- Home
- Tax Software
What is Tax Software?
Tax software is designed to help individuals and companies prepare and file income, corporate and other tax returns. This platform simplifies the procedure for tax filing by guiding the user to properly fill up tax forms and complete related work.Show more
It automatically calculates the tax dues of both individuals and corporations. Individuals can buy and use personal tax preparation software, while corporations need to invest in business tax preparation software. Personal tax software solutions are sold both in physical box format (retail solutions) and as web-hosted SaaS products. Start by checking our leader Longview Tax, and other recommended solutions in this category.Show less
How was this ranking made?
To develop this ranking of best Tax Software we have examined 218 trending systems currently present on the market, contrasting their features, how easy are they are to learn, customer service, available integrations and mobile device support with our patented SmartScoreTM rating algorithm. This list has been created by Nestor Gilbert, our software expert responsible for the Tax Software category.
List of Top 11 Tax Software
Order by:
Sponsored
- Sponsored
- Score
Select more products to compare
Compare selected products
1. Longview Tax
Our score: 9.1 User satisfaction: 95%A tax platform capable of centralizing tax management and automating data collection and processing, providing organizations with standardized data that improve tax transparency and support in-depth, strategic tax data analysis.
Select more products to compare
Compare selected products
2. Zoho Books
Our score: 9.6 User satisfaction: 100%Zoho Books is the winner of our 2017 Great User Experience Award. It is a smart accounting software designed for small businesses to better manage their finances and more efficiently control their cash flow. It is also user-friendly, with a clean design yet robust set of features that helps users generate actionable, data-based insights.
Select more products to compare
Compare selected products
3. Xero
Our score: 9.8 User satisfaction: 97%A popular online accounting app designed to meet the needs of small and medium businesses in any industry. One of the most user-friendly accounting solutions available today, Xero features real-time tracking of accounts receivable, expenses, billing, and invoicing.
Select more products to compare
Compare selected products
4. Wave
Our score: 9.4 User satisfaction: 99%Wave is the world's fastest growing software for small businesses, best for those with fewer than 10 employees. It offers free accounting, unlimited invoicing, and receipt capture presented on a user-friendly dashboard.
Select more products to compare
Compare selected products
5. Sage 50cloud Accounts
Our score: 9.4 User satisfaction: N/ASage50 Accounting is a comprehensive cloud-based accounting software that helps businesses of all kinds and sizes manage key processes from billing to tax management. It has modules to help manage orders, contacts, inventory, and suppliers. It also includes advanced reports generation for forecasting and different types of financial analyses.
Select more products to compare
Compare selected products
6. Vertex O Series
Our score: 8.6 User satisfaction: 92%This tax software prioritizes keeping your company tax compliant in terms of the latest tax rates and the rules pertaining to them. For this approach, Vertex O Series keeps in touch with around 10,000 US taxing jurisdictions. The program also lets users integrate easily with third-party ecommerce, ERPs, and billing systems.
Select more products to compare
Compare selected products
7. Paycor
Our score: 9.1 User satisfaction: 95%Paycor is an integrated Human Capital Management (HCM) system that handles recruitment, human resources, and payroll. It features HCM technology that is regarded as an intuitive platform that incorporates HCM solutions to business processes.
Select more products to compare
Compare selected products
8. QuickBooks Online
Our score: 9.5 User satisfaction: 94%QuickBooks Online is Intuit's comprehensive yet easy-to-use software solution that simplifies accounting tasks for freelancers and small businesses. It offers tools to track expenses, calculate taxes, manage invoices, monitor sales, and more.
Select more products to compare
Compare selected products
9. Vertex Cloud Indirect Tax
Our score: 8.4 User satisfaction: 100%This cloud-based application streamlines all tax calculations and business compliance with US purchase and sales taxes laws. This helps businesses eliminate risks to tax reporting legal requirements. As with all Vertex tax solutions, it constantly updates the program in line with the latest rates and regulatory rules for around 10,000 taxing jurisdictions.
Select more products to compare
Compare selected products
10. Clarus R+D
Our score: 8.0 User satisfaction: 92%A tech-enabled tax service that provides a seamless and efficient way for startups to claim the federal R&D tax credit.
Select more products to compare
Compare selected products
11. SimpleTax Canada
Our score: 8.6 User satisfaction: 85%SimpleTax Canada is an online tax preparation software exclusive to all Canadian provinces and territories.
Order by:
Sponsored
- Sponsored
- Score
- User Score
Table of contents
Industry Report - Tax Software for 2022
CloudRank™ system is a unique algorithm that our research team uses to evaluate Tax Software solutions in a detailed and accurate way. The Summer 2022 edition of the ranking was prepared by Nestor Gilbert, our leading expert in the field of Tax Software, who has authored 1380+ product reviews in this category. The goal of CloudRank™ is to present an unbiased, multi-layered perspective on Tax Software, considering a wide range of metrics and factors, and educating potentiala customers about both opportunities and challenges associated with each piece of software.
In order to achieve full objectivity the position in our CloudRank™ is based on:
- Expert Score: which involves extensive analysis by our internal team which carefully examined all key elements of each software and testing it in real-life situations
- User Score: which involves an aggregated opinion of actual users of each product whose identity was properly verified
- Market Position: which involves general recognition of a given vendor on the market and reflects its overall popularity and reach
What do the tiers in CloudRank™ mean?
We’ve calculated a score for each product based on the average experience shared by our users in their product reviews and arranged the list in three tiers. You can see the methodology below on how the calculations were made.
- Leaders: those with a User Score of 8.5 or higher; this tier includes products that are currently leaders on the market and are appreciated by both experts and actual users. They always represent the best of what the Tax Software market has to offer and are all worth trying out if you’re looking for a reliable solution.
- Contenders: those with a User Score between 7.5 and 8.5; this tier includes high-quality products that still have some minor drawbacks that prevent them from becoming leaders on the market. They always represent well-designed tools that, over time, will most likely develop into market leaders as the missing features are added.
- Rising Stars: those with a User Score between 6.5 and 7.5; this tier includes products that have high-potential but still lack some crucial features or services expected from a leading solution. They are products with solid foundations and a vision that makes us eager to see what they will become as their solution improves in the future.
Regardless of their tier, all products included in our CloudRank™ are popular, quality products considered top-performers by our team of experts. Make sure you read a more detailed review of each solution to find one that will work best for your specific needs and budget.
Show less
MARKET POSITION
A score between 1 and 10 based on popularity and market reach of each product.
TOTAL score
A score between 1 and 10 based on the average of our Expert Score and User Score.
How does CloudRank™ work?
Market Position
A score between 1 and 10 based on popularity and market reach of each product.
Total Score
A score between 1 and 10 based on the average of our Expert Score and User Score.
CloudRank™ tier
Based on product's total score.
Rising Star
Contender
Front Runners
25 Most Popular Tax Software
Here is a list of all 25 Tax Software solutions evaluated with our CloudRank™ analysis. We have compared their features, user satisfaction, market presence and other key factors in an in-depth analysis you can find below:
Our score and features analysis:
}
CloudRank™
Score:9.29
Score:9.29
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our score and features analysis:
}
CloudRank™
Score:9.15
Score:9.15
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
3. Sage 50cloud Accounts
8.77
Our score and features analysis:
}
CloudRank™
Score:8.77
Score:8.77
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
4. Bench Accounting
8.69
Our score and features analysis:
}
CloudRank™
Score:8.69
Score:8.69
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our score and features analysis:
}
CloudRank™
Score:8.66
Score:8.66
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our score and features analysis:
}
CloudRank™
Score:8.59
Score:8.59
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
7. QuickBooks Online
8.50
Our score and features analysis:
}
CloudRank™
Score:8.50
Score:8.50
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our score and features analysis:
}
CloudRank™
Score:8.40
Score:8.40
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
9. QuickBooks Enterprise
8.23
Our score and features analysis:
}
CloudRank™
Score:8.23
Score:8.23
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our score and features analysis:
}
CloudRank™
Score:8.23
Score:8.23
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our score and features analysis:
}
CloudRank™
Score:8.22
Score:8.22
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
12. NetSuite ERP
8.09
Our score and features analysis:
}
CloudRank™
Score:8.09
Score:8.09
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our score and features analysis:
}
CloudRank™
Score:8.00
Score:8.00
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our score and features analysis:
}
CloudRank™
Score:7.92
Score:7.92
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our score and features analysis:
}
CloudRank™
Score:7.86
Score:7.86
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
16. CS Professional Suite
7.83
Our score and features analysis:
}
CloudRank™
Score:7.83
Score:7.83
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
17. Patriot Software
7.68
Our score and features analysis:
}
CloudRank™
Score:7.68
Score:7.68
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our score and features analysis:
}
CloudRank™
Score:7.66
Score:7.66
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our score and features analysis:
}
CloudRank™
Score:7.56
Score:7.56
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
20. TaxAct Business
7.50
Our score and features analysis:
}
CloudRank™
Score:7.50
Score:7.50
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our score and features analysis:
}
CloudRank™
Score:7.49
Score:7.49
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
22. MYOB Essentials
7.46
Our score and features analysis:
}
CloudRank™
Score:7.46
Score:7.46
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
23. Vertex O Series
7.14
Our score and features analysis:
}
CloudRank™
Score:7.14
Score:7.14
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our score and features analysis:
}
CloudRank™
Score:7.09
Score:7.09
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
25. Drake Tax Software
7.03
Our score and features analysis:
}
CloudRank™
Score:7.03
Score:7.03
Customers company size
No. of employees:
1-10
11-50
51-100
100+
Best features
Worst features
Our report covered 25 most popular products from the Tax Software category. We’ve analyzed their features, performance, integration, customer support, pricing, and several other key buying factors and combined it with feedback from user reviews to come up with the current list of best solutions:
- 2022 Tax Software Leaders: Zoho Books, FreshBooks, Sage 50cloud Accounts, Bench Accounting, Xero, FreeAgent, QuickBooks Online
- 2022 Tax Software Contenders: TurboTax, QuickBooks Enterprise, Paycor, Wave, NetSuite ERP, Tipalti, H&R Block, ONESOURCE, CS Professional Suite, Patriot Software, AvaTax, OnPay, TaxAct Business, TaxJar
- 2022 Tax Software Rising Stars: MYOB Essentials, Vertex O Series, Canopy, Drake Tax Software
From one of the top SaaS providers worldwide, Zoho Books is a perennial favorite when it comes to ranking the top tax and accounting software in the market today. To say that this multi-awarded tax solution is the best choice when it comes to small business accounting needs can be an understatement, mainly due to a long list of reasons.
For one, Zoho Books is not only among the most intuitive tax and accounting apps that facilitate the growth of start-up companies, users do acknowledge its capability of enabling business owners to better handle their finances. Likewise, it is not only easy to use, but it also helps companies make informed, meaningful, and data-driven business decisions.
What’s more, Zoho Books is a proven solution in terms of its uptime reliability, top-notch customer support, and bank-grade security. Further, it is also known for its intelligent design that enables one of the shortest learning curves in its category, even among non-tech, novice users.
And, last but certainly not the least, Zoho Books has become one of the most in-demand tax solutions today because of its price point—a Basic Plan at $9 per organization per month—with an irresistible free trial offer to further sweeten its already compelling product offer.
Most users of Tax Software solutions confirm that in most cases these tools allow them to reach the following business goals:
- It helps us to avoid IRS audits. [ 86.6% of users ]
- It helps us to save time in tax preparation and filing. [ 85.2% of users ]
- It maximizes our tax deductions. [ 87.2% of users ]
- It provides answers to our tax queries. [ 85.7% of users ]
- It stores taxes on our computer. [ 86.1% of users ]
How did we select products for this Tax Software report?
The Summer 2022 version of the report includes a total of 25 Tax Software products that were compared and analyzed by our team. We selected them based on the following factors:
- Popularity of a given brand in the SaaS market (based on our own market research)
- How popular a given brand is among FinancesOnline users (based on number of mothly readers for each review page)
- Availability of statistical data generated from user reviews of a particular product (we excluded products with not enough data to draw meaningful conclusions)
- The current listing reflects the state of our database and research as of July 2022. An updated version of the report will be released quarterly to keep data fresh and incorporate information about shifts and changing trends in the market.
What are the current Tax Software trends?
Increased Adoption of Cloud-based Tax Software
Although numerous industries have been adopting cloud-based solutions, many companies have yet to embrace cloud tax software. Such is further reinforced by the fact that 30% of corporate tax professionals cite implementing new tech as their biggest challenge.
However, this is seen to change in the near future as current accounting trends indicate that more and more accountants demand access to the cloud. This development is seen to stem from accountants’ need to work anytime from places other than their offices during tax season. Other reasons for greater cloud-based tax software adoption include cost savings, disaster recovery, and better security. This is not to mention the fact that harnessing the power of the cloud can also greatly improve document, staff, and time management.
Source: Statista
Continued Inclusion of Automation Features in Tax Software
Trends toward increased automation is expected to continue to make its rounds in tax software in particular and accounting platforms in general. More modern algorithms and the application of technologies like optical character recognition and artificial intelligence will further take over mundane tasks that take up the time of both accountants and bookkeepers. These include processes such as manual entry, data importation, payroll processing, reporting, and bank reconciliation, among many others.
Automation will also ensure a more accurate entry of tax information, which in turn leads to cost savings and penalty avoidance. Also, automation speeds up the completion of such tasks, not to mention that it allows tax professionals to focus on more pressing matters. Plus, automation is only seen to further impact businesses as revealed in a survey by NewVantage Partners, where 92% of C-level executives indicated that their companies are accelerating investments in big data and AI.
Source: National Small Business Association’s 2018 Small Business Taxation Survey
Development of More Integrated Software Products
A problem that has consistently hounded accountants is the need to switch between systems when carrying out specific tasks. This is mainly due to the lack of integration among software solutions. This is seen to be remedied by the continued development of tax software that play well with other solutions, effectively eliminating data silos.
Besides, integrated solutions prevent tax management errors. This is accomplished by the establishment and use of a common database to which all existing business systems have access. Updating information in one system automatically does the same for the other solutions in the environment. This seamless flow of data gets rid of the need to worry about data inaccuracies, allowing users to focus on income-generating processes.
Tax tools help individuals and businesses prepare and file tax returns. As there are numerous programs out there, how do you do informed comparisons to choose the best tax solution for your needs? We help you in this task with this buyer’s guide that details the key features you should look for in such platforms.
Get to know each product with free trial
A good way to start your search for the best tax solution is to register for and check out popular programs offered by leading tax software providers. This will enable you to understand each application’s features and judge whether it is suitable for your requirements. We recommend the following tax tools and you can visit their websites to check the possibility of a free trial or demo: H&R Block, TurboTax, TaxAct, Jackson Hewitt, and TaxSlayer. These apps got high rankings in our tax tools reviews that you can read to make a general comparison of their features.
Targeted Businesses
- Individuals, freelancers, and sole proprietors can utilize personal tax preparation software.
- Small, medium-sized, and large corporations can use business tax preparation software.
Examples of Tax Software
- H&R Block: Offers a wide array of tax preparation services to enable you to get maximum refund. You can complete and file tax returns in multiple ways. Use this software to find a method that fetches you the most money from refunds. This company has been around for more than 60 years and utilizes its vast tax experience to deliver quality products and services.
- TurboTax: A best-selling tax preparation software solution that helps you file taxes online. You can effortlessly file state and federal income tax returns online with accuracy. The solution provides step-by-step guidance as well as double-checks to simplify your task. Plus, it finds all possible tax deductions and credits you qualify for to enable you to get the biggest tax refund.
- TaxAct: Prepares and e-files your income taxes. It makes it quick and easy for you to prepare and file your taxes and get a maximum refund. The company offers reliable and affordable personal tax preparation programs that accommodate important tax scenarios. Highlights are the products’ simple design, low cost, and free phone and email support.
- Jackson Hewitt: A full-service income tax preparation firm that specializes in fully computerized federal and state taxes. It offers professional tax preparation services in more than 6,300 locations across the US. You can file online or book a convenient appointment. They promise to take care of all the work and are even open late and weekends.
- TaxSlayer: The best part is TaxSlayer is free. You can prepare and e-file your state and federal income taxes online free of cost. The product enables you to file your taxes on the go from any mobile device or laptop. The vendor guarantees 100% accurate calculations and if there is an error, they promise to reimburse you the tax penalties as well as interest charges.
Types of Tax Software
There are two main types of tax software tools:
- Personal tax preparation software for individuals
- Business tax preparation software for companies
Personal tax software solutions are available as physical box retail software as well as hosted SaaS platforms.
Key Features of Tax Software
- If you have basic tax needs and have only your wages as income, you require only a free or basic version of tax software.
- If your income is not high, you can qualify for free filing.
- But if you have kids, rental properties, and lots of credits and deductions, you need to invest in a premium version.
- All products offer a tax calculator that tells you how much exactly you need to pay.
- Top tax software solutions guide you through even complex situations and if you need assistance, you can use the services of a professional tax preparer.
Benefits of Tax Software
Calculates Your Tax Deductions
Tax authorities add new deductions every year. So use the latest edition of the software product to ensure you benefit from all these deductions and get maximum refund.
Files Taxes from Your Computer
Tax software can e-file your taxes, which is more convenient and faster compared to snail-mailing your taxes. Another advantage is that you can get faster refunds and do not have to wait for a check.
Helps to Avoid IRS Audits
Tax software checks all errors before filing. This reduces the chances of an IRS audit. If there is an error, leading vendors promise to reimburse you for any penalties as well as interest.
Gets Answers to Your Tax Queries
The software provides answers to common tax queries. Top solutions display typical queries and answers on the screen. They also provide helpful tools. If you need personal assistance, you can contact the vendor’s customer support team through phone or email.
Stores Tax Details on Your Computer
If you use a retail software product, it will store your tax details on your computer. And if you utilize an online cloud-hosted version, you can access the information anytime, anywhere, for any year.
Saves Time
Tax software helps to save time by copying the details from your federal return form to your state return. This is not possible with a paper return, where you need to write the details twice. You can avoid this by investing in a tax software solution that will also help you eliminate mistakes that can happen while copying the info.
Latest Trends
Cloud Programs Are in Demand
Though cloud solutions have become the norm in most industries, only 40% of accounting software users are using web-based products. This is changing as more accountants are asking for cloud access. This is important for them as they need to work overtime during tax season and mobile access can enable them to work from home and on weekends.
Optical Character Recognition Minimizes Errors
It can be hard to decipher handwriting that resembles chicken scratch on receipts, expense reports, and other important tax documents. This can be avoided by using Optical Character Recognition (OCR) solutions like Hubdoc, Expensify, and Receipt Bank that can scan handwritten documents and convert handwriting into readable text. This helps to save a lot of time and minimizes errors.
Integration of Tax Software Packages
Previously, accountants were unable to access centralized data as different software solutions were not integrated. This meant manual re-entry had to be done, which took a lot of time. Today, more tax software products can communicate with each other, which means users do not have to worry about siloed data.
Potential Issues
High Cost
If you need a quality tax software solution, you need to pay a good amount of money for it. For instance, the online version of TurboTax Deluxe costs $34.99 and you need to pay an extra $36.99 for a state tax return. If you have extra sources of income and need more complex calculations, you need to upgrade to TurboTax Premier, which costs $54.99 for a federal tax return and an extra $36.99 for a state tax return. It is advisable to buy tax software products early in the year as prices could increase as the tax filing deadline comes near.
Buggy Software
Some tax software programs are buggy and kick you off while you are working on them. Another glitch is that the help section may not be adequate and you may not get the required answers to your queries. In such cases, contact the vendor’s support team for assistance.
Useful stats
- The tax preparation industry in the U.S. is worth $11 billion.
- It employs 314,413 people in the United States.
- The industry is growing by 3.4%.
- In 2018, 250 million tax returns were filed via a tax preparation businesses.
- 88.72% of these tax returns were e-filed.
Best practices in tax filing
Security is paramount. Cybersecurity is an even bigger part of the tax filing environment these days. Tax preparers are required to have a written data security plan detailing how they’re protecting client data. Other measures include document encryption, password protection, and using secure FTP built into most modern tax software. For more information, IRS Pub. 4557 offers guidelines for safeguarding client data when preparing your clients’ taxes.
Don’t file at the last minute. You should file a few days or at least a week before the tax deadline. This means you can still catch mistakes and perform corrective action (or request an extension if needed). If you do decide to file for an extension, note that some states require a portion of the balance to be paid first before the extension is approved.
Don’t discount paper completely. Some returns may need to be filed exclusively on paper. For returns that need to be done this way, allow for a few more days, typically more than you would wait for an e-filed tax return. A taxpayer should attach a taxpayer choice statement detailing why they chose to file the return on paper and not electronically, while yours should be Form 8948.
List of Tax Software Companies
Order by:
Newest
- Newest
- Score
- User Score
Product name:
Category:
Smart Score:
Price:
User Satisf.
User reviews:
Things to consider when you invest in a SaaS
SaaS software provides many benefits such as simple setup, access, and integration as well as data security. To choose the right system for your requirements, you need to do your homework thoroughly. To start, begin with the following suggestions to consider and evaluate the various apps:
Know your needs: First, be sure about your company’s needs and requirements. Why do you need to invest in a SaaS solution? What tasks and objectives do you intend to accomplish with the solution? If you are certain about your needs, you can easily find a suitable app that fulfills them.
Compare features and price: Make a shortlist of SaaS solutions that offer the tools you need and are within your budget. Browse online reviews of the shortlisted apps to learn what each one offers.
Use the free trial and extend it if necessary: Subscribe to the free trials of the shortlisted solutions and check out their features firsthand. This will help you to understand if the application provides what you need to boost your organization’s effectiveness and productivity. Request an extension of the free trial if the time is too short to gauge the app’s effectiveness.
Talk to the vendor: Finally, talk to each vendor about the assistance and support they can offer. Try to negotiate the cost and get discounts. Ask about the training and consultation they offer to assist you to utilize the application effectively.
Frequently asked questions about Tax Software
What is the best tax software?
The best tax software is FreshBooks. Winner of our 2019 Best Accounting Software Award, this cloud accounting software is as comprehensive and robust as could be, with all the features businesses of any size will need. Businesses that constantly need to streamline client invoicing and time tracking will find they have just the application they need for these processes.
What are the benefits of tax software?
Timesaving
Tax software automates and streamlines all tasks related to tax returns. It copies details from your federal returns forms to your state returns, unlike manually doing so where you have to input it twice. This means that not only does it save time but it eliminates copying errors as well.
Filing Taxes Anywhere
Tax software can file your taxes from your device, and cloud-based tax applications can even do so even while you’re on the go. This only means that you get refunds much more quickly without having to wait for a check in the mail.
Plus, it stores details either on your machine or on the cloud. This means you can access your information quickly and conveniently.
Complies With Regulations
Modern tax software spots all errors before it files for you. This helps avoid the IRS auditing you. If there’s still an error, many tax software vendors promise to reimburse you for penalties and other accrued interest.
What are the features of tax software?
Tax Calculator
Tax software exactly computes the amount you owe the government. This takes into account all factors so you need only pay what you need to, down to the last cent.
Spots Errors for Compliance
Tax software can spot mistakes on your tax returns with multiple layers of redundancy. This puts you at a position to comply with all current tax regulations, both on the state and federal levels.
Calculates Tax Deductions
Tax authorities, both federal and state, add new deductions every year. Updates on the software ensure you’re updated on all deductions that apply to you so you get the maximum refund.
Answers Your Tax Queries
Tax software has a database of common tax queries and can answer them. They often display typical queries and answers on the dashboard, including explanations of fields and required data. You can also browse a tax software’s built-in help menu to find the information you’re looking for.
Professional Support
Modern tax software can guide you step-by-step through every process and in any conceivable situation. If your circumstances go beyond the pale of tax-filing, it can forward you for assistance to a professional tax preparer.
What is the easiest tax software to use?
The easiest tax software to use is QuickBooks Online. It’s Intuit’s answer to all the accounting needs of freelancers, startups, and small businesses. Not only does it have robust tax filing and tax calculation capabilities but it also possesses expense tracking, invoice management, and sales monitoring all in one package.
What is a good free tax software?
A good free tax software is H&R Block. It’s a straightforward tool that offers users the ability to search for tax information, answers, and articles. Its built-in Tax Information Center puts everything you need at your fingertips. Though free, it comes loaded with several unique features, such as the W-2 Early Access, Affordable Care Act Calculator, and the Tax Prep Checklist.
Updated
Why is FinancesOnline free?