7 Best Tax Calculation Software for US Residents

Having a hard time calculating your annual income tax or enterprise tax? And that made you look for tax calculators, right? Don’t get into a flap!

I am here to facilitate your effort to search for the best tax calculation software. Calculating total income from multiple sources, splitting that income into different tax brackets, identifying taxable & non-taxable income, and complying with federal & state tax laws, all these factors contribute to complexities.

In this write-up, I have rounded up the 7 best tax calculation software for US residents after having a first-hand experience with each of them. Let’s check them out —

7 Best Tax Calculation Software for US Residents

H&R Block (Best for context-sensitive assistance)

H&R Block comes with an easy-to-use tax calculator tool that will make your seasonal income tax estimation a breeze. The tax filing software offers a free version that you can avail for a simple tax calculation and return submission. However, if you require expert help & support due to complex tax calculation status, you can opt for one of the pro plans.

H&R Block boasts a well-designed & interview-style system that comes with a wizard-like tool and asks you relevant questions. You can respond by giving your answers, clicking buttons, or choosing options from lists. This enables you to avoid potential errors in tax calculation.

The tax tool also has a brick-and-mortar presence with about 9,000 offices across the US available for you to set up an appointment or drop off your taxes for a professional to complete. If you decide halfway through your online tax return that you’d rather not do it yourself, you can easily approach their professional tax filers.

The tax calculation software offers guidance for self-employed people, including gig workers and independent contractors. You can also utilize the tool’s free AI-driven help assistant to get help with tax calculations. 

Once you finish entering all the tax information that applies to you, H&R Block runs its Federal Accuracy Review, which looks for errors and omissions in your return and allows you to fix them.

Pros

• Uses an advanced algorithm for accurate tax calculation at a minimal time
• Precisely identifies & applies credits and deductions for maximum tax benefits
• Supports multiple tax situations, including salary, rental income, and investments
• Offers built-in tools for detecting potential errors & missing information
• Ensures secure tax filing and provides e-filing options for faster processing
• Some of its versions offer mobile compatibility, allowing for tax filing from anywhere, anytime

Cons

Navigating certain sections requires too much clicking

Who should grab it?

Both rookie tax filers and long-time taxpayers

Pricing

$0 (Simple return submission)

$55 + $49 per state filed (Tax-filing with expert help)

$89 + Additional state fee (Tax-filing by tax pro)

TaxAct (Best for final tax review)

TaxAct is a user-friendly tax prep solution that comes with an online tax calculator, enabling you to calculate your tax, potential refund, etc. It ensures maximum accuracy and gives free access to anyone looking to estimate their taxes effortlessly without facing the intricacy of full tax preparation.

TaxAct offers multiple calculator options, including income tax calculator, self-employment tax calculator, and W-4 tax calculator to cover a variety of tax needs. You get detailed insights on your tax liabilities and refunds, helping you map out your finances, adjust withholdings, and make tactical financial decisions.

Apart from that, the tax calculator is regularly updated with the latest IRS tax laws, rates, & brackets that ensure you get precise tax estimates without any error.

Pros

• Offers a suite of tax calculators to cover a variety of tax payments
• Easily accessible online without the need for downloads & installations
• Tax calculation accuracy & maximum refund guarantees
• Professional tax assistance services available
• Allows users to file partnership & C corporation returns online with Mac & Windows systems

Cons

• No option for saving the progress

Who should grab it?

Ideal for W-2 employees, freelancers, gig workers, and small businesses that function in partnership or corporation structure

Pricing

Free access to tax calculators, however, for full tax preparation, charges will apply

Turbotax (Best for Holistic Experience)

Turbotax combines tax expertise with a user-friendly interface to make your tax calculation process a snap. Once you answer a few questions, the tax calculator will fill in the necessary tax forms based on your answers, minimizing the risks of errors.

TurboTax will also guide you where to find the info it needs on your tax forms and alert you if something looks wrong. TurboTax supports all levels of tax complexity, from basic individual returns to more complex scenarios, including self-employment, investments, rental properties, and small businesses.

The software offers different versions to match each tax situation, from the Free Edition for simple returns to the Premier and Self-Employed versions for more complex needs.

TurboTax can automatically import forms from many sources, including W-2s, 1099s, and previous year’s tax returns, which saves time and ensures accuracy. It can also import data from other financial institutions and services, helping users quickly add information for investments or mortgage interest.

TurboTax offers multiple options for users to receive their tax refund, including direct deposit, prepaid debit cards, and even investment options to fund a brokerage account. Users can see an estimate of their refund or tax owed in real-time as they complete each section. This transparency helps users better understand the impact of deductions, credits, and income changes on their tax outcome.

Pros

• Intuitive and easy to navigate interface
• Features “Maximize my refund” to minimize your tax bill
• Offers live tax consultancy through CPA or enrolled agents for complex tax scenarios
• Imports financial data from major banks, payroll services, and investment firms for tax calculation accuracy
• Boasts a mobile app for easy document scanning & uploading along with refund tracking

Cons

• Limited support for free and lower-tier users

Who should Grab it?

Freelancers, contractors, & small business owners who want to maximize their refunds and get expert support

Pricing

Free (Tax Calculation) but fees apply for tax filing

FreeTaxUSA (Best for free to low-cost tax filing)

FreeTaxUSA provides free federal filing for most tax situations, which is a big draw for users looking to save money on tax prep. State returns are available at a relatively low cost, making it affordable for users who need to file both federal and state taxes.

FreeTaxUSA supports a variety of tax situations, including self-employment, small business income, and itemized deductions, making it a versatile option for many users.

The software includes an error-checking process to flag any potential mistakes, ensuring accuracy. Users have access to prior-year tax returns for no additional cost, which can be helpful for reference or audits.

FreeTaxUSA offers free customer support through email, helping users resolve questions during tax filing. For more complex questions, users can upgrade to access tax professional support for a small fee.

Pros

• Provides a clear estimate of the refund and owing amount for a simple return
• Accessible through multiple devices, including phones, tablets, and computers
• No need to create any account tax calculation

Cons

• Limited customization ability as it fails to capture complex deductions & credits that require detailed entries

Who should Grab it?

W-2 employees, 1099 contractors, and taxpayers looking for simple tax calculation

Pricing

Free for tax calculation but fees apply for filing

Jackson Hewitt (Best for multiple state returns)

Jackson Hewitt offers both in-office tax preparation and online filing software, providing flexibility for users who prefer either professional assistance or a DIY approach.

The software automatically calculates tax liabilities, deductions, credits, and refunds, reducing the chance of human error. The software identifies possible deductions and credits, helping users get the largest refund or lowest tax liability. Depending on the user’s tax profile, Jackson Hewitt’s software suggests potential tax-saving strategies.

Users can import data from previous tax returns or directly from employers and banks, which saves time and reduces the likelihood of input errors. With automated forms and calculations, users save considerable time, which is beneficial for both individuals and small businesses.

Pros

• Delivers quick results of your tax estimate
• Able to handle comprehensive tax scenarios
• Allows for easy transitioning to its paid services like online tax filing & in-person assistance

Cons

Although comprehensive, it’s not perfect complex tax situations

Who should Grab it?

W-2 employees, retirees, and people who need fast refunds & support

Pricing

Free to calculate taxes

Cash App Taxes (Best free option for basic tax situations)

Cash App Taxes offers free federal and state tax filing, even for more complex tax situations. This sets it apart from many competitors, which often charge for state returns or additional forms.

Cash App Taxes supports many common tax forms and situations, including W-2 income, self-employment (Schedule C), investments (1099-B), rental properties (Schedule E), and more. This makes it suitable for a variety of filers, including freelancers and investors.

Users can import previous tax returns from major tax software platforms, making it easy to switch to Cash App Taxes without starting from scratch.

Cash App Taxes is backed by Cash App’s robust security features, including data encryption and two-factor authentication, which ensures user data is handled securely and privately.

Cash App Taxes makes filing simple without trying to upsell users on additional products or services, providing a straightforward experience that’s ideal for users on a budget.

Pros

• Its tax calculator is integrated with the same platform
• Easily tracks your income
• Minimalistic & user-friendly
• No need for vast personal data for tax estimate

Cons

• Doesn’t provide detailed tax guide

Who should Grab it?

Part-time workers, gig workers, and freelancers

Pricing

Free of cost

TaxSlayer (Best for freelancers & gig workers)

TaxSlayer offers its tax calculator for free on its website, allowing anyone to estimate their federal and state tax liability or refund without needing to commit to a full tax preparation product.

The TaxSlayer calculator is well-suited for users with straightforward tax situations, such as W-2 employees, freelancers, and self-employed individuals with basic income and deductions.

As users enter their information, the calculator shows estimated refunds or amounts owed in real-time, giving users immediate insights into how different factors affect their tax liability.

If users find the estimate helpful, they can transition to TaxSlayer’s full tax filing software to complete their return, with the added benefit of importing information they’ve already entered.

Pros

• Asks for only basic info like income filing status, and dependents
• Requires feeding only financial data, and not personal data
• Offers several filing options once you review the estimate provided by the calculator

Cons

• Limited to calculating federal refunds & liabilities, so doesn’t calculate state taxes

Who should Grab it?

First-time tax calculators like students and novice employees

Pricing

Tax calculation is free but full filing requires paying fees

Over to You

Now that you know the best tax calculation software that you can avail as a US resident. Whether you want to pay income tax as a paid employee, freelancer, or businessman, the above-listed 7 tax calculation software should work for you.

Obviously, these tax calculators are better off in different aspects. It’s your job to understand what you need, which tax estimator will fulfill your need, and depending on that, grab the right tax calculation software to pay your tax.