We chose a slightly different group of online tax-preparation websites for this year's reviews. The company names are the same—Intuit, H&R Block and TaxACT—and we once again covered the most popular versions, the paid, deluxe editions of TurboTax, H&R Block and TaxACT. But we also decided to review their free versions: TurboTax Federal Free, H&R Block Free and TaxACT Free Federal.

Why? A sizable percentage of the U.S. population has fairly simple income and deductions to report. Using IRS estimates based on samples from tax year 2011 (the most recent year available), 145,370,240 federal returns were filed. Roughly 39 million were Form 1040As, and close to 23 million were Form 1040EZs. That's over 60 million simple forms. And all you need is one additional source of income or deduction to bump you up into the Form 1040.
So we wanted to see just how much federal tax-preparation power you could get for free (state versions always cost extra), and how it compared to the paid versions.
A Quiet Year
Tax-preparation solutions supporting the 2013 tax year didn't see a great deal of innovation or change. This is not surprising. These applications—first as DOS-based desktop software, then as Windows-based desktop software and later as interactive websites—have been around for roughly 25 years. They've had a lot of time to mature, and mature they have.
The solutions that were the most competitive in the early '90s are still the market leaders. Intuit's TurboTax has won our Editors' Choice far more times than anyone else, thanks to dependable, easy-to-use preparation tools; a help system that has changed a lot over the years; simple language; and a friendly user interface whose design was always a little ahead of the curve in terms of its aesthetics.
Not far behind in those early days was what was called TaxCut then, but has since been acquired by H&R Block and gone through numerous name changes. In several tax seasons, the Editors' Choice race between H&R Block and TurboTax was a photo finish, and it won the designation more than once.
Parsons Technology's Personal TaxEdge was an also-ran for a long time, good enough to be included, but not to win. Parsons Technology eventually dropped the product, but a small group of employees in Iowa believed in the product enough to keep it going. Renamed TaxACT, it slowly grew to the point where it became serious competition for Intuit and H&R Block. Last year, its tablet app won Editors' Choice in that category.
For the 2013 tax year, though, TaxACT wins the Editors' Choice in both free and paid browser-based tax-prep solutions.
The three solutions reviewed are roughly comparable in terms of the mechanics of preparation—they all use a question-and-answer format that progresses through dozens of screens. You simply answer the questions, and they do all the calculations and drop your answers into the correct fields on IRS forms and schedules.
TaxACT, though, excels in three other areas in both its free and paid versions: navigation, guidance, and number of IRS forms and schedules included. Both editions support every IRS tax form and schedule that can be e-filed. That's more than H&R Block Free, and way more than TurboTax Deluxe, even. For the 2013 tax year, you'd have to pay $99.99 ($74.99 for a limited time) to get a federal version of TurboTax to file Schedules C and F (income from small business and farming). And your state version would be $39.99 ($36.99 limited time). TaxACT Ultimate Bundle, which includes both federal and state preparation and e-filing, costs $17.99. So it wins in the affordability category, too.

Paid Tax-Preparation Services
TaxAct
TaxACT Ultimate Bundle 2014 (Tax Year 2013)
 
$17.95 direct
TaxACT Ultimate Bundle wins our Editors' Choice for Deluxe tax-preparation websites this year because it offers the best help system, an effective user interface and navigation tools, and the lowest price among any of its competitors. It sports all IRS federal forms and schedules that can be e-filed and a multilevel help system and review tool, though its interface isn't as slick as that of TurboTax. 
TurboTax Logo
TurboTax Deluxe 2014 (Tax Year 2013)

$29.99 direct
TurboTax Deluxe remains a powerhouse online tax preparation solution. But its help system continues to move away from professionally-penned content, and you must spend more to buy extra tax applications to support what TaxACT Ultimate Bundle does for a much lower price. 

H&R Block logo
H&R Block Deluxe 2014 (Tax Year 2013)

$29.99 direct
H&R Block Deluxe delivers a clear, easy-to-navigate path through the 1040s, as well as good context-sensitive help. It offers solid tax-preparation tools, generous support, all the tax forms you need, and numerous upgrade paths. Audit support is included at no extra cost. It only floundered in the final stages, when it tried to facilitate error correction. 


Free Tax-Preparation Services
TaxAct
TaxACT Free Federal 2014 (Tax Year 2013)
 
Free
TaxACT Free Federal is hands-down your best option if you want to prepare and file your federal tax return at no cost. It has a simple, clear user interface and supports all forms and schedules offered in the company's Deluxe version. Good context-sensitive help is joined by free email support, or you can get $7.99 unlimited expert help via phone.

TurboTax Logo
TurboTax Federal Free Edition 2014 (Tax Year 2013)

Free
TurboTax Federal Free will serve you well if you need minimal help preparing your taxes and don't have to enter data related to more complex situations like a small business or capital gains and losses. Its interface is clean and airy, and it offers good navigation options. You also get live chat support and a reliable return-review feature

H&R Block logo
H&R Block Free Edition 2014 (Tax Year 2013)

Free
H&R Block Free Edition can help you prepare your 1040 if you don't need Schedules C-F, but it lacks the content depth and guidance offered by TaxACT Free Federal. It does offer the most options for DIY and agent-assisted tax prep among the free services. Its in-depth help files, online community, and free audit support are also plusses.