These days an accountant charges about $300 to prepare an itemized tax return, and a walk-in service averages about $200.  While I am so thankful these services are there for when things get complicated, I am equally grateful for the budget choices. (As I explained recently I started taking the route of tax prep websites and software once my taxes got simpler.)

Web-Based Tax Prep Software:  Free and Pretty Cheap

Most people with typical situations, such as a mortgage, two incomes, investments, charitable gifts, even self-employment income, can use tax prep software.  The New York Times this week road-tested the most popular tax prep software programs — TurboTax, H&R Block at Home, and TaxACT.

Unless you have multiple returns to complete, you’ll save money by doing your taxes online, as opposed to downloading the software to your computer or buying it in a boxed CD.

You’ll score the ultimate discount — i.e. get your taxes done for no cost — if you use one of these brand’s free federal versions.  You’ll probably get bugged a bunch of times to upgrade to “make sure you get the biggest refund,” but if you don’t mind the noise, your taxes are fairly simple, and you don’t need a lot of hand-holding, this is a great option.

Unfortunately the free versions do not include state returns.  You can still make it free if you wing it on your own, or pay an additional fee to get help with filing.

If you used any of these web services last year, you’ll probably fall for the ploy (as I did) that the “deluxe” version is best for returning customers.

Here is what you’ll pay for the deluxe versions of both the federal and state returns completed online:

• TurboTax:  $66.90 (see below for discount information)
• H&R Block at Home:   $64.90
• TaxACT:  $17.95

I used TurboTax again this year, because I thought it would be speedier to use the same program, but I’m totally going to try one of these free versions next year.  As long as I don’t do something crazy like earn income from farming.

Finally, I love that all the above programs will allow you to try any of their paid versions online for free.  You pay only when it comes time to file, so it’s easy to test out different brands risk-free.

TurboTax

TurboTax is the favorite among testers.  It is also the most expensive.  However, as Oneida mom Jen from JenSpends.com pointed out in my last post about taxes, most people can get a 15% to 35% discount through their financial institution.

Hundreds of banks and investment companies — such as Bank of America, Alliance, M&T, Chase, and USAA — have partnered with TurboTax to offer discounts to their clients.  Keep in mind that you must initiate every TurboTax session through your bank’s website.

To make sure you get the discount, follow these steps:

1. Log into your financial institution’s website
2. Search for TurboTax
3. Click on the bank’s discount program link to enter the TurboTax site (the first time and every time you work on your taxes)

These programs are great, but beware of hidden charges. For example, TurboTax tried to get me to sign up for extra services, such as deducting their fee from my refund (instead of paying with a credit card) — without telling me upfront that it would cost an additional $39.95.

H&R Block at Home (formerly Tax Cut)

The reporter found that Block at Home works as well as TurboTax.  He did complain that it wasn’t able to pull information from his financial institutions, even though it should be able to, but I found the same glitch with TurboTax.

(I personally don’t find this feature to be that helpful:  by the time I’ve entered all my personal and bank information and passwords, I could have just typed in the numbers myself.)

H&R Block at Home does offer some free extra insurance:  if you are audited, a Block agent will help you out, and even go with you if you have to appear at the IRS.  This benefit is even offered with the free version of their website.

TaxACT

Referred to as the Wal-Mart of tax prep software, TaxACT‘s most obvious asset is its price.  At $17.95 for the online deluxe version of both federal and state, TaxACT is one-third the price of TurboTax.

ConsumerSearch, a website that collects and analyzes reviews, says that TaxACT “is quick and accurate, according to reviewers, but it isn’t as sophisticated as more expensive tax software like TurboTax Deluxe… However, if you have a fairly straightforward tax return or don’t require much handholding, reviewers say TaxACT is an incredible bargain.”

Face-to-Face and Online Help:  All Completely Free

If you’re fine about filling out your taxes on your own, you deserve an award — for your smarts and your thrift.  But here are a bunch of ways to get some hand-holding, all for free.

If You Are a Self-Starter

Here is a way to patch together an online system that looks similar to one of these tax prep websites, at completely no cost.

Check out H&R Block’s Get It Right.com, where you can ask tax questions and get free answers from H&R Block tax professionals.

Then open another window and pull up Free Fillable Forms, an IRS-sponsored program that offers electronic versions of paper IRS forms.  Here’s how it works:

• Create a password so you can sign in and out of your return
• Choose your form: 1040A, 1040, or 1040 EZ
• Use the internal calculator to do the math
• E-file for free or print and mail your return

If You Earn $58,000 or Less and You Like Working Online

The silver lining of having a “low to moderate income” is that you’ll find lots of free tax assistance.

For example, hundreds of brand-name tax prep companies, including TurboTax and H&R Block, offer gratis assistance to low-income filers. Check out the IRS’s FreeFile for more on this program and a list of companies that offer this free service.

While FreeFile is a federal program, many states (including New York) participate in a State Free File program that allows you to prepare and e-file your state taxes for free (usually for low- to moderate-income filers).  To see if you can use this service, just go to your state’s webpage for taxation and search for “FreeFile.”

If You Are 60 Years Old or Have a Moderate Income, and Like People

Tax-Aide is an in-person tax preparation service provided free by the AARP to taxpayers with low and moderate incomes, with special attention to those 60 and older. To find an AARP Tax-Aide location near you, search their database.  Often tax help requires an appointment to use the service.  Spots fill up fast, so sign up soon.

If Your Taxes are Easy

Through the end of February, H&R Block offers free assistance with 1040EZ returns at any of their retail offices nationwide.  (The cost to file a state return in an office is $39, but that might be something you could do on your own, especially if your taxes are EZ.)

If You Don’t Fit Into Any of These Categories

Public libraries often provide tax help at this time of year.  The assistance is usually catered to lower income and older individuals, but contact your local system to see if you qualify.  Or just stop by and beg.  If they’re not busy, I’m sure they’d have pity.  Another good reason to get on those taxes…now.