You could use an accountant to file your quarterly taxes, or you could simply plug data into a spreadsheet. I know, the spreadsheet sounds hard. But, actually, it’s even harder to hire an accountant sometimes. Here are some great software programs for filing your quarterly taxes at your convenient time.
Quarterly taxes can be a nuisance and also offer additional complications due to the structure of what you need to do. If you handle your taxes for your company on your own, then you know how cumbersome it can be. The time and effort that goes into generating tax reports takes away from the rest of your business.
What is Tax Prep Software—and Do You Really Need It?
Many Americans use a tax prep software to compile their tax documents. Tax software can help self-employed individuals quickly file their taxes and locate deductions.
Self-employed men and women often have more complicated tax returns. There are a host of 1099 forms to compile and enter and self-employment taxes to pay.
Tax software can make filing your taxes easier. It can even analyze returns and expenses to find deductions that lower your tax burdens. All types of self-employment are not created equal.
Special and more in-depth tax software is also available for users who have particularly complicated returns. You might require special tax software if you:
- Own Rental Property. Investment taxes, particularly those related to rental properties, are some of the most complicated in the tax code. A tax program with specialized content can help you work within the bounds of the law by locating and helping you pay taxes that you might not even be aware that you owe—as well as locating all deductions related to your property.
- Had a Major Life Change: Whether you’ve tied the knot, had a baby or recently switched careers, major life changes also come along with major changes to your tax documents. A tax program can help introduce you to the new taxes you’ll have to pay, as well as the new deductions you can now take advantage of.
- Recently Became Self-Employed: If this is your 1st time handling your taxes as a self-employed individual or small business owner, a comprehensive tax program can be reassuring—and save you a massive amount of time and stress.
Best Tax Prep Software Qualities
The quality and features of tax prep software vary. Double check to be sure yours has these basic features:
- Quarterly tax payment support. As a self-employed individual, your taxes are not automatically deducted from the checks you receive like your counterparts who work for a larger employer. In addition to an annual tax payment, you are expected to make estimated quarterly payments on both the state and federal level.
While these payments don’t have to be 100% accurate (they’re called “estimated payments” for a reason!), you may have to pay a penalty to Uncle Sam if you neglect to make them entirely. The best tax software programs for the self-employed can help you set up quarterly payments for the next year that are automatically deducted from your account every 3 months. - An easy-to-use interface. As an independent contractor or a small business owner, you’re busy enough as it is. Trying to work through a confusing or non-intuitive tax software isn’t just annoying—it can also increase the likelihood that you make expensive mistakes or miss a deduction.
Check out a few YouTube tutorials before purchasing a specialized tax software program to make sure that the interface is easy to understand and at your level of technical skill. - Guiding questions. Every self-employment situation is unique, and you need your tax software to ask you a comprehensive set of questions to ensure that you’re tracking down every deductible possible. The best tax software providers offer a long list of questions and use A.I. to cater to your individual situation.
The Best Tax Software for Self-Employed Individuals
Take a look at the tax software that made the list and get started with your self-employed tax return today.
Starting Price
$0 – $90 per year
Current Promo
File 100% FREE with unlimited live tax advice on demandGET STARTED
1. TurboTax Premier
Intuit’s TurboTax is 1 of the most widely-recognized lines of tax software currently on the market. It offers both powerful and easy-to-use programs in an aesthetically pleasing package.
TurboTax’s design and flow are what makes the software shine. The software scrolls through a dynamic set of questions that change depending on how you answer them, much in the same way that a tax professional would conduct an in-person consultation.
The Premier version offers a particularly in-depth version of TurboTax’s standard software. It’s best if you’re self-employed. Premier has additional options for calculating brokerage taxes and taxes associated with buying and selling stocks, as well as taxes and deductions associated with owning and maintaining rental properties.
TurboTax Premier can also quickly calculate capital gains taxes and import entries from GainsKeeper.
The paid versions also support online chat options. And veteran TurboTax users will love how easily the software can pull information from last year’s data.
Starting Price
$0 – $84.99 per year
Current Promo
You could get up to $3,500 by applying for a 0% interest, no fee loan when you file with H&R Block starting January 4, 2021.GET STARTED
2. H&R Block Self-Employed
H&R Block offers a less expensive alternative to TurboTax without sacrificing functionality. Like TurboTax, H&R Block’s software is friendly and easy-to-use. But some users have complained about the software’s inability to interpret answers.
H&R Block offers additional assistance handling self-employment taxes and navigating the deductions for a contractor or business owner. It also provides audit support to help you understand any notice from the IRS.
H&R Block also prides itself on 100% accuracy. It’s willing to reimburse you for any penalties due to error.
Related content: How to File Back Taxes
Starting Price
$0 – $64.95 per year
Current Promo
Start for FreeGET STARTED
3. TaxAct
TaxAct is a budget-friendly alternative with packages that range from its free version to special software for freelancers and the self-employed. Prices range from $0 to $49.95.
TaxAct offers a money-back guarantee. Accuracy is guaranteed with up to $100,000 in compensation for errors.
The lower price point means you lose some of the bells and whistles that guide H&R Block Premium and TurboTax. But the system is more than capable of handling most types of self-employment.
The Life Events section is particularly useful if you’ve undergone a major life change this year. It hones in on factors that differ from your previous return like filing status, property ownership or tax bracket. Then it clearly explains how this change will affect your return.
TaxAct loses points for its interface. It’s a bit more cluttered than its competitors, but the software still shines if you need a cheaper alternative.
Starting Price
$0 – $47 per year
Current Promo
Start for FreeGET STARTED
4. TaxSlayer
TaxSlayer is a family-owned, cloud-based tax prep platform. It offers simple technology and step-by-step instructions to file state and federal taxes.
TaxSlayer keeps it simple but efficient. You won’t be unpleasantly surprised with add-on fees for obscure deductions or needed tax forms.
You can choose between 4 subscription packages, which all cost less than $50. And if you’re an active duty military member, you can file your federal taxes completely free of charge. State returns will cost you an additional fee. TaxSlayer also offers a completely free version of its software for simple, straightforward tax returns.
Take advantage of TaxSlayer’s resources to keep up with changing tax laws and reforms. It guarantees you’ll get your largest possible refund using its software and tax reform calculators.
Tax Software Makes It Easy
Tax software can help you track your expenses throughout the year, so reporting is easy when tax season rolls around. You might be surprised to learn just how many deductions and write-offs you’re eligible for. You could even deduct a portion of your mortgage, utility bills or even vehicle payments .
If you’re self-employed, Benzinga is here to support your financial goals—whether you’re looking to grow your business or just make it through this tax season. We offer a wealth of resources to help you. Check out our guide to saving for retirement when self-employed to get started.
TaxAct
LEARN MOREOn TaxAct’s secure site
- Cost$75.96 or $124.95 federal, $49.95 to $54.95 per state (see breakdown by plan below)
- Mobile appYes
- Tax expert supportYes, costs extra
- Better Business Bureau ratingA+
Terms apply, see below for our methodology.
Pros
- Up to $100,000 accuracy guarantee, which reimburses you for IRS/state penalty or interest if the TaxAct software causes a calculation error in your return
- More affordable than other paid software
- One-on-one support from real tax experts (costs extra)
- Maximum refund and 100% accuracy guarantee, or TaxAct will refund the plan fees you paid and pay any difference in the refund or tax liability, plus cover any legal or audit costs up to $100,000
Cons
- Xpert Help Self-employed plan costs $75 more for federal
Cost breakdown by plan:
- Self-employed/Sole Proprietor (for personal and business income and expenses): $75.96 federal, $54.95 per state
- Partnership, C Corporation or S Corporation: $124.95 federal, $49.95 per state
FAQs
When are taxes due?
Federal and some state income taxes are now due on May 17 (check your state’s updates).
While you need to submit a tax return by the filing date every year, you may also need to file your taxes quarterly and make estimated tax payments. (Quarterly estimated taxes are still due April 15.) The IRS generally requires small business owners to make quarterly estimated payments if they expect to owe a minimum of $1,000. Filing quarterly isn’t necessarily a bad thing. After all, it allows you to make four smaller tax payments versus one large tax payment.
Here’s when estimated tax payments are due:
- First quarter (January 1 to March 31): April 15, 2021
- Second quarter (April 1 to May 31): June 15, 2021
- Third quarter (June 1 to August 31): September 15, 2021
- Forth quarter (September 1 to December 31): January 18, 2022
You can make estimated tax payments through some online tax software, the Electronic Federal Tax Payment System (EFTPS) or by mailing in a completed 1040-ES form with your payment. If you mail in your payment, it must be postmarked by the due date to avoid penalties.
What happens if I miss the tax deadline?
If you miss the April 15 deadline, file your taxes as soon as possible. You may incur a fee if you file late, and it only gets pricier the longer you wait. If you file late and owe taxes, you’ll incur a fee. However, you won’t incur a penalty if you don’t owe and instead have a tax refund coming. That said, there’s no way to know if you’ll owe taxes or not, so it’s important to file on time.
Conclusion
As you start getting ready to file your quarterly taxes, it can be difficult to decide which software product will best suit your needs. There are so many great programs on the market that choosing the right one can be overwhelming. Use this guide to help you determine which product is best for your tax situation.