There are a lot of various tax software alternatives accessible online that can aid you with tax preparation and filing, simplifying and streamlining the process. However, with so many options, making the perfect pick may get daunting.
What is the Best Tax Software?
Let’s find out.
1. Liberty Tax
Image Source: Liberty Tax
Liberty Tax may drastically reduce the cost of tax preparation. The inexpensive online tax software includes an intuitive UI and a slew of innovative features designed to entice tax filers.
Pros:
- Tax Refund Anticipation Loan: This is one of the most appealing elements of the Liberty Tax, and one of the reasons it is so popular with taxpayers. Easy Advance users may get amounts ranging from $500 to $6,250, based on their anticipated federal return after subtraction of authorization costs.
- Enhanced Audit Assistance: This is an optional package that customers may pay to get pre-audit assistance for any documents requested by the IRS. Additionally, it supports in responding to IRS communications and provides post-audit guidance.
- Tax Estimator: This is a fake tax return tool that assists users in estimating their refund or tax due before to submitting their taxes.
- Liberty Tax provides a maximum refund guarantee to its customers. When you submit the same return amount using a competitor’s software and are eligible for a larger refund or a lower federal tax burden, Liberty Tax will quickly refund the tax preparation fee.
- It enables users to import W-2s through ADP.
- Its Help Sidebar feature simplifies various aspects of tax filing, including the display of real-time refunds and tax assistance through live chat sessions.
- It is capable of determining the most efficient software edition based on the tax situation.
- The program enables smooth synchronization, allowing users to view papers from past years.
- The interface is reasonably straightforward and intuitive for first-time taxpayers.
Cons:
- No free version is available for even basic tax filing.
- Limited options for customer filing.
- Absence of in-depth knowledge base.
Pricing:
- Simple Edition: Federal Returns: $34.95, State Returns $35.95.
- Basic Edition: Federal Returns: $44.95, State Returns: $39.95
- Deluxe Edition: Federal Returns: $64.95, State Returns: $39.95
- Premium Edition: Federal Returns: $89.95, State Returns: $39.95
2. QuickBooks
Image Source: QuickBooks
QuickBooks is ideal for boosting financial management effectiveness using creative methods. Its capabilities include the ability to prepare and submit taxes while adhering to applicable rules and regulations.
Pros:
- Accountant Tools: QuickBooks provides a wealth of insights and organizational features that assist companies in organizing their accounting data, which includes overdue items, accounting notes, payable invoices, and contact information.
- Automated Reporting: This feature guarantees that even the smallest taxable amount is collected during tax filing in order to prevent incurring any penalties or interest.
- Highly Secure: It has a sophisticated security setup that protects data by encrypting all data enters end-to-end.
- The bulk of accounting functions are available online.
- It creates consolidated end-of-year reports on users’ revenue, profit and loss, payables, and other financial information. Additionally, it is tightly connected with Intuit’s TurboTax, allowing users to simply input financial data and create tax forms.
- Additionally, it may be linked to bank and credit card accounts to automatically get taxable revenue information.
- It creates a variety of reports that keep businesses aware of their tax position.
- They provide a smartphone app for preparing and filing documents on the fly.
Cons:
- It is incapable of processing complicated tax returns.
- Customer service is inefficient and unreliable.
Pricing:
- Self-employed: $5/month
- Simple Start: $7/month
- Essentials: $17/month
- Plus: $25/month
3. Jackson Hewitt
Image Source: Jackson Hewitt
Jackson Hewitt is the United States’ second biggest tax preparation firm. Additionally, it delivers superior customer service through its physical and mortar locations around the nation.
Pros:
- Tax Tools: It includes a variety of user-friendly and efficient tools, such as a refund status checker, a W-2 lookup, and a tax calculator. It allows consumers to get an advance loan of up to $3,500 for an anticipated tax return at a rate as low as 0% APR.
- Audit Assistance: It provides consumers with a complimentary audit assistance service.
- Customer Support: With over 3000 real and mortar locations within Walmart stores around the United States, Jackson Hewitt provides comprehensive customer assistance. Additionally, it enables users to submit tax returns in an offline way.
- Users may use the software’s free version to complete basic tax returns.
- It enables users to import W-2 forms and prior year’s tax returns from other tax preparation providers.
- It guarantees a maximum reimbursement and accuracy in order to ensure client satisfaction.
- It has a mobile-friendly website.
- Users may always contact a physical branch if necessary.
- Additionally, you get limitless live chat and email assistance.
Cons:
- The knowledge base is insufficiently detailed.
- For more complicated instances, you must visit their real location.
- During specific hours, telephone help is unavailable.
Pricing:
Prices start from $29.99
4. TurboTax
Image Source: TurboTax
TurboTax is well-known for its efficiency in processing uncomplicated tax returns. Additionally, it provides a free filing option and simple navigation that a layperson may utilize for personal tax filing needs.
Pros:
- Navigation System: The guided navigation system supports novice users by prompting them with a series of simple questions. When consumers register the correct response, the procedure becomes more convenient for them.
- TurboTax Live: This function enables customers to share their screens with CPAs and EAs and have their returns examined immediately. Additionally, users have the option of connecting with a CPA on demand. Users have four connection options: Basic live for $49.99, Deluxe live for $89.99, Premier live for $139.99, and Self-employed live for $169.99.
- Max Assist and Defend: This function enables customers to get audit protection while submitting complex tax returns. It is available for an extra $44.99.
- It provides a storehouse of comprehensive articles where visitors may get answers to commonly asked queries and other pertinent information.
- The interview-style inquiry is entertaining and guarantees that the system receives all necessary data.
- It provides on-screen, face-to-face assistance to users who get stuck throughout the tax filing process.
- It entitles taxpayers to a free 1040 and state return.
- TurboTax’s web-based version is accessible on the company’s official website. As a result, users are not required to install the program.
- Taxpayers may effortlessly browse from one component to the next because to the user-friendly layout.
- Users may import their W-2 from a TurboTax partner.
- Additionally, it enables customers to photograph and submit their W-2 forms instantly from their iPhones.
- The Expense Finder function assists freelancers and small company owners in identifying every transaction from the previous year that qualifies as a deductible business expense.
Cons:
- The pricing varies across platforms.
- Additionally, it is one of the most costly software tools available.
- The total cost cannot be determined until the whole return is filed.
Pricing:
- TurboTax Self-Employed – Cost: $119.99 + $39.99 for each state return.
- TurboTax Premier – Cost: $79.99 + $39.99 for each state return.
- TurboTax Deluxe – Cost: $59.99 + $39.99 for each state return.
- TurboTax Free – Cost: $0 + $29.99 for each state return.
5. Drake Tax
Image Source: Drake Tax
Drake Tax is an easy-to-use, comprehensive, and accurate software solution for meeting the requirements of regular tax filing. The program has outstanding configurable reporting and other user-friendly features that enable customers to satisfy their tax obligations.
Pros:
- Ease Of Use: It has straightforward navigation and helps users to quickly navigate from one thing to the next. It covers all major tax forms, consolidates gift and estate taxes, and adds additional applications for fast document transmission.
- Comprehensive Filing: The program provides assistance with some of the most complex tax situations. It includes all 1040 forms, as well as all federal and 48 state bundles. Additionally, it includes forms for S corporations, C corporations, partnerships, trusts, estates, and tax-exempt organizations.
- Tax Planning Capabilities: Its tax planning features enable users to compare taxes year over year. It assists in the archiving of historical data and includes an amortization scheme.
- Paperless Filing: It promotes the use of less paper in the preparation and filing of taxes by allowing users to exchange information for updates, e-sign, and e-file tax papers.
- It facilitates the import of data from QuickBooks or Client Write-Up. Users who like working with spreadsheets may easily input data into Drake Tax.
- Its refund estimator function runs throughout the procedure, calculating the return amount in real time and resolving refund-related concerns.
- Through their review tool, you can simply find and correct errors.
- It provides responsive customer service.
- Additionally, the program includes tax forms in the Spanish language.
- Users may electronically submit state and federal income tax returns.
Cons:
- It is not capable of distant signatures.
- Its user interface seems to be a bit out of date.
Pricing:
Drake Tax is $330 per year and includes a 30-day free trial. It does not provide a complimentary plan.
