Best Tax Software for Small Businesses in 2021
Let’s face it, as a small business owner you’ve a lot on your plate, and filing your taxes might seem like an overwhelming task on your long to-do list. But the right online tax filing software can help you save time and money.
Tax software programs allow you to complete the filing process online, so there’s no need to deal with the back-and-forth of working with an accountant. And don’t worry if you’re not a tax pro — these services walk you through the filing process, so you can check off all the boxes before you hit file. If you want advice on your tax situation, many online software programs provide the option to upgrade to get live support that may include one-on-one assistance with a tax professional.
CNBC Select evaluated popular tax filing software programs that offer plans focused on people who are small business owners, which generally includes the self-employed, freelancers, sole proprietors and anyone with a side gig (or two). We evaluated these programs on a range of features, including cost, user experience, expert tax assistance and Better Business Bureau rating. (Read more about our methodology below.)
Here are the best tax filing software programs for small business owners, so you can file your taxes before the April 15 deadline.
Best tax filing software for small business owners
Best overall tax software
TurboTax
On TurboTax’s secure site
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Cost
$90 or $170 federal, $40 or $50 per state (see breakdown by plan below)
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Mobile app
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Live support
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Better Business Bureau rating
Pros
- Step-by-step guidance with a Q&A format that is easy to follow
- TurboTax Live provides on-demand advice and a final review from a tax expert or CPA
- Live Full Service has a tax expert prepare, sign and file your return
- 100% accuracy guarantee, or TurboTax will pay your IRS penalties
- Maximum refund guarantee, or TurboTax will refund the plan fees you paid
- Audit support, which provides free assistance if you get an IRS or other tax notice
Cons
- More costly than other software programs
- Live expert assistance plans cost $80 more for federal and $10 more per state
- Live Full Service charges an additional $90 for federal, state is additional
Cost breakdown by plan:
- Self-employed (for personal and business income and expenses): $90 federal, $40 per state
- Live self-employed (includes help from tax experts): $170 federal, $50 per state
Runner-up
H&R Block
On H&R Block’s secure site
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Cost
$67.99 or $144.99 federal, $36.99 per state (see breakdown by plan below)
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Mobile app
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Live support
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Better Business Bureau rating
Pros
- Simple step-by-step guidance that’s easy to follow
- Unlimited on-demand chat or video support with Online Assist plans
- Ability to speak to a tax expert who has an average of 10 years experience (costs extra)
- Over 11,000 physical locations so you can meet with a tax expert in-person
- Maximum refund guarantee, or H&R Block will refund the plan fees you paid
- Audit support guarantee, which provides free assistance if you get an IRS or other tax notice
- 100% accuracy, or H&R Block will reimburse you for any penalties or interest up to $10,000
Cons
- Plans that include speaking with a live tax expert cost $77 more for federal returns
- One of the more costly software programs
Cost breakdown by plan:
- Self-employed (for personal and business income and expenses): $67.99 federal, $36.99 per state
- Online Assist Self-employed (includes help from tax experts): $144.99 federal, $36.99 per state
Best free tax software
FreeTaxUSA
On FreeTaxUSA’s secure site
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Cost
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Mobile app
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Tax expert support
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Better Business Bureau rating
Pros
- Federal filing is free to use
- Audit defense available with the Deluxe edition, which gives you support from a representative if the IRS audits your federal tax return
- Maximum refund guarantee, or FreeTaxUSA will refund the plan fees you paid and provide a coupon for a free amended tax return
- 100% accuracy, or FreeTaxUSA will reimburse you for any penalties/interest charges
Cons
- Can’t import W-2s, so you have to manually enter the info
- State filing isn’t free, though it’s a low $12.95
Read More: Best Tax Software for Small Businesses in 2021