Tax Software is a solution or program designed to simplify and manage the taxation process of its users. It allows businesses and individuals to complete and prepare their tax returns and handle various tax matters throughout the year.
Tax software is a computerized method of keeping track of personal and business income taxes. Best tax software can help maximize your deductions, properly record downloaded data from different forms, electronically file your returns when they are due, and more. Tax software gives you the ability to calculate your tax obligations on your computer or mobile device. Tax software can also help your prepare tax estimates so you’ll know what to expect come tax time.
Businesses can handle a lot of their tax obligations without the help of an accountant or other tax professional. In fact, some businesses don’t even need to do that. They can handle those tax obligations on their own with the help of a free piece of software meant for small businesses.
TaxAct
TaxAct includes an option to complete tax filings for partnerships 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.
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.
TurboTax
A market leader, TurboTax includes an option to get on-demand support from a tax professional at home as well as robust technical support for its online and downloadable products, which is why it is our pick for best for virtual assistance.Pros
- Downloadable version covers all small business types including self-employed
- Online version has an upgrade for live support from a CPA or EA
- Online interface that’s easy to use and navigate
Cons
- More expensive than some competing tax software
- 1065 and 1120S forms only available in Windows-only desktop version
- Little additional tax support without paying for TurboTax Live
TurboTax is one of the largest providers of DIY tax software and a good choice for many businesses. TurboTax is owned by Intuit, a California-based software company founded in 1983, and it offers online, desktop, and mobile versions to prepare and file your taxes.
Most business owners using the online version of TurboTax would benefit from TurboTax Self-Employed, which includes personal and business income and expense tax forms. This version costs $120 plus $50 per state. Windows users can install TurboTax Home & Business, which includes 5 federal e-files and 1 state for $120. Additional states cost $45. This version is needed if you want to prepare taxes for a partnership or corporation.
H&R Block
H&R Block is a comprehensive, easy-to-use tax service that helps e-filers claim relevant income, deductions, and credits. It’s an excellent choice for simple and complex returns, both in terms of its user experience and help options.
PROS
- Excellent user experience with clear navigation
- Comprehensive coverage of tax topics
- Always-on, context-sensitive help
- Thorough, understandable explanations of tax topics
- Excellent mobile apps
- Optional fee-based expert help
CONS
- No comprehensive navigation tool
- Virtual Assistant is limited
Credit Karma Tax
The completely free Credit Karma Tax supports most IRS forms and schedules for federal and state returns, even the Schedule C. It’s the only site that doesn’t cost a dime for comprehensive preparation and filing. Don’t expect as much support as paid tax preparation services offer, however.
PROS
- Fast and free
- Supports major IRS and state forms and schedules
- Excellent, easy-to-use interface and navigation
- Good mobile access
- Can view tax forms as PDFs
CONS
- Full search tool not always easily accessible
- Support lacks depth
- Can’t import interest or investment data
- W-2 imports limited
- No expert tax help
Conclusion
Let’s face it, taxes are complicated. That is why most companies custom tailor their tax software to meet their specific business needs. While I’m sure you are aware that there are tons of businesses offering tax software for various types of business, how can you be absolutely sure which one is the best for your own situation?
Tax software is used to help you take care of your tax obligations. It can be very confusing and time-consuming to complete your taxes, especially if you have a lot of business and personal income. With so many choices available to you, it can be difficult to decide which one is the best for your situation.