Free vs. paid tax services: When to plan on paying for an upgrade

Filing taxes on your own can save you time and money compared to the back-and-forth of working with an accountant. However, you may still need to pay a fee to file both your federal and state tax returns.

There are free filing options, but those are typically limited to simple tax returns and lack the added benefits of a paid plan.

Consumers who have more complex tax situations, like income from self-employment or earnings from investments, will need to pay to use a tax filing program that supports those forms. And even if you don't have a detailed tax situation, you may want to upgrade to include live support from tax experts.

Before you pay for a premium tax software program, consider what free and paid options have to offer. Then decide which option fits your needs.

Free tax filing programs allow you to submit simple returns at no cost. You need to meet certain requirements in order to qualify for free filing. Each tax software defines simple tax returns differently, but a simple return is a basic 1040 form, which generally includes W-2 and unemployment income, limited interest and dividend income and standard deductions.

All of CNBC Select’s best tax software programs allow eligible users to file a simple tax return for free. The one exception is TaxAct, which charges a fee per state return, but nothing for a simple federal tax return (costs may vary depending on the plan selected).

Here are tax services that offer free filing options:

• Best overall tax software: TurboTax (according to TurboTax, about 37% of taxpayers qualify for this edition and it's available for Form 1040 + limited credits only)
• Runner-up: H&R Block
• Best free tax software: Cash App Tax (formerly Credit Karma Tax)
• Best affordable tax software: TaxSlayer
• Best for accuracy guarantee: TaxAct

If you’re self-employed or a freelancer, you won't receive a W-2 and will need to upgrade to a paid plan that supports more tax forms and schedules beyond a basic 1040. For example, self-employed people need a plan that supports Schedule SE. Freelancers need to file a Schedule C, which accounts for freelance income and expenses found on a 1099 form (which acts like a freelancer's W-2).

And even if you earn W-2 income, you may still need to upgrade to a paid plan that includes certain schedules, like Schedule B, interest and ordinary dividends, or Schedule D, capital gains and losses, for earnings from the sale of your home, car, stocks and bonds.

Overall, paid tax software may be less of a choice and more of a requirement for your tax situation. However, you may also want to pay extra to benefit from enhanced features that can include help from a tax professional.

We reviewed deluxe, premium and self-employed tax filing plans and found that costs are as low as $11.05 for federal filing, plus a minimum of $4.95 per state.

Here are the tax filing options for paid plans (click View More to see the price breakdown by plan):

Ultimately, paying to file your taxes may not be entirely up to you. There are many situations, like income from freelancing or a home sale, that require you to upgrade to a premium plan. If you don’t qualify for a simple tax return, choose the most affordable plan that fits your filing needs.

And even if you qualify for a simple return, you may want to pay for a premium service, so you can maximize deductions, benefit from live support and maybe even have a tax professional review your return before you file.

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.