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It has been seen that the amount of e-filed returns is becoming less popular among both taxpayers and tax professionals. Throughout the 2023 tax season for 2022 returns, around 92% of 2022 returns have been e-filed; among those, around 66.8 million are self-prepared.
With so many options available, choosing one that suits your needs and budget can be overwhelming. To make the decision easier, we’ve evaluated the top 10 best tax software for 2023.
Our list includes desktop and online tax preparation software with user-friendly interfaces, robust features, and affordable pricing options. These tax software are equipped with the latest tax laws and regulations and can easily handle even the most complex tax returns. From self-employed individuals to small business owners, our list has something for everyone.
So, whether you’re looking to save time and money or ensure accuracy and compliance, these top-rated tax software will provide you with a seamless tax-filing experience. Read on to find the best tax software for your needs and budget in 2023.
Read our guide on the best online accounting software that will help you with your accounting needs.
Free Plan | Deluxe Plan | Premier Plan | Self-Employed Plan | |
Standard Price | $0.00 | $24.95 | $34.95 | $64.95 |
Xpert Assist Add-On | Free | Free | Free | Free |
Xpert Full Service Add-On | $99.95 | $169.95 | $249.95 | $279.95 |
Additional State Fee | $34.95 if opting for the standard plan. Free with Xpert Full Service. | $44.95 per state | $44.95 per state | $44.95 per state |
TaxAct’s Free Edition is intended for those with simple tax returns, including Form 1040EZ and Form 1040A. The Free Edition includes step-by-step guidance and the ability to import prior year tax returns, as well as free e-filing for federal and state returns. However, the Free Edition does not support itemized deductions, so users with more complex tax situations will need to upgrade to a higher plan.
Pricing: $0 federal, $0 state (for simple tax returns)
The Deluxe Edition is designed for those with more complex tax situations and includes support for itemized deductions, as well as additional guidance for investments and rental properties. The Deluxe Edition also includes free phone support, error checking, and access to tax professionals if needed. The Deluxe Edition is priced competitively compared to other tax preparation software and offers good value for users with more advanced tax needs.
Pricing: $54.95 federal + $44.95 per state filed (for more complex tax situations)
The Premier Edition is designed for those with investments or rental properties and includes support for Schedule D and Schedule E. The Premier Edition also offers additional guidance on rental property income and expenses, as well as other investment income. The Premier Edition is priced slightly higher than the Deluxe Edition but offers more features and support for users with complex investment situations.
Pricing: $79.95 federal + $44.95 per state (for investments and rental properties)
The Self-Employed Edition is designed for freelancers and small business owners and includes support for Schedule C, as well as additional guidance on expenses and deductions for self-employed individuals. The Self-Employed Edition also includes a mileage tracker and the ability to import income and expenses from popular accounting software like QuickBooks. The Self-Employed Edition is priced higher than the other plans but offers a comprehensive set of features for those with self-employment income.
Pricing: $109.95 federal + $44.95 per state filed (for freelancers and small business owners)
TaxAct offers good value for money, providing affordable pricing options for different tax filing needs with helpful tools and resources.
Plan | Pricing |
Free | $0 + $0 per state filed
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Paid Packages | Live Assisted Basic $89 (state included). Free until 3/31.
$59 + $54 per state (Live Assisted: $129, $59).
$89 + $54 per state (Live Assisted: $179, $59).
$119 + $54 per state (Live Assisted: $209, $59).
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TurboTax walks users through the tax filing process by asking a series of simple questions and providing guidance along the way. It can be particularly helpful for the first-timers.
Cash App Taxes offers a transparent and straightforward pricing structure with no hidden fees. The cost of using the service depends on the complexity of the user’s tax situation and the types of tax forms that they need to file.
Cash App Taxes offers competitive pricing and transparent fees, making it an accessible option for users who want to prepare and file their taxes easily and affordably.
Offers tax preparation and filing easier and more convenient for individuals and businesses, making it user-friendly even for first-time tax filers.
The best tax software for small businesses depends on several factors, including the size and type of the business, the complexity of tax compliance requirements, and the budget. Here are some of the most popular and highly rated tax software options for small businesses:
QuickBooks
Xero
FreshBooks
Wave
Many tax software programs offer built-in support and guidance, such as step-by-step instructions, help articles, and frequently asked questions sections.
The due date for the 2023 tax filing season is April 17, 2023. This is when individuals and businesses file their federal income tax returns or request an extension. State tax due dates may vary, so it’s essential to check with your state’s tax agency for more information.
If you miss the tax deadline, you may face penalties and interest charges. Here’s what can happen:
Late filing penalty
Interest charges
Tax liens
Wage garnishment
The cost of filing taxes varies and depends on several factors, such as the complexity of your tax situation, the type of tax return you need to file, and the method you choose to file (e.g., paper, online, or with the help of a professional tax preparer).
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Tax software is a computer program that helps individuals and businesses prepare and file their tax returns electronically. It provides a user-friendly interface for calculating tax liability, filling out tax forms, and submitting returns directly to the tax authority. Tax software may also offer features such as the calculation of tax estimates, import of tax-related data, and error checking. The use of tax software can simplify the process of filing taxes and minimize the risk of errors.
Here are four tips to maximize the use of tax software:
Before using tax software, ensure you have all the necessary information, such as W-2 forms, 1099 forms, receipts for deductible expenses, and previous tax returns. Having all the information upfront will make the process smoother and less time-consuming.
Carefully enter all the required information into the software. Accurate data entry will help ensure the software calculates your tax liability accurately.
Before filing, carefully review the forms generated by the software to make sure that all information is correct. Make any necessary changes and double-check your calculations before submitting.
Tax software often includes features such as error checking, helpful tips, and the ability to import information from previous years’ tax returns. Make sure to take advantage of these features to make the process as efficient and accurate as possible.
Here is the comparison chart for all the tax software as per the latest statistics including their active users, Reviews, stated price, and much more.
Consider your tax situation, such as whether you have a simple or complex tax return and need to file for state taxes. Different tax software may cater to different tax situations, so choosing one that fits your needs is important.
Tax software can vary, so compare prices and choose a software that fits your budget.
Make sure that the software you choose is user-friendly and easy to navigate. This can save you time and frustration when preparing your taxes.
Tax software may offer different features, such as the ability to import data from previous tax returns, error checking, and support for multiple tax forms. Choose a software that offers the features you need.
Read reviews from other users to see what they like and dislike about the software. This can help you make an informed decision.
Make sure that the tax software you choose uses encryption to protect your sensitive tax information and that it is authorized by the relevant tax authority. This will help ensure the security of your personal information when preparing and filing your taxes.
The global sales tax software market is expected to grow in the coming years, driven by factors such as the increasing complexity of tax regulations, the need for automation and accuracy in tax compliance, and the growing adoption of cloud-based solutions. The market is segmented based on deployment mode, application, and geography.
Key players in the market include Avalara, TaxJar, Vertex, Inc., Thomson Reuters, Sovos Compliance, Xero, Intuit, Inc., Taxamo, and others. These players focus on strategies such as partnerships, collaborations, and new product launches to expand their market presence.
Factors such as the increasing digitalization of business operations, the growing number of SMEs, and the increasing demand for real-time tax compliance solutions are expected to drive market growth. However, the high cost of implementing sales tax software and concerns about data privacy may act as a hindrance to market growth.
Overall, the global sales tax software market is expected to show significant growth over the forecast period, offering numerous opportunities for market players to capitalize on.
