1040.com Tax Software Review 2024 (2024)

1040.com is a contender in the mid-tier tax software category. With a flat $25 price for all filers, 1040.com feels like a breath of fresh air when compared to other tax software with endless add-ons and upgrades. It also has an easy-to-use interface.

However, there’s no upgrade option to work with a pro or import your tax data, which could be a deal breaker for some filers.

It’s also not as easy to use as industry leaders TurboTax and H&R Block, which do charge more for a premium experience. 1040.com offers a decent service at a decent price, but it’s not the most compelling software on the market.

Here’s what you need to know about the 1040.com tax software this year. Also, find out how it stacks up in our annual list of the best tax software programs.

1040.com - Is It Free?

Unlike some competitors, 1040.com does not offer a free version. All users pay the same $25 fee regardless of their tax-filing needs. The $25 cost includes federal taxes and as many states as you need. That’s much less than you would pay with premium competitors, who often charge more than $25 per state, let alone federal taxes.

The two add-ons are for services provided by third-party partners. An additional $24.95 cost allows you to pay your $25 fee with your refund, which is definitely not worth the cost as it doubles what you pay with no real benefits. You can also pay $29.95 for audit support should the IRS come back with questions.

What's New In 2024?

For the 2024 tax filing season, 1040.com provides a similar look and feel to previous years. If you’ve done taxes online before, you’ll find the layout and interface familiar and easy to navigate. And if you’ve used 1040.com, it will be mostly the same.

For this year, the company made the standard updates to keep up with IRS changes and made other minor updates. 1040.com calls its tax filing experience a “Walkthrough” where you answer questions or pick the forms you want to enter.

Option to choose between guidance and form selection

1040.com uses a “hybrid” navigation model. Users can decide whether to allow 1040.com to ask questions about their taxes using a left-hand navigation bar or jump around and choose the section to work on.

The interview-style navigation can be a bit tedious. One standout feature from mid-tier and low-cost competitors is the option to import your W-2 data if your employer is supported. All you have to do is enter your employer ID, and 1040.com will find and import your data if your employer participates.

W-2 Import

Interview for depreciation

The 1040.com software offers a guided navigation option to help filers work through their returns. Users who opt to use the question-and-answer interface can find most of what they need during a single pass through the software.

The drawback to this is that the guided navigation only covers simple filing situations. Users with more complex incomes (such as investments, real estate, and self-employment) must select their income type from the menu before receiving guidance from the software.

If you don’t want to use the navigation, you can jump between sections and forms when you want to enter something specific.

Request to complete tax forms

1040.com Pricing And Plans

1040.com uses a simplified pricing plan. All users pay $25. It's worth noting that the $25 price tag even applies to users who need to file multiple state returns.

This puts the software solidly in the middle-tier pricing category for tax software. It could make sense for some filers, including those who may "unexpectedly" get bumped into higher pricing tiers elsewhere. For example, those with tuition expenses, child care deductions, gambling winnings, health savings accounts (HSA), and other common forms could save money using 1040.com.

Plus, the fact that your flat $25 includes unlimited states can be very compelling. With many free tax software companies, you still have to pay for state filing, which often exceeds $25 each. If you moved last year or need to file in multiple states, that’s a bargain.

Check out 1040.com here >>

How Does 1040.com Compare?

1040.com is more affordable than the premium tax software platforms. We’ve compared it to other bargain software including Cash App Taxes (free) and TaxHawk.

We generally prefer competitors user experience to 1040.com. However, multi-state filers may appreciate that 1040.com includes unlimited state returns in the base price.

However, Cash App Taxes is free if you qualify, and TaxHawk is just $14.99 per state - so at one state you're saving money versus 1040.com.

1040.com employs a strong privacy policy and uses industry-standard encryption and multi-factor authentication to keep user information safe and secure. These precautions are standard for all tax filing companies.

Users can feel confident that 1040.com is as safe to use as most other tax software. Of course, using a strong, unique password and following other cybersecurity best practices is important to ensure the bad guys don’t get into your data.

Is 1040.com Worth It?

1040.com offers a fairly good user interface for people with straightforward filing situations. If you moved in the last year and you need to file taxes in multiple states, work across state lines, or earn income in multiple states for any other reason, it could be a good choice for you.

However, we don’t recommend 1040.com as a top choice for the typical tax filer. The software is too cumbersome to use for a $25 price point. Cash App Taxes and TaxHawk offer superior user experiences at lower price points.

If you want to dig into other options, we’re ready to help you find the best tax software for your situation.

Why You Should Trust Us

At the College Investor, we don’t play favorites. We have over a decade of experience reviewing tax filing programs, and we’ve used most of them ourselves over the last few years. Our goal is to help you find the right tax app at the right price. There’s no perfect way to file taxes for everyone, but there is likely a best option for you. We want to help you find the right fit for your unique needs.

Here are the answers to a few of the most common questions that people ask about 1040.com:

Can 1040.com help me file my crypto investments?

Entering crypto trades into 1040.com is possible, but cumbersome. Users need to enter each transaction into the 1099-B/8949 form section manually. If you had a lot of trades, that could take hours.

Can 1040.com help me with state filing in multiple states?

Yes, this is one of the best reasons to pick 1040.com. The $25 price includes federal and unlimited state returns.

Does 1040.com offer refund advance loans?

1040.com does not offer refund advance loans. You’re able to pay for your 1040.com costs with your refund for an extra $24.95, but we don’t suggest this.