Taxes can be confusing on its own without adding the stress of finding out which tax software is the best tax software Reddit. And since tax laws won’t get any easier, more people are doing their own tax with the help of tax prep software.
Seeing the overall quality of tax prep software and how they are getting better, it is not a surprise that they are getting more and more popular. The only problem is that there is so much tax software out there and it can be difficult to choose the right one. That is why it is best to choose one of the best tax software Reddit that we’ve carefully selected.
What Is Tax Software? (The Best Tax Software Reddit)
Tax software is a type of software designed to help taxpayers in preparing and filing income tax returns. It can be referred to as a step-by-step guide, calculator and as organizer.
With tax software, you can eliminate manual work and automate the process. The tax software can save you a lot of headaches, money and time while helping you adhere to up-to-date tax rules and regulations. Once you enter your information on the software, it automatically calculates how much tax you owe and how much of a refund you can expect to receive.
Even if you don’t have much knowledge about taxes, tax software will make the process of filing your taxes more manageable. It can help you eliminate the need to hire a professional. The good thing about all of the best tax software Reddit that you are going to read about here is that they are easy to use.
There are many software providers out there, and each of them provides you with different packages. When you are choosing a tax software, you should start with your needs such as:
I have a simple return
Which software is easiest to use
What is the cost
Tell me more about the software provider
To choose a good tax software, ensure the software includes the option for tax interview, which explains how to complete a return as you go through it. If you itemize deductions, good tax software should provide a tax deduction finder feature.
The Best Tax Software Reddit
Here is the best tax software Reddit that you can start using today:
1. H&R Block Free
H&R Block Free lets you file Form 1040 and also allows you to file schedule 1 and 3, which is a plus because lots of taxpayers need to file those forms to report things including business income, the credit for dependent care expenses, alimony, certain retirement contributions, the Lifetime Learning Credit or the Saver’s Credit.
If you don’t know the amount to claim for those things, and want the H&R Block software to calculate it for you, you may need to upgrade. If you also plan to itemize your deductions or you are a landlord or freelancer or run a small business or have other situations, you will probably need to upgrade the H&R Block Free to a paid package.
The interface of this software is easy, straightforward and not complicated like some other software out there. This software also explains concepts as you go. This software is free but if you need more features, you can choose a plan between $49.99 and $109.99. Get started here.
2. Turbo Tax
If you are looking for the best do-it-yourself tax prep software, Turbo Tax is the best. With an intuitive design and great user experience and a variety of support options, you can’t go wrong with this software. The software uses interview-style Q and A experience, and its wide range of tools makes it easier to enter information.
With a wide range of functionality and tools and easy-to-access help, this is probably the easiest tax software to use. Turbo Tax interface is just like a chat with a tax preparer.
Some of the notable features of this software include import capabilities that allow you to switch to Turbo Tax from another provider, a donation calculator, auto-import certain tax documents and the ability to work on your return across devices. Unfortunately, the software is expensive but gets the job done perfectly.
The subscription plan for this software is between $80 and $290. If you are looking for a free alternative, you can choose H&R Block Free. Check out Turbo Tax here.
TaxSlayer is one of the best tax software Reddit. It is easy to use and a bargain compared with bigger-name competitors. With this software, you can get your job done easily. The good thing about it is that the prices are based on the level of support rather than the level of functionality.
What sets TaxSlayer apart is its pricing. You get charged according to the level of support you require rather than the capability of the software. It means the cheapest paid package handles all the same tax situations and forms that the most expensive package handles. So if you are a confident tax filer, you might not need a lot of support and can save lots of money.
If you want it free, you can start with the free package and if you need support, you can subscribe to a plan between $24.95 and $54.95. You can get started for free here.
TaxAct offers a free version of the software and it is one of the best. If you are looking for the best tax software Reddit, TaxAct is one of them. It is less expensive and comes with an intuitive interface. This software also offers human support, but at an extra cost.
Though TaxAct is not too popular among tax software providers, it provides quality online software that costs less than H&R Block or TurboTax. Also, it may not be as fancy, but it provides you with on-demand, on-screen access to tax pro like other popular software providers, and the data entry process is similar to the competition.
It is not easy to ignore the TaxAct’s price. You can get started with TaxAct here.
FreeTaxUSA is one of the best tax software Reddit. It is a robust online personal tax preparation software that allows you to e-file federal tax returns for free, while you have to subscribe to a plan for state filing and extra support. If your budget is tight, this is the right tax software for you.
Even if you want to file state returns, it only costs $12.95. The software is easy to use, fast and offers more help than expected. It has a good introductory screen that explains navigation tools and support options. With FreeTaxUSA, you also get a quick, optional, on-screen tour that is worth taking, though the software is well designed and intuitive even if you skip this.
LibertyTax is a perfect software for both beginners and professionals. It is an online or onsite tax preparation software with tax education courses. Just like H&R Block, LibertyTax combines brick and motar storefronts with online offerings – an excellent perk for new business owners who might want face-to-face help.
The online tax education school and classroom tax courses they offer makes things even easier for small business owners. As a new business owner, these courses can help you gain tax know-how to save money and time the next time tax season rolls around.
You can get started with LibertyTax software here.
Do I Need Tax Software?
While tax software can be useful for many taxpayers, it is not necessary or desirable for everyone. If you have a fairly straightforward tax return, tax software is ideal. But the good thing about tax software is that most of the tax software providers offer real professional and expert services in addition to what the tax software can do.
If you are self-employed, invest in the stock market, have multiple personal deductions to claim and/or have other types of investment, you may want to hire a professional who specializes in more complicated returns. Here is pros and cons of tax software and tax professional
Most tax software is very robust and offer a long list of features. But tax software comes with limitations such as the inability to help you with tax planning, which can help you maximize tax refund while minimizing tax liability. If you are using a tax software, you might want to hire a professional, probably from the tax software provider to help you plan your tax.
Also, tax software can’t analyze every nuance the way a trained tax professional can. Tax software can be great but it works based on the data you supplied.
When are taxes due?
Taxes are traditionally due on April 15, but the IRS extended the deadline to May 17, 2021. While this isn’t as long as last year’s extension of July 15, 2020, it still gives you a bit more time to file.
What happens if I miss the tax deadline?
If you miss the May 17 deadline, you still need to file your taxes and should do so as soon as possible. You’ll incur a penalty if you file late and owe taxes, which only gets pricier the longer you wait. You won’t incur a penalty if you don’t owe and instead have a tax refund coming.
How much does it cost to file taxes?
Many tax software programs have a free version, but you’ll be charged a fee if you upgrade to a paid plan. The tax programs we reviewed either have no cost for the free plans, or charge as low as $11.05 for federal filing plus $4.95 per state. However, the costs can add up fast with the more complex deluxe, premium and self-employed plans — the most expensive is $170 for federal, plus $50 per state. If you want to add live tax support, the surcharge can be $35 to $100, plus state fees.
If I’m self-employed, do I file individual taxes and business taxes separately?
No. If you’re self-employed, a sole proprietor, or a freelancer, you cannot file your business and individual taxes separately. Instead, you’ll file your business’s tax returns alongside your personal tax return. That’s what a Schedule C Form is for—this form attaches to your personal tax return (Form 1040) and details your business’s profits and losses for the tax year.
What forms do I need to file business taxes?
Different business entities each use different tax forms—we’ll give you a quick rundown.
If you’re self-employed and your small business isn’t registered as a legal entity, you should fill out a Form 1040, which is your personal tax return. As part of your 1040, you’ll also need to complete the Schedule C portion, which allows you to report the income and expenses from your sole proprietorship. These same forms will also work if you registered your business as an LLC with you as the sole member.
Partnerships, LLCs, and S Corporations
Every member of a partnership, LLC, or S Corporation needs to fill out Form 1065 and a Schedule K-1. Each of these business organizations pass through business income to the owners or shareholders, so the members will need to account for those earnings under Schedule E in their personal income taxes.
Unlike the partnerships, LCCs and S corporations, C Corporations do not pass through income to the business owners. These businesses file their corporate taxes using Form 1120. If you’re a business owner, you should get a Form 1099 to inform you of the income you made from the business for your personal return.
Different situations require extra forms, like a Form 720 for excise taxes (necessary if you sell items like tobacco, alcohol, or gasoline) or Form 941 for taxes withheld from paychecks.
Do I file taxes annually or quarterly?
If you’re a self-employed business owner or freelancer, the federal government requires you to file taxes quarterly if you expect to owe more than $1,000 in federal taxes. And if you pay employees, then you’ll also need to file Form 941 quarterly. (This form is for reporting and remitting payroll taxes to the IRS.) Finally, if you sell tobacco, alcohol, gasoline, or other products that require an excise tax, you’ll file Form 720 quarterly as well.
Verdict On The Best Tax Software Reddit
Haven listed the best tax software Reddit, it is left to you to choose the right one for you. With the right tax software, the tax-filing season can be less stressful for freelancers, proprietors and employers. So instead of stressing about tax filing, you can allow your tax software to take the front seat while you spend more time focusing on business.
Nathaniel is a tech enthusiast and a passionate blogger. He writes tech blogs and reviews products. He is also a teacher who loves designing stuff on PowerPoint, Photoshop and creating videos and product images on Blender software