7 Tax Software for Tax Preparers
That period of the year when tax returns are due can be daunting because it is an uphill task.
It is time-consuming and complex, and not everyone enjoys it. Fortunately, numerous tax software has simplified the process and eased the burden off the shoulders of the taxpayers. Using these, you can file the tax accurately and timely.
The tax return is a legal document that details your income, expenses, etc., to the Internal Revenue Service (IRS).
Filing tax returns is tedious, but there are a lot of benefits, too. Promptly filing can help you avoid late fee penalties and audits by tax authorities, and you can also enjoy perks like quick potential refunds, etc.
Millions of citizens receive refunds from the IRS, mostly because of refundable tax credits.
Importance of the Tax Software
Tax software is a user-friendly computer software or end data tool designed to assist individuals and organizations in timely filing of income, corporate, and other taxes on time.
Most tax software comes with demos that provide step-by-step information to make filing tax returns quicker and easier. If you get stuck, you can also seek online support.
Tax preparation software’s popularity has soared as it offers simplified calculation and reporting, seamless data integration, and customizable workflow.
Its penetration in the tax segment
Tax Software is a recent innovation. Research shows that in 1984, Michael A. Chipamn introduced the tax software Turbo Tax to simplify the tax filing process for US citizens. Nine years later, in 1993, he sold his creation to Intuit.
Turbo Tax has been going steady since. A report by Bloomberg reveals that 42 million people used Turbo Tax online in 2022. Of them, 13 million filed their taxes without any cost and enjoyed straightforward tax returns.
For individuals, top players such as Intuit, Avalara, Thomson Reuters, SOVOS, H&R Block, and Xero offer tax software, which is a booming business.
If you are looking for some of the best tax software for easy tax filing and maximum benefits, check out the list below:
List of 7 Tax Software frequently used by individuals
1. TurboTax
One of the oldest and most trusted software programs is TurboTax. Known for accuracy, audit support, and a maximum refund, it tops Time Magazine and CNBC's best tax software lists.
Cost: Both free and paid editions.
DIY: $0 to $119
Live Assisted: $0 to $209
Live Full Service: $119 onwards
The free version of TurboTax is suitable for those with Form 1040 returns and claiming limited credits only. The free edition also includes TurboTax Live Assisted Basic. Reportedly, 37% of clients qualify for the free version.
2. H&R Block
Another popular tax software is H&R Block, which was used by over 20 million tax filers in 2023. Its tagline says, either enjoy the maximum refund or it will refund the fee.
Block is popular among students who use its services to claim education tax credits. A substantial percentage of students file with Block Without for free.
Cost: Both free and paid editions.
Simple Returns: $0
Basic: $35
Deluxe + State: $50 (additional fee applicable)
Premium: $85 (additional fee applicable)
Premium & Business: $99 (additional fee applicable)
What sets it apart is that it offers its services at over 11,000 physical locations where you can meet experts and clarify your doubts in person.
Block also provides expert advice on all kinds of taxes and tax identity theft protection.
3. FreeTaxUSA
This is a free tool for filing Federal Tax Returns that was started by TaxHawk Inc.
In 2001, a CPA and some software created FreeTaxUSA. It handles all kinds of personal income tax and provides expert assistance.
The software guarantees the correctness of calculation accuracy and promises to pay back any penalties and interest that arise from a calculation error.
Cost: It has both free and paid versions.
Basic Suppor: $0 for Federal ($14.99 added cost for state taxes)
Deluxe: $7.99
Pro Support: $49.99
4. TaxSlayer
You can E-file your tax returns by creating an account on its website or downloading its free TaxesToGo app.
Cost: It has both free and paid options
Simply Free: $0
Classic: $32
Premium: $52.95
Self-employed:$62.95
They cover you if you need additional support, from quick refunds and limitless phone and email assistance to clearing your doubts by talking to a professional.
Not just that, maximum refund is assured and 100% accuracy guaranteed. Last but not least, it offers the option to pay your fees from your federal refund rather than paying them when filing.
5. TaxAct
This online platform offers solutions for both personal and business taxes. Accuracy is critical in tax filing, and TaxAct, like its competitors, promises 100 percent accuracy coupled with security measures that ensure all data is safe and protected.
For small businesses, TacAct offers a DIY online tax filing facility and offers to optimize credits and deductions.
TaxAct also offers a desktop-based version. You can host TaxAct on the cloud for numerous benefits, such as remote access and banking-grade security.
Cost: This one also has free and paid options.
Free: $0
Deluxe: $49.99
Premier: $79.99
Sefl-Employed: $99.99
6. Cash App Taxes
If you want to spend less and get more, Cash App Taxes may be the solution for you as it offers free tax filing for state and federal taxes with a maximum refund promise.
Cost: It’s Free
According to its website, it provides free help to those facing complications in their tax filing.
It can be used on computers or phones with the help of detailed instructions and in contrast to others, it promises refunds five days sooner than its competitors.
The tax year 2023 covers the most common tax forms and schedules.
7. IRS Free File
Another free tax filing option is IRS Free File, a public-private partnership with multiple online tax-prep firms.
Cost: It’s Free
IRS offers two free online tax filing options for free.
Guided Tax Software: To avail of this service, your gross income should be either $79,000 or less in 2023. The partner companies can also help you with state returns.
Free File Fillable Forms: These are electronic federal tax forms, equivalent to a paper 1040 form. It also provides a free option to taxpayers whose income (AGI) exceeds $79,000.
Conclusion
As the deadline for filing federal taxes draws closer, the list will help you select the best option to expedite your tax filing. You can choose paid or free options, depending on your needs. If you are hard-pressed for time, you can easily avail their services and reap the benefits.
