Best Tax Software

Taxpayers who want to prepare their taxes on their own know what a pain in the neck the process can be. Certified accountants can be a hassle-free alternative, but their services are way overpriced; the IRS’s tax program is a bother to deal with; and paper-based tax filing is downright ridiculous in an age where virtually everything can be done online. Online tax prep programs, on the other hand, combine the expertise of accountants with convenience, user-friendliness, and great prices to create such a smooth experience for taxpayers that afterwards they unanimously ask themselves: ‘Why didn’t I opt for such a solution before?’

By purchasing online tax software it is possible to put together accurate federal and state tax returns in no time by simply answering a set of straightforward questions and entering in data from forms that you already have. Not only that, but these solutions are capable of adapting to the different needs of taxpayers by automatically detecting the best deduction options for them, and will often automatically upgrade to a different, more suitable product should a form be lacking from the current version of the software.

Best of all, online tax programs only require a web browser to use, allowing for users to deal with their data anywhere, while certain companies even provide mobile apps for their solutions, too. Tax software and its additional services – particularly meaning audit assistance or ID theft protection – are free of charge until filing, though there is also an option to cover the service costs by deducting the fees from your refund.

The basic principle behind all tax programs – online and downloadable versions alike – is to make tax prepping as simple as possible, meaning that there is no need to be a tax expert in order to understand how these programs work. In fact, a tax prep tool should be considered as a virtual accountant, since it asks the same set of thorough questions that a certified public account (CPA) would. The only difference is that in the case of tax software it’s actually the user who conducts the interview and feeds the program with the necessary data so it can select the relevant forms and do the math for you.

However, unlike accountants, there are certain aspects that make the use of tax programs even more convenient. The option to add W-2 forms to the return via importing from an electronic source or having it processed by the tax company’s dedicated mobile app is one such example. This same automation is also present when it comes to the last year’s return. In fact, not only can the software easily fetch the return from the previous year’s version of the software, but they also allow you to upload the document as a PDF, which is particularly useful in cases where the return was created with a competing solution. Tax programs can handle e-filing your return and even track it up until the point that it is accepted by the IRS.

One of the best things about tax prep software is that it’s versatile, making it an ideal choice for sole proprietors and businesses, too. However, there are certain aspects that need to be taken into consideration should you need to opt for a business tax program.

Picking the most fitting solution is a bit easier if you run a sole proprietorship because you have the option to choose between online tax prep solutions and desktop-based programs. Although picking an online tool is more logical, sole proprietors should note that with this method they are usually required to purchase the top-tier version of any given tax software in order to create a tax return that will fulfill their needs. However, by doing so they will they get a program that can handle personal and business taxes alike and enables advanced features like industry-specific credits and deductions, live assistance by the company’s tax experts and, sometimes, the option to import relevant information from third-party solutions.

Small business owners, on the other hand, have no choice but to rely on a downloadable solution, because all the forms that are related to the business taxing can only be found in desktop-based programs. While downloadable software does lack mobile functionality and the option to only pay after filing, all forms are included in the program and it’s possible to file more than one return with the same solution.

Preparing taxes on your own for the first time is a huge step up from simply passing the job on to a professional, but everything becomes way easier when an online tax prep solution is involved with the process. Accurate tax returns can be created by even less experienced users thanks in large part to the straightforward quizzes and document importing, automatically filling the resulting data into the return to reduce manual entry to a minimum. This is enhanced by the fact that W-2 forms and entire tax returns from previous years can easily be imported into the software either from competing sources or by using the program’s mobile app counterpart.

There is no need to worry about erroneous data entry, either, as tax programs are intelligent enough to warn you should something look wrong. This intelligence is present when it comes to credits and deductions, too, because tax preparation software can automatically select which tax saving options are best for you based on your answers.

There’s also some comfort in the fact that help is at hand during the preparation process. Tax apps come with built-in help tools like a knowledge base or tax glossary. However, remember that there is always the option to turn to the tax experts of the chosen tax company who can further clarify tax-related issues as well as answer any questions related to the software itself.