Online tax software comparison

Does it provide safe and secure file storage? Does it support cyber security features like two-factor authentication? Add-on Services: Can you use the software to collect IRS refunds via bank products to earn additional revenue?

What bank products are supported? What other services are supported? The key measures of tax software comparison revolve around usage and functionality. But there is one more point of comparison to discuss: Affordability. Let's face it, price matters to any company that cares about the bottom line. And while quality shouldn't take a backseat to cost savings, a purchaser should take a closer look at the difference in quality between products.

What if the difference is not that great? Tax preparation is an established process that doesn't change that much from year to year. Electronic tax preparation tools don't display a great deal of variation from each other, either. They all accomplish the same functions , more or less. The differences lie more in ease of use, user experience design, gated features, and customer support.

And pricing. The price differences between various software products can be significant. What is behind these differences in pricing? Much of the time, pricing variations indicate the company's sales strategy. That means offering similar products that are targeted to separate categories of users.

Low-priced tax software options are aimed at new tax preparers, boutique agencies and cost-conscious purchasers. Mid-priced software products are pitched to mid-sized offices. Premium and enterprise editions cater to high-volume tax preparation businesses that serve corporate clientele. The high-end offerings may pack in features not offered by the lower priced software products. Such premium features might not be necessary for small-and-medium tax preparation businesses. Price also reflects the market advantage of having an established brand.

A well-known name like Intuit can leverage its top-tier branding to demand higher subscription rates compared to the competition. For the savvy purchaser, the key factor is not price alone, but value for price.

You're looking to get the best value tax software available—one that will satisfy your precise needs at a price point you can be happy about. One more thing to keep in mind: it can be a good idea to purchase your software months before the start of the tax season. Many products are available at a discounted rate if bought several months before the tax season. The prices on this comparison chart are based on the MSRP of the products.

You may be able to find them at a lower price point. Summary: UltimateTax offers affordable, simple, and accurate tax preparation software for tax pros who specialize in e-filing s.

It also has an advanced package that supports corporate returns—the most affordable corporate returns solution on the market. UltimateTax is one of the smaller players in the tax prep software market.

But its product is tried and tested to be as capable as any other on the market. And its user base is steadily growing—UltimateTax Desktop alone is now used by over 50, tax preparers annually.

If you think about it, there's one great advantage of using a less than mega-popular product. And that's the more personalized brand of service that customers can receive! UltimateTax serves thousands of customers rather than hundreds of thousands, so the company can devote more time and resources to each individual subscriber. Their support team isn't gonna get stretched thin!

No surprise, great customer service is one of the big selling points of UltimateTax! That's according to trusted user reviews on Google and TrustPilot. And so it goes. Review after review singles out UltimateTax's top-notch customer support. But what about the product itself? UltimateTax gets good reviews on that, too. The company makes easy-to-use, feature-rich tax preparation software for both desktop and online platforms.

UltimateTax gives tax preparers two modes for processing tax forms. One is data form entry mode, which simply presents a tax form to be filled out with information. The other is interview mode, which guides you through the process of completing a tax form with prompts and indicators.

Smart diagnostics can review processed returns and warn you if there are errors. Don't experience the hassle of submitting a return only to have it get rejected! You can enjoy paperless filing if you have an EFIN , real-time progress reports on e-filings, regular automatic back-ups to ensure that your data is protected, e-signature support, check printing, reports, and context-sensitive help built into the software.

Four different UltimateTax packages are made available to meet the needs of several different types of users, from new tax preparers to industry veterans.

UltimateTax Pay-Per-Return offers great value to the new tax preparer dipping their toes in the business. While it's well-suited for use by an individual tax preparer, UltimateTax PPR allows for quick expansion in case you need it!

The software supports up to 10 users out of the box! No need to send a request to customer support, no need to pay extra for additional accounts! Add up to 10 user accounts as you like—hassle-free! This one works well for the small tax office catering to several hundred clients. The package comprises free unlimited e-filing, tax form support, all States included, and bank product rebates. UltimateTax Online is perfect for the on-the-go professional.

You don't need to install anything. Access the online tax software from anywhere, file unlimited returns electronically, view real-time progress reports, and grant account access to as many as 10 users at once.

UltimateTax Desktop is very similar to Online. The key difference is that it needs to be installed on your office computers. UltimateTax Desktop lacks some of the mobility features of Online—such as accessibility on different types of devices, including a Macbook, Windows PC, or Chromebook. It does have the distinct advantage of supporting unlimited user accounts. Unlimited user accounts are provided.

It is certainly the lowest priced option that allows for unlimited corporate e-filing. UltimateTax places a strong emphasis on customer support, offered through its Service. An in-house team provides year-round technical assistance at no additional cost to UltimateTax subscribers.

You can contact a help agent via phone, email or live chat. All customer support agents are based in the USA. You can get bank product options that let your firm process IRS refunds faster for clients and earn additional revenue through rebates.

For your information, UltimateTax works in partnership with TaxWise for tax calculations and e-filing functions. The UltimateTax software adds several proprietary features, including Service and the easy-to-use Launchpad workflow optimizer. Summary: Drake offers packages that bundle together tax preparation software, office management tools, and optionally Drake accounting software.

Note that in addition to each package, a subscriber still needs to purchase a Drake Tax software license to be able to e-file tax returns. Focuses on speedy tax preparation via automatic form filling and offers multiple tax-year analysis. Plays well with Drake Accounting software.

Drake Tax adds the functionality to e-file and print tax returns. In total, there are four Drake Tax software packages. Three packages offer versions of Drake on the Desktop, which has to be installed on your computer. One package is available for Drake in the Cloud, which is an online application. To simplify the price breakdown, the cost of the Drake Tax software license is included in the price shown for each package. The price breakdown shown on the Drake Software website looks different because the Drake Tax license fee is listed separately there.

Drake in the Cloud supports hosting for the Drake Accounting application. But take note that Drake Accounting Pro is not included in this particular package. If you only want to purchase the tax preparation software, then the other packages may appear more attractive. Whatever package you choose, Drake on the Desktop will equip you with a set of various software tools. These include a digital filing cabinet for documents, a tax planner app, and a scheduler.

Basically, the package includes a few office management software applications. Drake on the Desktop also provides e-filing functionality. The software supports the following tax forms and schedules: , NR, , , S, H, , , , All standard State returns are included as well. Drake Tax also offers 12 tax forms in the Spanish language. The supported tax forms in Spanish include W-4, W-7, , and Drake Tax is your basic tax preparation software.

It is designed to make the process of completing a return more efficient and streamlined. The software can automatically calculate a return as you fill out the data fields. You can set up shortcut keys and macros to speed up tax return data entry tasks.

One Drake Tax feature, Look Back, lets you view the prior year's tax return data. You can easily compare it with the current year's return. With a keyboard shortcut, you can toggle between Look Back and the current view. DoubleCheck is the name of Drake Tax's diagnostic tool. It can track any changes that affect verified data entry items. If DoubleCheck detects such changes, it will automatically flag the entry for review.

You can further speed up tax preparation using optional hardware add-ons. These include an e-signature pad and a 2D barcode scanner.

The signature pad can simplify electronic tax filing by letting clients digitally sign returns. The barcode scanner enables importing data from W-2s or K-1s with 2D barcodes. The online software package includes cloud-based hosting on the Right Networks accounting platform. Every user account receives 40 GB of cloud storage. Using Right Networks, Drake in the Cloud can be accessed on any computer with a broadband Internet connection 1.

Drake promises Drake in the Cloud supports Microsoft , but you must provide your own Microsoft license. It is used to edit PDF files. You can also purchase and add applications that are compatible with the Right Networks accounting platform. If a subscriber has issues using the tax preparation software, they can get support via phone or email. The Drake web site also hosts a knowledge base of troubleshooting information. Drake Tax Software is purchasable through the official Drake Tax site.

You can also purchase Drake through UltimateTax for a much lower price. This package supports unlimited e-filing of individual income tax returns. Summary: TaxWise still provides distinct desktop and software based packages, with the online application specialized in the processing of individual returns. Add-ons like a mobile app are available at an extra cost. TaxWise software provides basic tax preparation tools that can be supplemented by add-on features such as a mobile app and a refund estimator.

Comparing TaxWise with UltimateTax shows that the tax software programs offer similar features: on-premise and online application options, form-entry and interview modes, interface customization, diagnostics, online tax preparation and bank product integration.

With the two products sharing many similarities, customers are left to look at how their prices compare. TaxWise has fairly competitive market pricing, but it remains significantly more expensive than its UltimateTax counterpart across several categories of price and package. You might notice that the prices above are not the same as the prices listed on the Wolters Kluwer site. That's because they have been adjusted to include the processing fees listed in the fine details of the product descriptions.

This gets allocated to paying fees for e-filing individual income tax forms. You can purchase additional State return support. TaxWise Desktop supports the preparation and filing of the following tax forms: , , S, , , , , , TaxWise Online supports filing.

Software users can shell out a little more to activate additional features. As of this review, TaxWise Mobile does not work with the desktop software. You may check with your Wolters Kluwer sales rep to find out if this has changed.

This sets up a customizable website that works like a very basic client portal. Tax preparers can direct clients to check out the website to get a quick estimate of their federal refund.

The feature description on the Wolters Kluwer site is somewhat vague, but promises that tax returns of the current year and two prior years can be restored from backup via Return Retrieval. If having this safeguard matters to you, be sure to have a chat with your Wolters Kluwer sales agent to learn more about how it works.

It's a little funny that a tax software product so simple and straightforward should offer all these complicated pricing, packaging and add-on options. TaxWise feels like it is stretching itself a bit far to accommodate many types of tax preparation businesses.

Now, there are four. Then again, software companies need to react to changes in technology, consumer preferences, and market realities. With having been a pivotal year in many respects, Wolter Kluwers must certainly be banking on this new approach to prove a strategically sound response. Getting back to the tax software itself, TaxWise indeed has a simple and straightforward look and feel. Main functions are navigated via the dashboard, from which you can get to the tax returns, the e-filing area, text and email messaging, and the digital reports.

TaxWise offers both standard tax form entry and interview mode. BBB ratings help determine whether a business is operating responsibly and if it helps to resolve customer complaints in a timely manner.

Customer reviews were also taken into consideration. After reviewing the above features, we sorted our recommendations by best for overall tax filing, runner-up, free tax software, most affordable and best accuracy guarantee.

The federal and state filing fees for the software programs mentioned above are subject to change without notice. Many programs don't charge you until you file, so there's a chance the fees can change from the time you start your return until you submit it.

Skip Navigation. Select Logo. Follow Select. Our top picks of timely offers from our partners More details. Upstart Personal Loans. LightStream Personal Loans. SoFi Personal Loans. We may receive a commission from affiliate partner links. Click here to read more about Select. We reviewed six of the top online tax software platforms to help you find the best software for your circumstances and checked out their free tax filing options, evaluated ease of use and customer service quality, and determined whether they were able to handle complicated returns.

If you need extra hand-holding and educational resources while filing your taxes, TurboTax Deluxe might be your best tax software option. TurboTax offers good customer service and great tools. The TurboTax platform asks you questions and guides you as you fill in personal and tax information, ensuring you complete all the forms necessary to finish your tax return. Along the way, it offers help topics you can select to learn more about each form, deduction or tax credit.

We found this extremely useful for someone who may need help understanding tax concepts. The navigation menus clearly direct you to specific tax categories, such as income, deductions and credits. Two things to watch out for: Upsells and fees. TurboTax is more expensive than its competitors.

TurboTax Deluxe is a great option for someone who is a tax novice and needs help with filing their tax return. It offers many bells and whistles, such as well-written, clear educational articles and tool tips to help guide you through the tax filing process. Even late on a Sunday afternoon, there was a short wait and the customer service representative provided clear and informative answers to our questions regarding tax expert assistance and pricing.

There are multiple ways to contact customer support for tax filing assistance, including phone, chat and email options. We also loved the helpful articles available throughout the program. TaxSlayer Classic is best for users who value great customer service. It offers great support options, including phone, chat and email. What we love most is that you can file both your federal and state taxes for free.

Other software programs, like TaxAct and eFile. Programs such as eFile. Finally, it covers the widest variety of common filing scenarios among the competitors we evaluated, including most tax filing scenarios for parents, college students, retirees and employees. Here are some of the forms you can file for free:. Its step-by-step process and simple layout can help you quickly complete your tax return. The software provides examples of deductible expenses and links to informative articles at the exact points in the process where you need them.

We began our analysis by looking at eight online tax software providers: eFile. We decided to exclude Credit Karma and Liberty Tax from our reviews.

Credit Karma is in the process of selling its tax software business , and it remains unclear what this would mean for consumers. In December , the Department of Justice settled with Liberty Tax for not taking steps to prevent the filing of fraudulent returns prepared by its franchisee stores. We reviewed each of the tax online software to determine the following best categories:.

Best Free Online Tax Software. For best free online tax software, we analysed which provider offered the most impressive overall package of features while also charging no fees for federal and state tax return filings, lacked income or filing status restrictions, and offered the broadest selection of tax filing forms.

An easy-to-use platform is most important for many users. Self-employed, freelance workers generally have more complicated income tax filings. Ensuring that online tax software caters to the special needs of freelancers and self-employed individuals is essential at tax time. We determined if the online tax software provider offered phone, live chat, email, or help articles for users, and evaluated each option.

Our opinions are our own. Here is a list of our partners and here's how we make money. Taxes are confusing enough without the added stress of figuring out which tax software is the best tax software.

So we did the research to help you choose the ideal option to file taxes online. Free version? Yes, with more restrictions.

There are many software providers out there, and each one offers different packages for different taxpayers. When choosing, it's likely most helpful to start with your individual needs. If that sounds like you, you may not need tax software built for crazy-complicated tax situations. You may need to upgrade if you don't know how much to claim for those things and want the software to calculate it for you.

Skipping around to specific spots can be a little tricky, but a banner across the top keeps track of where you stand in the filing process. Read full review. With its intuitive design and experience and variety of support options, TurboTax is in many ways the standard for the do-it-yourself tax-prep industry.

What makes it easy to use? You can skip around if you need to, and a banner running along the side keeps track of where you stand in the process and flags areas you still need to complete. Embedded links throughout the process offer tips, explainers and other resources. And help buttons can connect you to the searchable knowledge base, on-screen help and more. Notable handy features include import capabilities that let you switch to TurboTax from another provider, auto-import certain tax documents, a donation calculator and the ability to access and work on your return across devices.

All of this comes at a price, and similar offerings from competitors this year may provide a better value. If you don't know what you need — or how much you need to pay for — it might help to examine the providers individually and what sort of experience each one offers. Here are a few areas to dig into:. User experience: Software that feels like an interview — asking questions about your income and any live events that might allow for deductions — offers more guidance than a basic fill-in-the-blank process.

The ability to import forms like a W-2 is better than having to manually type in numbers. Support options: Most tax software offers a searchable FAQ section or knowledge base, and some offer video tutorials or user forums to help answer questions.