Best Online Tax Filing Options For 2024

There are plenty of online options to help you file your taxes efficiently, many of which are budget-friendly and don’t require you to leave your home or speak with an accountant. Here, we’ve compiled a list of the best online tax filing options available in 2024.

What You Need To Know Before Filing Your Taxes

Whether it’s your first or fifth time filing your taxes, you’ll need to know the following details to file taxes online.

When Is The 2024 Tax Season?

In general, January 15 – February 15 signals the start of the 2024 tax season for the 2023 tax year. This means tax filers can begin to submit their paper and electronic tax returns during this period. Check on the Internal Revenue Service’s website to determine the exact date. You’ll need to file income taxes once a year; for the 2023 tax year, these are due by April 15, 2024.

Keep in mind that you may be paying taxes throughout the year depending on your situation.

How Much Do You Owe In Taxes In 2024?

What you’ll end up owing in taxes in 2024 will depend on factors such as your living situation and type of employment.

Some of the most common taxes you’ll need to pay include:

• Federal income tax: Federal income tax refers to the tax you pay on your income, wages and earnings. If you work a traditional job for an employer, this tax will come out of your paycheck. However, if you’re self-employed, you’ll need to take care of this tax on your own. You may do so via estimated quarterly payments or a different method depending on your business tax structure.
• State and local income tax: Depending on your location, many states and municipalities charge an income tax similar to federal taxes. States that don’t charge any state income tax include Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. New Hampshire doesn’t tax its residents’ earned wages.
• FICA and payroll tax: Federal Insurance Contributions Act (FICA) and payroll tax are removed from your paycheck by your employer for those who have a full-time job. You’ll have to pay for these yourself if you’re self-employed – they’re usually done quarterly.
• Self-employment tax: If you work for yourself, you’ll be on the hook for self-employment tax, which is 12.4% for Social Security and 2.9% for Medicare. These percentages are for both the employer and employee (yes, you’re both in the eyes of the IRS).
• Property tax: Own property? If so, you’ll need to pay property taxes which will depend on your property’s value and location.

The final amount of taxes you pay may be different depending on whether you’re eligible for tax allowances and deductions.

Your Tax Filing Options

You typically have three options when it comes to filing your taxes: doing it yourself manually, doing it yourself with the help of tax filing software, or hiring an accountant and meeting with them in person.

Filing taxes manually may be fine if that’s the way you’ve always done it, but using tax preparation software can help ease the burden. Besides, there are plenty of free options, and it can save you time usually spent doing calculations manually. Some tax filing software may even store your tax return from the previous year and import relevant information to the next, saving you even more time.

Hiring a tax professional can be a smart move if you have an extremely complicated tax situation, or if you run a business with employees. Of course, this is a more expensive option, but it might be worth it if you want to ensure your taxes are done correctly.

Best Online Tax Software Of 2024

Now that you know what to look for, here are some of the best tax software options for the 2024 tax season.

TurboTax

TurboTax offers an intuitive interface and a number of tools that make it easy to calculate your numbers with accuracy. TurboTax also saves your information from previous years and allows you to import data from QuickBooks. In addition, it gives you the ability to capture your W-2 and other tax forms with your phone’s camera.

TurboTax also offers tiers for almost all types of situations, including those who are self-employed and those who have more complex personal tax situations.

TaxSlayer

TaxSlayer’s interface allows you to skip around to various sections and keep track of your progress. You can also use the self-employed area to determine if you’ve forgotten to deduct any expenses and to help you find tax breaks specific to your industry. Additionally, you’ll get free tech and phone support. If you have a basic tax situation, you can use the free version as long as you create an account.

It’s also one of the most budget-friendly options – the price doesn’t go up based on the forms you file, unlike other competitors. Instead, you pay more for the level of professional support you need.

H&R Block

With H&R Block’s tax filing software, you get similar services and products like TurboTax, but generally at a lower price point. It also has tiers based on the tax forms you need, plus one for those who are self-employed.

Like many other competitors, you’ll know exactly how much you owe and receive real-time insight into your refund or tax balance as you go through the filing process.

Taxpayers can also opt for the Tax Pro Review as part of H&R Block’s hybrid service. You’ll be able to fill out your own tax returns but have a tax professional look at it before you officially send it off to the IRS.

Cash App Taxes

Formerly Credit Karma Tax, Cash App Taxes is a free way to file your federal and state income tax returns. After Credit Karma Tax was acquired by Cash App in 2020, Credit Karma Tax was rebranded as Cash App Taxes in 2021. Users who filed with Credit Karma Tax can access their previous tax returns through Cash App Taxes.

Cash App Taxes is best suited for individuals or people filing jointly who have simple tax returns. The program asks filers a few questions about themselves and their tax situation, including whether there are dependents or deductions. From there, it personalizes your experience so you complete the appropriate sections and forms that apply to your tax needs.

Despite the ease of use and relatively quick filing process, one area Cash App Taxes lacks in compared to competitors is customer support. If you find yourself with questions or issues and want to talk to a support agent, there’s a helpful list of FAQs available on the website, but it might be a challenge getting help via the chat feature.

TaxAct

TaxAct has a user-friendly website in which you can quickly choose any of their tax filing options based on what you need. If you're an active-duty military member, you'll get free federal and state filing through their TaxAct military landing page.

What we also like about TaxAct is that it's straightforward to use and there aren't any complicated bells and whistles. Plus, it’s much more budget-friendly compared to bigger companies like TurboTax, and there’s even a free tier (though you’ll need to pay to file your state taxes).

However, if you want extras such as having a tax professional review your return before you file, you'll need to choose one of the others on our list.

E-File

E-File is a great fit for those who have simple tax returns and don't need a lot of hand-holding. The company claims that most users will be able to file their taxes electronically within 15 minutes or less. You’ll get assistance within their sidebar as you’re submitting your information, though you’ll need to pay an additional fee for phone or email assistance.

Plus, their fees are less costly compared to many of their competitors. If you poke around their website or review sites, you may be able to find discounts and promotions throughout the year, helping you save even more.

Jackson Hewitt

Jackson Hewitt, like H&R Block, offers both online and hybrid tax filing services. You can file completely on your own using their tax filing software, or enlist the help of tax professionals virtually (though it comes at a higher price tier).

One of their main perks is that you can file unlimited state taxes without paying more fees. Also, their customer service is one of the best – with many contact options such as phone, live chat, and more. Most, if not all, of their tiers also include IRS audit assistance, on the off chance that the IRS decides to take a closer look at your tax filing.

IRS Free File

The IRS rolled out a new free tax filing program in 2023 called IRS Free File for a limited number of states, including New York, Massachusetts and Virginia among others.

The partnership between the IRS and tax preparation partners allows qualified taxpayers to file their federal tax return for free using one of two methods: guided tax preparation and fillable forms. Guided tax preparation is for individuals with a gross income of $73,000 or less, and the guided prep does all the math for you. The fillable forms option is accessible for anyone in the specified states regardless of income, but includes no guidance. If this method interests you, check to see if your state qualifies for IRS Free File.

Online Tax Filing FAQs

Online tax filing can be confusing. If you’ve got more questions, we’ve got answers for you.

Can I really file my taxes for free?

Yes, if your situation allows for it. Many online tax filing services provide a free option, including some of the ones on our list. They’re usually suitable for taxpayers filing simple tax returns.

However, additional services like filing state taxes may come at an additional cost.

How do I know which online tax filing website is the best?

This will depend on your personal tax situation. If you’re looking for a budget-friendly option and have a simple tax return, services like E-File or TaxSlayer might be a good fit.

But if you have more complex taxes like, for example, you’re a freelancer with a 1099 form from self-employment, you might want to go with a service like TurboTax.

When are taxes due?

Taxes are due on April 15, 2024, for reporting income earned in 2023.

Should I use a CPA or tax expert?

The choice whether to file your taxes independently or hire a professional is one that will depend on your tax needs, personal finances and personal preferences.

If you have multiple sources of income to report, like investment income, stock dividends or rental income, hiring a professional might be wise to ensure you’re filing correctly. Or if you just prefer working with a real human opposed to an online service, hiring a CPA or tax professional might make you more comfortable.

All of the above options on our list of the best online tax filing software have a free tier you can use to file your taxes. However, these versions may be more limited because they’ll only offer certain types of tax forms for you to use.

Keep in mind that you may only be able to file for free for federal taxes only. If you’re required to file state or local taxes, you may have to pay an additional fee to do so.

If you have a simple tax return to file – such as being a full-time W-2 employee and opting for the standardized deduction – then free online tax filing will probably be fine for you. However, if you want to itemize your deductions or have other sources of income like self-employment or real estate income, then you may have to choose one of the paid tiers.

It’s best to contact a tax professional if you have questions on how to best file your taxes.

The Bottom Line: Find The Best Online Tax Filing Option For You

Before you choose a tax-filing software option, you should explore all of the options available to you. Be sure to weigh the pros and cons of each to make an informed decision for your unique situation.

Don’t forget, to help make the tax filing season a breeze, update any necessary information, such as changing your tax withholding before the 2024 tax season begins.