Key Takeaways
- For tax year 2025 (filed in 2026), TurboTax, H&R Block, and TaxAct are the three main options - all support the new OBBB deductions including the tips deduction and permanent QBI deduction.
- IRS Direct File has been shut down and is not available for the 2025 tax year. The IRS Free File program remains - income limit is $89,000 AGI for 2025.
- H&R Block is the best value pick for most filers: cheaper than TurboTax at every tier, with comparable features and free in-person audit support.
- TurboTax is the best pick for complex returns - heavy crypto, multiple income sources, or self-employed filers who want the most polished document-import experience.
- TaxAct is the budget option: Deluxe starts at $29.99 federal, roughly half the cost of TurboTax Deluxe, with most of the same core features.
The 2025 tax filing season (returns filed in 2026) has two notable changes from prior years. IRS Direct File — the free government-run filing option — has been shut down under the current administration. And the One Big Beautiful Bill (OBBB) added new deductions that most filers with tip income or self-employment will need to navigate for the first time.
Here is how the major tax software providers stack up, and what free options remain.
Quick Comparison: 2025-2026 Pricing
| Provider | Free | Deluxe | Mid-Tier | Self-Employed | State |
|---|---|---|---|---|---|
| TurboTax | $0 | $79 | $139 (Premium) | $139 (Premium) | $64/state |
| H&R Block | $0 | $35 | $60 (Premium) | $85 | $37/state |
| TaxAct | $0 | $29.99 | $49.99 (Premier) | $69.99 | $39.99/state |
All three let you start for free and only pay when you actually file. All three handle the 2025 OBBB deductions — tips, bonus depreciation, and the permanent QBI deduction.
TurboTax — Best for Complex Returns
TurboTax is the most guided, most polished of the three. Its interview-style flow is excellent, its Intuit Assist AI surfaces missed deductions, and its document import (W-2, 1099, prior-year returns from competitors) is the best in class.
The downside is price. At $139 for the Premium tier and $64 per state, TurboTax is the most expensive option by a significant margin. For most filers with W-2 income plus a mortgage or some investments, you are paying a premium that H&R Block can match at less than half the cost.
Where TurboTax earns its price: complex returns with heavy crypto trading, multiple 1099s, rental properties across states, or self-employed filers who want AI-assisted expense classification and the deepest OBBB deduction support.
H&R Block — Best Value Pick
H&R Block is my top recommendation for most people filing a 2025 return. It is $44 cheaper than TurboTax at the mid-tier, $27 cheaper per state, and includes one thing TurboTax cannot offer: free in-person audit support from enrolled agents, plus the option to walk into any of 9,000-plus office locations and hand your return to a human.
The new AI Tax Assist feature (included on paid plans) answers tax questions in plain language during the filing process and flags potential issues before you submit.
For the majority of filers — a W-2, a mortgage, standard investments, maybe some freelance income — H&R Block Premium at $60 federal does everything TurboTax Premium does at $139.
TaxAct — Best Budget Option
TaxAct is the lowest-cost of the three major providers. Deluxe is $29.99 federal, Premier (investments and rentals) is $49.99, and Self-Employed is $69.99. State filing is $39.99 per state.
The tradeoff is support. TaxAct’s Xpert Assist (live help from a tax professional) costs an extra $25 and is not included in the base price of any tier. The guided experience is also less polished than TurboTax or H&R Block.
TaxAct makes sense if you are comfortable with your tax situation and primarily want accurate software at the lowest cost. Switching from TurboTax or H&R Block is easy — TaxAct imports prior year PDF returns.
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eFile — The No-Frills Budget Option
For filers who want to minimize cost and do not need any live support, eFile is the most stripped-down option. It handles most standard return types at a lower price than TaxAct, with email support but no live agent option.
I would not recommend it if you have any complexity in your return or expect questions during filing. But for a straightforward single-state W-2 filer who knows what they are doing, it gets the job done.
Free Filing Options for 2025
IRS Free File: The IRS Free File program is still available through partner software providers (including H&R Block and TaxAct). Income limit for tax year 2025 is $89,000 AGI — the highest ever, up from $73,000 a few years ago. If you are under that threshold, you can file your federal return for free through the IRS Free File portal at irs.gov/freefile.
IRS Direct File is gone: The government-run direct filing tool, which was available to taxpayers in 25 states for the 2024 filing season, has been shut down. It will not be available for the 2025 tax year. If you used Direct File last year, you will need to use IRS Free File or one of the paid options above.
VITA (Volunteer Income Tax Assistance): Free in-person filing help for taxpayers earning under $67,000, people with disabilities, and limited English speakers. Find a site at irs.gov/vita.
Which Software Is Best for Cryptocurrency?
For crypto, TurboTax Premium is still my first choice. It handles up to 4,000 transactions per import, supports multiple exchanges, and has the most comprehensive crypto cost basis tracking.
H&R Block Premium and TaxAct Premier have both improved their crypto handling for 2025, so they are viable for moderate crypto activity. If you are doing high-volume trading across many platforms, TurboTax is worth the extra cost.
The OBBB did not change the tax treatment of crypto — gains are still taxed as capital gains. But if you received crypto as payment for services, the tips deduction may now apply to some of that income.
What the OBBB Changed for 2025 Filers
All three major providers handle the new One Big Beautiful Bill (OBBB) deductions:
- Tips deduction: Up to $25,000 in tip income can be deducted for qualifying workers
- 100% bonus depreciation: Business equipment placed in service after January 19, 2025 is fully deductible in year one
- Permanent QBI deduction: The 20% Qualified Business Income deduction for pass-through businesses is now permanent
These deductions make 2025 returns more complex than usual for tipped workers and self-employed filers. Any of the three major providers will handle them correctly — the difference is how much hand-holding you get in the process.
Also check the IRS refund schedule for estimated deposit dates once you file.
Common Issues to Watch Out For
The single most common mistake I see: assuming the Free tier covers your return when it does not. If you have a mortgage, investments, freelance income, rental income, or crypto — you are not in Free territory. Each provider will prompt you to upgrade mid-return, which is frustrating if you did not expect it.
Check the tier eligibility before you start rather than after you have entered all your data.
Also: IRS Free File through a partner provider and using that provider’s regular free tier are not the same thing. The IRS Free File program gives you the paid features at no cost if you qualify — always enter through the IRS Free File portal at irs.gov to make sure you get the government-subsidized version.
There are some other free filing option programs not mentioned above :
VITA program
The Volunteer Income Tax Assistance Program, or VITA, brings free, live tax preparation and e-filing assistance to low-income households. You qualify if your household income is below $49,000. You will find VITA centers at libraries, colleges, community centers, religious centers and other neighborhood sites. To find a site near you, call 1-800-906-9887. Or scan this partial list of VITA sites, on IRS.gov.
The armed forces version of VITA is called AFTC, for Armed Forces Tax Council. You have volunteers and experts who know the special credits, deductions and exclusions available to members of all branches of the armed forces, and their families. They will understand the state income tax exclusions, as well.
TCE program
Tax Counseling for the Elderly, or TCE: The focus here is tax issues for those age 60 and above. TCE volunteers understand issues related to retirement income, Social Security, IRAs, etc. They may be able to provide counseling on other financial issues as well, since many of the volunteers and staff are in the same position as you.
AARP’s Tax-Aide is one of the largest TCE programs in the country. Visit the AARP Tax-Aide website. You can call the IRS for a TCE location, at 1-800-829-1040.
Incidentally, all these programs are still accepting volunteers. You don’t need a tax background or education to participate. Besides, it’s fun!
Free online filing
When IRS started the FreeFile Alliance, or FFA, program, it was revolutionary — getting tax vendors to donate free services to a large part of the tax-paying community. FFA is still alive and well, with 16 companies still participating.
Fundamentally, the service caters to taxpayers with income under $58,000. Each provider has different age and form restrictions and other conditions. Most offer free extensions and free services to the military. None of the providers are permitted to offer refund anticipation loans. That eliminated some participants whose profit and loss statements were flush with those high