Choosing the Right Tax Software for Your Needs

With tax season fast approaching, individuals and tax professionals alike will soon be hunting for the right tax preparation software to efficiently complete returns. However, with so many options available, determining the best software can feel overwhelming.

In this blog post guide, we’ll explore the top tax preparation programs on the market and the key factors to consider when selecting software. From intuitive design and available forms to pricing models and support, let’s break down what really separates these platforms so you can pick the perfect fit.

TurboTax

TurboTax remains the consumer market leader thanks to its ease of use and broad forms support. Ideal for simple personal returns, it offers clear step-by-step guidance and links to tax advice as needed throughout the process.

Mobile apps enable convenient preparation from anywhere, while mid-tier versions add business and rental income support. Pricing tiers from free to a few hundred dollars based on return complexity. Excellent for novice filers.

TaxAct

A close TurboTax competitor, TaxAct likewise focuses on consumer tax preparation with similar functionality and support for most common personal and small business forms.

It offers online, desktop and mobile access plus competitive pricing and sales promotions. TaxAct stands out through dedicated phone/chat assistance included in all plans plus online tax courses and IRS certification programs for ongoing education.

H&R Block

Along with in-person Block offices nationwide, H&R Block’s tax preparation software remains one option for DIY filing with support for W-2, 1099, Schedule C and rental income returns.

Where it falls short for pros is lack of customizable workflows or audit file features. But the tried-and-tested brand is a safe online/desktop software choice for most basic individual and small business filing needs.

Drake Tax

While still a mid-tier program compared to heavyweights like ProSeries and UltraTax, Drake Tax delivers full functionality for preparing individual and business returns including international capabilities.

Key advantages are affordable pricing from $150 and a promising cloud-based future with downloadable iOS/Android apps. Good for small to midsize firms transitioning from desktop-only rivals seeking mobile, collaborative functionality.

ProSeries/Lacerte

Intuit’s ProSeries software line takes the cake for enrolled agents, CPA firms and larger tax practices. It provides highly customizable preparation forms, workflow automation and robust diagnostics/audit file capabilities.

Advanced features include extensive form library, multi-user access, ProConnect integration and powerful reporting. Scales well beyond individual returns into complex business, estate, gift and more using seamless partner applications. Pricey but worth it for serious pros.

CCH Axcess/ATX

The CCH brand continues pushing innovation with an expansive suite of integrated offerings for tax, accounting and firm management software needs.

Axcess shines for international tax capabilities, customer relationship management modules, digital signature integrations and industry specialization add-ons like for construction or professional services. Comparable to ProSeries without quite the same name recognition.

UltraTax CS

Built for power users, UltraTax presents the most comprehensive, fully customizable tax preparation solutions unrivaled in depth of form support and data capacity.

Its customizable workflow designer, XML editor and enterprise compatibility make UltraTax the gold standard for very large corporations, payroll departments or advanced multi-state compliance. However, its steep learning curve demands real technical expertise.

Additional Considerations

Ease of use, forms supported, audit features, mobile access and pricing should top comparison points. But also evaluate tech support quality, updates/upgrades, integration with firm’s other workflows/software and suitability for long term growth needs. Most now offer 30-day free trials.

With tax season pending, now is the time to test drive options, solicit colleagues’ advice and review third party analyses to identify “the one” tax software enabling peak productivity, accuracy and future-proofing. The right choice vastly simplifies what’s surely a busy season ahead!