It’s no secret that taxes can be a difficult and time-consuming task to complete. Without the proper knowledge and expertise, it is easy to make costly mistakes that lead to bad consequences.
To help simplify this process, many tax preparation software programs are available on the market. Using these applications makes filing taxes easier and helps ensure accuracy through sophisticated algorithms and data analysis capabilities.
Tax preparation software is an essential tool for anyone wanting to keep up-to-date with their finances while ensuring accuracy in their tax filings. In this article, we will go over the best tax preparation software options available and what to think about when choosing the right one for your business.
Advantages of Using Tax Preparation Software
Tax software solutions provide a wide range of features to help you optimize and streamline your tax processes. From automated filing to data validation checks, these tools create efficiencies that make it easier to manage your business.
Whether you’re a sole practitioner, multi-office firm, global corporation, or anything in between, these solutions provide the tools you need to succeed. They can help standardize workflows, automate processes, and even protect your data from cyberattacks.
With professional tax software solutions at your disposal, you can address all your unique needs while saving time and money. Investing in the right solution can be a great way to get ahead and ensure success for years to come.
Best Tax Preparation Software in 2023
Popular tax software programs offer a range of features that make preparing taxes easier. By comparing the different tax software packages available today, you can identify which option best suits your specific needs and budget!
UltimateTax is a tax preparation software solution that has been helping professionals for over ten years. It offers many advantages, features, and options to meet the needs of any tax preparer or business owner, from small business owners to larger enterprises.
With UltimateTax, users can expect robust security that will keep all data safe and secure. The software includes multiple layers of protection to ensure data integrity and privacy. Additionally, it provides an intuitive user interface with easy-to-use tools and customizable filing options that make the process of preparing taxes faster and easier than ever before.
Here are some additional things to keep in mind about UltimateTax:
- UltimateTax is a tried and trusted online tax preparation software that more than 50,000 tax preparers use annually.
- Its cloud-based platform provides access to important returns information anytime, anywhere, with just an internet connection.
- The E-Signature feature allows users to sign their tax forms digitally, making the process faster and easier.
- The Client Notes feature helps you keep track of your clients’ returns information in one centralized place.
- Its Interview-style Data Entry mode makes sure that all relevant data needed for the return is collected quickly and accurately.
- To provide peace of mind, UltimateTax offers premium customer service 365 days a year with trained professionals who can answer any software-related or tax-related questions. This support is available via email, phone, or live chat.
With its reliable performance, UltimateTax is the perfect choice for busy tax professionals who need a dependable and efficient solution to handle their taxes.
Drake Tax is a powerful tax software designed to provide comprehensive support for both individual and business users. It offers an array of features and allows professionals to easily forecast taxes due on their client’s behalf with its “what-if” analysis feature.
It is equipped with integrated safeguards that help prevent errors on submitted returns, making it the most secure way to file taxes online. It also provides advanced workflow solutions that enable users to easily manage multiple returns or perform any necessary adjustments in one unified space.
Some of its other notable features include:
- Helping users to quickly and easily calculate their taxes with just one click.
- Offering the ability to update and use the previous year’s data for the current year provides a convenient way to stay updated with recent tax laws.
- Providing secure payment options for users, allowing them to pay using their credit or debit card.
- Helping users plan their tax deductions by showing how different factors like marital status, dependents, income, etc. affect taxes.
- Allowing users to fill out clients’ taxes and then providing an eSign feature to complete filing without any paperwork.
TaxSlayer Pro is a cloud-based tax preparation software that makes filing taxes easier and faster. It features a mobile app for easy access from anywhere, unlimited tax filing, and an array of educational resources to help its users learn how to use the software best.
TaxSlayer Pro also provides a price structure that is cheaper than many of its alternatives, making it ideal for individual tax preparers with multiple clients.
Here are some of the things that TaxSlayer Pro’s will allow you to do:
- Easily file individual federal and state taxes electronically through multiple devices, with unlimited e-filing for all state and local taxes offered in each pricing plan.
- Utilize a mobile app that is available anytime, from any location, so practicing from home is easy and convenient.
- Facilitate document signatures with electronic signature services, eliminating the need for in-person meetings.
With user-friendly navigation and informative tutorials to ensure the process goes smoothly, TaxSlayer Pro is the perfect solution for anyone who can file their taxes accurately and efficiently.
TaxAct Professional is an efficient and reliable tax filing software that has been in the industry since 2001. This intuitive tax prep software helps you easily prepare your taxes, regardless of whether you are a business owner or an individual taxpayer.
It offers comprehensive guidance and assistance to get your taxes done accurately, quickly, and efficiently. Moreover, it provides a free trial to try out the features before buying it. TaxAct Professional also comes with a flexible pricing plan that allows you to pay only for what you need.
Some of its other features include:
- Reporting and tools to provide comprehensive tax planning assistance to clients: Tax planner, tax calculator, budgeting tool, and investment tracking.
- Data backup: 7 years of data storage beyond the filing date, and unlimited storage with no extra charge.
- e-sign: E-filing and e-signature facilities for secure document submission.
- Easy views: Side-by-side comparison view of current and previous years’ returns to identify changes in deductions and other details.
- Automation: Automated data entry feature to save time compared to manual data entry.
- Customer service: Live chat support for round-the-clock assistance with tax issues or questions.
- Accuracy: Accurate filing of returns using validations for digital signatures, contact information, form numbers, and more.
One area where TaxAct Professional needs to improve is tracking the status of your return; a feature users would greatly appreciate.
Intuit ProSeries Professional
Intuit ProSeries Professional is a well-known tax-filing software that makes filing taxes a breeze It is designed with advanced features to help you quickly and accurately complete your taxes, including an intuitive step-by-step guide, accurate calculations, easy data entry, and detailed reports.
Intuit Professional offers competitive pricing, making it an attractive option for even small businesses or individual filers with limited budgets. Additionally, this software includes:
- Access over 1,000 advanced diagnostics to improve the accuracy of your client’s returns.
- A simple, user-friendly interface to reduce time spent preparing taxes.
- e-signature and integrated e-filing capabilities to streamline paperwork.
- Easily sync with other platforms to improve efficiency.
- Help while working on a tax return with a simple button click.
- Split joint returns quickly with just a few clicks.
Overall, Intuit ProSeries Professional provides the features and functionality needed to get the job done right at a cost that won’t strain your wallet.
TurboTax is another tax filing software on the market, with features that make tax preparation a breeze. It has an intuitive interface and comprehensive categories so you can easily track all of your deductions, credits, investments, and income.
Plus, it helps ensure accuracy by double-checking every step and providing helpful tips as you go along. Here are some of its features:
- Tax calculators and estimators: These tools allow you to accurately calculate your taxes based on your income, deductions, credits, and other factors. They also provide estimated tax payments and information about filing deadlines.
- Get tax tips to maximize deductions: Research the available tax deductions that apply to you and make sure you’re taking full advantage of them. Ask an accountant or financial adviser for advice on maximizing your deductions.
- Videos and articles: Use these resources to learn more about the fundamentals of taxation, such as filing requirements, types of taxes, withholding amounts, deductions options, and more.
- Easy to use: You don’t need any special knowledge or training to use a tax calculator or estimator; just enter your relevant information for quick results.
With TurboTax’s unbeatable combination of convenience and accuracy, it’s no wonder why it is considered the best tax preparation software on the market today.
Jackson Hewitt’s tax software helps make filing taxes convenient and straightforward. The user-friendly platform has all the necessary tools for individuals and businesses to file taxes quickly and without stress.
Step-by-step instructions, live chat support, and built-in error-checking features help guide users through the process of filing taxes accurately and on time.
Some additional features Jackson Hewitt offers include:
- Live Chat Support: Offers customers the opportunity to connect with an experienced, friendly representative to answer any questions about filing their tax returns.
- Federal and State Returns Support: Our software can accurately prepare and file federal and state returns taxes.
- Easy Download Options for W-2s and Employer Info: Customers can easily download their W-2s from employers and all employer information needed to prepare returns accurately.
- Automatic Error Checking: Our software automatically checks for errors in return filings, allowing for accurate calculations and preventing any incorrect filings.
The software’s intuitive design guarantees a smooth experience no matter where it is used or what device it is used on. And best of all, you can use Jackson Hewitt’s tax software for an incredibly low price.
H&R Block is the top-rated free tax software allowing you to file federal and state taxes at no cost. With this option, you can access the basic features of filing your taxes, including income reporting, deductions, credits, and asset declarations, without a fee.
The paid plans, however, are designed to offer a more comprehensive experience with features like online assistance for filing taxes, complete guidance on investment income reporting such as stocks and bonds, automatic tax refund deposits directly into your bank account, and other impressive functionalities.
With a paid plan, you will get access to the following:
- Personalized advice from a tax pro via a live chat or video call for filing taxes with ease.
- Accurate and real-time updates on your returns so you can be sure that everything is in order.
- Coverage if mistakes happen: they’ll pay up to a $10,000 penalty if any errors occur on their part.
- The ability to claim small business expenses without hassle – all your deductions are taken into account and filed correctly.
It’s quite apparent why H & R Block is considered the leading choice among taxpayers when it comes to free tax filing services.
ATX Tax is another software solution for filing taxes created by the highly reputable Wolters Kluwer. This intuitive software offers users a wide range of features including tax return preparation, error detection and correction, in-line help and tutorials, and advanced security measures to protect personal information.
It’s designed to support small businesses and accounting firms looking for reliable tax filing solutions. ATX Tax also has an affordable price point making it accessible to all users.
Additionally, its user interface is highly intuitive and easy to use, with step-by-step guidance throughout the filing process so users can be confident that their taxes are being handled in an efficient manner.
Some other features that ARX Tax includes are listed below:
- Over 6,000 tax compliance forms are available, covering a range of local, state, and federal filings.
- Easy integration with other platforms for importing/exporting information.
- The digital signature feature makes it quick and easy to legally sign documents electronically.
- Enhanced asset management capabilities available to quickly manage documents and organize data.
- A pay-Per-Return feature that enables businesses to pay only for the returns they use.
- Automated workflow options make it easy to manage and efficiently submit returns.
- Secure storage system ensures all sensitive information is kept safe and confidential.
- Comprehensive audits and reports provide detailed insights into filing progress as well as overall compliance performance.
With its powerful features, dependable performance and reasonable pricing, ATX Tax is an excellent choice for anyone wanting a reliable tax return software program.
FreeTaxUSA is a tax preparation software designed to make filing taxes basic and cost-effective. It was founded in 2001 and has since become one of the most popular online solutions for filing taxes.
With FreeTaxUSA, users can file their federal taxes free of charge, allowing them to save money on filing fees. The software also offers other features such as an auto-fill option that automatically pulls in information from previous years’ returns, making it even easier to complete the process.
Here is what else FreeTax USA can do:
- File your federal return for free using this software, which makes the process easier and more efficient.
- Compare this year’s returns to last year’s to see where you can save on taxes.
- Utilize the joint return filing option when applicable to benefit from tax savings.
- Take advantage of practice runs to become familiar with the nuances of filing taxes and ensure your paperwork is accurate.
- Analyze your current tax situation in order to come up with a tax planning strategy for future years, helping you stay ahead of any changing regulations or laws that could affect your taxes.
However, its lack of features, such as document uploads or expert advice can be limiting for some users who may need more help with their taxes. Nevertheless, FreeTaxUSA continues to be a great choice for anyone looking for an easy and cost-effective way to file their taxes.
Identifying the Right Software for Your Business
When it comes to selecting online tax software for your corporate business or small business, there are a few key things that you can take into account to ensure you’re making the best choice. The information below will help you find the right online tax software for your business.
Types of Tax Preparation Software
When selecting tax software, it is imperative to consider your business’s specific needs. For example, investing in software tailored to this demographic can be highly beneficial if you are a self-employed sole trader.
These programs are designed with the aim of maximizing deductions and other advantages that can assist in minimizing your overall tax liability. As an added benefit, they often feature helpful tools such as calculators and planners that make filing taxes simpler, faster, and more accurate.
Some of these specialized programs provide support if any issues arise or you need assistance inputting data correctly. This enables users to feel confident that all their records are correct prior to filing their taxes.
Accuracy of Returns
Having a more accurate return reduces your risk of being audited since errors can result in an IRS investigation. Plus, tax software makes it easier for individuals to take full advantage of potential deductions, which could lead to a bigger refund or smaller tax bill.
And, if that weren’t enough, most tax software programs also have interactive interviews and guided questionnaires to ensure that users are including all necessary information on their taxes.
Ease of Use
Utilizing an online tax program can be beneficial, but it’s important to try before you buy. If a software company offers a free demo of their product, take advantage of that opportunity to get familiar with the user interface and understand how the program operates.
It’s also worth checking out professional and user reviews for further insight into the usability and effectiveness of the program. This will help you determine if the software is easy to navigate and whether it will actually simplify your tax process or just make it more confusing.
Be sure to analyze all this information carefully so that you can choose the best option for your needs.
When choosing a tax program, it’s important to consider compatibility and flexibility to ensure the software meets your needs. For example, most programs are available on both Mac and PC devices, but some may only be compatible with one or the other.
Additionally, many applications have a mobile app that can be used on both Android and iOS phones. So if you’re looking for a reliable way to file taxes or keep an eye on your financial status while you’re away from home, make sure the software is available on your preferred device before committing to a purchase.
It’s also helpful to double-check the technical specifications so that you know exactly what system requirements are necessary in order to use the application.
When considering tax filing software, it is important to research not only the features and cost of the program but also the quality of its customer service and technical support. There is no substitute for knowledgeable and helpful vendor representatives who are willing to provide assistance in a timely manner when you need them most, especially if you are new to the game.
A good tech support team can quickly resolve problems and provide essential guidance even during times of stress and uncertainty. The reputation of the company behind the software should be a major factor when making your selection; look for companies with long-standing track records of providing excellent customer service, timely updates, helpful advice, and consistent product performance.
Taking the time to research tech support options properly can make all the difference in ensuring a successful filing experience.
We know that doing your taxes may not be a treat, so why not entrust the professionals? There are countless tax software programs out there, but when choosing the right one for this task, it’s important to choose wisely.
With an expansive range of products geared towards any level of experience, UltimateTax has a product tailored to fit each user’s unique needs. For new preparers just starting out, our simplified options make filing taxes easier, while experienced practitioners benefit from the advanced features in our enterprise options.