Tax season is coming. Whether you love it or hate it, filing your federal tax return can be a simple and painless process.
With so many services out there – most promising – it can be overwhelming. There are seemingly hundreds of apps and tax service pop-ups and scams everywhere.
But that doesn’t mean you need to go with a tax return program first. Or just go again with last year’s provider. Because not all tax services are the same.
Let’s take a look at two of the most popular tax software: Taxlayer vs. TurboTax. We’ll cover the similarities and differences between these two tax filers, breaking down their pros and cons.
About Taxlayer
Founded in 1998, Taxlayer is a highly popular and well-known tax filing service. It provides free or low-cost options for users to file their taxes in a simple, user-friendly platform.
Taxlayer offers four (4) different electronic (online) filing options. Simple and classic options are the most basic. Added features, such as audit support, are only available with the more expensive premium filing plans.
About Turbotax
TurboTax’s software has been around since the 1980s, and is a well-established player in the tax software game. The company’s user base expanded rapidly in 1993 when it was purchased by Intuit, the company behind the popular accounting software QuickBooks.
Like QuickBooks, TurboTax offers user-friendly, intuitive guidance, allowing everyday users to easily manage their taxes and complete their federal and state returns.
TurboTax has a free option for taxpayers to file state and federal returns, however, this option is only for tax returns, primarily W-2 earners using the 1040 tax form. For any more complex returns, including those with any itemized deductions, a reimbursement plan is required.
Taxlayer vs TurboTax: Pricing
Both TaxSlayer and TurboTax offer tiered pricing for their e-file software.
TaxSlayer offers three (3) different levels of packages for standard tax W-2 employees, individuals who are legally employed in the United States by a separate business or enterprise that withholds taxes and issues W-2 income tax forms to its employees.
These three (3) tax filing options range in cost from $0 to $42.95 for federal returns, with an additional $39.95 per state charge for each state income tax return. Taxlayer offers an additional option for self-employed individuals with business income and itemized work expenses.
TurboTax offers three different options, designed for people who want to do their own taxes with some assistance from tax experts, or full-service tax filing, where their experts do everything.
Pricing ranges from $0 for free filing to a full support service with your taxes. State returns cost $0 with the free version or $59 to $69 per state filing for the paid version.
Taxlayer vs TurboTax: Features
Here’s a rundown of the service features you get with tax filing apps.
Features of Tax Slayer
- Audit Support: Audit Assistance is an exclusive service for Tax Slayer Premium customers. Additionally, Taxlayer will work with you to prepare and resolve any audit inquiries for three (3) years after accepting your return.
- Tax Professional Support: Partnership with Protection Plus (PP) to assist professional tax preparers in the event of an audit. PP works directly with both the filer and the IRS or state. Includes tax credit and form assistance, tax debt relief, fraud assistance, and legal services.
- Refund Options: Direct Deposit, Matched Paper Check, Prepaid Debit Card (offered by Green Dot), or File & Go Refund Transfer (RT).
- Advanced options: Priority assistance options (skip the customer service line) and ASK-A-TAX-PRO services are available with Premium Tax Submission.
- Affordability (relative to other similar tax software): Free filing options for basic federal and state returns. For more complex situations (ie itemized deductions), the filing fee is cheaper. Starting at 22.95 – cheaper than many competitors.
- Overall User Experience: Overall smooth and seamless experience with an average rating of 4.3 stars on TrustPilot based on over 24,000 user reviews. In the App Store, Taxlayer has a 4.8 star rating on Apple and a 4.3 star rating on Google Play.
Properties of Turbotax
- Audit Support: The basic guarantee that comes with any TurboTax return, except for Business CD/Download returns. Consult a trained tax professional in the event of an audit notice, on what to expect and how to get help when meeting with IRS officials.
- Audit Defense: A paid add-on service that must be purchased at the time you file your return. It is offered as a standalone service with Max Defense and Recovery, Plus, or Turbotex Desktop only software. Audit Defense provides you with full audit representation by a licensed tax professional, including representation before the IRS.
- Refund Options: Direct deposit, paper checks in the mail, U.S. Savings Bonds (use your refund to buy bonds), or use your tax refund to pay for next year’s taxes. Refund options, for immediate receipt of funds instead of waiting 10+ days, are usually available.
- Advanced options: With the Expert Full Service option, you will be paired with a dedicated tax expert who will complete your taxes for you. They will contact you by phone or video call to ask and answer specific questions, help you with an audit, and may work with you on next year’s tax returns.
- Affordability (relative to other similar tax software): Free filing options for basic returns, and more complex returns with itemized deductions or business income are available, ranging from $39 to more than $400, depending on the service level chosen.
- Accuracy guaranteed: Turbotax offers a 100% accuracy guarantee for accurate calculations, maximum refunds, and audit support. All profits are guaranteed for a full year of life or tax returns. See Terms of Service for more details.
- Overall User Experience: Turbotax has an overall 4.4 star rating based on over 228,000 reviews. The app has a 4.8 star rating on Apple and a 4.6 star rating on Google Play.
Taxlayer vs TurboTax: Customer Support
Both tax filing programs offer users multiple ways to reach customer support and resolve common customer questions.
Taxlayer Customer Support
Taxlayer offers excellent customer support for quick, easy and accurate filing.
- Email: Send an electronic message via the web form and receive a response within 72 hours or email prosupport@taxslayer.com. Pro Support Email is for TaxSeller Pro users only.
- phone: Call (706) 922-6741.
- Video Conferencing: For full-service or assisted filing customers, live, live video conferencing support is offered. At the start and end of tax filing, Full Service customers receive two (2) free video meetings with an expert.
- chat: Available during tax season on the taxlayer.com website.
- FAQ Subjects: Find helpful resource articles in the Taxpayer Knowledge Base. They can guide users through various tax situations and software features, including step-by-step guidance.
- Error Check: Tax Slayer’s software has a built-in error check feature to proactively identify and block any tax return submissions with errors. A Taxlayer review is offered as part of any return filing process.
Turbotax Customer Support
Like Taxlayer, TurboTax offers a clean and intuitive design that is easy to understand and navigate. As a platform for taxpayers looking for more personal assistance, it is designed to make it easy for users to connect with support.
- Email: Send email messages to ttappfeedback@intuit.com, or message security@intuit.com for security-related emails.
- phone: Call Intuit (parent company) customer support at 1-800-4Intuit (1-800-446-8848).
- Video Conferencing: Supportive and full-service filers can get TurboTax live video conferencing support. This is a one-way video featuring only tax experts.
- chat: Live chat is offered during tax filing season.
- Turbotax Support: Resource Center Helpful articles and videos with step-by-step tips, general tax guidelines, and information on specific filing scenarios for rental property income, freelancers, small business owners, self-employed filers, and more.
- Community Forum: Intuit has helpful user forums for TurboTax software users, and QuickBooks. Ask the Intuit community your questions and get answers. Open to Free Plan and TurboTax Deluxe Plan (paid subscription) users.
Taxlayer vs TurboTax: Pros and Cons
Both TaxSlayer and TurboTax are among the best tax software apps on the market, but they also come with pros. Here’s a look at how they stack up.
Pros and Cons of Turbotax
Occupation
- Premium Edition with direct support from CPAs and other tax professionals.
- Customized support based on your tax situation to maximize tax deductions and minimize liability, making the most of your return.
- TurboTax offers complete tax prep where they do everything for you.
- Get quick refund funds through Fast Direct Deposit TurboTax Refund Advance.
cons
- Cost versus other tax software options for non-basic filing with business expenses such as itemized deductions.
- A more tax-assisted app than a DIY app. Designed for taxpayers seeking full or partial professional assistance.
Pros and Cons of a Taxpayer
Occupation
- Smooth, easy-to-use interface.
- Payment options for tax returns with deductions, business income, or other complex scenarios are cheaper than TurboTax.
- Just to complete a self-employed tax return. 52.95.
- Audit defense is cheaper with TaxSeller than other competitor offerings.
cons
- Not direct tax advice. This is a tax software program for DIYers who want to do it all by themselves.
- No user or community forums on the site.
- Low tax forms are supported.
- No refunds are offered. Taxlayer warns that it may take up to 21 days for the IRS to process your refund from the date the return is accepted.
Taxlayer vs TurboTax: Which is Better for You?
It depends on what your tax filing needs are. Both are excellent, highly reputable software programs that guarantee accuracy and user experience.
If you have a very basic return with no itemized deductions, either TurboTax or TaxSlayer is a good free option for your federal and state filings. Turbotax filers have a leg up with free filing, as they can get their funds faster through refund advance options. On the other hand, Taxlayer filers will have to wait for 21 days.
In general, TurboTax is solidly best for people with more complex tax returns, small business owners, or independent contractors. This is also a good option if you have been audited in the past. TurboTax has a team of tax professionals who can help you or do your taxes for you, and is a much cheaper alternative to hiring a Certified Public Accountant (CPA).
Taxlayer, meanwhile, is a better option for confident, do-it-yourselfers. It’s worth the price for bargain hunters, though you’ll have to do a bit more manual entry with your W-2 and other tax forms.