As far as we know, we're less 90 days away from the 2021 income tax deadline. Though the tax filing deadline in 2020 was extended from April to July due to the, the traditional deadline, April 15, will return this year. Unless the IRS calls another audible, that's the date that you'll need to file your individual tax return by.
It's evergreen advice -- but for 2021, it's truer than ever: It will be worth your time to get an early start on your tax return. For many, this year's tax return will involve multiple new complexities. Between, and , there are lots of new issues -- all of which could have a significant tax impact -- that will make this year's filing process different, and more complicated, than previous years.
The IRS has not yet announced the specific date that it will begin accepting returns in 2021. Based on previous years, however, you can expect your 2021 refund to arrive somewhere between one week after filing (if you e-file with direct deposit set up) and two months (if you mail in your forms and choose to get a check). And if you were one of the 9 million people who never received all or part of their , on your tax return next year.
Some good news: There are plenty of tax preparation software packages that will make the filing process easier. Foror those with a super simple return, there are several free or low-cost options that will get the job done without a professional tax preparer. And if your tax situation is more complicated, or you just want to make sure you're not leaving any money on the table, there are a handful of capable, reasonably priced tax prep platforms that can help simplify what can be an overwhelming process. Check out our top picks below.
Tax software, compared
||Free version||Paid version||Federal taxes||State taxes||Live support|
|TurboTax||Yes||$40-$90 for self preparation; $90-$170 for "Live" tier of service||Yes||Yes||Yes (costs extra)|
|H&R Block||Yes||$30-$85 for self preparation; $40-$145 for "Online Assist" tier of service; $69 for in-person drop-off||Yes||Yes||Yes (costs extra)|
|Jackson Hewitt Online||Yes||$30-$50 for self preparation||Yes||Yes||Yes|
|TaxSlayer||Yes||$17-$47 for self preparation||Yes||Yes||Yes (costs extra)|
|Credit Karma Tax||Yes||No||Yes||Yes||No|
|TaxAct||Yes||$25-$65 for self preparation; extra cost for additional support||Yes||Yes||Yes|
|FreeTaxUSA||Yes||$7 for self preparation||Yes||Yes||Yes (costs extra)|
There's something for all filers with TurboTax -- the company offers a myriad of options for your tax return even if your tax situation is complicated. A bonus for tax filers who use Quickbooks software (hello sole proprietors!): You can connect it to TurboTax, useful for self-employed people or real estate investors. And if your tax situation isn't complicated (requiring lots of itemized deductions or advice on taxes, for instance) the user-friendly interface makes it simple to breeze through tax preparation and file your taxes. TurboTax Deluxe, its most popular option, searches standard deductions and looks for a tax credit to get you your maximum refund. And TurboTax Premier is specifically designed for taxpayers that have investments or rental property.
It's worth noting that in June 2020, Intuit announced a new free tool to help customers navigate the government's CARES Act assistance programs -- and you don't need to be a TurboTax user to access it. The company's Aid Assist tool helps individuals and small business owners determine eligibility and the tax impact of the Paycheck Protection Program, Economic Injury Disaster Loans, employee retention credits and other associated programs.
TurboTax is hands-down the best tax software for live personal support -- a must for many people when they're filing taxes online. For an extra fee, you get TurboTax Live where a tax filer can receive help from a certified tax professional through on-demand support via live video chat (the basic version of TurboTax Live will be free through Feb. 15). A CPA or EA will also review your tax return before it's sent off to the IRS, ensuring you're making the proper deductions and just making sure your tax situation is under control. Max, its audit defense option, offers a dedicated specialist to represent you. It also includes identity theft coverage services such as identity loss monitoring and insurance. Not too shabby for an e-file provider.
One caveat is that you will probably pay more compared to the others on our list. There is a free version, however, for simple tax returns only -- though it's one of the few services you can enlist to access the help of certified tax specialists without actually seeing one in person.
Pricing: Free to $90 for federal; $40 per state; Free to $170 for TurboTax Live; additional $45-$60 for Max
It's not as intuitive to use as TurboTax, but H&R Block is another heavy hitter that offers unlimited technical support to all filers as well as phone and chat support for those who opt for more expensive packages. The online tax software platform features an intuitive survey format to guide you through the process, with built-in calculators to help navigate many tax situations and a library of detailed articles that illuminate a wide swath of simple and complex scenarios.
Read more: 12 of the best tax deductions
We like that you can file your taxes online, in-person, via its app or by downloading its software. And H&R Block recently added a virtual filing option where you can just upload your documentation, and have a tax expert take care of the rest of it. You can import a prior year's income tax returns from another platform. H&R Block offers a comprehensive money-back guarantee -- and will give you a 3.5% refund bonus if you'll take it as an Amazon gift card. And, for an additional fee, you can get a certified tax pro to review your tax return before filing it.
One drawback: You won't receive in-person support if you end up getting audited unless you pay for a higher tier of service.
Pricing: Free to $85 for federal; $37 per state; $40-$145 for Online Assist
In addition to a dead-simple interface, comprehensive library of tax articles and helpful built-in calculators, Jackson Hewitt Online offers the best refund insurance. The service features free IRS audit assistance and a Worry-Free Guarantee plan, which promises to reimburse you if you end up receiving a reduced refund or face additional tax liabilities. And if you're concerned about your tax liabilities, you can opt for the Worry-Free Guarantee Platinum tier, which includes Audit Security support with a dedicated specialist to manage and represent your case.
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Otherwise, Jackson Hewitt's service is in line with what you'll find elsewhere: You can import older tax returns prepared on other platforms, tech support via live chat, a free tier of service for basic returns and auto completion of state returns.
Pricing: Free to $50 for federal tax return; $37 per state
If you're looking for the best value, TaxSlayer is relatively inexpensive and provides all of the tax forms you'll need. That noted, though the free version comes with some degree of access to personalized tax advice, you'll need to pay for a more expensive package, such as TaxSlayer Premium, to get comprehensive assistance from a tax professional, including live phone and chat support, as well as audit protection.
Note that TaxSlayer's offer of a no-interest advance on your tax refund (after the IRS accepted your filing) expired last year.
Pricing: Free to $47 for federal; $39 per state
If you're looking for the best free tax software, this is it. (While some free tax filing software packages will charge for prepping your state returns, Credit Karma Tax doesn't.) It features a user-friendly interface, helpful guidance to explain tax-related terminology and live chat support for technical, though not tax-related, issues. You can import a tax return from the IRS, as well as from TurboTax, H&R Block or TaxAct. And Credit Karma covers more sophisticated issues than most other free packages including itemized deductions, business income or expenses, self-employment taxes and capital gains and losses.
Read more: Where to file your taxes for free
Other highlights include audit defense, which includes a consultation with a representative who can also attend a hearing on your behalf and help with tax debt resolution options. And if you end up receiving a larger tax refund or owe less in federal taxes after filing with Credit Karma, you may be able to collect up to $100 in gift cards.
Credit Karma's tax software has some limitations: You can't file your state taxes without filing your federal taxes first, and it doesn't support multiple state filings, part-year state filing or nonresident state filing -- which may be a concern for more folks than ever in 2021. It also can't be used to file returns for previous years or to deal with thorny issues like foreign-earned income or "married filing separately" returns (in community property states).
TaxAct's major distinction is its $100,000 Accuracy Guarantee. Basically, the company will pay you back for any difference between what it calculates as your tax liability and what you end up owing the IRS -- extending from your refund to any penalties or interest -- up to $100,000. (It will also refund your TaxAct software fees.) If you are in a high tax bracket or have a particularly complicated tax situation, where errors may be more likely, TaxAct is a good choice.
Otherwise, TaxAct is a pretty straightforward service. Depending on how much you pay, you can access guidance from a tax specialist that ranges from in-app chat support (with screen-share capabilities) to unlimited one-on-one advice over the phone. It's simple to import previous tax returns, navigate the platform and browse through the knowledge database as you input your itemized deductions.
Pricing: Free to $65 for federal; $5 to $45 per state filing; extra cost for tax specialist support
Comparable to Credit Karma Tax, FreeTaxUSA is mostly free -- except you'll need to pay to file state taxes. It offers options for importing previous tax returns and filing an amended tax return. The deluxe version includes priority live chat and customer support and access to its tax specialists and audit service. These professionals should be able to address all your specific questions -- from how to understand an audit notice to what paperwork you'll need to how to write a response to the IRS.
Pricing: Free for federal; $13 per state; $7 deluxe version
Tax season is nigh -- and our 2020 taxes, which we'll file in 2021, promise to be among the most confusing and complicated ever. Against a turbulent political backdrop, many of us will face new questions about the tax implications, and . Though the dust is still settling amidst the changes in US leadership, we expect to see more tax-related responses to the continuing economic headwinds caused by the For now, here are a few commonly asked questions and answers about filing your tax return in 2021.
What's the best tax software for 2021?
There are plenty of tax preparation software packages that will make the filing process easier. If you're looking for tax software with the best live personal support, we recommend TurboTax by Intuit. H&R Block will help you get your taxes done in person or online, via its app or by downloading its software. Jackson Hewitt Online has the best refund insurance policy. TaxSlayer offers the best overall price, TaxAct has the best accuracy guarantee and FreeTaxUSA offers the best price for audit support. And, assuming you have a simple return, Credit Karma Tax is the best free option.
When is my 2020 tax return due in 2021?
Your 2020 tax return is due on April 15, 2021. Though the IRS extended the deadline from April to July 15 last year, is't not said it will do so again this year.
What happens if I miss the tax deadline?
If you are owed a refund, there is no penalty for filing late (though this may be different for your state taxes). But if you owe the IRS, penalties and interest will start to accrue on any remaining unpaid tax due in April. There's also a $330 failure-to-file penalty under the Taxpayer First Act of 2019.