For most taxpayers the immediate priorities are accuracy, cost, and how well the product handles the specific income types reported on Form 1040. Complexity of the return determines platform tier more than brand loyalty. A single W‑2 filer with standard deduction needs a clear, low-cost path with robust e-file and direct deposit options. Self‑employed filers with Schedule C, contractors with multiple 1099‑NEC forms, investors with 1099‑B and K‑1 income, and owners of rental real estate require deeper features: expense categorization, cost‑basis calculation, multi‑state allocation, and bookkeeping integrations. Security and IRS compliance are baseline requirements: encryption in transit and at rest, multi‑factor authentication, and adherence to IRS e-file rules must be explicit before account creation.
Evolution of online filing changed expectations. Since the IRS introduced free file options and e-file mandates expanded, major providers added tiered services, bank and broker imports, and mobile apps. Platform types now fall into three clear groups: do‑it‑yourself software with guided questionnaires, hybrid products offering live expert review for an added fee, and fully managed professional filing through credentialed preparers. Choosing a path depends on cost sensitivity, audit risk tolerance, and desire for live support.
Feature, pricing and security comparison
Price transparency varies by provider. Most offer a free federal path for simple returns; state returns commonly carry separate charges that ranged from $39 to $59 at major providers during recent filing seasons. Premium tiers that include investment forms or Schedule C support generally cost between $60 and $150 for federal filings, with additional state fees. Audit defense, expert review, and prior‑year import are often add‑ons.
The table below summarizes common capabilities and typical price bands across representative offerings, with approximate 2024 retail ranges for the U.S. market. All amounts are estimates; exact pricing should be verified on provider sites.
| Feature / Tier | Free / Simple | Deluxe / Home | Premier / Investor | Self‑Employed / Small Biz |
|---|---|---|---|---|
| Typical federal fee | $0 | $40–70 | $80–100 | $100–140 |
| State return fee | $0–$40 | $40–$55 | $40–$55 | $40–$60 |
| W‑2 import | Yes | Yes | Yes | Yes |
| 1099‑B import & cost basis | Limited | Basic | Full support | Full support |
| Schedule C support | No | Basic | Limited | Full, expense categories |
| Broker and bank import | No | Partial | Yes | Yes, multi‑account |
| Live help / CPA review | No | Optional paid | Optional paid | Often available paid |
| Audit defense | Not included | Add‑on | Add‑on | Add‑on |
| Refund advance loans | Sometimes | Sometimes | Sometimes | Rare |
Security practices to confirm include TLS encryption for transmissions, AES‑level storage encryption, separation of authentication and filing credentials, and clear data deletion policies. Platforms that publish independent SOC 2 reports or disclose third‑party security audits provide stronger trust signals.
Specialized filers, integrations and support
Self‑employed and small business filers benefit most from platforms that integrate with accounting tools and gig platforms. QuickBooks Online and Xero imports reduce manual entry and reconcile business books with Schedule C detail. Payroll and gig platforms such as Gusto, Square and Uber often export 1099 data; seamless import eliminates transcription errors. Investors should prioritize accurate cost‑basis reporting and wash sale handling across multiple 1099‑B forms; brokers like Fidelity, Charles Schwab and Robinhood provide downloadable records compatible with leading software.
Support channels vary: chat, phone and secure messaging are common, with business‑hour live agent availability at major providers and extended hours during peak season. Response quality depends on tier and whether paid expert review is purchased. Reputation can be assessed through BBB complaint records, Consumer Reports summaries, and app store ratings.
Audit defense offerings typically cost $30–$80 and promise representation by an enrolled agent or tax attorney for IRS examinations. Accuracy guarantees often state that the provider will reimburse penalties and interest if an error is caused by software math or calculation issues. The scope and caps of such guarantees should be reviewed in the terms.
Processing times, refunds and data portability
E‑file processing timelines are governed by the IRS and state agencies; accepted direct‑deposit refunds are typically issued within 21 days, though delays occur for returns claiming the Earned Income Tax Credit or Additional Child Tax Credit and for identity verification holds. Refund advance products are offered by some providers in partnership with banks; these are short‑term loans secured by the expected refund and carry fees or interest in some cases. Common causes of refund delays include mismatched Social Security numbers, incorrect banking details, or prior‑year filing issues.
Data portability matters when switching providers mid‑year or after audit. Most services allow export of prior‑year returns in PDF and some in machine‑readable formats (CSV or proprietary import files). Best practice when changing providers includes downloading final PDFs, exporting any available spreadsheet exports of income or business entries, and verifying that cost‑basis histories for investments are preserved.
Choosing checklist and red flags to avoid
Before purchasing, confirm these items: the platform supports all needed forms (Schedule C, K‑1, 1099‑B), shows exact federal and state fees up front, publishes security certifications, and allows easy export of prior returns. Red flags include hidden state charges only revealed at checkout, vague audit assistance promises without written terms, lack of multi‑factor authentication, and poor import support for broker or payroll data. Ask whether expert review includes signature and filing by an enrolled agent, whether the vendor holds a valid PTIN‑registered preparer network, and what the retention and deletion policy is for personal data.
Common questions revolve around login recovery, amended return workflows, and how IRS notices are handled. Providers typically supply step‑by‑step help articles and phone support for notices; paid audit defense can extend to representation if needed.
Glossary of key items: Form 1040 is the individual return, Schedule C reports business profit on sole proprietor income, Form 1099‑B covers broker proceeds, and e‑file refers to the IRS electronic filing system that most platforms integrate with. Recent tax changes affecting platforms include updates to capital gains harvesting rules and inflation adjustments to standard deduction amounts for the 2024 filing year; software vendors generally push those updates automatically before e‑file submission.
Selecting the right platform aligns filing complexity with price and support needs. Prioritize accurate import capabilities, clear fee transparency, and strong security practices for the best balance of cost and protection when filing online.