5 Best Tax Preparation Software for Professionals & CPAs

When it comes to filing federal or state taxes, utilizing tax preparation software becomes crucial. There are many complex mandates and decisions regarding tax filing that must be adhered to. If you are looking to file your returns, consider seeking help from tax professionals, CPAs, and tax preparation software to streamline your entire tax filing process. Many free tax preparation software tools are available on the market, but selecting the right one can be a complex task.

According to surveys, Lacerte Tax, UltraTax CS, and Drake Tax are among the most popular tools among tax preparers. These tools are used by either single preparation firms, CPAs, individuals, or tax firms and professionals. According to the Tax Foundation data, over 153 million U.S. citizens filed their tax returns. Tax software hosting can be performed on your devices.

Through this blog, we aim to explore the top 5 best tax preparation software options for professionals and CPAs. We will also learn the IRS-approved tax preparation software that can be used.

What is Tax Preparation Software?

Tax preparation software is a computer program developed to assist individuals, tax professionals, and CPAs in filing tax returns. The tax filing can be done for both federal and state tax returns. Even the IRS provides a set of instructions to tax software developers and filers to follow the requirements for filing e-tax mandates. The document is also called the Modernized e-file Assurance Testing (ATS).

The Modernized e-file Guidelines are in the form of:

1436 publications for individual returns.
5078 publication for business returns.

Top 5 Tax Preparation Software for Professionals & CPAs

It’s always a good idea to utilize tax preparation software, as it facilitates accurate, compliant, and automated tax service tasks.

1. TaxSlayer

TaxSlayer is one of the top-performing tax preparation software programs for professionals, other firms, and individuals. It is a free tax preparation software offering numerous tax filing features and options. It guarantees 100% accurate tax filing and the highest refund assurance.

Advantages	Disadvantages
Free tax filing for both federal and state taxes. IRS-compliant software. A paid version is cheaper than most other tax software. Get a maximum refund and a 100% accurate tax filing guarantee.	The free version has a $ 100,000 income cap for filing limits. It does not allow you to claim dependents. Expert assistance is available in the paid versions.

2. Intuit TurboTax

Intuit TurboTax is another popular and leading tax software preparation tool in the United States and beyond. The free version has limited options. The simple 1040 tax filing form is included in the free version. (No schedule allowed except for earned tax credit, if any). Did you know? As per Intuit, about 37% of individuals qualify to file a full tax return using the free version.

Advantages	Disadvantages
Step-by-step guide to filing tax returns. Provides for a tax refund advance loan. Final review from tax experts and on-demand services. Live tax assistant to help you file your returns.	Limited free version features. Costlier than most tax-filing software.

3. TaxAct

TaxAct is affordable software that can help individuals file their returns. They also have a free version and guarantee 100% accurate tax filing assistance. Expert tax help is provided with a flat fee rate.

Advantages	Disadvantages
All versions allow free live support and tax expert assistance. Free version users can file federal and state tax returns. Covers legal fees up to $100,000 with accuracy guarantees. Affordable as compared to other tax software tools.	Does not provide a tax refund advance loan. The free version does not include tax with freelancers or investors.

4. Lacerte Tax

Lacerte Tax is a leading tax preparation software that helps manage individual and corporate tax returns. The tools are sophisticated with technical corporate filing guidelines and features. The software provides comprehensive coverage for diagnosis, tax expert assistance, tax planning, and more, catering to professionals.

Advantages	Disadvantages
Time-saving features like client data utility and 32 more such options. More than 35000 diagnoses for tax accuracy. Provides multiple worksheets for data entry and verification. Online and phone support.	Complex tax software solution. Expensive. Mainly designed for corporate tax filing.

5. Drake Tax

Drake Tax is both an accounting and financial management software. It is popular in the United States. It has features like bookkeeping, accounts receivable, and accounts payable. This helps professionals to keep track of income, expenses, and file returns. Drake tax software hosting can be installed on any device and can be accessed anywhere, anytime.

Advantages	Disadvantages
Accounting and tax filing features to make the best use of the software. Quick payment assistance with 1099-MISC and ATS vendors. Businesses can generate a 1099-MISC form and e-file it at the year-end, and print it.	Complex tax preparation software and accounting tool. Good for organisations mainly.

8 IRS-Approved Tax Preparation Software Lists

Did you know that the IRS also approves third-party tax software makers to file returns for individuals and businesses? IRS-approved tax software is mostly used by CPAs and tax preparers, and professionals.

TaxSlayer	FreeTaxUSA	TaxAct
1040.com	FileYourTax.com	ezTaxReturn.com
OLT Online Tax	1040now.net
IRS-Approved Tax Preparation Software List & Guidelines.

Also Read: Stress-Free Tax Season | Accounting for Startups Made Simple

Conclusion

If you are a tax preparer, tax professional, or CPA, utilizing tax preparation software can be beneficial to your workflow. There is a wide range of free tax preparation software available for professionals, but selecting the right one is crucial. Did you know? Tax software hosting can be installed on any device or PC. However, TurboTax, TaxSlayer, Drake Tax, and Lacerte Tax hosting are among the best software options for tax preparation. Moreover, the IRS also approves some tax preparation software developers to e-file returns. If you want to process tax filing smoothly, ensure accurate returns filing, maximize refunds, and comply with IRS mandates and tax planning, you should consider hosting this tax software soon.