Tax time is finally here. Have you started preparing your tax return yet? Have you considered hiring a professional accountant or tax software to help you? If not, you might want to re-think that decision. A lot of people prefer doing their own taxes because it is cheaper than hiring an accountant to do it for them, plus it gives them a chance to try out different tax software software available online.
Here are the best tax software online. They will help you manage taxes effectively.
TurboTax
Owned by Intuit, the company behind QuickBooks, TurboTax is the most popular and widely used tax preparation software for both individuals and businesses. We chose it as the best overall because it offers an easy-to-use interface and both DIY tax filing and filing with the assistance of a tax professional.
TurboTax has created one of the most intuitive user interfaces available. Users can get started by importing a PDF of a past tax return and uploading pictures of W-2 and 1099 forms. From there, the software uses a series of prompts and questions to help finish and file the return.
When it comes to business taxes, TurboTax searches for industry-specific deductions other providers might miss. Users get guidance through the software for common expenses and can even track them through Intuit’s account software, QuickBooks.
Although TurboTax offers a comprehensive guided walkthrough, the software also offers an option to get direct help from tax professionals through TurboTax Live. Users can connect live on their screen with a CPA or tax professional for advice or a line-by-line review of their return or even hand off the entire return to be completed and filed by a professional.
TurboTax offers both a DIY TurboTax small business plan and a TurboTax Live plan. Fees for all plans are only due at the time of filing.
TurboTax Self-Employed Plan
- $120 + $50 per state filed
- Covers W-2 income, Earned Income Tax Credit (EIC), and Child Tax Credits
- Covers stocks, bonds, ESPPs, and other investments
- Import a PDF of a return from another tax software
- Audit Support Guarantee
- 24/7 access to an online community
- Searches 450+ tax deductions and credits
- Maximizes mortgage and property tax deductions
- Homeowner tax breaks (Schedule A)
- Auto import investment income
- Rental property income and tax deductions
- Guidance for contractors, freelancers, and small business owners
- Uncover industry-specific deductions for more tax breaks
- One-on-one help from self-employment specialists
- Expense, mileage, and job tracking
- Import 1099-MISC from a photo
TurboTax Live Self-Employed Plan
- $200+ $55 per state filed
- Prep, print, and e-file with help from a tax expert
- Import W-2 from a photo
- Final review and/or filing from a CPA or Tax Expert
- Talk with a tax expert about 450+ deductions and credits
- Review mortgage tax deductions with a CPA or Tax Expert
- Donation deduction support
- Covers stocks, bonds, ESPPs, and other investments
- Covers rental property income and tax deductions
- Auto import investment income
- Tax advice to make the most of self-employment income and expenses
- Industry-specific deductions
- Personalized audit assessment
- Expense, mileage, and job tracking
Liberty Tax
Online and face-to-face filing
TODAY’S BEST DEALS
Liberty Tax is an affordable option for small business owners and is available online in a trio of editions, Basic, Deluxe and Premium, with the Deluxe version being suitable for the self-employed and a Premium package that is better suited to S corporations. Basic is just that, for those with the simplest of tax affairs to sort, so unlikely to be of appeal to SMBs.
It also comes with the back-up appeal of mixing cloud-based tax preparation with on-site options, allowing you to mix and match your filing duties. Functionality is, in the main, fairly spartan without too much in the way of frills, but that’s all that many users want from their business accounting package anyway.Advertisementhttps://e1709386f7b02b2c9f965cda739fc976.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
Having the ability of getting help, either online via chat or email, can be mighty useful if you’re not too confident with your filing duties. At the same time, getting someone to check things over in person is even more beneficial in some cases. Liberty Tax also has online and classroom-based tax courses if you really want to get on top of your taxes.
On the downside, customers of Liberty Tax occasionally grumble about some aspects of its usability and less on-the-ball customer support. Nevertheless, if you’re prepared to take on those compromises then Liberty Tax is another option to consider, especially if some face-to-face assistance is likely to be required along the way.
- Read our full Liberty Tax review.
RUNNER-UP, BEST OVERALL H&R Block
Established in 1955, H&R Block is one of the oldest and most well-known tax preparation services, with over 10,000 offices worldwide. We chose it as our runner-up because it offers most of the same online services and professional assistance as TurboTax with a less-intuitive interface but at a lower cost.
Although H&R Block offers a similar walkthrough with guidance as TurboTax, its interface is not quite as elegant, and some terms and steps are not as well explained. Users can still get started quickly by importing previous tax returns, uploading images of W-2 forms, and filing Schedule 1 through 3 Forms which let them report business income.
Like TurboTax, H&R Block also offers users the option to file taxes completely on their own or have their return reviewed by a tax expert, EA, or CPA for an extra fee. Users can also schedule an in-office appointment with a tax professional at one of H&R Block’s thousands of locations.
Like TurboTax, H&R Block splits its offering between the DIY File Online and Online Assist plans. All plans include on-demand chat, screen sharing, and an online help center.File Online Plans
Premium Online Plan
- $69.99 + $44.99 per state filed
- For freelancers, contractors, and investors
- Snap-a-pic W-2 import
- Self-help via a help center
- Earned Income Tax Credit
- Student loan interest
- Retirement plan income
- Social Security income
- Six years’ access to tax returns
- Technical support (by chat or phone)
- Health Savings Account (HSA)
- Real estate taxes
- Mortgage interest
- Cost basis calculation
- Freelance/Contractor income
- Stock sales income
- Rental property income
Self-Employed Online Plan
- $87.99 + $44.99 per state filed
- For self-employed and small business
- All Premium Online Plan features
- Expense import from popular expense tracking apps
- Import Uber driver tax information
- Small business expenses, including home office, depreciation, and vehicle expenses
Online Assist Plans
Premium Online Assist Plan
- $159.99 + $49.99 per state filed
- For freelancers, contractors, and investors, including help when needed
- Unlimited expert help
- Snap-a-pic W-2 import
- Earned Income Tax Credit
- Student loan interest
- Retirement plan income
- Social Security income
- Six years’ access to tax returns
- Transparent pricing with Price Preview
- Guidance for homeowners
- Technical support (by chat or phone)
- Health Savings Account (HSA)
- Real estate taxes
- Mortgage interest
Self-Employed Online Assist Plan
- $194.99 + $49.99 per state filed
- All Premium Online Assist Plan features
- Expense import from popular expense tracking apps
- Import Uber driver tax information
- Small business expenses, including home office, depreciation, and vehicle expenses
BEST FOR ADDITIONAL SUPPORT 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.
BEST FOR EXPERIENCED ACCOUNTANTS Liberty Tax
Established in 1997 by Jackson Hewitt founder John Hewitt, Liberty Tax operates more than 4,000 locations in the United States and Canada and prepares almost 16 million tax returns per year.
Liberty Tax makes it easy to get started by importing returns from other platforms and also offers both live chat and email support. Like other providers with physical locations, Liberty Tax lets customers start their returns online and transition to working directly with a real person at a local office.
Liberty Tax’s self-employed plan is cheaper than most others and is geared toward small business owners, independent contractors, and freelancers. The company also offers a 100% accuracy guarantee and free double-checks at participating locations.
For those who really want to do it all themselves, Liberty Tax offers a variety of online tax preparation resources, including links to common forms with instructions, guides to different types of taxes, and tax estimation and calculation tools.
Liberty Tax offers three simple plans, differentiated by the forms each supports. Only the Premium Plan supports the forms most small businesses are required to file.
Premium Plan
- $89.95 + $34.95 per state
- Self-employment income and related business deductions
- Taxable income over $100,000
- Rental or Farming income
- Partner or Shareholder income issued on Schedule K-1
- Beneficiary income issued from an estate or trust on Schedule K-1
- Unreported tips
- All other less-common income sources, credits, and deductions
Conclusion
Small business owners don’t always have time to prepare their own taxes especially during tax season. This is exactly why you might choose to utilize a professional service to help you with your tax preparation needs. The benefits are many namely the fact that you don’t have to spend countless hours compiling financial statements and digging up receipts for 10,000 dollars worth of work related expenses.