Best Tax Software for Students (and Student Loan Borrowers)

College students need to pay their taxes, and many of them have student loans. So, if you’re a student or student loan borrower, which tax program is best?

This year, several major tax companies are courting student loan borrowers by promising to offer free state and federal filings for people who claim education credits and student loan interest deductions.

Anyone who is eligible to file their taxes for free should take advantage of these software packages.

However, file owners who expect to be offered free files should be aware of errors. Student loan borrowers who aren’t careful may end up paying for expensive programs. Below, we compare the best tax software options for students and student loan borrowers.

Tax filing software companies often paste the phrase “Free!” All over their ads. But many student loan borrowers won’t qualify for free returns. Many companies offer free programs for people who want to claim a student loan interest deduction. In fact, there are two distinct software packages, H&R block TurboTax supports this discount on their free tier.

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However, this so-called free program may not be suitable for all student loan borrowers. Bloggers may use one of these packages to “start for free” only to find that they don’t qualify for the free option. It can be frustrating!

Many filers will need to pay for the more expensive version of the software because they have income from freelancing. Freelancing is an expansive term that covers a wide range of work situations including most side hustles.

For example, people who sell items on eBay, those who drive for ride-sharing companies, and many others should file a complaint Table C. These jobs, which you may have taken to help pay off your debts, qualify as self-employment income. This type of income often requires upgrading to a more expensive “Self-Employed” package.

Below we clearly explain which tax positions each program supports for free (and which positions are not supported). This way student loan borrowers can find out which programs are right for them.

This year, our top software options for student loan borrowers include H&R Block Free, TurboTax Free, Cash App Taxes, Chime Taxes, and FreeTaxUSA.

Our overall pick for the best tax software for students is Cash App Taxes.

Cash App Taxes offers completely free state and federal filings for most filers. However, it does not support multi-state enrollment (which may be difficult for students who live and work in multiple states).

But most college students are probably already using Cash App (the largest peer-to-peer money transfer app), so it’s convenient too.

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Chime lets you file both federal and state returns completely free through the Chime mobile app, with no fees, upsells, or premium tiers. It handles the most common student tax situations (W-2s, simple 1099), but you must open a Chime bank account and it does not support multi-state filing.

FreeTaxUSA Offers low-cost programs that support all situations. It’s not as easy to use as the other three programs, but it has a very good user experience considering its low price.

H&R block Provides a simple experience. It allows users to import W-2 and 1099 forms directly into the software. The program then generates the returns. Most importantly, education credits and a student loan interest deduction are included in the free plan.

*Approximately 52% of applicants qualify for the free version of H&R Block Online. Minor tax situations only (Form 1040 and no schedules except for the Earned Income Tax Credit, Child Tax Credit, Student Loan Interest, and Retirement Plan Distributions).

When we review the best tax software each year, TurboTax is always near the top in terms of ease of use, navigation, and support options. It also covers the student loan interest deduction on the free tier. But unlike H&R Block, you’ll need to upgrade to the paid TurboTax tier if you want to claim education credits.

Price is, of course, one of the most important considerations when choosing tax software. But it is not the only consideration. Student loan borrowers should also consider how easy the software is to use.

Free and low-cost software options, such as Cash App Taxes and FreeTaxUSA, are usually not easy to use. Bloggers who use these options may expect to spend more time preparing their returns. However, they record lower prices.

Distinctive programs such as H&R block TurboTax makes the filing process extremely easy, even for filers with complex taxes. Users can take photos of their tax forms and upload them directly to the app. The app takes care of the rest. Bloggers can also learn how to quickly add rental or self-employment income and associated deductions. These features are great, but filers must weigh the benefits with the direct costs they expect to pay.

In general, we recommend choosing premium software when you can use it for free. Filers who cannot use free software face a more difficult decision and must decide whether to spend more time or more money filing their taxes.