Man researching tax software

What is Tax Software?

When it comes time for tax season, you may hear the term “tax software” thrown around, but you may be unsure of what this means. Well, worry no more. Here we’ll explain what tax software is and some of the more popular software that is available for you as an individual or a business.

Tax Software Defined

Tax software is a type of computer software that is designed to help individuals or companies prepare their taxes. Furthermore, the programs can file income, corporate, or similar tax returns. These programs work to streamline the process of filing taxes by walking the user through all of the tax forms. Generally, tax software will assist the user with helpful hints, or point out any issues that may arise during the process. At the end, it will automatically calculate an individual’s or company’s tax obligations.

Popular Tax Software

There are three popular tax programs used by people across the United States: TurboTax, H&R Block, and TaxACT. Most websites allow you to file 1040EZ forms online for free, but should you ever have to download the programs, they’ll cost money.


TurboTax is simple to understand and focuses on making things easy for the individual. The company encourages users to seek help from its AnswerXchange, where there is live advice from TurboTax experts should you ever need assistance. Those who purchase Deluxe, Premium, or Home & Business can call a TurboTax expert for help with questions. The price for TurboTax programs ranges from $29.99 to $99.99.

H&R Block

H&R Block offers many of the same features of TurboTax, but at a lower price. One of the unique features that this company offers is the possibility to see your tax return as you enter your information. You can see why your tax return shrinks or grows. It also has tax professionals that are available to talk to you, no matter what your question is. The questions are answered through live chat or through email. These programs range from $19.99 to $79.95 based on which package you need and the complexity of your tax situation.


This program is one of the cheapest based on the available features. It won’t tell you how your refund grows or shrinks, but it’ll give you all the information you need once you’ve finished. One of the best features of TaxACT is that there are no limitations for the types of income you can report. This program is mainly for those who already have some understanding of tax code or have simple tax situations. Another great feature is that it offers unlimited support for tax or program questions via email. The price of this program varies anywhere from being completely free, to $14.99or $19.99 based on your tax situation. 

Last Updated: April 21, 2020