What is the best software for business taxes? That’s certainly a tough question. It depends on a number of things, like how many business entities you have, what state(s) you’re doing business in, whether you want automatic import of transactions from accounting software, what your reporting needs are like and so on.
So you’ve made a profit and your accountant tells you to report it. It’s time to do your taxes! You’ve already read this article but still cannot decide which software to use for business taxes? This section specifically covers the best software for businesses that need a simple way of filing their taxes.
Best software for business taxes
If you work for yourself, or own a business, you need to file taxes. And if you’re like most small business owners, you probably dread doing it.
I know that feeling! When I started my own small business, I was so overwhelmed by the process that I almost gave up on it before it even got off the ground. It was too much work and took too much time; there were just so many forms and documents to fill out, and they all seemed complicated. I felt like I wasn’t doing it right—like there was some secret trick to filing taxes that everyone else knew but me.
But there’s good news: filing your taxes doesn’t have to be stressful or confusing anymore! There are tons of great tools out there that can make this process easier than ever before. Here’s our guide to finding the best software for doing your taxes online:
Best software for business taxes
Many people find it difficult to calculate taxes on their own. If you do not pay taxes deliberately or do not pay the accurate amount, you can face a penalty of thousands of dollars or even imprisonment.
Taxable income is calculated by calculating your total household income and then doing some deductions from it, for example, your contributions to your 401(k), etc.
Most of the time, you will need an expert who knows how to maximize the deductions for taxes so that you can save as much money as possible. Plus, he/she will also guide you on how to do tax planning, for instance, marital status, number of dependents, and many other factors that influence the net amount of tax that you need to pay.
Thus, there is tax preparation software out there. You can use them either to file your own taxes or for your clients. They help in calculating taxes accurately while saving much of your time.
Tax Software Review
In this article, we will discuss the top features offered by the best tax software available in the industry. You can go through the comparison and the detailed reviews to decide which one can be a good option for you.
Pro-Tip: There is some tax prep software that offers you a feature for uploading pictures of the documents so that you do not need to input all the data manually, which saves much of your time. This feature should be your priority while looking for tax prep software.
Facts Check: According to a study by Data Bridge Market Research, the Global Sales Tax Software market is expected to grow at a Compound Annual Growth Rate of 8.05% from the year 2021 to 2028, thus reaching an estimated value of $10.95 billion in 2028. The growth can be seen in almost every part of the world.
Frequently Asked Questions
Q #1) What are the basics of the US tax system?
Answer: The US tax system is quite a complex one. People in the USA usually search for experts to file their taxes. The taxes are of many types, for example, income tax, sales tax, etc.
You need to pay state as well as federal taxes. Both of them are important and every state has a different tax policy. Even jurisdictions within states also charge taxes.
Q #2) What are 3 types of taxes?
Answer: The three types of taxes are:
- Regressive
- Proportional
- Progressive
The proportional and progressive tax types have different impacts on low-income and high-income groups, respectively. The regressive tax policy burdens the low-income groups more than the high-income groups.
Q #3) What is a tax in simple words?
Answer: Tax can simply be described as a pre-specified percentage of your income that you have to give to the government. The federal, as well as state governments, charge different percentages of taxes on income sales, etc.
Q #4) Which tax software program is the best?
Answer: TurboTax is the best tax filing software. It offers you expert help for filing taxes. Plus, you get tips on how to maximize your tax deductions. The features offered by this software are really praiseworthy. You can even track your gains and losses incurred by cryptocurrency exchanges.
Q #5) Is a professional tax preparer worth it?
Answer: Yes, a professional tax preparer can clear all your tax-related doubts and can give you tips on how you can save more. Getting your taxes by a professional tax preparer saves much of your time. But you always need to be very careful while hiring a tax preparer because a lot of ill practices happen in the name of filing taxes.
Suggested Reading =>> Compare the best Crypto Tax Software
Q #6) When should I stop claiming my child as a dependent?
Answer: If your child goes to college, you can keep claiming your child till he/she turns 24, otherwise you should stop claiming your child as a dependent when he turns 19.
But if you claim a child as a dependent, that child can not take advantage of educational credits. So you should keep that in mind.
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List Of The Best Tax Software
Here is the list of professional tax return software for tax preparers:
- TurboTax
- Drake Tax
- TaxSlayer Pro
- Intuit ProSeries Professional
- H&R Block
- ATX Tax
- TaxAct Professional
- Credit Karma Tax
- FreeTaxUSA
- Free File Alliance
Comparing The Top Tax Preparation Software
| Tool Name | Best for | Price | Deployment |
|---|---|---|---|
| TurboTax | Tax tips that help in handling taxes on your own. | Starts from $80 | On cloud, SaaS, Web, Mac/Windows desktop, Android/iPhone mobile, iPad |
| Drake Tax | Professionals who file taxes for their clients. | Start from $345 for 15 returns | On cloud, SaaS, Web, Mac/Windows desktop, Android/iPhone mobile, iPad |
| TaxSlayer Pro | Independent tax preparers | Pro Premium: $1,495 Pro Web: $1,395 Pro Web + Corporate: $1,795 Pro Classic: $1,195 | On cloud, SaaS, Web, Windows desktop, Android/iPhone mobile, iPad |
| Intuit ProSeries Professional | Advanced features that make tax filing quicker. | Start from $369 | On Cloud, Saas, Web |
| H&R Block | Online assistance while filing taxes | Starts from $49.99 + $44.99 per state filed | Windows desktop |
Detailed Tax Software Reviews:
#1) TurboTax
Best for tax tips that help in handling taxes on your own.
TurboTax is the best tax software for tax preparers. With some really pleasant features for tax filing, they even help you after filing your taxes, if you want to track your refund and e-file status or make some amendments to a tax return, and much more.
Features:
- You can handle all your taxes yourself or get expert advice, or hand over all your taxes to an expert.
- Tax calculators and estimators.
- Get tax tips to maximize tax deductions.
- Videos and articles to help you understand the functioning.
- Easy to use.
Verdict: TurboTax is expensive tax prep software, but the features that it offers are worth calling it the best tax preparation software. You can even keep track of the gains and losses in cryptocurrency exchanges.
Price: Pricing for doing taxes on your own is as per the following plans:
- Free edition: $0
- Deluxe: $60
- Premier: $90
- Self-employed: $120
Pricing for getting help from real tax experts:
- Basic: $80
- Deluxe: $120
- Premier: $170
- Self-employed: $200
Website: TurboTax
#2) Drake Tax
Best for professionals who file taxes for their clients.
Drake Tax is a professional tax software that is loaded with features for filing taxes yourself. Professionals can also use it for calculating and filing taxes on the behalf of their clients.
Features:
- Calculates taxes and returns in just a click.
- Update the previous year’s data to the current year, as needed.
- Accept payments done with credit or debit card, within Drake Tax.
- Helps in planning tax deductions by showing how marital status, dependents, income, etc., affect the taxes.
- Fill in the taxes of your clients and give the feature of eSign to easily file taxes on your client’s behalf, without having to do the paperwork.
Verdict: The main plus point of Drake Tax is the pricing. You can file unlimited taxes with the Power Bundle or the Unlimited plan.
The customer service is reported to be really nice. The only drawback is you can not handle the software if you do not have some prior knowledge about filing taxes.
Price: Price plans for tax filing are:
- Power Bundle: $1,545
- Unlimited: $1,425
- Pay Per Return: $345 for 15 returns ($23 each for additional returns).
Website: Drake Tax
#3) TaxSlayer Pro
Best for independent tax preparers.
TaxSlayer Pro is a cloud-based software made for preparing taxes. It offers you some helpful educational resources, a useful mobile app, and unlimited tax filing.
Features:
- Get guidance on how to become a tax preparer.
- Prepare and file individual tax returns, electronically, through multiple devices.
- Unlimited federal and state e-filing, all state and local taxes with each price plan
- A mobile app that lets you work anytime, from anywhere.
- Your clients can eSign the documents, so there is no need to go to the office for meetings.
Verdict: The users of TaxSlayer Pro say that the software is easy to use and the price structure is comparatively lower than its alternatives. It can be of great advantage to individual tax preparers who file taxes for numerous clients.
Price: Price plans are:
- Pro Premium: $1,495
- Pro Web: $1,395
- Pro Web + Corporate: $1,795
- Pro Classic: $1,195
Website: TaxSlayer Pro
#4) Intuit ProSeries Professional
Best for advanced features that make tax filing quicker.
Intuit ProSeries Professional is one of the best tax return software which is loaded with advanced features to make tax filing easy and less time-consuming. They also offer educational resources to help you learn about the software or file taxes.
Features:
- Get access to 1,000 advanced diagnostics, to maximize your clients’ returns.
- An interface, which is easy to use and makes preparing taxes quicker.
- e-signature and built-in e-filing features.
- Easy integration with other platforms.
- You can get help while working on a tax return.
- You can split a joint return easily.
Verdict: Intuit ProSeries Professional is reported to be a very easy-to-use tax preparing software. The pricing is also comparatively low.
Price: Price plans are as follows:
- Basic 20: $499 per year
- Basic 50: $799 per year
- Basic Unlimited: $1,259 per year
- Pay Per Return: $369 per year
- 1040 Complete: $1,949 per year
Website: Intuit ProSeries Professional
#5) H&R Block
Best for online assistance while filing taxes.
H&R Block is the best free tax software that lets you file federal as well as state taxes at a $0 cost.
The paid plans are also there which offer you features like online assistance for filing taxes, reporting stocks, bonds, and other investment income, and much more.
Features:
- You can get help from a tax pro through a live chat or video while filing your taxes.
- Get real-time updates on your returns.
- You just need to upload a picture of your W-2 in order to gain important information for filing taxes.
- Ensures 100% accuracy. If any error occurs on their behalf, they’ll pay up to a $10,000 penalty.
- Claim your small business expenses.
Verdict: H&R Block is the free tax software that can be extremely helpful for many. The free version is reported to be better than the free options offered by others. The pricing is high for the paid plans.
Price: Price plans are as follows:
- Deluxe: Starts at $49.99 + $44.99 per state filed
- Premium: Starts at $69.99 + $44.99 per state filed
- Self-employed: Starts at $109.99 + $44.99 per state filed
- Online assistance starts at $69.99 + $39.99 per state filed
Website: H&R Block
#6) ATX Tax
Best for small forms and CPAs.
ATX Tax is a product of a very reliable and popular brand, Wolters Kluwer. It is a tax return software, which lets you find errors in e-filing, gives you in-line help, and much more.
Features:
- Gives you access to a library of over 6,000 tax compliance forms.
- Easily integrates with other platforms so that you can import and export information as per your need.
- E-signature and enhanced asset management features.
- Pay-Per-Return for business returns.
Verdict: The software is easy to use, has reasonable pricing, and is trustworthy. It is highly recommended for small firms and CPAs.
Price: Price plans are as follows:
- ATX 1040: $839
- ATX Max: $1,929
- ATX Total Tax Office: $2,869
- ATX Advantage: $4,699
Website: ATX Tax
#7) TaxAct Professional
Best for reasonable pricing.
TaxAct Professional is a tax prep software that has been in the industry for 20 years. This powerful software offers you a free trial so that you can have a test drive before you actually pay for it.
Features:
- Several options to import data.
- Reports and tools that can help you discuss tax planning with your clients.
- Data backup: You can access your clients’ data for 7 years beyond the filing date.
- You can save more, by paying only for what you need.
- e-filing, e-signature facilities.
- Side-by-side comparison view of the returns of the current year with that of the previous year.
Verdict: TaxAct Professional is a powerful yet affordable tax filing software. You need to pay only for what you need. The software lacks some features like tracking the status of your return.
Price: Price plans are:
- Professional Federal Editions: $150
- 1040 Bundle: $700
- Complete Bundle: $1250
- Federal Enterprise Editions: $220 each
Website: TaxAct Professional
#8) Credit Karma Tax
Best for free tax filing
Credit Karma Tax is the best free tax software, which lets you file your state as well as federal taxes at absolutely no cost.
This software can be a great option for small taxpayers who do not need expert help while filing their taxes.
Features:
- Guarantees you maximum refund on your federal taxes. If you get better returns, Credit Karma Tax will pay you the difference.
- Assures you to pay up to $1,000 in case of any error in tax calculation.
- File state and federal taxes are absolutely free.
- Upload your W-2 information with a photo clicked by your phone’s camera.
Verdict: The biggest plus point of Credit Karma Tax is the $0 fee and the user-friendly interface. But, there are some features that the software lacks. You can not get access to expert help for filing taxes, plus, the customer service is not too good.
Price: Free
Website: Credit Karma Tax
#9) FreeTaxUSA
Best for free filing for federal taxes.
FreeTaxUSA was founded in 2001 in the United States of America. It’s a popular and easy-to-use tax preparation software that offers you free federal tax filing.
Features:
- File your federal return for free.
- Compare the returns of this year with that of the previous year.
- File for joint returns.
- You can practice filing returns with the help of this software.
- Analyze the tax situation to do tax planning for the future.
Verdict: FreeTaxUSA is a recommended software for those who want to save money. But it lacks some features that can save much of your time, for example uploading pictures of documents or getting an expert’s help.
Price:
- Federal returns: Free
- State return: $14.99
- Deluxe: $6.99
- Unlimited Amended Returns: $14.99
- Mailed Printed Return: $7.99
- Professionally Bound Tax Return: $14.99
Website: FreeTaxUSA
#10) Free File Alliance
Best for free tax returns.
Free File Alliance is a free tax software founded in 2003. It serves over 100 million taxpayers in the United States. The software is partnered with the IRS to let you file for your taxes at no cost.
Features:
- Free e-filing by yourself.
- Available in 21 languages.
- Gives you proper information about your rights as a citizen.
- Guided preparation of taxes, if your income is less than or equal to $72,000.
- No state tax filing for income above $72,000.
- Get basic calculations and limited guidance for tax filing for income above $72,000.
Verdict: In a survey, it was found that 98% of the users of Free File Alliance would recommend it to others. The main plus point is the reliability and the no-cost tax filing that the software offers to its users.
Price: Free
Website: Free File Alliance
Other Tax Filing Software
#11) TaxSlayer
Best for being an affordable yet powerful solution.
TaxSlayer is an affordable tax preparation software that lets you e-file your taxes, gives you expert help while filing, and guides you on how to get maximum deductions.
Price: Prices are:
- Simply Free: $0 (One state return is free. Then pay $39.95 for each additional state return).
- Classic: $24.95 (additional $39.95 for each state return).
- Premium: $48.95 + $39.95 for each state filed.
- Self employed: $54.95 + $39.95 for each state filed.
Website: TaxSlayer
#12) Intuit ProConnect
Best for small firms.
Intuit ProConnect is a powerful tax filing software that offers you 20,000 automated calculations and 21,000 diagnostics that ensure maximum accuracy.
You can access 5,700 federal and state forms for filing your individual and business returns.
Price: Price plans are:
- Individual returns: Start at $23.98 per return
- Business returns: Start at $29.98 per return
Website: Intuit ProConnect
#13) Sigma Tax Pro
Best for giving you a dedicated account manager.
Sigma Tax Pro is a web-based tax preparation software, which gives you a dedicated account manager to help you throughout the tax preparation process.
It has a user-friendly interface and your clients get their refunds through direct deposit, in-office check printing, as well as prepaid VISA/MasterCard options.
Price: Prices are divided as per the following plans:
- 1040 EZ: $249
- 1040 CL: $495
- 1040 DR: $695
- 1040 TW: $695
Website: Sigma Tax Pro
#14) Wolters Kluwer Professional Tax Software
Best for automation features.
Wolters Kluwer Professional Tax Software helps you in automating the tax processes, provides you with research solutions, lets you deliver high-quality audits, and much more.
Price: Contact directly for prices.
Website: Wolters Kluwer Professional
#15) IRS Free File Program
Best for getting all the information about taxes in the United States.
IRS Free File Program is an official website of the government of the United States, which has all the information and statistics you would need about taxes. It lets you file for your taxes, free of cost.
Price: Free
Website: IRS Free File Program
Conclusion
Filing for taxes may not be easy for everyone. That’s why there is Tax Preparation Software that can make the tax filing process extremely smooth.
Based on our study, we are now able to say that TurboTax is the best tax prep software out there. It can take away all your tax-related worries, and even give you tips on how to maximize tax deductions.