This article contains details of how tax software works, the best professional tax software for accountants alongside their features.
Tax software helps complete and file taxes online very easily and intuitively. It guides people through the forms to include deductions and income and will even guide people through items such as unemployment income notations or working-from-home deductions. People can use software for simple tax returns and complex returns with multiple forms.
What is Tax Software?
Tax software is a type of computer software designed to help companies or individuals prepare for and file income, similar, and corporate tax returns. The software streamlines the tax filing process by educating the user through tax forms and issues and automatically calculates the companies’ or individuals’ tax obligations.
How Tax Software Works
Tax software can be a great resource for a lot of taxpayers. The software makes the preparation process more efficient. The software is designed so the average taxpayer can understand the many nuances in the tax code.
How Tax Software help Accountants to Achieve a Good Result
The fact is that companies or individuals will pay less for a software package than they will to hire a CPA or a qualified tax professional. Tax preparation software prices range from almost 0 for basic filers to hundreds of dollars for complicated returns and more in-depth service.
On the other hand, the less expensive tax preparers might cost at least $100, and a CPA is likely to charge at least 2 times that amount.
7 Best Professional Tax Software for Accountants
Below is a list of the 7 best professional tax software for accountants
1.TurboTax
TurboTax is one of the best tax software for tax preparers. With some nice features for tax filing, the software even helps individuals after filing their taxes, if people want to track their refund and e-file status or make amendments to a tax return, and much more.
Features:
- people can handle all their taxes themselves, get expert advice, or hand over all their taxes to an expert.
- Tax estimators and calculators.
- Get tax tips to maximize tax deductions.
- Articles and videos to help people understand the functioning.
- Easy to use.
2. Drake Tax
The Drake Tax software is professional tax software. The software is loaded with features for filing taxes yourself, and professionals can use it for calculating and filing taxes on behalf of their customers/clients.
Features:
- Calculates returns and taxes in just a click.
- The Software Updates the previous year’s data to the current year.
- Accept payments done with debit or credit card within Drake Tax.
- The software helps plan tax deductions by showing how dependents, income, marital status, etc., affect the taxes.
- Fill in clients’ taxes and give the feature of eSign to easily file taxes on clients’ behalf without having to do the paperwork.
3.TaxSlayer Pro
The TaxSlayer Pro software is a cloud-based software made for preparing taxes. The software offers individuals some helpful educational resources, a useful mobile application, and unlimited tax filing.
Features:
- Gives guidance on how to become a tax preparer.
- Prepare/file individual tax returns electronically through different devices.
- Unlimited state and federal e-filing, all local and state taxes with each price plan
- A mobile application that lets people work anytime, from anywhere.
- Clients can eSign the documents without you going to the office.
4.Intuit ProSeries Professional
The Intuit ProSeries Professional software is one of the best tax return software loaded with advanced features to make tax filing easy and fast. The software also offers educational resources to help people learn about the software or file taxes.
Features:
- Get access to over 1,000 advanced diagnostics to maximize clients’ returns.
- An easy-to-use interface that makes preparing taxes faster.
- Built-in e-filing and e-signature features.
- Easy integration with different platforms.
- People can get help while working on a tax return.
- People can split a joint return easily.
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5. H&R Block
The TheH&R Block software is the best free tax software that lets people file federal and state taxes at a $0 cost.
The paid plans are also there, which offer features like online assistance for reporting stocks, filing taxes, bonds, and other investment income, and much more.
Features:
- Individuals can get help from a tax professional through a live chat or video while filing their taxes.
- Get real-time updates on returns.
- people need to upload a picture of their W-2 to gain the necessary information for filing taxes.
- Ensures 100 percent accuracy. If any error occurs on their behalf, they will pay up to a $10,000 penalty.
- Claim small business expenses.
6. ATX Tax
The ATX Tax software is a product of a popular and reliable brand, Wolters Kluwer. The software is tax return software, which lets people find errors in e-filing, gives them in-line help, and much more.
Features:
- Gives access to a library of more than 6,000 tax compliance forms.
- Easily integrates with other software/platforms so that people can import and export information as per their needs.
- E-signature and asset management features.
- Pay-Per-Return for business returns.
7. TaxAct Professional
The TaxAct Professional software is a tax preparation software that has been in the industry for over 20 years. This powerful software offers a free trial so people can have a test drive before paying for it.
Features:
- Different options to import data.
- Reports and tools can help people discuss tax planning with their clients.
- Data backup: one can access their clients’ data for seven years beyond the filing date.
- one can save more by paying only for what they need.
- e-signature, e-filing facilities.
- Side-by-side comparison view of the returns of the current year with that of the previous year.
FAQS
What tax software is best for professionals?
1) TurboTax.
2) Drake Tax.
3) TaxSlayer Pro.
4) Intuit ProSeries Professional.
5) H&R Block.
Is it better to use a CPA or TurboTax?
TurboTax is a cheap option for preparing simple tax returns with algorithmic triggers for potential deductions. On the other hand, expensive CPAs are best at handling complex financial dealings through prompt human interaction.
Do tax preparers use TurboTax?
The TurboTax software is only licensed for personal use, and the IRS regulations and license agreements prohibit the TurboTax software from being used by paid preparers.
Do you lose money using TurboTax?
People will still pay more by using the TurboTax software than they would if they completed all the tax forms independently. Thanks to the IRS website, people can fill out, then submit their forms electronically without a fee.
Can a tax preparer file their own taxes?
Tax professionals with an IRS PTIN (Preparer Tax Identification Number) are authorized to prepare federal tax returns.
What is the cheapest tax preparer software?
The H&R Block software is the best free tax software that lets people file federal and state taxes at a $0 cost. The paid plans are also there, which offer people features like online assistance for reporting stocks, filing taxes, bonds, and other investment income, and much more.
What is the cheapest tax software to use?
- TaxSlayer
- TurboTax
- H&R Block
Which software is best for income tax returns?
- Gen income tax software
Conclusion
Tax software is a digital application to help people complete their legally required annual tax filings. For most people, they are completing a version of Form 1040 with supporting documentation.
With tax software, people can enter their tax details from their employer and other income sources, as well as details related to tax deductions and credits. All tax software programs let people type in their details manually.
However, some better applications allow them to import prior year returns, data from their employer, and other tax form details from a PDF file, photo, or digital link to their employer or financial institution.
When done filing their taxes through the software, they can generally choose between filing their taxes online or printing and mailing them, though online filing with eFile is the easiest option for some people.
You can learn more from the video below:
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