Best Tax Software for Small Business QuickBooks Desktop users or businesses with cryptocurrency transactions read more. What is your budget for business tax software? Do you have more than one business? Are you self-employed and only need to file one federal and one state return? Would you prefer to handle your small business taxes online or with in-person help? Online only. In-person help. The key features you should look for in small business tax software are: Cost: Owners of corporations and partnerships generally require at least four returns, and sole proprietors require at least two returns.
Data import: The tax software can import data from bookkeeping software and financial institutions. Deduction finder: The tax software helps business owners find deductions for their industry and pick the best way to deduct depreciation and car expenses. Error checking: The tax software must have diagnostics to check for mistakes and potentially missing data.
Live tax professionals: Consultation and perhaps even a review by a tax professional is critical for complicated returns; simply clearing all the issues from the error check does not guarantee the return is correct. Ease of use: The tax software must be relatively easy to learn and navigate. Customer support and help resources: The tax software must provide an online knowledge base and customer support by phone or email.
Required Returns Including e-File Fee. About the Author Tim Yoder Tim Yoder is a subject matter expert at Fit Small Business focusing on small business bookkeeping, accounting, and tax content.
User reviews and comments are contributions from independent users not affiliated with FitSmallBusiness. As such, they do not endorse or guarantee any posted comments or reviews. Like Ask a Question Your comparison does not include what operating system is required for each companies software. Log in to Reply. Mandy, Moderator. All the Best- Crystalynn Shelton. Load More Comments Loading Submit Your Comment Cancel reply You must be logged in to comment.
LOG IN. Visit TurboTax! You may need help, either through good tax software or a tax pro, to avoid making a mistake. In some situations, absolutely. A tax pro is someone you can build a relationship with over many years. It could take a pro at least a couple of hours to complete your taxes, depending on your situation. How did the TCJA change the standard deduction and itemized deductions? About Form , U. Melanie Pinola is a Wirecutter staff writer covering all things home office.
Editorial note: The evaluations of financial products in this article are independently determined by Wirecutter and have not been reviewed, approved, or otherwise endorsed by any third party. Share this review on Facebook Share this review on Twitter Save this review on Pocket Share this review on Pinterest Share this review with E-mail For slightly more complicated returns—for example, you need to itemize because you own a home— TurboTax Deluxe is the best software for the job.
Our pick. Credit Karma Tax Free tax filing for basic returns For most people who have only a couple of standard forms to enter, such as a W-2 or a INT for interest income from a bank, Credit Karma Tax is the best option to prepare taxes. Buying Options Buy from Credit Karma free. Also great. TurboTax Deluxe The best tax wizards for guiding you through an itemized return If you are a homeowner, if you have student loans or paid education expenses last year, or if you want to maximize your other deductions and credits for instance, you meet the criteria for the child and dependent-care tax credit , TurboTax can walk you through your return smoothly without using confusing, jargony terms.
How we picked How we tested Our pick for simple returns and no income restrictions: Credit Karma Tax Flaws but not dealbreakers Our pick for free filing if you meet the eligibility requirements: IRS Free File Program delivered by TurboTax Our pick for basic itemized deductions: TurboTax Deluxe Our recommendation for small-business owners and complicated returns: A certified public accountant CPA or an enrolled agent EA The competition Frequently asked questions Sources Why you should trust us Wirecutter staff writer Melanie Pinola has written extensively about personal finance for Lifehacker and other sites.
Simple filers: Free version The free version of online tax software is for you if you have just W-2 income to report, without additional income from self-employment or rental property. TCE provides tax help to those who are 60 and older and have retirement-related questions. For both programs, you need to head to a site, usually a community center or library, where volunteers can help you out—the IRS, however, notes that available services can vary depending on the volunteer pool.
These are the key distinctions we considered when recommending tax software: Accurate, effective interview and guidance: The best tax-prep software identifies both common and uncommon circumstances in your life and shows you the relevant buttons and questions to catch the necessary stuff while discarding irrelevant bits.
Forbes adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. Holly Johnson is a credit card and travel expert with a focus on rewards and loyalty programs and family travel in Europe and the Caribbean.
She is also the author of. Follow Johnson on Twitter, Facebook, or Instagram. Please help us continue to provide you with free, quality journalism by turning off your ad blocker on our site. Thank you for signing in. I agree to receive occasional updates and announcements about Forbes products and services. However, you may not need to file a federal income tax return if your income is below a certain threshold, though you will need to file a return to claim a refund, such as for tax credits or withheld income tax.
You can find out more information on filing federal taxes at the IRS website. Not every state has a state income tax. Others, such as New Hampshire and Tennessee tax dividend and interest income, but not earned income. Instead, these states supplement state income in other ways, such as through property taxes, sales taxes, and a variety of other forms of small taxation.
Additionally, a number of states do not charge state income tax unless you earn over a certain threshold, so low-income workers may not have any state income tax to pay anyway. However, there are nine states where a flat-rate state income tax is charged regardless of earnings, and these are: Colorado, Illinois, Indiana, Kentucky, Massachusetts, Michigan, North Carolina, Pennsylvania, and Utah. It therefore remains important to be able to identify your tax liability according to the state you reside in, according to your earnings.
Unfortunately, due to the many differences between Internet browsers and individual computer configurations, we are unable to suggest Internet settings or configurations for you. Try selecting another company; use another computer or another browser. How do I check the status of my refund? Get up-to-date refund information using Where's My Refund? How do I get a copy of my return? Generally, you just fill out a relatively short form once a year and claim the proper refund.
But if you own a business, you need to know a bit more and you need to prepare a bit more. That means many employees look forward to a nice tax refund as a reward for filing. However, personal returns have more restrictions when it comes to tax deductions. Since so many business expenses are tax deductible, keep those business receipts if you want those deductions.
The IRS issues more than types of tax forms and schedules. One key difference between filing personal and business taxes will be the various forms you need to complete. These same forms will also work if you registered your business as an LLC with you as the sole member. Each of these business organizations pass through business income to the owners or shareholders, so the members will need to account for those earnings under Schedule E in their personal income taxes.
Unlike the organizations above, C corporations do not pass through income to the business owners. These businesses file their corporate taxes using Form Different situations will require extra forms, like a Form for excise taxes necessary if you sell items like tobacco, alcohol, or gasoline or Form for taxes withheld from paychecks.
After years of ignoring taxes until April tax season comes along, switching to a quarter-based tax schedule can be jarring. Depending on whether you have employees or what goods you sell, you might not have an option. If you pay employees, then those Form s will need to be filed quarterly.
Likewise, Form , used for excise taxes, will also need to be filled out every three months. If your business plans on selling items like tobacco, alcohol, or gasoline, you are required to charge excise taxes and will need to file those earnings. Outside of those categories, you have the option of making quarterly payments or a single year-end payment to the IRS.
Many businesses choose to file quarterly based off an estimated return. That wraps up our list of the best tax software for small businesses.
Whether you found the perfect software to fit your unique situation or chose the reliability of our overall winner, TurboTax, you can rest assured that tax season will be less stressful with the right kind of help.
A multiple-owner LLC normally files and pays income tax like a partnership, so use the software version for partnerships. Article Table of Contents Skip to section Expand.