Which Software Should You Use to File Your Taxes?

Whether you're filing taxes for the first time, or just a little rusty, there are several great software options out there. These include AvaTax, FreeTaxUSA, TurboTax, and Clarus R+D.

TurboTax

Founded in the 1980s, TurboTax has grown into a leader in the tax filing industry. It provides comprehensive tax software and an easy-to-use interface. It also offers a number of products, including TurboTax Live Basic, which offers a one-way video with a tax expert, and TurboTax Self-Employed, which allows users to import data directly from QuickBooks.

TurboTax is an online service, meaning it doesn't require installation. It encrypts all information at rest, so it's secure. It also offers convenient e-filing with the IRS.

TurboTax has a variety of options, including a free edition and a more expensive Deluxe plan. The free tier only covers simple expenses, such as your mortgage interest, while the more expensive Deluxe plan includes property tax, education tax credits, and other deductibles.

TurboTax is also available for state filing. You can pay $55 per filing, although there are a few situations that may not qualify. For example, if you have substantial foreign investment income, taxable assets or multiple sources of business income, you might not be eligible for the Full Service version.

The Self-Employed version is for sole proprietors or small businesses, and includes asset depreciation. It also allows users to import their 1099-MISC image. It also includes a product specialist, which helps users navigate through complex filing rules.

The Self-Employed package also includes direct deposit. It's also the fastest way to get your refund with e-file. It also includes a searchable database of more than 350 deductions.

You can also use TurboTax Live Basic to speak with a tax expert over the phone. You can ask questions, and the experts will answer them for you. You can also receive guidance on how to report expenses, such as cell phone charges.

AvaTax

Having AvaTax software to file your taxes is a great way to save time and money. The software automatically calculates tax rates and prepares returns for you. It can also handle exemption certificates and remit payments for you. It is user-friendly and has good reporting options.

The software is a cloud-based solution, which means it is easy to access and use. It also has an API, so it is easy to integrate with third-party services. Avalara has over 500 pre-built integrations.

Using AvaTax reduces the risk of audits, as the software ensures that the tax rate you calculate is accurate. It also automates filing and provides detailed reports.

AvaTax is programmed with the latest information on origin-based tax rules and hybrid sourcing rules. This makes it easy for eCommerce businesses to stay in compliance with economic nexus laws.

It uses geolocation technology to provide accurate sales and use tax rates. This means you can avoid penalties and keep your business in compliance. AvaTax calculates sales and use tax rates based on the address of a customer, zip code, and state. This makes it easy for businesses to file tax forms in more than 12,000 jurisdictions in the U.S. and other countries.

AvaTax is updated regularly to reflect changing tax rates in more than 12,000 jurisdictions. This ensures your system is always up-to-date. You can also export data from AvaTax for transactional tax filing. It has an integrated alert system that will notify you when you are approaching new thresholds.

AvaTax is also easy to use. You can import data into the application from a CSV file. You can view reports on screen or export them in RTF or Crystal Reports. You can also view a map of your tax obligations.

TaxAct

Whether you are an individual, business owner or self-employed freelancer, TaxAct makes filing your taxes easy and affordable. It offers four different online plans that cover nearly any tax need.

The first step is to create an account. You must choose a username and password, and agree to the TaxAct's terms of service. Once you are signed up, you can begin filling out your federal return. You can also import your prior year's return or start a new one. The program will guide you through the process and alert you to any problems.

Depending on your needs, you can choose a free version or one of the paid plans. The free plan is good for simple returns, while the Deluxe+ plan is for more complex ones.

You can also access Xpert Assist, TaxAct's expert help feature. This offers unlimited on-screen help and phone support from a real-life tax pro. The program includes a searchable knowledge base and embedded links to resources.

TaxAct's interface is pretty standard, but it has been updated to make it more user friendly. There is a bookmarking feature that lets you mark any part of your return. The site uses a proprietary, searchable database to provide relevant support as you complete your tax return.

The tax software comes with a $100 accuracy guarantee. It also features a free mobile app. It's a solid option for most people, although it isn't available in every state.

There are also many other tax software options on the market. For example, H&R Block's free federal tax return is the cheapest, while TaxSlayer is cheaper and offers a more robust security system.

However, TaxAct isn't as user-friendly as some of its competitors. Its free tax return isn't the most comprehensive, and it doesn't offer community features like those of TurboTax.

FreeTaxUSA

Using FreeTaxUSA software to file your taxes can help you get the most out of your refund. It also guarantees that your tax calculations will be accurate. This is important, as incorrect calculations can lead to penalties and interest.

FreeTaxUSA has a user-friendly interface that gets you right to the point of filing your taxes. It is simple to navigate, but it doesn't have the flashiest design. It does have a handy article library and popular help topics. It also has a built-in checklist of IRS forms and a Refund Maximizer.

The Refund Maximizer is a special feature of FreeTaxUSA that asks questions to ensure that you are getting the most out of your tax return. It will also review your existing deductions.

Using this feature will save you a lot of time by letting you quickly review federal tax information. It will ask you questions to determine which deductions are most valuable and how much of your income should be deductible.

FreeTaxUSA offers a 100% accuracy guarantee for your tax calculations. They will even reimburse you for any penalties or interest that may have accrued if you filed your return incorrectly. They also offer a maximum refund guarantee.

The program can be used for free, but it can also be upgraded to a Deluxe version for $7.99. This version includes unlimited amended returns, access to the Q&A database, and priority live chat support.

FreeTaxUSA has been around since 2001 and has helped 43 million people file their taxes. They are an authorized IRS e-file provider. They are an affordable option for most tax scenarios. They are also known for their fast customer service. They can be reached through email and chat.

Clarus R+D

Using Clarus R+D software to file your taxes is a great way to claim your R&D tax credit. The tax credit is available to qualifying small businesses, and is especially helpful for expanding businesses with pre-revenue or net operating losses.

If you're not familiar with the program, it is a type of refundable federal tax credit. The credit allows for up to $250,000 per fiscal year. In most states, a qualified company can also receive a credit against their state tax liability. It is best used by companies with innovative products or processes, or those that are growing fast.

The program is fairly simple. You must keep certain supporting documentation and perform a series of calculations to determine if you qualify. The IRS has some pretty specific guidelines, and any mistakes could cost you your tax benefits. A streamlined system like that offered by Clarus R+D may help you avoid the pitfalls.

The Clarus R+D solution is a cloud-based software platform that simplifies the R&D tax credit application process. It automates the calculation process and optimizes the incentives for each client. It has helped more than 1,400 companies claim over $135 million in tax credits. It's a powerful tool for both the busy innovator and the CPA.

Besides making it easy to claim your R&D tax credit, the Clarus R+D solution also offers a number of other features. It integrates with payroll systems, and it also keeps copies of all of the qualification reports. Users can also import employee names and titles, and import employee compensation.

The best part is that the Clarus R+D platform automates the R&D tax credit calculation process, saving you time and money. This is a must-have feature for any business looking to take advantage of the R&D tax credit.