Filing Your 2025 Taxes: You Have Options

Editor’s Note: This article is for those who have to “pony up” their hard-earned wages to pay to file their U.S. income taxes. While I’m aware that other countries also put up with this BS (and many others are blessed with a much simpler system), my only frame of reference is for the U.S. system of filing your income taxes. So, if you are not having to pay U.S. income taxes, reading this article may provide you some comedic relief to your day, as you laugh at us arrogant, egotistical Americans going through this absurd, antiquated, annual ritual with filing our income taxes.

I have been filing my (dreaded) income taxes for many years using tax software that’s commonly and commercially available . This goes WAY back to when I was a Windows user. Prior to that, I grabbed up a pencil or pen, and proceeded to fill out paper forms to mail in (things were simpler then). For a few years, I paid a tax preparer to prepare my returns for me.

At first, I’d have to make the annual trip to the store of my choice to purchase the software (usually on CD-ROM). Literally, the software was sold almost everywhere. About the only places I didn’t find tax software being sold would be at the gas station, the grocery store, and restaurants. And, it was like the wild, wild west trying to figure out which one best served my needs. As a result (and because of my budget), price played a HUGE factor for me.

At that time, virtually NO ONE was offering online income tax preparation services. Back then, you either paid someone in the business of preparing income tax returns to prepare and file your taxes, you waded through the unnecessarily onerous tax filing maze yourself, or you bought the software to file your income taxes from your computer.

Over that time, I was a big fan of Kiplinger’s tax software … until I wasn’t. The end came with Kiplinger pricing themselves out of my price range for what I perceived that I got in return. For me, it no longer represented a “value-based” solution to my income tax filing needs.

So, after dabbling for a couple of years with other tax software offerings, I settled on using TaxAct’s income tax preparation software. And, I used TaxAct – religiously – all the way until 2025 when I filed my 2024 income taxes. This year, I’ll be looking elsewhere (for reasons I’ll reveal when we get around to talking about TaxAct).

I remember “buying” TaxAct on a CD-ROM disc, just like I did with Kiplinger’s, when I first started using it (you never really “own” any commercially offered software … you just “lease” its use … I was so naive then!). A few years later, they eased into a more “online focused” platform, and I then started “buying” their software online and downloading it to my computer for installation.

Finally, TaxAct switched to doing EVERYTHING online, thanks to “secure” web servers. In fact, they appeared (at the time) to be one of the few income tax preparation services that offered a totally-online solution.

During those “early” days of my Linux journey, I either kept one computer in the house loaded with Windows, or (more commonly) I kept Windows installed, either on a dual-boot system, or running Windows in a virtual machine. And, the income tax software was the primary reason I did things that way. None of the income tax preparation software makers produced a version of their software for Linux users. It was always offered only for Windows or Mac. When I took a moment to examine the reasons I kept Windows around, it just seemed like way, way too much work to maintain a copy of Windows for use one day each year. Looking back, that was just insanity.

Soon after, more and more income tax preparation packages had transitioned fully to online income tax preparation services. Today, most of the “big players” in the income tax preparation rip-off scheme are totally online endeavors. And, to be perfectly honest, I don’t see income tax software offered in the stores like it used to be. Of course, it could also be that I don’t notice it any longer, since I have zero interest in purchasing it at a retail store these days.

Income Tax Preparation In 2026

Today, the income tax preparation landscape is vastly different than it was 25 or so years ago. Now, all of the “big players” in the income tax preparation business are online solutions. FINALLY! It certainly took long enough.

So, let’s take a look at the options available to U.S. income tax filers. Keep in mind that I have NOT used all of these services, but have been “aware of them” for a considerable amount of time. After all, we (Americans) do this same song-and-dance/dog-and-pony-show Every. Single. Year. Without. Fail. You don’t even want to think of the ramifications by not complying. The punishments for noncompliance are fairly severe. But, even though I haven’t used some of these services, I will list their pros and cons, mostly focusing on their costs. So, by the end of this article, you should be in a good position to make an informed choice or decision about which one best suits your needs.

TaxAct

I’m starting with TaxAct first, since I’m the most familiar with it. I have used TaxAct for over 20 years to file my annual income taxes. (I will NOT, however, be using them to file my income taxes for the 2025 tax year).

When I first started using TaxAct, it was a very affordable solution for filing my income taxes. It was considerably cheaper than just about anything else out there. However, that is no longer the case. And, I think I uncovered WHY TaxAct kept getting more and more expensive over the years. Remember me saying earlier that I used Kiplinger’s income tax preparation software? Even though it is NOT advertised on the TaxAct site, I have discovered that there are DEEP ties between TaxAct and Kiplinger’s. I’m not certain exactly what those ties are, but either Kiplinger’s has joined forces with TaxAct, or they have purchased the company outright.

So, just as Kiplinger’s priced themselves out of my “budget” years ago, so has TaxAct. In fact, TaxAct is now at least as expensive as the “big boys” (TurboTax, H&R Block, etc.) in the income tax preparation business. Just because you pay more doesn’t necessarily mean that you get any better income tax preparation software, despite that idea being imprinted in people’s brains over the years.

TaxAct is available at four tiers. The “Free” version is available for filers with the most basic income tax filing needs. Under the “free” version, filing your federal return is free, while filing your state’s income taxes will cost you $44.99 per state. Under the “Deluxe” version, touted as being for “Home & Family,” the cost to file your federal return is $52.99, while filing your state’s income tax return will cost you $59.99 per state. The “Premiere” version is touted as being for “investments,” will cost you $89.99 to file your federal return, while filing your state’s income tax return will cost you $62.99 per state. The fourth tier is known as “Self-Employed” or “Entrepreneur.” It will cost you $104.99 to file your federal return, while it will cost you $62.99 for each state income tax return you are required to file.

As you can see, those prices are pretty steep. It becomes increasingly apparent when you compare costs to some of the other options we’ll present here. And trust me … these charges add up QUICKLY.

I will say, however, that I’ve never had a problem with any of my tax returns prepared with TaxAct, so they do have that going for them.

Intuit TurboTax

To maintain full transparency, I’ve never used TurboTax. I’ve never been too fond of Intuit as a software company, and despite being one of the best-selling income tax preparation software packages out there, it was always priced outside my budget. Even when it was sold on CD-ROM in the retail stores, there were other income tax preparation packages that were more affordably priced.

Even today, it remains one of the more expensive income tax preparation packages out there. TurboTax is available in three tiers of service. The “Do It Yourself” tier will cost you anywhere between $0 and $129 … just to file your federal return. In my opinion, that’s a pretty big range. Then, each additional state income tax preparation will cost you between $0 and $59 for each state return you are required to file. Under this plan, I suspect only the most basic federal returns are the ones that qualify for the $0 return preparation. The state return is also $0, but only if your federal return also qualifies for the $0 rate. The “Expert Assist” tier or service will cost you between $49 and $199 to file your federal return, with each state return costing you between $54 and $64 for each state return you’re required to file. The “Expert Full Service” tier is a flat-rate $150, with some caveats. First of all, that rate only applies if you have never used the “expert full service” tier previously. Otherwise, its price can vary based on the complexity of your tax return (and under the current U.S. tax laws, there’s a LOT of complexity).

H&R Block

This is another income tax preparation software offering that I’ve never used. Perhaps despite (and perhaps because of) the H&R Block corporate headquarters being in my hometown of Kansas City, I avoided them out of fear that their income tax software was as good (read that as “bad”) as their brick-and-mortar walk-in income tax preparation stores. Around here, the tales of their bad performance are lengthy and legendary.

Like some of the other income tax preparation services, H&R Block has four tiers of service. Their “Free Online” tier is limited to what H&R Block calls “simple returns.” The company claims that “52% of taxpayers qualify” for the “free online” service. Yeah. Right. Maybe. If you're living in a homeless camp. If you can avoid the “potholes” that automatically bump you up to the higher priced plans. The next tier is called “Deluxe.” Its price is $70 to file your federal return, and each state return you’re required to file will drain another $49 from your bank account. The “Premium” tier (supposedly for those with “investments”) will cost you $110 to prepare and file your federal return, plus another $49 charge for each state return you’re required to file. The fourth tier is for those it terms as “self-employed.” It will set you back $130 to file your federal return, plus another $49 for each state return you’re required to file.

As you can see, these charges have the potential to add up REALLY fast.

TaxSlayer

TaxSlayer offers an income tax preparation service that’s starting to get a lot more affordable (when compared to the ones we’ve talked about so far). Like many of the other online income tax preparation services, TaxSlayer offers four tiers of services. The “Simply Free” service is free to file both your federal and state income taxes … provided you meet the rather limiting guidelines. Most people will be eligible for the “Classic” tier, which will cost you $39.99 to file your federal return, and then tap you for another $45.99 for each state return you need to file. The “Premium” tier will cost you $59.99 to file your federal return, with each state return you are required to file will set you back another $45.99. With the “Premium” tier, you get express phone and email support, as well as access the advice of a “tax pro” (whatever that is). The “Self-Employed” tier costs $69.99 to file your federal return, and each state return will cost you $45.99.

While the prices for TaxSlayer are a LOT more reasonable, it’s easy to see how the prices can add up fast, with users quickly running up a cost of $100 or more. Believe it or not, and as you’ll soon see, there are other options that are much more affordable.

FreeTaxUSA

Now we’re getting into some of the VERY affordable income tax preparation services. FreeTaxUSA offers free … yes, I said FREE … preparation and filing of your federal income tax return, regardless of how simple or “complicated” it may be. Since they started in 2001, they’ve handled the preparation and filing of over 82,000,000 – that’s 82 million – federal income tax returns.

If you are required to file a state income tax return, it will cost you only $15.99 for each state return you are required to file. Curiously, FreeTaxUSA has four tiers, like most of the other services we’ve discussed thus far, and the price is the same for all tiers – $0 for the preparation and filing of your federal return, and $15.99 for each state return you are required to file.

OnLine Taxes

OnLine Taxes is another FREE income tax preparation and filing service, at least for the federal income tax return. Regardless of whether you have a simple or “complicated” federal return, the price is the same: $0.

OnLine Taxes is offered in two tiers for you to choose from. The “Federal Free Edition” is (as you might have guessed) free to file your federal return. Each state income tax return you are required to file will cost you $9.95. The “Premium Edition” will cost you less than $8 ($7.95), with each state return you’re required to file costing only $7.95. With the “Premium Edition,” you get everything included in the “free” version, plus phone and live chat support, audit support (just in case you are subjected to an audit), year-over-year comparison, and priority processing.

IRS Free File

I know your mouth may be hanging agape right now, but yes, the IRS itself offers free income tax preparation and filing. They even support the preparation and filing of several state income tax returns.

To use their “guided free file” service, you have to earn less than $89,000 (adjusted gross income). The state returns are offered for free, as well.

But, what if you earn more than $89,000 AGI? They have another free service, called “Fillable Forms,” and is open to all taxpayers, regardless of income. You select the forms you need, and then you fill out the electronic forms from the instructions on those forms. There is no “guided” service, and there are no state filings supported … at all.

Why Is All Of This SO Complicated?

Actually, that is a question that no one seems to be able to answer. For as long as I can remember, there has been a push to not only simplify the U.S. tax code, but to also make filing your annual income taxes super simple. All attempts have failed miserably. In more recent times, the biggest reason is the PAC (political action committee) founded by the makers of the overpriced tax services. Both simplifying the tax code and simplifying the filing process cuts into the significant profits that these companies make. You really didn’t think that they make all of those glitzy, fancy television commercials for free, did you?

They have literally bought lawmakers and policymakers to keep things as complicated and untenable as they are. That is, after all, where their profits reside. If you simplify either aspect of taxes – the tax code or the filing of taxes – their services wouldn’t be needed.

Of course, other PACs get involved in lobbying lawmakers and policymakers anytime there’s talk about simplifying the tax code, which usually involves eliminating tax deductions. Every entity wants to see their tax deductions preserved, and politicians are hesitant to alienate voters, especially when they are up for endless reelection campaigns, thanks to a lack of term limits for most legislators.

Like I mentioned previously, income taxes (and the “industry” that grew up around them) are a complicated, arduous, antiquated, ridiculous, unmitigated mess in the U.S. And, for as long as there's profits to be made and politicians to be bought, don't expect anything to change anytime soon. For now, the only thing that has improved with the services all offering online versions of their income tax preparation services is that Linux users aren’t “shut out” or cut off from access like we used to be, just because we don't run the operating system they want to control us with us to use.

I am certain that there may be other “options” to file your taxes online. If you find them, like them, and they fit your needs, by all means, use them. But this article should cover all of the current major players in the income tax preparation and filing scam … er, I mean “products.”