There are many small business tax preparation software options, not to mention the number of professional services that will prepare your taxes. It can be quite overwhelming to figure out which one you need to choose. You can’t go wrong with TurboTax, but there are others that could save you money and simplify your life.
This guide will show you some of the best tax software for home business and make things clear again.
IRS2Go (iOS/Android/Amazon Free)
- Available for both iOS and Android—free service
- Check refund status of your return
- Make checking account, credit card or debit card payment to IRS
- Tax preparation assistance
- Videos, social media, and other options to stay in touch for tax tips and more
Taxfyle
- The iOS is free but pay for filling with the price determined by your information
- Prepares all business forms including C Corp from 1120, S Corp from 1120S, Partnership form 1065, Non-profit form 990
- Ideal for independent contractors, freelancers, and home business owners
- Suggest using accounting software such as Quickbooks, Shoebox, Expensify or Mint, a spreadsheet
TurboTax
- Available for both iOS and Android—available in four paid versions with a free option and also options for state filings
- Self-Employed option (read offer details and disclosures)
- Live expert help
- Take photo of W-2 to import data into tax forms
- Easy answer questions interface to fill in forms
The best way to make tax time easier is to start filing, tracking and organizing your business-related financials into a digital tool that will provide reports, store receipts, and integrate with your tax software. Don’t wait. The sooner you start organizing, the easier your business money management and tax preparation will be.
E-File Best for Year-Round Discounts
PROS
- Navigation sidebar with installed customer support tools
- Best for simple DIY tax returns
CONS
- Pay for on-demand customer support
| Services | Free Federal Basic Software | Deluxe Plus E-file | Premium Plus E-file |
| Federal | $0 | $25.99 or $19.49 with coupon code 25OFF | $45.99 or $34.49 with coupon code 25OFF |
| State | $21 (per state) | $21 (per state) | $21 (per state) |
E-file emphasizes speed on its homepage, boasting that many users can file their taxes electronically with its online software in less than 15 minutes. It’s not only fast, but it’s also generally less expensive than other tax preparers. E-file has a basic option for federal filing, but even its Deluxe Plus and Premium Plus tiers come in under $35. It accepts promo codes, too.
E-file will automatically save your progress as you complete your tax forms. Though the platform is entirely online and promotes electronic filing, it will still let you print out your tax forms to mail in yourself. If you encounter a question before that point, you can pay for phone or email assistance.
Why we chose E-file:
If you’re a budget-conscious filer who just needs the basics, E-file gets the job done and offers year-round promotions and discounts that can help you save. Its filing process is simple: once you create an account, enter your taxpayer information and E-file will prepare your return. The standard interface features prior-year import and a help (support) sidebar that guides you every step.
PROS
- Free tax storage for up to seven years
- Free tax extension filing (federal)
CONS
- Customer support is not comprehensive
| Services | Free Edition | Deluxe Edition |
| Federal | $0 | $6.99 |
| State | $14.99 (per state) | $14.99 (per state) |
FreeTaxUSA is an online-only tax service that’s well-suited for filers that are looking for a bargain. Whether your tax situation is simple, basic or advanced, you can file your federal tax return for free. State returns are a flat rate of $14.99, regardless of the complexity of your return.
FreeTaxUSA features easy prior-year imports from TurboTax, H&R Block and TaxAct. However, there is no document import feature, meaning you’ll have to enter some of your tax information manually.
The tax software provider also says it helps military members get the biggest refund available by supporting tax breaks such as combat pay exclusion, moving expense deduction, uniform deduction, reservist’s travel deduction, job search expenses, EITC for Nontaxable Combat Pay and more.
The downside, however, is that if you need extra support, you’ll have to sign into your account and use the Quick Responses message center. According to FreeTaxUSA, email responses from customer support will typically take around half an hour.
Why we chose FreeTaxUSA:
FreeTaxUSA offers free filing for people in all tax situations such as filing jointly, homeownership, dependents, itemized deductions, self-employed, investments, rental property, retirement and tuition program distributions. If you’re comfortable filing your tax return on your own with little or no assistance, FreeTaxUSA fits the bill. Once you file your return, it will be automatically stored as a PDF for up to seven years.
Our PartnerPROS
- Free filing for federal and state taxes
- Supports most major IRS and state forms/schedules
CONS
- Doesn’t support easy import of investments
| Services | Free |
| Federal | $0 |
| State | $0 |
If you want to file your taxes for free, most of the leading tax preparation software providers out there have strict income limits for you to qualify. Free offerings are also often limited to people with super-simple returns, forcing filers with complex returns to dip into their bank accounts to prepare and file their taxes. This is not the case with Credit Karma; the company offers comprehensive filing for federal and state returns for free.
Credit Karma, primarily known as an online platform that aims to help its users achieve personal finance and credit score goals, has developed an e-file product: Credit Karma Tax. It supports most major IRS forms and schedules as well as many other tax situations that other freebie tax software providers don’t accommodate, such as student loan interest or rental property income. To facilitate your tax preparation process, Credit Karma is equipped with easy-to-use navigation tools to guide you every step of the way. You can also easily import your 1040 using their Smart File feature on the Credit Karma Tax mobile app or your computer.
Credit Karma Tax is available in 40 states. However, its services are not available in states that offer free online tax filing services. Unfortunately, while Credit Karma Tax offers guided support during your filing process, you won’t be getting it from a professional as with other paid competitors. If you’re comfortable with a DIY tax software and don’t need one-on-one support, Credit Karma Tax could be worth considering.
Why we chose Credit Karma Tax:
Credit Karma Tax is the only tax software provider that offers a completely free tax filing service for federal and state returns. The provider offers support for most tax situations and forms, including Schedule C. You can easily import prior year returns from H&R Block, TurboTax and TaxAct. Credit Karma Tax also offers free audit defense and an accurate calculations guarantee, if the service makes a mistake you could receive $1,000.
PROS
- Wide range of tax software options
- Can service small and large corporations
CONS
- Must be renewed every year
| Free Trial | ATX Pay-Per-Return System | ATX 1040 | ATX Max | ATX Total Office | ATX Advantage | |
| Cost | $0 | $629 | $839 | $1,929 | $2,869 | $4,699 |
| Add-on: Advanced Calculations Compliance | N/A | $549 | $549 | $549 | $549 | Included |
| Add-on: Enhanced Asset Management | N/A | $350 | $350 | $350 | $350 | Included |
| Add-on: Return Retrieval | N/A | $155 | $155 | $155 | $155 | $155 |
Drake Tax has provided tax software services to preparers since 1977 and has offered electronic filing since it became available. Drake Tax has helped a wide range of offices produce accurate and compliant tax returns. Most notably, Drake Tax offers multiple professional tax software options that can service small offices that work with lower-income taxpayers to large CPA firms that support the more complex end of the market.
If you have trouble understanding a form, Drake Tax has a customer support line that’s available from December to April 20. You can also safely email the tax return to a customer support specialist to get hands-on assistance and resolve an issue within a week’s time.
Why we chose Drake Tax:
Drake Tax offers multiple tax preparation software package tiers designed to meet the needs of any professional — from a single CPA working from a home office to a large corporation. For instance, Drake’s ATX Pay-Per-Return System is great for tax preparers who may not manage large quantities of returns a year.1040.com
PROS
- Flat-rate price
- Cheaper than most tax prep software
CONS
- No on-demand live support
| Services | File Taxes |
| Federal | $25 (flat rate) |
| State | Included |
If you’re looking for a no-frills affordable tax preparation software, 1040.com offers flat-rate pricing of $25 for federal and state taxes. The online-only software provider is filer-friendly and equipped with a sophisticated walkthrough system that guides you through your tax return.
Navigation is simple. Once you get started you can use the “tell me more” button to learn more about your taxes or ignore it and continue scrolling. If you’re familiar with your tax forms and don’t need a step-by-step walkthrough, you can save time and use the menu to jump between forms.
Should you need support from a tax expert, 1040.com has a service team available through chat and email (no upgrade required). That being said, if you prefer talking with an expert via phone, this may not be the option for you.
One drawback of 1040.com is that it’s limited to W-2 imports, any other tax statements must be entered by hand. Overall, 1040.com offers straightforward pricing if you’re comfortable filing your taxes without much support.
Why we chose 1040.com:
1040.com is a budget-friendly tax software if you want to file federal and state returns at a flat, cheap price. The provider supports prior-year imports for return filers and W-2 import, which can speed up half of your tax prep process. You’ll also get three-year security storage of your tax returns.
Other tax software companies we considered
ATX Tax
PROS
- Library with over 6,000 tax compliance forms
- Additional integrations for easy import
- Robust diagnostics to catch errors
CONS
- Designed for tax professionals
- Best suited for mid-sized accounting firms
EzTax Return
PROS
- Great for simple tax returns
- Safe storage for up to three years
- More affordable than most tax prep software
CONS
- Available only in 21 states
- Email customer support only
Community Tax
PROS
- Licensed tax practitioners, CPAs on staff
- Assist with tax prep, planning, resolution and accounting
- Free phone consultation
CONS
- Must create an account to learn about pricing tiers
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Conclusion
There are thousands of tax software programs to choose from. All of them offer essentially the same features and benefits, but a few key factors will dictate which will be best for your business. These are the best!