Business taxes can be tricky to sort out, whether you are a small business owner or a freelancer. So you will probably need the best small business tax software 2022. There are various small business tax software available in the market for you to choose from. How do you choose the right one? Scroll down below and I will do my best to help you make an informed decision.
Finding the best small business tax software can be tricky, especially when you don’t know where to start. You may have just started a small business, or are still assessing your options for your current business. You might be wondering what kind of taxation software you should go for? The list below highlights some of the best small business tax software that can help you in tax filing with ease.
Liberty Tax
Online and face-to-face filing
Liberty Tax is an affordable option for small business owners and is available online in a trio of editions, Basic, Deluxe and Premium, with the Deluxe version being suitable for the self-employed and a Premium package that is better suited to S corporations. Basic is just that, for those with the simplest of tax affairs to sort, so unlikely to be of appeal to SMBs.
It also comes with the back-up appeal of mixing cloud-based tax preparation with on-site options, allowing you to mix and match your filing duties. Functionality is, in the main, fairly spartan without too much in the way of frills, but that’s all that many users want from their business accounting package anyway.
Having the ability of getting help, either online via chat or email, can be mighty useful if you’re not too confident with your filing duties. At the same time, getting someone to check things over in person is even more beneficial in some cases. Liberty Tax also has online and classroom-based tax courses if you really want to get on top of your taxes.
On the downside, customers of Liberty Tax occasionally grumble about some aspects of its usability and less on-the-ball customer support. Nevertheless, if you’re prepared to take on those compromises then Liberty Tax is another option to consider, especially if some face-to-face assistance is likely to be required along the way.
TurboTax
Small businesses want tax software that offers everything they need to prepare and file their tax returns quickly and at a fair price. TurboTax delivers exactly that. When it came to the range of features available, the overall price for those features, as well as the excellent support and user experience, TurboTax came out ahead of other competing tax software providers. TurboTax features As with all tax software providers we looked at, the exact features you get vary depending upon the package you select. More features come with a higher price tag, but if you’re just filing a simple return – with a 1040EZ or 1040A, for example – then even the Free Edition will offer you enough features to file your return accurately and quickly. However, we’re interested in tax software for small businesses, so we’ll be focussing on the Self-Employed and TurboTax Live packages. TurboTax is great because it suggests business friendly deductions (useful for making the most of things like home office or vehicle tax deductions) and you can enter multiple sources of income with ease. TurboTax offers the core features you expect of high-end tax software. You can take a photo of or scan your W-2 and upload it., and import files directly from Quickbooks. TurboTax will extract the information it needs automatically, saving you from having to input all the details manually (eliminating a lot of potential errors). You also get excellent support, and the deduction suggestions and review from CPA/EA are comparable to actual tax advice. With the addition of tax defense and audit support, TurboTax takes a lot of hassle and stress out of online tax filing and preparation. Cost of TurboTax TurboTax isn’t the cheapest option available, and includes additional fees for state and federal taxes, but we believe it still represents excellent value. You should always double check the price for the package you’re interested in on the company’s website, but at the time of writing here’s how the different packages compared: Free Edition Federal: $0 State: $29.99 For filing a 1040EZ or 1040A. If you need to file state taxes, it’s not free. Deluxe Federal: $59.99 State: $39.99 Includes the ItsDeductible feature, the SmartLook support option, and lets you store tax documents in TurboTax. Premier Federal: $79.99 State: $39.99 All the above, plus the ability to report investments and earnings from rental properties. Self-Employed Federal: $119.99 State: $39.99 Premium support, the features already listed, and help with your deductions and tracking your expenses. TurboTax Live Federal: $179.99 State: $39.99 Covers virtually every IRS form, a one-to-one review with a professional prior to filing,and online tax advice from an on-screen CPA or Enlisted Agent. TurboTax: What’s not included? If you go for one of the lower packages, you won’t get access to the high-end support features like a review with CPA/EA. Pay attention to the features in your specific package when you buy. Otherwise, TurboTax is an extremely comprehensive tax software.
H&R Block
Strong tax software for small businesses While TurboTax is an excellent option, H&R Block also did extremely well in our evaluation. H&R Block includes many of the same features as TurboTax, sometimes including some premium features in their more budget-friendly packages. While the customer support isn’t always as efficient as TurboTax, it’s still good and the overall user experience is comparable. H&R Block features H&R Block offers the full range of features you’d expect from a premium tax software provider. You can upload your W-2 by taking a photo or scanning, store your information in the cloud, work between multiple devices, and get suggestions and advice on things like deductions. The ‘semi-guided’ user interface is easy to navigate, and the Q&A format is extremely useful for making quick progress. Cost of H&R Block Overall, H&R Block tends to be a little cheaper than TurboTax when comparing equivalent packages. The free version also includes more, such as free state tax prep and filing. H&R Block also includes many ‘premium’ features in their less costly selections. Be sure to check H&R Block’s website for their latest prices and features. Free Federal: $0 State: $0 For filing a 1040EZ or 1040. You can also get help with mortgage and Earned Income Credit deductions. No charge for state taxes. Deluxe Federal: $34.99 State: $36.99 Added tools to help you maximize deductions, live chat with a tax expert, and the ability to upload last year’s return. Premium Federal: $54.99 State: $36.99 The upgraded version of Deluxe for freelancers or those with investment income. Self-Employed Federal: $74.99 State: $36.99 As above, with extra help maximizing business and personal deductions/expenses. H&R Block: What’s not included? As with a lot of tax software providers, it’s extra to file for state taxes. Audit support is also $19.99 extra.
TaxSlayer
Economical tax software If TurboTax and H&R Block seem too expensive for your small business, TaxSlayer is the best of a range of options we found competing on price. It still offers many premium features useful to small businesses with a strong user experience along with a reasonable level of customer support. However, the lack of audit defense is a potential weakness relative to TurboTax. TaxSlayer features Although it’s not a high-end piece of tax software like TurboTax or H&R Block, TaxSlayer still offers many of the same features. For example, you can upload your W-2, saving you from having to manually input the information. With the packages of interest to small business owners and the self-employed, you get ‘VIP Support’ and a ‘Personal Tax Expert’ to help you get the most out of your tax software. There are also excellent tools to help you identify potential deductions. Cost of TaxSlayer TaxSlayer is a highly affordable option despite offering many premium features and a high-quality user experience. For the latest packages and price information, see the company website. Simply Free Federal: $0 State: $0 File a 1040EZ or other simple tax returns. Free to file, even for state taxes. Classic Federal: $17 State: $29 Covers the major federal forms. Includes the Fast W-2 Import feature. Premium Federal: $37 State: $29 As above, but including ‘VIP Support’ and a ‘Personal Tax Expert’. Self-Employed Federal: $47 State: $29 All features are included (though you’ll need to pay an extra $29 for each year of state filings). TaxSlayer: What’s not included? While TaxSlayer Premium and Self-Employed feature audit assistance (TaxSlayer provides guidance on preparing for your audit) this isn’t included in the lower price-plans. You’ll have to pay an extra $29.99 if you want to add it to a cheaper plan. It’s important to remember that you won’t qualify for audit assistance if you’re filing a Schedule C or if you’re a freelancer.
TaxAct
TaxAct includes an option to complete tax filings for partnership and corporations completely online and is the only place you can prepare taxes for a partnership or S corporation with either a PC or Mac online, which is why it’s our choice as best for partnerships and corporations. Pros
- Completely online federal and state taxes for partnerships, C corporations, and S corporations
- Unlimited free support from tax specialists and technical support by phone and email
- Choose between online and downloadable versions
- Discounts available for bundling personal and business taxes
Cons
- Limited options for audit support
- State forms may not be available to file electronically
- Downloadable version for Windows only
TaxAct is a large provider of online and downloadable tax software that has completed over 80 million tax returns since 2000.
Business owners who file online will pay $124.95 plus $49.95 per state. That includes sole proprietors who file with a Schedule C, partnerships that require Form 1065, corporations that file with Form 1120 or Form 1120s. However, tax-exempt organizations that file Form 990 must by the downloadable version though..
The download version (Windows only), which includes 5 federal e-files is $109.95. States cost $50 each. You can bundle personal and business for a total of $200.
The online experience isn’t quite as polished as some of the larger competitors, but it is generally intuitive and easy to follow. If you need assistance along the way, tax help and technical support are both available by phone. Customer service (without tax help) is also available by email.
TaxAct guarantees accuracy and the maximum possible refund but doesn’t include audit support. You can pay extra during your tax preparation process to add audit support with their third-party partner Protection Plus. Overall, TaxAct is an excellent choice for those who can handle things primarily on their own, and perhaps the only choice for PC or Mac users who want to do partnership or corporation taxes on their own, which is why it’s our top tax software choice for partnerships and corporations.
Conclusion:
It used to be pretty hard being self-employed. Knowing what forms to fill out, at what times, and for which government agencies was difficult. Then the internet came along and made it a lot easier. You could look up forms online and create them yourself on various sites. Now, there’s no excuse for not getting your taxes done correctly (hopefully) each year. After all, if you weren’t able to do it yourself, you could go through a service like TurboTax as well, or other similar ones.