for all tax preparation options
• User-friendly mobile app
• Retail locations in all 50 states

Pricing

At H&R Block, pricing depends on the tax preparation method you choose. To view all pricing, visit the company's official website.

Filing online includes four available pricing plans:

1. The Free Online option offers free filing for taxpayers with simple returns, students, and filers with unemployment income.
2. The Deluxe option costs $35 and best suits filers with children or itemized deductions.
3. The Premium option costs $55 and best suits taxpayers with rental income or investments.
4. The Self-Employed option costs $85 and best suits gig workers, contractors, and other self-employed filers.

Except for the free option, these prices include an additional $37 state tax return fee.

Click Here to Learn More About H&R Block

#3. TaxAct: Maximum Tax Refund Guaranteed

TaxAct has offered professional tax assistance and preparation services since 1998. With comprehensive tax filing options and more than 90 million customers served, TaxAct sits comfortably among the top tax prep companies in the U.S.

Taxpayers who file online through TaxAct enjoy a $100,000 accuracy guarantee, which offers filers cost reimbursement if their returns are not accurate. Refunds include software costs, tax refund differences, legal fees, and audit costs.

Services Offered

Tax preparation services offered by TaxAct include:

• Online tax filing: DIY tax filing options cover simple filers, taxpayers with dependents, filers with loans and investments, and more.
• Tax software download: Filers can also download TaxAct's tax preparation software.
• Self-employed filing: Small business owners, freelancers, and contractors can file taxes online through TaxAct.
• Online filing for businesses: This trusted company also offers tax preparation services for partnerships, S corporations, C corporations, sole proprietors, and more.
• Xpert Assist: Taxpayers who file through TaxAct benefit from unlimited free tax assistance from experienced experts. When a filer asks a question or requests assistance, a tax professional will call them and offer whatever help they need.

Key Benefits

• Free help from tax preparation experts
• Mobile filing for iPhone users through the TaxAct app
• Generous maximum refund and accuracy guarantees
• Free tax filing process for simple filers

Pricing

Like H&R Block, TaxAct offers many options at various affordable price points, depending on your tax situation and how you want to file. Online filing options start free and include the following plans:

1. The Free plan starts free for filing federal taxes. Filers can use TaxAct's free online tax portal with W-2 income, retirement income, student deductions, and more.
2. The Deluxe plan costs $24.95. Filers who need this option may have itemized deductions or mortgage interest deductions.
3. The Premier plan costs $34.95. It best suits filers with investment income, foreign financial accounts, rental property income, and more.
4. The Self-Employed plan costs $64.95. It covers self-employed taxpayers with freelance income, business deductions, and business expenses.

Like the other companies on our list of the best tax preparation services, TaxAct charges an additional fee for filing a state tax return. The Free plan includes a state filing fee of $39.95, and the other plans listed above include a state fee of $44.95.

*Prices listed are Early Bird prices with 44% savings. You may encounter higher prices if you file after this offer expires.

Click Here to Learn More About TaxAct

#4. TurboTax: Reputable Tax Service for Online Filing

Easily one of the most recognizable names in the tax filing industry, TurboTax has been helping taxpayers file their taxes for decades with one of the best online tax software options available. The TurboTax brand was purchased by Intuit in 1993 and remains a popular choice for a wide range of filers, including simple filers and self-employed taxpayers.

TurboTax customers choose between DIY tax filing and having their taxes completed by a certified public accountant (CPA) or IRS-enrolled agent (EA).

Services Offered

Whether you want to handle your own taxes or you need professional tax assistance, you'll find an appropriate tax prep service at TurboTax.

Available services include:

• DIY online filing: Taxpayers can file their state and federal returns themselves through TurboTax's DIY options.
• TurboTax Live filing: They can also opt to file with live help from a tax professional.
• Full-service filing: TurboTax Live filers can hand off their tax preparation to a pro at any time for an additional full-service fee.
• Self-employed filing: DIY and Live options cater to self-employed filers to help them maximize deductions.
• Online tax software download: Tax filers who prefer to download the best tax software may choose a TurboTax download plan.
• Servicios en Español: TurboTax provides Live advice and full-service tax preparation to Spanish-speaking filers.
• Refund Advance: Filers who don't want to wait for their refund money can get partial refund advances through TurboTax and Credit Karma.

Key Benefits

• Free DIY filing for enlisted active-duty military members and reserve personnel
• Free federal tax filing for simple tax situations
• Live tax preparation services in Spanish
• TurboTax app available for Apple and Android devices

Pricing

TurboTax pricing varies, depending on the method you choose. If you file your own taxes online, you'll encounter the following plan options:

1. TurboTax's Free option includes free federal and state returns for simple tax situations, such as W-2 income.
2. The Deluxe option costs $39 and best suits taxpayers who own homes, make charitable donations, or have education expenses.
3. The Premier option costs $69 and best suits filers with stocks, bonds, and other investments, as well as filers who own rental property or cryptocurrencies.
4. The Self-Employed option costs $89 and best suits freelancers, independent contractors, and owners of small businesses.

The last three options discussed here also include a state tax return fee of $39.

Click Here to Learn More About TurboTax

#5. TaxSlayer: Top Rated Tax Preparer for Self-Employed

TaxSlayer has offered professional tax preparation services for more than 50 years, and it remains one of the best tax software providers in the industry. If you're looking for free tax software to file your federal and state taxes, TaxSlayer makes an excellent choice. This trusted company has helped millions of customers file their tax returns and get their maximum refunds.

This popular tax preparation company offers customers a 100% accuracy guarantee that provides reimbursement for IRS fees incurred due to TaxSlayer errors.

Services Offered

TaxSlayer offers online tax preparation software and unlimited free support from tax professionals via phone and email.

Offered services include:

• Online tax software: TaxSlayer offers affordable plans for filing your own taxes online. Simple filers can prepare their taxes for free, including state taxes.
• Self-employed filing: Filers with business income (1099 or Schedule C) can file online through TaxSlayer. If you're self-employed, you'll benefit from tax help from a tax pro who specializes in self-employment filings.
• Support from a tax pro: Customers receive unlimited email and phone support from tax professionals regardless of the plan they choose.
• TaxSlayer Visa Debit Cards: Filers who don't have bank accounts can get their refunds fast through a TaxSlayer Visa Debit Card from Green Dot Bank, Member FDIC.

Key Benefits

• Option to pay for services through a refund deduction
• Apple and Android-compatible mobile apps for convenient online filing
• Extremely affordable pricing compared to other tax software companies
• Free federal tax return for active military members

Pricing

TaxSlayer offers its tax preparation services at four pricing tiers:

1. The Simply Free plan includes a free federal and state tax return for simple filers, including students.
2. The Classic plan costs $19.95 for federal tax returns. It includes all tax forms, tax credits, and deductions, offering one of the best values on our list of the best tax preparation services.
3. The Premium plan costs $39.95 and includes priority customer support through phone and email and three years of IRS audit assistance.
4. The Self-Employed plan costs $49.95 and includes help from a tax pro who specializes in self-employment, quarterly reminders for tax payments, a personalized tax guide, and more.

Customers pay an additional $39.95 for state returns, except when filing with the free version.

Click Here to Learn More About TaxSlayer

#6. Jackson Hewitt: Most Popular In-Person Tax Prep Agency

Jackson Hewitt has been a top name in tax preparation since 1982. Filers in various tax situations can file in person at one of the company's 5,500 locations or file online using affordable tax software. Jackson Hewitt's lifetime accuracy guarantee ensures every customer gets a positive tax experience.

This company has offices in all 50 states, so it makes a fantastic option if you prefer to file your taxes in person. The Jackson Hewitt website also makes a great resource for new taxpayers with questions about when to get started filing taxes, how to check tax return status, and much more. Other resources include helpful tax calculators for estimating tax refund amounts.

Services Offered

Jackson Hewitt offers all the services you expect from a tax preparation company. Available services include:

• In-person tax preparation: Filers can book appointments with their local Jackson Hewitt offices or Walmart locations for in-person tax prep. Customers may choose to drop off their tax documents and leave their tax preparation to the professionals.
• Online DIY tax preparation: Customers who want to file their own taxes can file online for one very affordable price.
• Tax resolution services: Jackson Hewitt offers personalized tax resolution services for taxpayers who have received letters or notices from the IRS. Customers get help from a dedicated team that works with the IRS to resolve the issue.
• Tax refund advance loans: Customers who qualify can get money faster with a tax refund advance loan. The loan is automatically repaid from the IRS refund, so customers don't have to worry about paying it back.

Key Benefits

• Affordable flat rate for online DIY filing
• Lifetime accuracy guarantee
• Maximum refund guarantee
• Affordable drop-off filing options

Pricing

Taxpayers who want to file online pay a flat rate of $25 when they file through Jackson Hewitt. This low fee includes federal and state tax returns, making it an excellent value.

According to the website, full-service tax preparation at an in-person location starts at $65. To confirm your in-person price, we recommend contacting your local Jackson Hewitt office or making an appointment at a Walmart location.

Click Here to Learn More About Jackson Hewitt

What Is a Tax Preparation Service?

A tax preparation service is any service that offers assistance with filing taxes. A tax prep company may provide DIY tax programs or personalized in-person or virtual services conducted by a certified tax pro.

Full-Service Tax Preparation

If you want to let a tax pro handle your taxes, you can opt for a full-service tax preparation option, such as those offered by TurboTax or Jackson Hewitt. You simply drop off or upload your tax forms and applicable documents and then leave the deductions and other details to your tax professional. You may choose this option if you don't have time for DIY filing or if you have a very complicated tax situation.

Trusting your taxes to a certified professional provides peace of mind that the return will include accurate information and every available deduction for your maximum refund.

DIY Tax Preparation

Millions of U.S. taxpayers use DIY tax preparation software to file their state and federal taxes. Tax software guides the taxpayer through the filing process to ensure they get all possible tax deductions and their maximum refund. Question-and-answer-style interviews ensure filers enter all required information correctly, such as adjusted gross income.

Many DIY services include help from tax pros via email, phone, or chat. For example, the TurboTax Live platform provides assisted tax services, wherein the filer receives advice and guidance from a tax expert.

How to Choose the Best Tax Filer

To find the best tax preparation services for your needs, consider first how you want to file your taxes. Will you use online tax software, or will you trust your taxes to a certified tax pro? If you have a simple tax situation, you may be able to file online for free, but you may choose to work with a professional if you gain income from many sources.

Choosing the Best Tax Software

Choosing the best tax software will depend in part on what matters most to you. If you want the ability to file your federal and state tax returns for free, you may choose to file with TurboTax or TaxSlayer. However, if you need an affordable self-employed option, you may choose TaxSlayer or Jackson Hewitt.

Whether you choose a service from our list or another tax software, look for the following offerings:

• Customer support from experienced tax pros
• Deals and discounts for uploading documents from competitors
• User-friendly websites with easy tax software interfaces
• Affordable filing costs for your tax situation
• Max refund and accuracy guarantees

The best tax software for you will offer the services you need at a reasonable price and a 100% accuracy guarantee. For example, TaxAct offers an accuracy guarantee. If the customer does not get their maximum refund using its services, TaxAct will refund applicable costs, including the filing costs, the refund difference, legal fees, and audit fees.

Choosing the Best Full-Service Tax Preparer

To choose the best in-person or virtual tax filers, you may start by searching for local tax services in your area. You may have a Liberty Tax, H&R Block, or Jackson Hewitt office close to home. If not, you may opt for virtual full-service tax preparation.

Whether you're working with a tax advisor virtually or in person, choose a service that offers:

• Tax preparation by certified professionals
• Applicable discounts if you are an active military member
• Affordable filing costs for your tax situation
• Max refund and accuracy guarantees
• IRS audit support

Your ideal option for full-service tax preparation should boast many positive reviews from past customers and reasonably-priced services.

How Much Do Tax Preparation Companies Charge?

Companies that offer tax preparation software, like those on our list, provide affordable DIY options. Most tax software offers free federal returns, but not all filers qualify for these simple services. The average cost of the lowest-paid tiers on our list is $32.31 for the DIY filing of tax returns (not including state returns).

Working directly with a CPA to file your taxes costs at least twice the average DIY tax program cost. According to the2020-2021 Income and Fees of Accountants and Tax Preparers in Public Practice survey, the average fee for federal tax returns ranged from $78 to $1,289, depending on the tax forms filed. For a simple Form 1040 with no itemized deductions, customers paid an average of $220, and that cost rose to $323 for 1040 filings with itemized deductions.

How Do You Pay for Online Tax Software?

Some tax companies allow qualifying filers to pay for their tax services directly from their refund, avoiding all out-of-pocket costs. For example, Jackson Hewitt offers customers eligible for refunds the option to deduct their service fees from their refund amounts automatically.

Companies that don't offer this option typically accept all major credit and debit cards for payment.

Hiring a Professional Tax Preparer vs. DIY Tax Software

If you're trying to decide whether to use tax software or hire a professional, consider your tax situation, needs, and budget.

When to Choose Tax Software

DIY filing often costs less than hiring a tax pro, but some filers need professional tax assistance to file their returns accurately and take advantage of all available tax deductions. One of the best free tax software options on our list may best suit your needs if the following statements apply to you:

• You only worked for one employer within the tax year
• You are a single filer or a married filer with no dependents or loans
• You have W-2 income and no other income sources
• You have less than $100,000 in taxable income

You can quickly file a simple Form-1040 tax return through one of the best online tax software options on our list.

When to Consider Hiring a Tax Professional

Hiring a tax professional gives filers with complex tax situations confidence that their taxes will be filed correctly and completely. Taxpayers who hire CPAs or EAs also benefit if they get audited because these two types of tax pros are allowed to represent clients to the IRS.

You may choose to hire a CPA or another type of tax professional if you have medical expenses or make money from many income sources, such as business income, investment income, and others. You may also consider hiring a tax pro if you:

• Experienced a major life event during the tax year: Significant life events can impact how you file your taxes. A professional tax advisor can help you navigate the requirements and breaks associated with selling a business or home, starting a new business, divorcing, losing a spouse, and other major life events.
• Owe money to the IRS: If you have a high tax liability from past-due taxes or another situation, a professional tax advisor can help you create a plan for paying what you owe and may be able to contact the IRS on your behalf to set up a payment agreement.
• Struggle to understand your tax situation: Some taxpayers struggle to understand tax laws and the minutiae of filing taxes. DIY options have expanded the tax industry to allow laymen to file their own taxes, but some filers with complex returns still prefer having professional help.
• Don't have time to file your own taxes: Even using tax software to file requires taxpayers to carve out the time to sit down with their tax forms. Many filers are simply too busy to make time for filing a tax return, so they let professional tax preparers handle it.
• Don't have a strict tax preparation budget: Taxpayers on tight budgets may look for the best tax software to find cheap filing options, but other filers can easily afford complete in-person services. If your budget can easily accommodate hiring a tax pro, you may choose to do so to ensure accuracy on a complicated return.

A professional tax advisor can handle the entire tax preparation process, help you choose the best deduction strategies, and ensure that you don't miss out on any applicable tax breaks.

What Are the Different Types of Tax Professionals?

The best tax preparation services provide personalized tax assistance from tax professionals, but CPAs aren't the only types of tax pros offering services during tax season. Tax preparers may have one or several of the following credentials:

Certified Public Accountant (CPA)

CPAs must meet the standards for their state and pass an exam. While you want a CPA who specializes in tax preparation, they may also specialize in consulting, financial planning, business valuations, or audits.

Certified Financial Planner (CFP)

CFPs are certified by the Certified Financial Planner Board of Standards and provide a wide range of personal finance services, sometimes including tax preparation.

IRS Enrolled Agent (EA)

EAs gain the power to represent clients to the IRS by working for them or passing an exam and then participating in ongoing education.

Annual Filing Season Program (AFSP) Member

After AFSP members pass specific exams, they can legally prepare tax returns. These professionals don't have CPA, CFP, or EA credentials but can still help you file your federal tax return.

Pros and Cons of Using an Online Tax Prep Service

Online tax software providers help taxpayers save money and time through guided tax preparation, but even the best tax software doesn't suit every filer. Let's review the pros and cons of using an online tax service:

Pros

• Many tax software providers offer a free version.
• Tax software uses automated data entry for fast filing.
• Interview-style questions make it easy to input the correct information.
• Using a tax software provider costs less than hiring a CPA.
• Taxpayers can file their taxes from anywhere.
• Software providers often offer tax calculators and other resources.
• Some providers let filers pay for their services from their refunds.
• Tax software stores previous income tax returns for easy access.

Cons

• Software prices rise with more complicated tax situations.
• Self-employed filers often pay the highest fees for tax software. 
• Software may push unnecessary services and features.
• Filers with complex returns save less money and time.

These pros and cons can help you determine if tax software will best suit your situation.

Do Any Companies Offer Cheap Tax Preparation?

Several of the companies on our list of the six best tax preparation services offer what we consider to be "cheap" tax preparation.

If you have a simple tax situation, you may be able to file your taxes completely free. Companies offering free tax preparation, including a free state tax return, include:

• H&R Block
• TurboTax
• TaxSlayer

If your tax return involves itemized deductions, self-employed income, or other complexities, the most affordable companies on our list include:

• TaxAct
• TaxSlayer
• Jackson Hewitt

Jackson Hewitt's $25 flat rate for online filing offers one of the best tax software values in the industry.

Do Any Companies Offer Tax Preparation in Spanish?

Liberty Tax and TurboTax both offer services for Spanish-speaking taxpayers. Filers on the Liberty Tax website can easily see this company's services in Spanish by clicking on the ESP button at the top of any of the site's pages. TurboTax and TurboTax Live also include versions in Spanish.

Questions To Ask to Find the Best Place To Get Your Taxes Done

Whether you want to file in person or online, keep these questions in mind to find the best tax software and services:

• What forms and schedules does the company file for free?
• What other forms and schedules does the company support?
• Does the service let you try before you buy?
• Does the free version have form, schedule, or income restrictions?
• What does the company charge for state returns?
• Does it offer an affordable option for your situation and budget?
• Is the company's website easy to navigate?
• What add-on services does the company offer?
• What type of professional support does it offer?
• Does the company provide full-service filing in person?
• Does it offer services in your native language?

Answering these questions may help you choose the best place to get your taxes done, be that in person or from the comfort of your home.

Summary of the Top Recommended Tax Preparation Companies

• Liberty Tax: Best overall
• H&R Block: Best for ease-of-use
• TaxAct: Best for small business taxes
• TurboTax: Best online tax software for DIY filing
• TaxSlayer: Recommended for self-employed
• Jackson Hewitt: Greatest guarantee

*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.