→ Easy Software to File Business Tax Returns Online Filing business tax returns can be complex. There are different kinds of business entities apart from the different formulas that are involved in calculating business taxes. Just keep in mind that if there is a complex or lengthy process to be followed, it will lead to substantial costs which you have to bear even if you are being being diligent with your book keeping. So yes you would be spending more dollars but at the same time, you would have peace of mind knowing that everything is being submitted correctly so there are no worries about letters from IRS. The best way to tackle your business tax return is through software which will guide you through the whole process regarding calculating your taxes and filing through the right channels.
There are three basic types of software that we use to do our business taxes: 1) Basic spreadsheet 2) Dedicated tax software and 3) Online programs. Different businesses prefer different types of software. However, there is quite a lot of debate about which option is the best and why. Hopefully, by the end of this review, you will be able to discern which one you should use.
H&R Block
We chose H&R Block as best overall because it is a trusted name in tax preparation, and its tax software for small businesses and business owners offers an excellent user experience and covers a wide range of tax situations. It offers a straightforward user interface that makes it easy to do your taxes accurately the first time.Pros
- Online version includes self-employment and small business income on your personal tax returns
- Option to upgrade for on-demand assistance from a tax expert
- Mobile app allows you to upload tax documents and track filing status
Cons
- Business editions are priced higher than competitors
- Some functionality may not be available on mobile
H&R Block is a well-known brand in personal and business tax preparation. It was founded in 1955 and has prepared more than 800 million tax returns. If you want to do your own taxes, you can choose between online and downloadable versions of H&R Block’s tax software. For the 2019 tax year, H&R Block prepared almost 22 million tax returns and nearly 9 million people used H&R Block Online to do their taxes.
Windows desktop users get the most robust options, including corporation or partnership tax forms and employee-specific tax forms. This comes through H&R Block’s downloadable Premium & Business software, which costs $89.95 plus $39.95 per state return. If you can get by with a Schedule C, you can file with the Premium Online edition for $69.99 or Self-Employed Online for $109.99. Both require an extra $44.99 per state. If you have significant business expenses, you’ll need the Self-Employed edition, their top-tier online option.
The software program does a good job of walking you through complex tax situations. If you think you’ll need extra help, you can upgrade to Online Assist, which allows you to do your taxes on any device with unlimited, on-demand help from a tax pro. It costs $159.99 for Premium or $194.99 for Self-Employed, plus $49.99 per state.
Whether you file online or with the download version, the tax software comes with a maximum refund guarantee and 100% accuracy guarantee. All versions have an audit support guarantee. Whichever you choose, H&R Block covers most tax situations and is a top choice for many business owners, which is why it gets our best overall ranking.
TaxSlayer
We rank TaxSlayer as best for self-employed because of its low pricing and a highly rated online experience that works well for self-employed tax filers who earn via a 1099 and need to complete a Schedule C.Pros
- Low pricing for federal tax return compared to larger competitors
- Self-employed edition includes access to a tax professional
- Chat, email, and phone support available
- All federal filings are free for active-duty military families
Cons
- No download version available
- No support for forms 1065, 1120, or 1120S for partnerships and corporations
TaxSlayer traces its roots in tax preparation to 1965. It started offering tax software to professional tax preparers in 1991 and launched its consumer-facing do-it-yourself tax software business in 1998. With TaxSlayer, you can do your taxes online or with the TaxSlayer mobile app.
The Self-Employed edition costs $54.95 plus $39.95 per state. This version includes tax preparation for a 1040 Schedule C for those who operate as sole proprietors as well as LLCs. If you have a side hustle and get a 1099 tax form, for example, TaxSlayer Self-Employed would handle your needs. Active-duty military can file all federal tax forms for free and just pay $39.95 per state.
The Self-Employed edition includes access to a tax professional for help with all of your individual tax questions while completing your taxes. It also includes phone, live chat, and email support as well as technical support. Both the Premium and Self-Employed editions include Audit Assistance for up to 3 years after your return is accepted.
TaxSlayer includes a 100% accuracy guarantee and a guaranteed maximum refund. While it doesn’t work for certain businesses that are required to complete more complex tax returns, it does a great job of handling the needs of many self-employed individuals, making it our top choice for those needing a Schedule C.
FreeTaxUSA
FreeTaxUSA’s extremely low pricing starts at $0 for federal returns and $14.99 for state returns including self-employment income, making it our review’s best for low cost.Pros
- Free federal filing and low-cost state filing for business taxes reported on Schedule C
- Low-cost upgrade to Deluxe Edition includes priority support and live chat
- Unlimited amended returns and audit assistance are included in Deluxe Edition
Cons
- No download version available
- Less-robust support with the basic free edition
FreeTaxUSA is a low-cost solution for doing your own taxes online. FreeTaxUSA was launched in 2001 and is owned by CPA firm TaxHawk, Inc. FreeTaxUSA is an online tax preparation service that works in your web browser; there is no downloadable version available.
The federal return is free in most cases, though many users will pay up to nearly $22 for the full tax preparation experience—$14.99 per state and $6.99 to upgrade to the Deluxe edition, which includes priority support, live chat, unlimited amended returns, and audit assistance. However, if you live in a state where no state return is required, you can file completely for free.
Support is limited for users of the free edition, which makes sense, as you are not paying for individual service. The live chat with priority support included in the Deluxe Edition is available from 10:00 a.m. to 9:00 p.m. eastern time, Monday through Friday.
FreeTaxUSA includes a maximum refund guarantee and 100% accuracy guarantee. If you choose the free edition, you have access to every federal tax form and won’t have to pay anything in most cases. If you are looking for a budget-friendly solution for your self-employed tax return, FreeTaxUSA may be your best choice.
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
TurboTax
LEARN MOREOn TurboTax’s secure site
- Cost$90 or $170 federal, $40 or $50 per state (see breakdown by plan below)
- Mobile appYes
- Live supportYes, costs extra
- Better Business Bureau ratingA+
Terms apply, see below for our methodology.
Pros
- Step-by-step guidance with a Q&A format that is easy to follow
- TurboTax Live provides on-demand advice and a final review from a tax expert or CPA
- Live Full Service has a tax expert prepare, sign and file your return
- 100% accuracy guarantee, or TurboTax will pay your IRS penalties
- Maximum refund guarantee, or TurboTax will refund the plan fees you paid
- Audit support, which provides free assistance if you get an IRS or other tax notice
Cons
- More costly than other software programs
- Live expert assistance plans cost $80 more for federal and $10 more per state
- Live Full Service charges an additional $90 for federal, state is additional
Cost breakdown by plan:
- Self-employed (for personal and business income and expenses): $90 federal, $40 per state
- Live self-employed (includes help from tax experts): $170 federal, $50 per state
Jackson Hewitt
Jackson Hewitt was founded in 1982 by American entrepreneur John Hewitt and more recently began offering online tax preparation and filing services. We chose it as best for additional support because it offers robust online help for true DIYers, with the option to hand over the process to a trained professional anytime.
Jackson Hewitt’s basic online filing services don’t offer anything more than its competitors. Upload their W-2 forms and use the software’s step-by-step guide combined with live online help during business hours to complete and file their returns.
Jackson Hewitt also offers hybrid versions that bridge the gap between doing it yourself and working with a professional. Its Tax Pro From Home plan lets users start their return on their own and upload it anytime to be finished by a tax professional. The company also gives users the option to drop their tax documents off or sit with a tax pro at a Jackson Hewitt office near them.
Those who want to do all their filing online themselves can access customer care support online, talk to a real person during business hours on live chat, and take advantage of the company’s 100% accuracy guarantee.
Pricing for its Tax Pro From Home plans is available by request.
Conclusion
Business tax software is an important business tool that needs to be well thought out before purchase. I have seen countless instances where people have purchased the wrong kind of business tax software, sometimes paying thousands to learn this lesson. There are so many things to consider when choosing a piece of business software. Budget, form factor, learning curve, support, etc… The following article goes over how to evaluate business tax accounting software and what you should look for in research that will ultimately lead you to purchasing the right program based on your needs.