Tax preparation software for independent tax business owners

« Back to Blog Home | Posted in Operating Your Tax Business |
Tax preparation software for independent tax business owners

Every busy tax professional needs tax software. Using tax software saves time, minimizes errors and simplifies organization. It’s the modern way to do business, and fortunately, tax preparers have many choices in high-quality software products. They can be found through an online search, or with assistance from tax software vendors or the resellers known as service bureaus. 

But not all tax software programs are alike, which raises the question: Which software is right for you? It depends on your budget and the types and numbers of returns you prepare. Consider these key factors, and find the tax software that’s best for your business. 

How many tax returns do you expect to prepare? 

If you will only prepare a small number of returns, it will probably be less expensive to choose a pay-per-return option.  

What types of tax returns will you be preparing? 

If you plan to only prepare Form 1040 and 1040A returns, and local state returns, then an expensive high-end software product would be overkill. Look for a low-cost software product that has positive reviews.  
 
If you plan to prepare complex individual and business returns (such as corporations and partnerships), and more complex returns (including estates and trusts), then a high-end software application such as Intuit’s Lacerte might be needed. 

If you plan on preparing returns for multiple states, then you will need tax software that includes availability of software for every state you may need. 

Could a cloud-based tax software option be a good choice? 

If you are looking for an option that will help you save money, consider cloud-based software. Cloud-based tax software is less sophisticated but saves money and time by eliminating the need to do time-consuming installations and updates. TaxSlayer and Intuit both offer a cloud-based option. 

What level of technical software support will you need? 

Make sure you research the level of support that comes with each software package. Different vendors have different options, so be sure to read carefully and go with a package that suits your needs. Often, a service bureau will provide better support than the tax software vendor. 

Compare tax software options 

Once you answer the questions above, it’s time to compare tax software options. These three surveys review the most recent tax software options available: Journal of Accountancy, 2022 tax software survey; Technology For You, Best tax software 2022, and Fit Small Business, 6 Best Professional Tax Software Programs for 2023.  

Here is a summary of current offerings from few tax software vendors: 

TaxSlayer Pro 

TaxSlayer Pro is a preferred tax software provider. TaxSlayer Pro offers three options depending on your needs: 

Classic: $1,295 

  • Unlimited 1040 program 
  • Comprehensive bank product solutions 
  • Corporate tax software 
  • Free unlimited e-filing 
  • All states included 
  • Unlimited top-rated support 
  • Refund estimator tool 
  • Multiple user access 
  • Web bank integration 
  • Cloud-based reporting 
  • Client retention database 

Premium: $1,595 

  • Includes everything in Classic package, plus the additional items below. 
  • TaxesToGo mobile app 
  • Cloud-based tax software 
  • Paperless office 
  • Client portal 
  • Digital signature compatible 
  • Tax status now 

Web: $1,495 

  • Includes everything in Premium package except corporate tax software (call for details). The Web package does include the following additional items below. 
  • Available in Spanish 
  • Compatible with MacOS 
  • Instead of corporate tax software, a Pro Web + Corporate Package is available, which allows you to file individual returns with either cloud-based or desktop-based software. Offers flexibility of web-based software, plus ability to file LLC and corporate returns with desktop-based software. Additional fees may apply for this feature. 

Try a FREE TaxSlayer Demo

Learn more about TaxSlayer 

Drake Software 

If you prepare a small number of returns, Drake’s Pay-Per-Return (PPR) tax software might be right for you. No separate modules to buy — Drake Tax includes all federal and state packages for individual and business returns. 

Pay-Per-Return (PPR): $345 

  • Purchased PPR returns are kept in your account at Drake until redeemed. 
  • Includes 10 1040 and 1040NR, $29.99 each additional.  
  • 1120, 1120S, 1120H, 1065, 1041, 990, 706, $44.99 each  
  • Includes all state packages 
  • Includes federal and state e-file 
  • Includes organizers 
  • Includes data conversion software 
  • Includes prior years of Drake Tax 2002-2020 
  • Cloud hosting for an additional fee. 
  • Document manager with PDF printer 
  • Onboarding 
  • Customer support 

Drake Tax Unlimited: $1,825  

  • All-inclusive tax program 
  • Includes everything listed for Pay-Per-Return, but with unlimited tax returns 

Learn more about Drake Tax Software 

Intuit ProSeries® Tax 

Customize a solution that’s the right fit for your practice and pay only for what you need. 

  • Choose packaged bundles for significant savings on every individual return. Select bundles of 50, or opt for an unlimited 1040 package. If your services typically don’t include business returns, then you’ll find the right fit among their 1040 options. 
  • Get the flexibility to pay as you go. Choose 1040 returns, business returns or both. This option could be an ideal fit if you have a limited number of returns or you’re just starting a new practice. 
  • Customize a package with some of their most popular options, including unlimited 1040 returns, unlimited individual returns for all states, unlimited federal and state business returns (1120, 1120S, 1065, 1041, 990) and unlimited gift and state returns (709, 706). 

ProSeries Basic 

Basic 20: $519  

  • 1040 returns only 
  • Includes 20 state returns 
  • Guided workflow for first-time users 
  • Refund transfer capability 
  • Financial institution download 
  • Intuit Link 
  • Tax Planner 
  • Electronic 8879 signatures — supported (additional fees) 
  • Client letters 
  • Client invoices 

Basic 50: $829 

  • 1040 returns only 
  • Includes 50 Returns 
  • Guided workflow for first-time users 
  • Refund transfer capability 
  • Financial institution download 
  • Intuit Link 
  • Tax planner 
  • Electronic 8879 signatures — supported (additional fees) 
  • Client letters 
  • Client invoices 

Basic Unlimited: $1,299 

  • 1040 returns only 
  • Includes Unlimited Returns 
  • Guided workflow for first-time users 
  • Refund transfer capability 
  • Financial institution download 
  • Intuit Link 
  • Tax Planner 
  • Electronic 8879 signatures — supported (additional fees) 
  • Client letters 
  • Client invoices 

ProSeries Professional 

Pay-Per-Return: $379 

  • Pay as you go 
  • 1040 returns — $53 per return 
  • 1040 NR returns — $53 per return 
  • Additional 1040 support 
  • State business returns – $49 per state return 
  • Cloud access — add-on option available 
  • Refund transfer capability 
  • Financial institution download 
  • Intuit Link 
  • Multiple-user access — supported (additional fees) 
  • Tax Planner 
  • Electronic 8879 signatures — supported (additional fees) 
  • Cloud hosting — supported (additional fees) 
  • Client checklist 
  • Client presentation 
  • Client advisor 
  • Fixed asset manager — supported (additional fees) 
  • K-1 import 
  • Client letters 
  • Client invoices 

Learn more about Intuit ProSeries Tax 

TaxWise 

TaxWise offers many options: 

TaxWise® 100 Package (two options): 

  1. Desktop: $1,449 
  1. Online: $1,409 
  • Includes 100 tax returns 
  • Federal and state individual 
  • Federal and state business (desktop only) 
  • Individual e-file (desktop only) 
  • Business e-file 
  • $20 per individual tax return 
  • $40 per business tax return (desktop only) 
  • Integrated easy interview 
  • CCH® AnswerConnect Mini Package 
  • Central office manager 
  • E-signature ($3.99 per event) 
  • Plus $59 processing fee 
  • Available add-ons include: 
  • TaxWise Mobile ($399) (online only) 
  • TaxWise Expert Services ($299) 
  • Textellent ($299) 
  • Refund estimator ($99) 
  • Return retrieval ($155) (desktop only) 

TaxWise® Unlimited Package (two options): 

  1. Desktop: $3,339 
  1. Online: $2,979 
  • Includes unlimited tax returns 
  • Federal and state individual 
  • Federal and state business (desktop only) 
  • Individual e-file 
  • Business e-file (desktop only) 
  • Integrated easy interview 
  • CCH® AnswerConnect Prime Package 
  • Central office manager 
  • E-signature ($3.99 per event) 
  • Plus $59 processing fee 
  • Available add-ons: 
  • TaxWise Mobile ($399) 
  • TaxWise Expert Services ($299) 
  • Textellent 
  • Refund estimator ($99) 
  • Return retrieval ($139) (desktop only) 

TaxWise® 400 Package (two options): 

  1. Desktop: $3,049 
  1. Online: $2,709 
  • Includes 400 tax returns 
  • Federal and state individual 
  • Federal and state business (desktop only) 
  • Individual e-file 
  • Business e-file (desktop only) 
  • $20 per additional individual tax return 
  • $40 per additional business tax return (desktop only) 
  • Integrated easy interview 
  • CCH® AnswerConnect Mini Package 
  • Central office manager 
  • E-signature 
  • Plus $59 processing fee 
  • Available add-ons: 
  • TaxWise Mobile ($399) 
  • TaxWise Expert Services ($299) 
  • Refund estimator ($99) 
  • Textellent 400 ($599) 
  • Return retrieval ($155) (desktop only) 

Learn more about TaxWise