Are you looking for information about online tax filing? Do you want to know which online tax preparation software is the most popular? Are you interested in learning about tax preparation software for small business owners who outsource their payroll services? These questions and more are answered right here.
Do you need to file your taxes? Hopefully, this post will help you out in discovering the best tax software for your tax preparation needs. If you’re a small business owner or freelancer, there are many free online services that may suit your needs in terms of filing taxes.
You may have heard the terminology, but if you’re not a small business owner or an accountant, it might be a concept that always evaded you. Tax preparation software for small businesses is a tool which enables tax professionals to cut their working hours and costs by a considerable margin. It has a number of features that make this software a winner in the eyes of many.
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.
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.
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.
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.
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.
Best Value 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.
Conclusion
Tax season is the most difficult time of the year for both small businesses and accountants. While small business owners are busy calculating their income, deductions, and other financial numbers, they are also keeping up with deadlines. On the other hand, accountants are dealing with filling out tax forms. It’s no surprise that one of the most asked questions on search engines is “small business tax software free.”