7 Best Tax Software for Tax Preparers

The best tax software programs make filing taxes simple for businesses of any size and come with features to prevent errors. They also help users file online and on mobile devices. Most importantly, these programs allow users to import tax forms and maximize deductions. They also offer features like tax calculators and real-time alerts. These top-rated tax software are easy to use, reliable, and have reasonable pricing. They also have excellent customer support and are well-reviewed. Some even include a free trial period so you can test out the software before making a decision.

With the right tax software program, you can file state and federal returns from your home computer. These products can make the filing process more efficient and accurate and are designed to be user-friendly. They can also help you avoid mistakes. There are many programs to choose from, each with its own features. Some of these include an interview-style questionnaire, step-by-step guidance, and a feature that allows you to upload prior year returns, W-2 forms, and investment income documents. Other important features of a good tax program are a glossary of common terms and customer support channels, such as email, phone, or live chat.

In addition to these features, some of the best tax softwares also offer services such as expense management and a digital wallet for crypto investments. They can track gains and losses from cryptocurrency exchanges and help you file your crypto taxes per the law. This way, you can save money on your tax bill and maximize your investment returns. 

TaxAct

Designed with do-it-yourselfers in mind, TaxAct provides the guidance and tips to help users file their taxes. The software has a familiar interview-style interface that asks users to provide information about their income and deductions. It also includes helpful features like a donation assistant and a deduction maximizer. It can even flag errors for review by a professional.

Users can save time by importing their previous year’s return to reduce data entry. They can also scan their W-2s or take a picture of them with their mobile phone to upload them. The app also lets users access their returns from anywhere with an internet connection.

The software offers a variety of plans, each designed to handle different returns. The free online plan is ideal for those with simple tax situations, while the Deluxe download allows users to report unemployment, investment earnings, and more.

All of TaxAct’s plans come with a maximum refund guarantee and $100k accuracy guarantee. The software also includes a searchable help center and access to free tech support from experts via phone. Those seeking premium advice can pay extra for Xpert Assist.

TurboTax

TurboTax is one of the most comprehensive tax software packages available. It has hundreds of integrations that can help make filing taxes easier, including the ability to connect your bank account, investment accounts, and even cryptocurrency accounts. The company also focuses on data security, encrypting your information at rest, and requiring multi-factor authentication. The company offers a free version of its software that can be used to file federal and state returns. However, it is important to note that this option may not be sufficient for many users and will likely require an upgrade to a paid product.

The company’s online versions are easy to use and offer a number of features that can simplify the process. It can automatically import W-2 information from partnering employers and allow you to upload 1099-NECs and 1099-Ks directly. It can also import income from apps like Square and Lyft. The program is designed to be as user-friendly as possible and offers a variety of support options, including access to certified public accountants. However, it is important to remember that the accuracy of your return depends on the information you provide.

TaxSlayer

Originally launched as Credit Karma Taxes and now known as TaxSlayer, this online tax software program is one of the most popular choices among consumers. Its simple interface makes it easy to navigate, and its affordable pricing is a major selling point. The program’s customer service is also helpful and responsive. Customers can use the free filing option or pay to access more advanced features. The company offers a wide variety of plans to fit different tax situations, including the specialty Military plan. TaxSlayer’s premium tier includes IRS inquiry assistance for up to one year and audit assistance for up to three years.

Users can file their returns through an intuitive question-and-answer system and can compare their data to previous years, a useful tool for tracking trends over time. The company’s top Self-Employed tier provides help from a professional for a low cost of $90 for federal and state returns. In addition to its extensive knowledge base, TaxSlayer also provides live chat support during the peak tax season. All plans, except the free filing tier, come with unlimited email and phone support.

H&R Block

H&R Block is a popular provider of tax-preparation software with a wide range of online products and physical locations. The company is known for its free online filing option, which covers most basic returns and even includes deductions for student loan interest. It also offers a number of paid versions, with live human support available for an extra cost.

When choosing a product, H&R Block asks you a series of questions about your personal finance situation and recommends an appropriate package for your needs. You can agree with its suggestion or choose another one. Once you start working on your taxes, the software automatically imports your information from last year, making navigating the process easier.

The free online version allows you to file federal and state taxes for free, and the Deluxe tier supports property depreciation and stock sales. The premium online tier costs $75 and includes one free state return, and you can add additional state returns for $49. You’ll need to upgrade to a paid package if you itemize your deductions, run a business, sell cryptocurrency, or have other complicated tax situations.

TaxWise

TaxWise is a professional tax software that can help you file your taxes online. It has a simple and user-friendly interface and offers a free trial. It also comes with customer support that is reportedly helpful and friendly. The program uses an interview-style process to ask questions about your financial situation, which it then inputs into the IRS forms. This is a good option for people who are new to filing taxes, as it helps them ensure that they don’t forget any deductions they’re eligible to claim. Most tax preparation programs, including TurboTax, H&R Block, and TaxSlayer, use this method.

Another feature of TaxWise is the Client Letter templates, which allows users to create standard letters to attach to their returns. This can be accessed from the Settings page by clicking on Client Letter Templates, then choosing a template or creating one from scratch. The product also includes a ’What if’ feature, which lets users test various scenarios to see how they will affect their return. Lastly, it includes an integrated tax help function and provides line-by-line assistance with the forms.

FreeTaxUSA

FreeTaxUSA has a clean interface that requires no download and works on most web browsers. Its question-and-answer process is well-organized and efficient, and the software marks the most likely answers to some of the more difficult questions so you can easily click through forms without selecting every single Yes or No. The software is also very responsive to error messages, alerting you of any mistakes you make immediately so that you can fix them. It’s not as easy to navigate as premium tax filing software, but it’s certainly worth trying for those who want to save money on their taxes.

The software starts by importing your prior year’s return or collecting your personal information online. You can then move on to a more extensive questionnaire asking for your employment, investment income, deductions, credits, etc. The questionnaire is organized by category, and as you answer each set of questions, the software takes your responses to fill out the appropriate tax forms. You can view your estimated federal refund or amount owed as you go. If you need more support than what is offered by email, you can pay for the Deluxe edition and get live chat support.

Although you can import PDF documents into the software, you can’t upload forms like W-2s or 1099s, which can be frustrating for freelancers and other independent workers. Similarly, you can’t import your bank account balances to help estimate your tax liability. However, the software does provide an estimator for your taxes and a way to estimate your state refund or owing.

Jackson Hewitt

Jackson Hewitt provides a low-priced online filing option for people with relatively straightforward tax situations. Their software uses a question-and-answer process that collects information on your personal circumstances and then guides you into various IRS forms based on your answers. They have a number of occupation-specific deduction discovery tools and a life events guide that can help you claim common tax benefits such as student loan interest or mortgage payments. They also get high marks for their simple navigation, that makes it easy to fill out a basic federal return. However, some users report that the navigation between questions and forms can be confusing, especially if you have more complex returns with rental properties or equity investments.

Jackson Hewitt has a maximum refund guarantee that goes beyond what most competitors offer. If their program doesn’t help you maximize your refund, they’ll refund you $100 and your filing fees. They also have an accuracy guarantee that covers any penalties or interest resulting from calculation errors in your return. Their customer service is available through email, phone, and live chat. They have weekend and night hours for callers in some states, and they can help you file in person if needed. They can also provide assistance with navigating the IRS website and finding forms. They can refer you to a professional in their network if you need more advanced tax services.

Another advantage of Jackson Hewitt is that it’s one of the few tax filing services to offer free state returns. Typically, competitors charge about $40 per extra state return, and some options don’t offer them at all. They also have a weekly ‘Double Your Refund’ sweepstakes that gives 40 lucky winners an amount equal to their federal refund.