Best Tax Return software
Our tax return software guide includes some of the best tax filing solutions for businesses and individuals, including Intuit TurboTax, H&R Block, TaxSlayer, and TaxTron
What to look for in tax return software
Features and capabilities: The range of features and capabilities of tax return software is an important thing to look for. The average tax return solution should be able to:
- Auto-fill your tax forms
- Make automatic tax calculations
- Identify potential tax deductions
- Prepare up to 20 returns
Cost: The price for tax return software can depend on your tax situation. For example, tax return software for businesses tends to carry a higher price than plans for simple tax scenarios. Another influence on pricing is the features and support provided. Plans that come with unlimited tax support and advanced features usually have a higher fee. Many services have a free tax return software plan, which is meant for basic tax reporting.
Ease of use: The reason for using tax return software is to make tax prep easier. That’s why you should pick a platform that’s easy to use. Otherwise, the software will make an already complicated, stressful task even worse.
Support options: Most tax return software have pop-up guides to help you prepare your tax return. Some solutions offer live assistance from tax experts via phone, instant messaging, or video conferencing. If you feel like you’ll need some help with preparing your tax return, look for software that provides a high level of customer support.
Intuit ProConnect Tax
Tax return software questions and resources
What is tax return software?
Tax return software helps individuals and businesses prepare and file their tax returns. The goal of tax return software is to simplify and quicken the tax filing process. To achieve this, the platform imports documents from your revenue agency, auto-fills your return, and makes automatic tax calculations. Once your return is prepared, it will be filed for you.
Tax return software covers various tax situations like reporting cryptocurrency gains/losses or reporting rental income. You can also find solutions designed for particular scenarios such as reporting sales tax revenue.
Why do I need tax return software?
If you find tax preparation a daunting task, tax return software is worth using. As mentioned in the previous question, tax return software makes tax filing easier and faster. With some solutions, it can take you as little as 20 minutes to fill out and submit your return. The autofill and tax calculations features do most of the heavy lifting for you. Tax return software can also help lower the amount you owe by finding hidden tax deductions.
What are some features of tax return software?
Tax return software has numerous helpful features. Here are some notable ones:
- Autofill: This tool automatically fills your tax return with your financial information
- Import slips: Instead of printing off your slips, this tool connects to your revenue agency and imports them for you.
- Multiple return prep: Most tax return software lets you prepare up to 20 returns. Each additional return may cost extra.
- Tax deduction optimization: This tool searches your tax slips to find potential tax deductions you can claim.
What are the disadvantages of tax return software?
While tax return software has many benefits, there are some disadvantages to be aware of. First, some solutions suffer from a lack of personalization. While they do help you file your taxes, some tax return software does not provide the personalized help that comes from a professional account. That’s the reason why some solutions offer live support from professional tax experts.
Second, the software itself can be too complex. For example, a platform may use lots of unfamiliar terminology without providing definitions. Some of the feature may require expert knowledge/experience to be used properly. In short, complex tax return software have a steep learning curve and are best used by experienced users.
Lastly, pricing can be a drawback. Some solutions charge high prices for some of their plans. Comparing costs will help you find a platform that aligns with your budget.
Is free tax return software good?
Generally speaking, free tax return software is good for simple tax returns. For more complex tax scenarios, priced tax return plans are the way to go.
Which tax return software is the best?
TurboTax and H&R Block are two of the most popular tax return solutions in North America. Both platforms cover a wide range of tax scenarios and help you prepare and file your return with confidence. Their customer support teams are at the ready to provide live assistance through multiple channels.
If you’re looking for an affordable option, Wealthsimple Tax is a good pick. The software is completely free to use and comes with several helpful tools. However, it is not as thorough as TurboTax or H&R Block.
How much does tax return software cost?
The average price for a basic tax return software plan is $0 – $20. Premium plans typically cost $30 – $50. Tax return software for professionals tend to be the most expensive. For example, TaxTron’s plan for tax professionals starts at $69 and reaches $395. Some plans are priced per return, while others charge a one-time fee.