Top 10 Tax Software with Comparisons to let You Choose the Best One!

As per the National Society of Accountants, the average cost in 2020 for a tax preparer to file a Form 1040 without itemizations, along with a state return, was $220. For those with itemized deductions, the average fee increased to $323, and fees were higher for partnership or corporation filings. Additionally, the best tax preparation software like Schedule SE for self-employment taxes could incur an extra cost of $41. On the other hand, tax software is commonly priced at $100 or below. With tax software comparisons, you will be able to make informed decisions.

Importance of Choosing the Best Tax Software

Choosing the right tax software is paramount for individuals and businesses alike due to its significant impact on financial management and compliance. The software’s efficiency directly influences the accuracy and timeliness of tax filings, ensuring compliance with ever-evolving tax laws. Accurate calculations and comprehensive reporting capabilities are crucial for maximizing deductions, minimizing errors, and avoiding costly penalties.

The right tax software simplifies complex tax processes, streamlining tasks for individuals, tax preparers, and businesses. It enhances productivity by automating repetitive tasks, allowing users to focus on strategic financial decisions rather than tedious calculations. User-friendly interfaces contribute to ease of use, making the software accessible to a wider audience and reducing the learning curve associated with tax preparation.

Moreover, reliable tax software often comes equipped with features that facilitate seamless integration with accounting systems, enabling a holistic approach to financial management. This integration ensures data consistency, reduces the risk of errors, and provides a comprehensive overview of financial health.

Getting through the IRS during the tax season with a clean chit is hard for businesses to achieve owing to various complexities attached to the tax laws. In order to keep compliance with the same, it is imperative for businesses to prepare and file their taxes correctly and timely. For the correct preparation, a manual approach is not as successful as using business tax return preparation software or using tax preparation outsourcing services.

Now, you might be wondering, with so many tax software available out there in the market, which one you should consider for your business?

Criteria for Evaluation of Tax Software

User Interface

A user-friendly interface is essential for a seamless tax preparation experience. The software should be intuitive and easy to navigate, allowing users to input their tax information efficiently.

Features

The features offered by tax software can vary widely, so it’s important to consider your specific needs. Look for software that offers comprehensive tax forms and schedules, as well as additional features like tax calculators, error checks, and integration with financial software.

Pricing

Pricing is an important factor to consider when choosing tax software. Compare the cost of different software options and consider whether the price aligns with the features and benefits offered. Some software may offer tiered pricing based on the complexity of your tax situation.

Customer Support

Reliable customer support is crucial, especially if you encounter any issues or have questions during the tax preparation process. Look for the best tax preparation software providers that offer multiple support channels, such as phone, email, and live chat, and consider the availability and responsiveness of their support team.

Security

Security is paramount when it comes to tax software, as it involves handling sensitive personal and financial information. Choose software that employs robust security measures, such as encryption and multi-factor authentication, to protect your data from unauthorized access or cyber threats. Additionally, look for software providers that comply with industry standards and regulations to ensure the highest level of data protection.

List of Top 10 Best Tax Software for Comparisons

To help you make the best decision, we have compiled a list of the top 10 software with their comparisons, explaining to you the features of every software in detail.

1. ProSeries

   

   Another software from Intuit, it is a professional tax software that is desktop-based and has proved to be extremely beneficial for small to mid-sized firms. One can easily file returns, manage the submissions of tax, track returns progress, etc. Viewing, tracking, and managing the returns which are e-filed is extremely easy.

   With this, one can also keep track of the returns filed by the clients. One of the major positives of this software is that it has an in-built worksheet that helps plan events, track missing data of the client in a returns file and the status reports. Also, it lets you have real-time communications with clients.

   Cost:

   • Basic 202- 1040 only: $747 MSRP and $399/year
   • Basic 50- 1040 only: $1,086 MSRP and $709/year
   • Basic Unlimited- 1040 only: $1,644 MSR and $1,149/year

   Software	Country	Features
   ProSeries	USA	Used forms 1040, 1041, 1120, 1120s, 1065, 990, 709 Form-based primary data-entry QuickBooks desktop edition integration User access control for multi-user firms Secure Emailing with Encrypted Checklists E-filing Automation

2. Lacerte

   Lacerte is a highly efficient software for accounting and tax firms with business and individual clients. With this software, one is able to file a number of returns at a much lower time. This means you can move data at a good speed across tax and accounting workflow for preparing your taxes fast.

   Apart from this, it is extremely reliable since it is backed by powerful diagnostics for error, along with the accounting experts.

   Cost:

   • Lacerte 200 Federal 1040: It is best suited for preparing less than 200 individual federal returns
   • Lacerte Unlimited Modules: All features of Lacerte 200 Federal 1040, along with unlimited business and individual returns.
   • Lacerte REP (Fast Path Only): An option for “pay-as-you-go”! It is ideal for preparing fewer business, state, and individual returns. $642 MSRP and $369/year.

   Software	Country	Features
   Lacerte	USA	Consolidated corporate returns, kiddie link, 5500 Used forms 1040, 1041, 1120, 1120s, 1065, 990, 709 Point-of-need guidance Jump to input K-1 transfer Free US-based tech support with extended hours during peak season Benefits of Electronic Organizer Dependable & Swift Multi-User Functionality

3. Drake

   From small to mid-sized accounting firms, Drake Tax software is used excessively. It is a professional suite for tax management that enables businesses to file returns quickly, saving their time to focus on growth opportunities and serving their clients. This is due to the fact that a quick review of the returns prepared and e-filed is available with this software.

   This helps in figuring out the errors and knowing if the return can pass the e-filing process successfully, along with displaying the refund amount and fees in the calculation results. Also, one can import tax forms like 1040, K-1, and W-2.

   Cost:

   • Deluxe online filing: $40 federal return fee; $40 additional state return fee
   • Premier online filing: $70 federal return fee; $40 additional state return fee
   • Self-Employed online filing: $90 federal return fee; $40 additional state return fee

   Software	Country	Features
   Drake	USA	Quick calculations Quick error identification Custom reminders Importing and exporting tax forms Online e-filing features Corporate/Business Support Activity Tracking feature

   Related: Drake: A Complete Professional Tax Preparation Software

4. TurboTax

   

   This is a very easy-to-use software that allows users to file state and federal tax returns online. It gets automatically updated with the latest tax laws. Multiple checks are performed in this software to ensure the accuracy of filing the returns.

   It has a mobile, cloud-hosted option that makes it useful for the ones on the go to review their important documents. With the SmartLook™ feature, a live TurboTax professional is available to the users for resolving tax-related queries.

   Cost:

   • Deluxe online filing: $40 federal return fee; $40 additional state return fee
   • Premier online filing: $70 federal return fee; $40 additional state return fee
   • Self-Employed online filing: $90 federal return fee; $40 additional state return fee

   Software	Country	Features
   TurboTax	USA, Canada	Easily import your 1099-MISC with just a snap Access to year-round tax estimator after filing Searches over 350 tax deductions Helps you retain absolute control over your tax return Guaranteed 100% accuracy Audit support guarantees Up-to-date with tax legislation Live for On-Demand Expert Advice

5. H&R Block

   

   H&R Block is pretty easy and straightforward to use and is efficient enough to let users search for tax answers, tools, information, and articles which they need to prepare and file their taxes. Employees can receive their W-2 forms in an electronic form earlier, making them file returns and receive a refund earlier.

   The Tax Prep Checklist helps in preparing the tax returns by identifying the essential items they require for tax preparation.

   Cost:

   • Free online filing: $0 federal return fee; $0 state return fee
   • Deluxe online filing: $30 federal return fee; $37 additional state return fee
   • Premium online filing: $50 federal return fee; $37 additional state return fee
   • Self-employed online filing: $80 federal return fee; $37 additional state return fee

   Software	Country	Features
   H&R Block	North America, Australia, India	W-2 early access ACA calculator Tax Prep checklist Tax Information center Free to use Unlimited Chat or Video Support Audit Support Guarantee In-person Assistance at 11,000+ Locations

6. ATX

   

   With ATX, freelance accountants, CPAs, small accounting firms, and finance teams at organizations get access to more than 7,000 tax compliance forms.

   Its user-friendly interface lets users navigate seamlessly between up to 3 forms and through fields, leading to multitasking.

   With the help of an interview tool, users can correctly file the compliance forms easily and have access to the tax preparation support whenever needed.

   Cost:

   • Free Trial
   • ATX Pay-per-Return: $529.00
   • ATX 1040 Package: $669.00/one-time payment
   • ATX Max Package: $1,579.00/one-time payment
   • ATX Total Tax Office: $1,579.00/one-time payment
   • ATX Advantage: $3,949/one-time payment

   Software	Country	Features
   ATX	USA	Tax compliance forms library Automated Errors & omissions checker Return E-filing Return Walkthrough Refund Meter User-friendly Interface High-end Data Security

7. TaxSlayer

   

   The fact that TaxSlayer is easy to use and comprehensive at the same time makes it an ideal choice amongst individuals for preparing and filing their federal tax returns electronically with the help of required support for tax forms, communication links, and calculations.

   Users can access the software from anywhere and even file a tax return, save it, and come back to it in the future. Its error-checker helps in eliminating the errors and process the returns timely. Its complimentary live phone and email support make it even more appealing to the users.

   Cost:

   • Free online filing: $0 federal return fee; $0 additional state return fee
   • Deluxe online filing: $17 federal return fee; $29 additional state return fee
   • Premier online filing: $37 federal return fee; $29 additional state return fee
   • Self-employed online filing: $47 federal return fee; $29 additional state return fee

   Software	Country	Features
   TaxSlayer	USA	Branded as the most compact taxation solution Completely web-based State-of-the-art error checker Guarantees the largest return possible Reliable support Affordable Plans

8. FreeTaxUSA

   

   FreeTaxUSA helps users in preparing, printing, and e-filing their taxes for free of cost, especially when it comes to the federal income tax return. The Free and Deluxe editions can handle every K-1 source related to the income, capital gains transactions (Schedule D), rental real estate (Schedule E), self-employment (Schedule C). If you haven’t availed healthcare coverage in the last year, it will help you accommodate the fees and claim penalty exemption, if any.

   Apart from this, you get free customer support, guaranteed accuracy, and audit assistance.

   Cost:

   • Free online filing: $0 federal return fee; $12.95 additional state return fee
   • Deluxe online filing: $0 federal return fee; $12.95 additional state return fee
   • Premier online filing: $0 federal return fee; $12.95 additional state return fee
   • Self-employed online filing: $0 federal return fee; $12.95 additional state return fee

   Important Note: Filed 43 million tax returns

   Software	Country	Features
   FreeTaxUSA	USA	Help understand the results of IRS audits A Deluxe audit center Free preparation of federal tax returns Preparing and submitting state tax returns Dedicated expert assistance

9. UltraTax CS

   

   If you are looking for a software that can provide you with critical solutions with respect to the scientific, financial, intellectual property and media, tax and accounting, and legal markets, UltraTax CS software is the name for you. You get 4 different monitors to view Prior Year Input, Input, Diagnostics, Forms, and more at the same time, each synchronizing with others. This means when you navigate to your entry of Itemized Deduction, the navigation automatically shows you last year’s entries of Itemized Deductions and Schedule A.

   Also, with the Source Document Processing feature, you can automatically label and manage the documents of your client source, making it easier for them to locate and identify the same in your files, which are saved electronically.

   Apart from this, you get the convenience of e-signature, which helps you save money and time, bringing down the IRS hassles, along with the option to have traditional local software installation configuration or web-hosted cloud computing.

   Cost: Upon request

   Software	Country	Features
   UltraTax CS	USA, UK, Australia	Multiple monitor flexibility Advanced e-file capabilities Instant prep checklist Streamlined source document processing Multi-state processing Convenient and secure e-signature option Flexible hosted solutions Electronic Filing and Submission

10. TaxAct

    

    An affordable, accurate, and fast option for small business owners, individuals, and tax professionals. One gets to maximize his tax deductions by preparing and filing tax returns fast. If the users have prepared last year’s return using the same software, they can import data from it for this year easily, eliminating the chances of data entry.

    This makes entering Schedule L, M-3, K-1, and 4562 information accurately. Upon IRS’s tax return processing, users receive a notification via text or email.

    Cost:

    • Free online filing: $0 federal return fee; $0 additional state return fee
    • Deluxe online filing: $29.95 federal return fee; $40 additional state return fee
    • Premier online filing: $39.95 federal return fee; $40 additional state return fee
    • Self-employed online filing: $74.95 federal return fee; $50 additional state return fee

    Important Note: Filed over 65 million returns

    Software	Features
    TaxAct	Suits both simple and complex tax returns Step-by-step taxation guidance Dedicated package for small businesses Dedicated professional products Email notifications Free Expert Support

    Average Cost of Completing Return

    • All Taxpayers – $225
    • Business Tax Payer – $434
    • Non-business Tax Payer –$129
    • For Filing Form 1040 – $280
    • For Filing Form 1040A & 1040E – $96

Conclusion

This brings us to the conclusion that multiple tax software options are available in the market. However, one should carefully choose the best tax peparation software that not only enables him/her to file the taxes in an affordable, accurate, and timely manner but also streamlines the accounting process on the whole.

Taking the help of the experts of tax preparation companies is recommended if one faces any confusion in trying to pick the best tax software option.

Are you finding it hard to use tax software efficiently due to work overburden, lack of skills, or expertise? Get in touch with expert tax preparers at Cogneesol that (with having expertise in utilizing different tax software) will calculate your tax liability and prepare your tax files accurately, ensuring your tax forms comply with tax laws and regulations. Reach us today at [email protected] or call us at +1 646-688-2821.

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