Filing your own taxes can save you $200-$500 compared to hiring a CPA, and modern tax software makes it straightforward. Here’s how the major options compare.
Tax Software Comparison
| Software | Free Tier | Basic/Deluxe | Self-Employed | State Filing | Best For |
|---|---|---|---|---|---|
| TurboTax | Simple returns only | $70-$130 | $130+ | $65/state | Ease of use, complex returns |
| H&R Block | Simple returns | $55-$115 | $115+ | $45/state | In-person support option |
| FreeTaxUSA | All federal returns | $0 | $0 | $15/state | Best value |
| Cash App Taxes | All returns free | $0 | $0 | $0 | 100% free |
| TaxAct | Simple returns | $45-$95 | $95+ | $55/state | Mid-range option |
| IRS Free File | Income under $84K | N/A | N/A | Varies | Low-income filers |
| IRS Direct File | Simple returns in select states | N/A | N/A | N/A | Simplest returns |
Cost Comparison for Common Tax Situations
Scenario 1: Simple W-2 Return (Single, Standard Deduction)
| Software | Federal | State | Total |
|---|---|---|---|
| IRS Free File / Direct File | $0 | $0 | $0 |
| Cash App Taxes | $0 | $0 | $0 |
| FreeTaxUSA | $0 | $15 | $15 |
| H&R Block Free Online | $0 | $0 | $0 |
| TurboTax Free Edition | $0 | $0 | $0 |
Scenario 2: Itemized Deductions + Investments
| Software | Federal | State | Total |
|---|---|---|---|
| Cash App Taxes | $0 | $0 | $0 |
| FreeTaxUSA | $0 | $15 | $15 |
| TaxAct Deluxe | $65 | $55 | $120 |
| H&R Block Deluxe | $75 | $45 | $120 |
| TurboTax Deluxe | $90 | $65 | $155 |
Scenario 3: Self-Employment (1099-NEC/1099-K)
| Software | Federal | State | Total |
|---|---|---|---|
| Cash App Taxes | $0 | $0 | $0 |
| FreeTaxUSA | $0 | $15 | $15 |
| TaxAct Self-Employed | $95 | $55 | $150 |
| H&R Block Self-Employed | $115 | $45 | $160 |
| TurboTax Self-Employed | $130 | $65 | $195 |
When to Use Each Software
| Your Situation | Recommended Software | Why |
|---|---|---|
| W-2 only, standard deduction | IRS Direct File or Cash App Taxes | Free, simple |
| W-2 + student loan interest, HSA | FreeTaxUSA | Free federal, handles common forms |
| Homeowner with mortgage + property tax | FreeTaxUSA or H&R Block | Handles itemizing well |
| Investments (stocks, crypto) | FreeTaxUSA or TurboTax | Imports brokerage forms |
| Self-employed/freelancer | FreeTaxUSA or TurboTax SE | Deduction guidance |
| Rental property income | TurboTax or H&R Block | Complex depreciation calculations |
| Multi-state returns | H&R Block or TurboTax | Better multi-state handling |
| Want CPA review | TurboTax Live or H&R Block | Expert review available |
Free Filing Options
IRS Free File
| Feature | Details |
|---|---|
| Income limit | $84,000 AGI |
| Providers | 7 participating software companies |
| State returns | Usually included free |
| Forms supported | Most common forms |
| Where to access | irs.gov/freefile |
IRS Direct File
| Feature | Details |
|---|---|
| Who qualifies | Simple returns (W-2, Social Security, standard deduction) |
| Available states | Limited but expanding |
| Cost | Free |
| Limitations | Doesn’t handle self-employment, itemizing, or complex situations |
Tips to Save on Tax Software
- Start with the free version—upgrade only if the software tells you your situation requires it
- Check IRS Free File first if your income is under $84,000
- Look for promotions—many services offer early-season discounts
- Don’t pay for audit protection—it’s rarely worth the cost
- Use last year’s import feature—saves time and catches missed deductions
- File early—prices often increase as April approaches
The Bottom Line
FreeTaxUSA ($0 federal, $15 state) offers the best value for the vast majority of filers, handling everything from W-2s to self-employment to investments. Cash App Taxes is the only truly 100% free option for all situations. TurboTax’s premium pricing is only justified for very complex returns or if you value its polish and live CPA review. If your income is under $84,000, start with IRS Free File.