State Return and Filing Options: A Comprehensive Tax Software Comparison
This detailed guide explores state tax return filing options across major tax software providers. H&R Block and TurboTax offer free state returns with federal filing, while TaxAct charges $39.99 per state return—significantly impacting overall costs. All platforms support e-filing and provide multiple plan tiers to accommodate various tax complexities. Understanding these differences helps filers minimize expenses while ensuring accurate, compliant state tax submissions. Professional analysis covers cost structures, features, and strategic recommendations for optimal filing decisions.
Navigating state tax return filing requires careful consideration of software options, as providers differ substantially in pricing and features. While federal returns often receive primary attention, state filings constitute a critical component of tax compliance—particularly for multi-state filers or those with complex residency situations. This analysis examines H&R Block, TurboTax, and TaxAct, evaluating their state return offerings through cost structures, e-filing capabilities, and plan tier suitability. With H&R Block and TurboTax providing free state returns alongside federal filings, and TaxAct implementing a $39.99 per-state fee, understanding these distinctions becomes essential for cost-effective tax preparation. All platforms support electronic filing and offer graduated service levels, but strategic selection depends on individual circumstances including income sources, deduction eligibility, and jurisdictional requirements.
H&R Block State Return Filing
Pros
- Free state return with federal filing eliminates additional costs
- Comprehensive e-filing integration with federal return
- Multiple plan tiers accommodate simple to complex tax situations
- Dedicated state-specific guidance and error checking
- Transparent pricing with no hidden state return charges
Cons
- Free version may not support all state forms for complex returns
- State audit support typically requires premium plans
- Refund processing times can vary by state jurisdiction
- Limited state-specific deduction optimization in basic tiers
Specifications
TurboTax State Return Filing
Pros
- Free state return bundled with federal filing
- Intuitive state-specific interview process
- Real-time state refund calculations and tracking
- Comprehensive state deduction maximization tools
- Integrated state and federal error checking
Cons
- State filing free only with corresponding federal version
- Complex state returns require higher-cost tiers
- Additional fees for state audit defense services
- State-specific help limited in basic free version
Specifications
TaxAct State Return Filing
Pros
- Clear per-state pricing structure at $39.99 per return
- No bundling requirements with federal version selection
- Comprehensive state tax law updates and compliance
- Dedicated state tax credit optimization features
- Flexible plan selection independent of state filing
Cons
- $39.99 per state return significantly increases total cost
- Multi-state filers face rapidly escalating expenses
- State filing cost not included in advertised federal prices
- Less competitive for simple single-state returns
Specifications
Comparison Table
| Feature | H&R Block | TurboTax | TaxAct |
|---|---|---|---|
| State Return Cost | Free with federal | Free with federal | $39.99 per state |
| E-Filing Support | Yes | Yes | Yes |
| Plan Tiers Available | 4 tiers | 4 tiers | 5 tiers |
| Multi-State Filing | Premium tiers | All paid tiers | Additional cost per state |
| State-Specific Guidance | Comprehensive | Extensive | Detailed |
| Mobile Filing Support | Full functionality | Full functionality | Limited state features |
| State Audit Assistance | Premium plans | Additional purchase | Additional purchase |
Verdict
H&R Block and TurboTax emerge as superior choices for most filers due to their free state return offerings with federal filing, providing substantial cost savings—particularly for single-state filers. TaxAct's $39.99 per-state fee structure becomes economically challenging for multi-state filers, though its standalone state filing option offers flexibility for specific circumstances. E-filing capabilities remain consistent across platforms, but plan tier selection critically impacts state form availability and support features. For maximum value, filers should match software selection to their state complexity: H&R Block excels in straightforward returns, TurboTax offers robust guidance for complex situations, while TaxAct serves niche needs for standalone state preparation. Regardless of selection, verifying state-specific form availability and understanding total costs before filing remains essential for optimal financial outcomes.
