No tax software changes what you owe — they all calculate the same refund

The refund amount itself does not vary between tax sites. TurboTax, H&R Block, TaxAct, FreeTaxUSA, and the IRS Free File partners all use the same tax code and the same math. If you enter identical income, deductions, and credits into five different programs, you will get five identical refund amounts.

What changes between sites is the price you pay to file, the features included, and how much hand-holding you get along the way. A site that costs $120 does not calculate a bigger refund than one that costs $20 — it just costs more money.

The real question is not which site gives the biggest refund, but which site helps you find deductions and credits you might otherwise miss. Missing a deduction costs you money. Paying extra for software that finds it for you might still come out ahead.

Key Takeaways

  • All tax software calculates your refund using the same IRS rules, so the dollar amount will be identical across TurboTax, H&R Block, TaxAct, and other major sites.
  • The IRS Free File program offers free filing through partner sites if your income is below a certain threshold, which varies by year and provider.
  • Some software packages include deduction finders or credit checkers that may uncover deductions you would miss on your own, which can increase your refund.
  • The difference in cost between sites ($0 to $250+) is real money out of your pocket, but does not change the refund the IRS owes you.

How the IRS Free File program works

The IRS Free File program partners with tax software companies to offer free federal filing if your income falls below a threshold. For the 2024 tax year (filed in 2025), the income limit is $79,000 for most filers. The exact limit varies by provider and by year, so check the current year's IRS Free File site before you start.

Free File covers federal taxes only. State filing is usually separate and may cost money depending on your state and the provider you choose. Some states offer their own free filing programs, but you have to find them through your state's tax authority, not through the IRS site.

The catch: Free File partners often hide their free products behind paid versions on their main websites. If you go to TurboTax.com or HRBlock.com directly, you will see the paid options first. You have to go through the IRS Free File site (irs.gov/freefile) to access the free versions. The software is identical; the only difference is the price.

Where deductions and credits actually come from

A bigger refund comes from deductions and credits you claim, not from the software you use. The software does not invent deductions for you — it asks you questions and calculates based on your answers. If you do not know about a deduction that applies to you, no software will find it unless you tell it about your situation first.

Some software packages include guided interviews that ask more detailed questions about your life — whether you paid student loan interest, whether you made charitable donations, whether you had medical expenses. These interviews can prompt you to remember deductions you would otherwise skip. Other packages use a simpler form-based approach and leave it to you to know what to claim.

The difference is real, but it is not about the software being smarter. It is about whether the software asks you the right questions. If you use a basic package and you know your own situation well, you can claim the same deductions as someone using premium software. If you use premium software but you do not read the questions carefully, you will miss deductions either way.

Paid software features that might save you money

Some paid versions include features that can uncover money you did not know you were may have access to to. TurboTax Premium and H&R Block Premium both include deduction finders that scan your answers and flag deductions you might have missed. TaxAct includes a similar tool in its higher tiers. These are not magic — they work by asking follow-up questions based on what you already entered.

Audit support is another paid feature. If the IRS contacts you after you file, some software packages will help you respond or connect you with a tax professional. This does not change your refund, but it can save you time and stress if something goes wrong. The cost of this feature ($50 to $150 extra) is worth considering only if you think an audit is likely.

State filing is often bundled into the price. Some sites charge $15 to $30 per state return; others include it in the base price. If you file in multiple states, the bundled option can save money. If you file in one state, the per-state charge might be cheaper than paying for a premium package.

Why you might pay more and still get the same refund

You might pay $150 for TurboTax Premium instead of $0 for IRS Free File and end up with the exact same refund. This happens when the premium software does not uncover any deductions you missed. You paid for features you did not need.

You might also pay $150 and get a refund that is $500 larger because the premium software's interview caught a deduction you would have missed. In that case, you came out $350 ahead, even though you paid more.

The only way to know which scenario applies to you is to be honest about your own tax knowledge. If you have a straightforward situation — W-2 income, standard deduction, no side business — Free File will get you the right answer. If you have rental income, business expenses, or multiple income sources, paying for software with a detailed interview might uncover deductions that pay for itself.

State tax refunds are separate from federal refunds

Your state refund is calculated by your state's tax code, not by the software you use. The software applies your state's rules to the income and deductions you enter. If you use different software for state and federal, you might enter slightly different numbers by accident, which could change your state refund.

Most people file both federal and state through the same software to avoid this problem. Some states have their own free filing programs that are separate from the IRS Free File program. Check your state's tax authority website to see whether a free option is available in your state.

A few states do not have income tax at all (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming). If you live in one of these states, you only file federal taxes, and the refund question is simpler.

How to pick a site without overpaying

Start by checking whether you meet the income threshold for IRS Free File. If you do, use a Free File partner and save the money. The software is the same as the paid version; you are just accessing it through the right door.

If your income is above the Free File threshold, compare the actual cost of filing, not the advertised price. Many sites offer discounts or bundled pricing. TaxAct is often the cheapest paid option for straightforward returns. TurboTax and H&R Block are more expensive but include more hand-holding.

Read the reviews for the specific product tier you are considering, not the company overall. TurboTax Free Edition is different from TurboTax Premium, and reviews of one do not apply to the other. Look for reviews that mention whether the software caught deductions or whether the interview was clear.

Do not assume that a higher price means a bigger refund. It means more features, more support, and possibly a better interview. The refund itself is determined by your income and deductions, not by how much you paid to file.

Frequently Asked Questions

Can I file with one software and then file again with another to see which gives a bigger refund?

You can enter your information into multiple programs to compare, but you can only file once with the IRS. Filing twice is tax fraud. If you want to compare refunds before filing, enter your data into two free or trial versions and see what numbers you get. The refund should be the same if you enter identical information.

Does TurboTax really give bigger refunds than H&R Block?

No. Both use the same IRS tax code and calculate the same refund for the same income and deductions. The difference in refund size, if any, comes from the interview catching deductions you might otherwise miss — and that depends on how carefully you answer the questions, not on which brand you use.

What if I file with free software and then realize I missed a deduction?

You can file an amended return using Form 1040-X. You do not have to use the same software you used for the original return. Most tax software includes amended return filing, and the IRS Free File program covers it. There is no penalty for amending to claim a deduction you missed.

Is the IRS Free File software actually the same as the paid version?

Yes, for federal filing. The software code is identical. The only difference is the price and sometimes the marketing. State filing may be different — some Free File partners charge for state returns even though federal is free.

Do I need to buy premium software if I have a side business?

Not necessarily. TaxAct and some Free File partners include Schedule C (self-employment income) in their basic versions. Premium versions add features like expense tracking and mileage logs, but if you already have your numbers organized, the basic version will calculate your refund correctly. The premium features are about convenience, not accuracy.