The IRS estimates that individuals and business owners take between 13 and 24 hours on average to complete and file their taxes. But hiring a certified accountant can remove some of that burden.
The IRS announced earlier this month that federal income tax returns are now due May 17, 2021, which means there's still time to sign up for a tax prep software that offers live support for some, or all, of the process.
If your 2020 taxes were more complicated due to relocation, work-from-home arrangements, stimulus checks and/or because you made an early 401(k) withdrawal during the coronavirus pandemic, you may benefit from working with a tax expert to help you ensure a fast and accurate filing.
The easiest way to hire an accountant is to use a tax prep software that comes with expert tax assistance and a high Better Business Bureau rating. Services range from simple, on-call support to full tax preparation, available for both individual tax filers and business owners.
The costs range from approximately $69 to $230, which might sound considerable. But it might be worth the expense if your taxes are complicated.
And 2020 was a weird year for finances for many people, considering there are some who are still waiting on $1,800 in stimulus money (more for families with multiple dependents), and many Americans could qualify for special tax credits post-pandemic that could increase the amount they're owed. Paying for an expert could be worth it if it helps guarantee that you receive your fullest refund.
While you should be able to book appointments up to the May 17 deadline, tax experts recommend that you give yourself a small cushion. Try to book an appointment now, at your earliest convenience or, at the very latest, at least one week before taxes are due. Also remember to keep your state's deadline in mind when making your appointment. (Read more about updated 2020 state tax deadlines.)
TurboTax, for instance, estimates a minimum turnaround time of 24 hours, but advises that it might take up to 10 business days to file your taxes.
Here are Select's top picks for best tax filing software offering live help:
Best overall tax software
TurboTax
Online plans
Do It Yourself, Expert Assist, Expert Full Service, Expert Assist Business, Expert Full Service Business
Free version
Federal and state returns (Form 1040 + limited credits). According to TurboTax, 37% of taxpayers are eligible.
Guarantee
Maximum refund and 100% accuracy guarantees
Live support
Expert Assist plan includes unlimited assistance and final review, while Expert Full Service adds a dedicated expert to complete and file your return.
Tax refund advance loan
Up to $4,000
Read our review of TurboTax tax software.
Pros
- Step-by-step guidance with easy-to-follow Q&A format
- On-demand advice and a final review from a tax expert
- Expert Full Service plan has a tax expert who can complete your return
- Offers tax refund advance loan
Cons
- More expensive than other tax-prep software programs
- May try to upsell you into getting pricier plan
Runner-up
H&R Block
Online plans
Free, Deluxe, Premium, Self-Employed
Free version
For federal and state returns (Form 1040 and limited credits only)
Guarantee
Maximum refund and 100% accuracy guarantees
Live support
H&R Block's AI Tax Assist and unlimited live chat are free with all paid plans and a review by a tax pro is available for a fee.
Tax refund advance loan
Not with H&R Block Online
Terms apply
Read our review of H&R Block online
Pros
- Simple step-by-step guidance
- Free plan takes federal and state returns
- 100% accuracy and maximum refund guarantees
- Thousands of branches for in-person help
Cons
- More expensive than competitors
- Must have a paid plan to speak with a live tax expert
- Refund advance loans not available for online customers.
Best affordable tax software
TaxSlayer
Online plans
Simply Free, Classic, Premium, Self-Employed, Military
Free version
Simply Free can be used for federal and state returns (Form 1040 + limited credits only)
Guarantee
Maximum refund and 100% accuracy guarantees
Live support
Simply Free and Classic: Phone and email support, Premium: Priority phone support and live chat, Self-Employed: Access to a tax pro with self-employed expertise.
Tax refund advance loan
No
Pros
- Free plan can be used for federal and state returns
- Paid tiers are cheaper than many competitors
- Guarantees accuracy and maximum refund
- IRS inquiry and audit support with select plans
Cons
- Free edition limited has income cap of $100,000 and doesn't allow you to claim dependents.
- Experts only available with Premium and Self-Employed plans
Best for accuracy guarantee
TaxAct
Online plans
Free, Deluxe, Premier, Self-Employed
Free version
Federal returns (Form 1040 and limited credits only)
Guarantee
Maximum refund guarantee and $100,000 accuracy guarantee
Live support
TaxAct Xpert Assist is available starting at $45
Tax refund advance loan
Yes
Terms apply
Pros
- More affordable than other paid software programs
- Free tier can process both federal and state returns
- Refund advance available
- Accuracy guarantee covers legal fees up to $100,000
- All plans come with live support from tax experts
Cons
- Returns with freelance or investment income don't qualify for free plan
Our methodology
To determine which tax software offers the best way to file your taxes online, CNBC Select analyzed 12 programs. We compared each program on a range of features, including:
- Cost
- User experience
- Expert tax assistance
- Accuracy and maximum refund guarantee
- Better Business Bureau (BBB) rating
- Customer reviews, when available
Cost was one of the most important factors. While many of these services offer free versions, many people have complicated finances that require them to pay to file their taxes. We evaluated the price per plan and weighed the features you receive, like the ability to maximize deductions and credits. The more bang for your buck, the higher a service ranked.
Whether you're new to filing taxes or a seasoned pro, user experience is crucial to filling out and submitting your return quickly and with little frustration. The services we chose had to be relatively user friendly.
The ability to speak with a tax expert or support representative was a big plus. Four out of five of the best tax software offered some form of support.
And if a service supported consumers with a generous accuracy and maximum refund guarantee, it was ranked higher.
We also considered the Better Business Bureau rating associated with the software. BBB ratings help determine whether a business is operating responsibly and if it helps to resolve customer complaints in a timely manner. Customer reviews were also taken into consideration.
After reviewing the above features, we sorted our recommendations by best for overall tax filing, runner-up, free tax software, most affordable and best accuracy guarantee.
The federal and state filing fees for the software programs mentioned above are subject to change without notice. Many programs don't charge you until you file, so there's a chance the fees can change from the time you start your return until you submit it.
