The first part of learning how to prepare your small business taxes is understanding what kind of tax preparation software you are going to use. Most likely it will be an online tax preparation tool or a tax filing software that can assist you with your business taxes if you are a one-person show, but it could also be a desktop version that will allow for more complicated taxation year-round.
As a home based business or small business, taxes are something you need to be aware of. It’s important to file your taxes correctly so you can save money next year. On this page, you will learn about different tax software to help you file taxes online.
H&R Block
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.
TaxAct
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
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.
TurboTax
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.
If you want extra help and have questions about your taxes along the way, TurboTax Live is an add-on that includes access to a CPA or other tax expert on-demand, including evening and weekend hours. The TurboTax Live Self-Employed edition costs $200 plus $55 per state. This includes tax support along the way and a final review of your taxes before filing. All TurboTax options include regular access to product and technical support.
No matter which option you choose, TurboTax includes a 100% accuracy guarantee and a maximum refund guarantee. Customers are also protected by audit support for 3 years for most returns. TurboTax is popular for a reason: It has an excellent user interfaces and great built-in guidance while completing your taxes. For those who may want extra help along the way, adding on TurboTax Live could be a smart decision. This tool makes TurboTax the best tax software for at-home assistance.
FreeTaxUSA
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.
Conclusion
If you’re a sole proprietor and operate a business from your home, whether as a freelancer or as a side-business, then you can use the tax software designed for small businesses to help file income taxes for your business so you can save money next year.