Tax Season for Small Business Owners: Navigating the Filing Process with the Best Online Tax Software
As a small business owner, you wear many hats, and navigating the intricacies of tax filing can feel like an insurmountable hurdle. However, the right online tax filing software can transform this seemingly daunting task into a streamlined and efficient process, saving you time and money. CNBC Select has analyzed the best tax filing software programs designed specifically for small business owners, offering a comprehensive guide to help you file your taxes before the deadline.
Key Takeaways
- Simplified Tax Filing: Online tax software is designed to guide you through the filing process, making it easier to understand and complete your return.
- Cost-Effective Solutions: While some options offer free federal filing, many small business owners will benefit from robust features and find paid plans to be a cost-effective investment.
- Access to Expert Support: Most of the top software providers offer varying levels of expert tax assistance, allowing you to connect with professionals and address your specific tax questions.
- Maximize Tax Benefits: Choose the right software to help you uncover deductions and credits you might be eligible for, ensuring you receive the maximum tax benefits available.
- Time-Saving Features: Automate calculations, track expenses, and generate reports to streamline your tax preparation process and free up your valuable time.
Best Tax Filing Software for Small Business Owners
This comprehensive guide highlights the top tax filing software options for small business owners based on criteria including cost, user experience, expert tax assistance, and Better Business Bureau ratings.
Best for User Experience: TurboTax Premium
"TurboTax Premium" excels in user experience, providing a step-by-step guided approach with a Q&A format that is easy to follow.
Key Features:
- Comprehensive Plans: Offers a range of plans, including "TurboTax Premium," "TurboTax Premium Live," and "TurboTax Live Full Service," providing various levels of expert assistance.
- TurboTax Premium Live: Offers on-demand advice and a final review from a tax expert or CPA.
- Live Full Service: Provides a tax expert to prepare, sign, and file your return.
- Maximum Refund Guaranteed: Ensures you receive the maximum possible refund.
- Audit Support: Offers free assistance if you receive an IRS or tax notice.
Pros:
- Intuitive and user-friendly interface.
- Comprehensive expert assistance options.
- Maximum refund guarantee and audit support.
Cons:
- More expensive than other software programs.
- Live expert assistance plans incur additional costs.
Best for Variety of Support Options: H&R Block
"H&R Block" shines in its variety of support options, catering to diverse needs with access to online, phone, and in-person assistance.
Key Features:
- Free Online Version: Offers a free basic version for simple returns.
- Comprehensive Plans: Provides plans ranging from "Free Online" to "Deluxe," "Premium," and "Self-Employed," offering increasing levels of features and support.
- Unlimited On-Demand Support: Offers unlimited chat or video support with "Online Assist" plans.
- Tax Expert Consultations: The option for speaking to a tax expert with an average of 10 years of experience (extra cost).
- Over 11,000 Physical Locations: Provides in-person consultations with tax experts at physical locations.
- Maximum Refund Guarantee: Guarantees the maximum refund or the plan fees will be refunded.
- Audit Support Guarantee: Provides free assistance if you receive an IRS or tax notice.
- 100% Accuracy Guarantee: Guarantees 100% accuracy, with reimbursement for any penalties or interest up to $10,000.
Pros:
- Wide range of support options, including online, phone, and in-person consultations.
- Strong guarantees for maximum refunds and accuracy.
Cons:
- Plans with live expert consultations are costly for federal returns.
- One of the more expensive software programs.
Best Free Tax Software: FreeTaxUSA
"FreeTaxUSA" is the top choice for free federal tax filing. While state filing requires a small fee, the free federal option remains a valuable resource for individuals and small businesses seeking cost-effective tax solutions.
Key Features:
- Free Federal Filing: Provides free filing for federal income tax returns.
- Deluxe Edition: Offers audit defense, providing support from a representative in the event of an IRS audit.
- Maximum Refund Guarantee: Guarantees the maximum refund or the plan fees will be refunded.
- 100% Accuracy Guarantee: Guarantees 100% accuracy, with reimbursement for any penalties or interest charges.
Pros:
- Free federal filing.
- Strong refund and accuracy guarantees.
Cons:
- Manual entry of W-2 information required.
- State filing requires a small fee.
- Priority customer support and live chat are only available with the Deluxe edition upgrade.
Best Affordable Software: TaxSlayer Self-Employed
"TaxSlayer Self-Employed" offers affordability without sacrificing valuable features.
Key Features:
- 20% off Self-Employed Plan: Use code "CNBC20" to benefit from a significant discount on the "Self-Employed" plan.
- Comprehensive Plans: Provides a range of plans to cater to different levels of complexity and support needs.
- One-on-One Tax Expert Support: Access to "Ask a Tax Pro", providing one-on-one guidance from real tax experts.
- Maximum Refund Guarantee: Guarantees the maximum refund or the plan fees will be refunded.
- 100% Accuracy Guarantee: Guarantees 100% accuracy, with reimbursement for any penalties or interest charges.
- IRS Inquiry and Audit Support: Offers support during audits and inquiries from the IRS.
Pros:
- Affordable pricing for comprehensive features.
- Strong accuracy and refund guarantees.
- Access to one-on-one tax expert support.
Cons:
- Discount code required to benefit from lower prices.
Best for Accuracy Guarantee: TaxAct
"TaxAct" stands out with its robust accuracy guarantee, offering peace of mind and protection against potential errors.
Key Features:
- Accuracy Guarantee up to $100,000: Reimburses you for IRS/state penalties or interest if the software causes a calculation error in your return.
- Affordable Pricing: Offers competitive pricing compared to other software options.
- One-on-One Tax Expert Support: Access to one-on-one advice from real tax experts (additional cost).
- Maximum Refund Guarantee: Guarantees the maximum refund or the plan fees will be refunded.
- 100% Accuracy Guarantee: Guarantees 100% accuracy and covers legal and audit costs up to $100,000.
Pros:
- Exceptional accuracy guarantee offering significant protection.
- Affordable pricing compared to other paid software programs.
- Access to one-on-one tax expert support.
Cons:
- "Xpert Help Self-Employed" plan can be more expensive.
- Mobile app has been discontinued.
Best for Automatic Planning: Found
"Found" excels in its automation capabilities, helping small business owners streamline their tax preparation process and gain valuable business insights.
Key Features:
- Free Basic Version: Offers a free basic version with features like automatic tax form generation, auto savings, tax estimates, and write-off tracking.
- Found Plus: Offers a paid plan with enhanced features and support at $19.99 per month or $149.99 per year.
- 30-Day Free Trial: Provides a 30-day trial for Found Plus to experience the full functionality.
- Tax Filing through the App: Allows you to file your taxes directly through the app.
- Auto-Save Feature: Automatically saves estimated tax burden, providing ongoing insights.
- Built-in Bookkeeping Tools: Offers features to manage finances, track expenses, and generate reports for bookkeeping purposes.
- Automatic Reports: Generates profit and loss, income, and expense reports automatically.
- Business Insight Reports: Provides weekly and monthly business insights to help you make informed decisions.
- Integrations: Integrates seamlessly with popular platforms such as QuickBooks, Stripe, Cash App, PayPal, Square, Lyft, Uber, Venmo, eBay, and more.
Pros:
- Free version with essential features for automated tax preparation.
- Strong automation capabilities for streamlined tax filing.
- Integrated bookkeeping tools for improved financial management.
Cons:
- Limited customer support in the free version.
FAQs
Q: When are taxes due?
A: Federal income tax returns are due on April 15, 2024. However, Maine and Massachusetts residents have until April 17, 2024, due to state holidays.
Q: When are quarterly estimated tax payments due?
A: Small business owners are generally required to make quarterly payments if they expect to owe at least $1,000 in taxes.
- First Quarter (January 1 to March 31): April 15
- Second Quarter (April 1 to May 31): June 17
- Third Quarter (June 1 to August 31): September 16
- Fourth Quarter (September 1 to December 31): January 15 of the following year
Q: How can you make estimated tax payments?
A: You can make estimated tax payments using online tax software, the Electronic Federal Tax Payment System (EFTPS), or by mailing a completed 1040-ES form with your payment.
Q: What happens if I miss the tax deadline?
A: File your taxes as soon as possible if you miss the deadline. You may incur late filing penalties, which increase with the length of delay. If you owe taxes, you will be charged a penalty, but no penalty applies if you do not owe and are expecting a tax refund. However, it is always prudent to file on time.
Q: How much does it cost to file taxes?
A: Most small business owners will incur costs for tax preparation. Unlike individual tax returns, free programs are rare, and most business owners will need to utilize paid software for their filings.
Why Trust CNBC Select?
CNBC Select aims to equip readers with high-quality service journalism and comprehensive consumer advice, empowering them to make informed financial decisions. Each tax software review is rooted in rigorous reporting by our expert writers and editors, who have extensive knowledge of tax software products. While CNBC Select earns a commission from affiliate partners on many offers and links, our content is entirely independent of any commercial influence. We uphold the highest journalistic standards and ethics in all our work, providing unbiased and trustworthy information.
Methodology
CNBC Select evaluated tax software options using a comprehensive set of criteria, including:
- Cost: Plan pricing and value for features provided.
- User Experience: Ease of use and navigation.
- Expert Tax Assistance: Availability of tax professional consultations.
- Accuracy and Maximum Refund Guarantee: Level of protection offered to safeguard against errors and maximize refund potential.
- Better Business Bureau (BBB) Rating: Overall ranking based on business practices and customer service.
- Customer Reviews: User feedback when available.
We prioritized cost-effectiveness, user-friendliness, access to expert support, and strong guarantees for accuracy and maximum refunds. Software offerings with exceptional features and customer satisfaction received higher rankings. The federal and state filing fees mentioned in this article are subject to change without notice. It is recommended to confirm pricing before filing.
