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💻 The Software Behind Tax Filing in the USA: How Americans File Taxes with the IRS

Tax

Every year, millions of individuals and businesses in the United States are required to file their taxes with the IRS—the nation’s tax authority. What used to be a manual, paper-heavy process has evolved into a fast, secure, and mostly digital system, thanks to a wide range of tax software solutions. These platforms help taxpayers comply with the law while simplifying complex financial reporting.



🧾 What is Tax Filing Software?

Tax filing software is a digital tool that helps individuals, businesses, and tax professionals prepare and submit their tax returns to the IRS. These platforms guide users through a step-by-step process to enter income, deductions, credits, and other relevant financial information. At the end of the process, the software calculates the refund or amount due and electronically submits the return to the IRS.


📌 Popular Tax Filing Software in the U.S.

Several companies dominate the tax software market in the U.S., each offering different levels of service depending on user needs:


1. TurboTax (by Intuit)

  • One of the most popular platforms for individuals and freelancers.

  • Offers a free basic version, and paid versions for more complex returns.

  • Features include audit protection, live expert help, and mobile app support.


2. H&R Block

  • Known for combining online software with in-person support at retail locations.

  • Offers self-service filing and full-service filing by tax experts.

  • Strong support for both personal and small business tax filing.


3. TaxAct

  • A budget-friendly alternative to TurboTax and H&R Block.

  • Offers a clean, user-friendly interface with essential features.

  • Strong option for those who are confident in preparing their own taxes.


4. Free File (IRS.gov)

  • In partnership with several private companies, the IRS offers Free File, which allows eligible individuals (typically with income below $79,000) to file taxes at no cost.

  • Available through the IRS website.


5. Drake Tax / ProSeries / Lacerte

  • Used mostly by tax professionals and accounting firms.

  • Offers advanced features, client management tools, and integration with accounting software.


💻 The Software Behind Tax Filing in the USA: How Americans File Taxes with the IRS

by Lic. Henry Suro

 
 
 

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