Tax software is gaining popularity day by day as paying tax for small business can be quite stressful. With this software, small business owners can file their taxes, maximize their deductions and refunds and avoid an IRS audit. All of it can be done without hiring a CPA. On the other hand, by using tax software owners can save a lot of hard-earned money. So in this article, we will have a look at the best 7 tax software which are great in 2020.
7 Best Tax Software for Small Businesses
TurboTax is one of the best software available on the market with a huge user base. The user interface of the app is user friendly and you can do it all yourself or ask for help from an expert from the software itself.
Users can upload PDF of past return files and pictures of W-2 and 1099 forms to get started. Then the software will ask some question to guide you through the whole process. It also searches for industry-specific deductions which are hard to find by a new taxpayer. As mentioned earlier, you can also live chat with experts to advice or line by line review.
TurboTax self-employed plan costs $120 + $50 per state filed and the live self-employed plan costs $200 + $55 per state filed.
2. H&R Block
Next on our list is H&R Block. It is one of the oldest and well-known tax services for small businesses. It has over 12,000 offices worldwide. H&R has lots of similarities with TurboTax as you can fill-up the form alone or ask for an expert.
The main differences are the user interface is not at par with TurboTax and if this is your first time using a software like this, you might miss some important steps. On the other hand, the costing of this program is much less than the competition and all of their plans include on-demand chat, screen sharing, and an online help centre.
There premium online plan starts from $69.99 + $44.99 per state filed, self-employed online plan costs $104.99 + $44.99 per state filed. They also offer assist plans, which costs $159.99 + $49.99 per state filed to $189.99 + $49.99 per state filed.
3. Jackson Hewitt
Jackson Hewitt was founded in 1982 and recently they began offering online tax preparation and filing services. When it comes to the basics, it has all the perks of any other program like that. But it is best when it comes to additional support.
The company offers 100% accuracy and you can seek help from their help centre during business hours. On the other hand, you can start filling up the forms and let an expert finish the process who will also check for errors.
The pricing for Jackson Hewitt is available by request.
4. Liberty Tax
Liberty Tax and Jackson Hewitt both are established by John Hewitt. Now Liberty Tax operates in 3,000 locations in the States and Canada. One of the best features of Liberty Tax is you can get started by importing returns from other platforms. For your support, you can ask for a live chat or mail them.
Their plans are made for small companies and individuals and way cheaper than most other services. The company also offers a 100% accuracy guarantee and alerts if users put anything which could risk an audit.
$44.95 + $34.95 per state is the cost of their premium plan.
TaxSlayer was founded in the 1990s and currently prepares and files over 10 million tax returns every year. You can start by importing W-2 forms and PDFs of past tax returns and the software will guide you through the rest.
Although they do not offer personal support, you can submit tax questions online which will be reviewed by IRS-certified tax professionals. The main reason it is on the list is it offers the lowest cost business tax filing plan.
TaxSlayer is free for simple tax situations. For the best value, you can opt-in for their classic plan which costs $17 + $39 per state filed. Finally, a self-employed plan costs $47 + $39 per state filed.
FreeTaxUSA was founded in 2001 and all of their 150+ employees live and work in the United States. It is in the list because they offer free federal tax filing services in states with no tax return requirements. The basic steps of starting up are easy, just like any other software on the list. Users get a maximum refund guarantee and a 100% accuracy guarantee with real-time checking.
As mentioned earlier, if you are a small business owner you can use this app to file your returns for free. If you need any help or need to verify your submission you can go for their premium plan which starts only for $6.99.
Self-employed plan of FreeTaxUSA costs $0 federal + $12.95 per state filed.
Last but certainly not least is TaxAct. Since the foundation, it has helped file over 65 million returns. If you are in a partnership and corporation, this is the only software for you. The best part of it is you can download the program for both Mac and Windows in case you want to work offline.
TaxAct supports the widest variety of business types and supports filing for sole proprietorships, partnerships, and both C- and S-corporations. But as it comes with variety, the cost is a bit higher than the rest on the list.
Their plan starts from $74.95 for sole proprietor + $49.95 per state filed. Then if you are in a partnership it will cost $109.95 + $49.95 per state filed. Finally, for corporations, the cost will be $109.95 + $49.95 per state filed.
So these are all the best software you can use to file your tax returns. We have tried to include apps for not only a small business but also for individuals and corporations, so you can choose the best one for you. Finally, if you are interested in reading articles like this one on the go, download our app from the PlayStore.