Which Tax Software Should You Use in 2025? A Guide for Every Type of Filer

Tax season is stressful enough without having to spend hours deciding which software to use. The good news: once you understand what makes each platform different, the choice is actually pretty easy. Here’s a no-nonsense guide to help every type of filer pick the right tool.

First: Know Your Filing Situation

Not all tax returns are created equal. A college student with one W-2 has a completely different tax situation than a freelancer juggling clients, home office deductions, vehicle mileage, and quarterly estimated payments. Before picking software, ask yourself:

• Do you have only W-2 income? → You have the simplest return possible.
• Are you self-employed or a freelancer? → You’ll need Schedule C support.
• Do you own investments or rental property? → You need Schedule D or Schedule E.
• Did you buy or sell a home? → You’ll want deduction guidance for mortgage interest, PMI, and property tax.
• Are you a small business owner? → You’ll need robust Schedule C + deduction tracking.

The Simple Filer: Just a W-2? Use FreeTaxUSA or E-file.com

If your tax situation is straightforward — one or two W-2s, standard deduction, no investments — you don’t need to pay anything. Both FreeTaxUSA and E-file.com let you file your federal return completely free.

FreeTaxUSA is our top pick here. It’s clean, straightforward, and even supports more complex returns for free — so if you end up having a few deductions to claim, you won’t suddenly hit a paywall the way you might with TurboTax or TaxAct.

E-file.com is even simpler and faster — but best reserved for people with truly minimal tax situations.

The Investor or Landlord: Use TaxAct

If you have capital gains, dividend income, rental property, or K-1s from partnerships, you’ll need to file Schedule D or Schedule E. TurboTax handles these well — but so does TaxAct, at a significantly lower price point.

TaxAct’s Premier tier handles investments and rental income and often costs 30–50% less than the equivalent TurboTax tier. For a buy-and-hold investor filing one or two 1099-Bs, this is the sweet spot.

One underrated perk: TaxAct offers a price lock guarantee — the price you see when you start is the price you pay at the end, even if the filing deadline approaches.

The Freelancer or Gig Worker: TaxAct or TurboTax Self-Employed

Self-employed income adds complexity fast. You’ll need to track income, deduct business expenses, calculate self-employment tax, and potentially handle quarterly estimated taxes. Both TaxAct and TurboTax have solid Self-Employed tiers, but they approach it differently:

• TaxAct Self-Employed ($79.99): Great value, handles Schedule C well, includes guided expense categorization.
• TurboTax Self-Employed ($129): More expensive, but includes an on-demand CPA review and a dedicated mileage tracker app integration. Worth it if you have a complex business or high income.

And don’t sleep on FreeTaxUSA — it lets you file Schedule C for free on the federal level. If you’re disciplined about your bookkeeping and don’t need hand-holding, this can save you $80–$130.

The “I Just Want It Done Right” Filer: TurboTax

If you’ve had a complicated year — life events like marriage, divorce, a new baby, a home purchase, a job change — or if you just want the maximum peace of mind that your return is correct, TurboTax is the gold standard.

Its interview-style interface walks you through every scenario. It catches deductions other software misses. And its Live Full Service option lets a real CPA prepare and file your taxes for you — you just upload your documents.

Yes, it’s the most expensive option. But for a return where getting it wrong could cost you hundreds or trigger an audit, it’s often worth it.

One More Thing: Maximize Your Deductions First

Before you open any tax software, make sure you know what you can deduct. A lot of filers leave money on the table — especially freelancers, remote workers, and small business owners who don’t realize what counts as a legitimate write-off.

Use our free Tax Deduction Finder to see which deductions apply to your situation. Then, when you open your tax software, you’ll already know exactly what to claim.

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