Business Tax Preparation Software Compared

Three Tax Preparation Software Programs

Business Tax Software
Software for Business Taxes. -Oxford-/Getty Images

Updated for 2015 Business Tax Returns

If you are looking for business tax software, here is a comparison of the three major tax software applications - TurboTaxH&R Block At Home, and TaxAct. All three tax software applications include products to prepare business tax returns, as well as state business tax returns.

Can I Use Tax Software to Prepare My Business Taxes? 

Many business owners ask whether they can use tax preparation software for their business taxes.

The ability to use this software for business tax returns depends on the type of business you have

The business income tax software you need depends on the form you are filing:

  • If you are a sole proprietor or single-member LLC, you file business taxes on Schedule C, along with your personal tax return. You will need the tax software version that includes Schedule C.
  • If you are a corporation, you need tax software that includes Form 1120
  • If you are an S corporation, you need tax software that includes Form 1120S
  • If you are a partnership or multiple-member LLC, you need tax software that includes Form 1065.

All three major tax preparation programs offer options for businesses. These are the software types and prices for 2014 tax returns: 

TaxAct

TaxACT Premium includes Schedule C for $19.99; state filings additional. 

Business tax return products for 2015 are all $49.99: 1065 for partnerships, 1120S for S Corporations, and 1120 for C Corporations.

 

TurboTax

Home & Business version includes Schedule C for $79.99. State tax returns are additional. 

TurboTax Business includes 1120 for corporations, 1120s for S Corporations, and 1065 for partnerships and multiple-member LLC's. The cost is $149.99 and the state return is additional. 

H&R Block

You can use the Premium Edition for $49.95 if you are just doing a Schedule C (state returns additional).

Premium & Business version includes Schedule C, corporate, S corporation, partnership, and LLC tax forms for $79.95. Unlimited business state filing is included, but state e-file is an additional fee.

Should you do your own business taxes? 

Even if you are able to purchase software - either downloaded or on a CD - to do your business taxes, the question still remains about whether you should try to complete this task on your own. 

In most cases, if you have a very simple tax return on Schedule C, you may find it easy to do your own business taxes along with your personal taxes. 

In this case, don't forget you must still calculate and pay self-employment taxes if your small business has a profit for the year. 

In other cases, with a more complex business tax return for a partnership, multiple-member LLC, or corporation, you should probably get the help of a tax preparer who is familiar with this type of return. 

If you have questions, be sure to contact your tax professional. 

This article suggests some ways you can save money on tax return preparation. 

Continue Reading...