The 10 Best Tax Software Products Reviewed for 2024

The best tax software helps businesses and individuals prepare and file error-free federal and state tax returns. This software will empower you to sync your accounting data, generate reports, and ensure you hit tax deadlines – and in some cases, you can even get hands-on expert assistance to help you with tax matters.

However, with so many tax software products around, choosing the best one can be challenging. That’s why we’ve found and reviewed the 10 best tax software products based on researching and rating them for details like their affordability, integrations, automation options, and customer support. Stick around to learn why platforms like FreshBooks, Rippling, and Paychex are among the best.

Table of Contents Table of Contents

1. The Best Tax Preparation Software in 2024 Ranked
2. How Does Tax Filing Softwarе Work?
3. The Best Tax Preparation Software in 2024 Reviewed
4. The Best Tax Preparer Software Compared
5. Important Dеtails to Considеr Whеn Buying Profеssional Tax Softwarе Products
6. Does the Best Free Tax Software Work?
7. Conclusion – What's the Best Tax Filing Software in 2024?
8. Tax Software FAQs
9. References

Show Full Guide

Table of Contents

1. The Best Tax Preparation Software in 2024 Ranked
2. How Does Tax Filing Softwarе Work?
3. The Best Tax Preparation Software in 2024 Reviewed
Show Full Guide
4. The Best Tax Preparer Software Compared
5. Important Dеtails to Considеr Whеn Buying Profеssional Tax Softwarе Products
6. Does the Best Free Tax Software Work?
7. Conclusion – What's the Best Tax Filing Software in 2024?
8. Tax Software FAQs
9. References

The Best Tax Preparation Software in 2024
Ranked

Here’s a brief roundup of the best tax return software, highlighting their key offerings so you can match your needs with the product that suits you best:

1. FreshBooks — Overall, the best tax preparation software, which will generate the financial reports you need to file your taxes accurately. If you require professional help, you can also sign up for its Accounting Partner Program.
2. Rippling — A superb payroll tax software solution that’s equipped to automatically file business tax forms such as 941s and W-3s on your behalf.
3. Paychex — The best for businesses looking for extra tax credits to save a few bucks. The best part is you don’t have to pay for its tax credit service until it delivers results for you.
4. Xero — The best tax preparer software to file taxes on behalf of clients. It pre-populates your tax forms, so you don’t have to fill them in manually.
5. Sage — Perfect small business tax software with extensive sales tax tracking. It automatically finds the right sales tax rate based on your location while simultaneously allowing you to add custom sales tax rates if needed.
6. Bonsai — Designed for freelancers and self-employed individuals, it automatically identifies and categorizes deductibles to minimize your tax payments.
7. QuickBooks — A popular tax software tool that lets you claim deductions on gas money. It also comes with a built-in mileage tracking feature to track your trips and makes maintaining transaction receipts easy.
8. TurboTax — Ideal for those who want professional tax preparation services, plus, it has a 100% accurate calculation guarantee, so in the unlikely event you’re fined for an error, then you’ll be compensated for it.
9. Wave — The best payroll tax software with full-service payroll tax in 14 states. It also comes with a built-in calculator to keep track of taxes incurred on your invoices.
10. TaxSlayer — Top free tax software and the only one on our list with a fully free plan. You can file one federal return and one state return for no charge at all.

How Does Tax Filing Softwarе Work?

Once you’ve entered your financial data, the software uses complex algorithms and consults tax laws to calculate your tax liability or refund. Based on your financial situation and details, it then generates the necessary tax forms, like the 1040 or Schedule C.

These tax software tools are generally very user-friendly and designed to accommodate a wide range of users, from home owners to freelancers, small businesses, and large enterprises.

They typically offer intuitive interfaces that make it easy to input your financial details, and many provide real-time calculations so you can instantly see how your actions affect your tax situation.

Some software, like FreshBooks, caters to freelancers and small businesses, offering features like expense tracking, invoicing, and even mileage tracking to simplify the entire financial process.

So, whether you’re a self-employed freelancer or managing a growing business, tax software can streamline the tax preparation process and help you easily navigate the complexities of tax regulations.

The Best Tax Preparation Software in 2024
Reviewed

Eager to get your hands on the best tax planning software? Read on as we’ll now take a deep dive into all of our top tax software, discussing details like pricing, pros and cons, and the best features on offer.

1. FreshBooks — Overall, the Best Tax Software, with Double-Entry Bookkeeping

FreshBooks’ detailed tax reports provide you with all the numbers you need to painlessly file your taxes each year. Since it’s also known as one of the best accounting software packages, it tracks your revenue and profits better than anyone.

You get a summary of your sales taxes plus a report on your profit and loss over the last year. Together, these reports help you calculate your taxable income and file accordingly.

FreshBooks offers a full accounting platform with tons of features, as well as comprehensive double-entry bookkeeping.

Double-entry bookkeeping is the process of recording a transaction into two accounts – debits and credits. This means that for every transaction that’s recorded as a debit, there must be an equal transaction that’s recorded as a credit. This makes it easier for you to track where your money went.

FreshBooks has more than enough resources for you to complete your taxes. However, if you need additional help, you can sign up for the Accounting Partner Program and get matched with accountants and tax experts, who are personally vetted by Freshbooks’ in-house team.

You can also invite your accountant to your FreshBooks account. They can be added just like a regular team member, and you can control the data they can access. Together, you can review your financial reports in real-time and file your taxes before the deadline.

In short, FreshBooks is an ideal accounting tool for managing your business and paying your taxes on time, offering a far broader toolset than products like TurboTax.

2. Rippling — Ideal Business Tax Software with Comprehensive Payroll Tax Features 

Rippling is the ideal software for handling staff income taxes. Its payroll tool is well-versed with the rules on wages and deductions. On top of that, you’ll have the option to create custom pay codes where you can specify tax rules.

This way, anytime you run payroll, Rippling will automatically deduct the necessary amounts for your employee’s annual tax filing.

Rippling also lets you tax multiple forms of income at once. For instance, restaurant workers get taxed on their fixed wages as well as the tips they make each month, provided they’re more than $20.

Thanks to Rippling, you can tax both at once. If there are any other sources of income, you can include them in the same payroll and set custom tax rules for each amount, and Rippling will do the rest of the calculation.

That’s not all. Rippling also helps you pay your business taxes. For instance, quarterly 941 forms and annual W-3 forms can both be filled by Rippling automatically.

The 941 form is used to report the amount of taxes you have withheld from your team, whereas the W3 form is used to report combined employee income to the IRS. Both of these forms are crucial for businesses, and Rippling ensures you never miss the deadline.

You can also automate ACA compliances with Rippling by generating your company’s 1094-C for the IRS and 1095-Cs for your employees. These forms are reporting requirements to determine if you offered healthcare to all your eligible employees.

If taxes aren’t your strong point and your employees keep asking questions about the fluctuating tax rates, Rippling has you covered. It’ll highlight the tax limits directly in the payroll so you’ll know when your employees reach their State Unemployment Insurance (SUI) or Social Security wage limit.

Nevertheless, some users still feel the platform could offer more clarity and transparency when breaking down taxes, and it doesn’t provide the range of accounting features as a product like FreshBooks.

For more information on payroll solutions, you can also check out our list of the best payroll software available today.

3. Paychex — Helps You File Income Tax Returns for Extra Tax Credits

Paychex is another payroll tax software product, but what makes it different from Rippling is its fantastic tax credit service, so you can maximize your deductions from your total taxable income.

Applying for tax credits is usually time-consuming and complicated, but not with Paychex. It helps you back your tax credit claim by creating a well-documented, legally compliant audit trail justifying why that amount qualifies as a tax credit.

The best part is you don’t have to pay upfront for this service. Paychex will look for possible tax credit options in your transaction history for free, and you’ll pay a fee only if they manage to find something you can claim.

Paychex’s tax services are optimized to handle different types of businesses. For example, if you have a seasonal business, Paychex will hold off your payroll during the off-season while still sending out W-2 forms to your employees.

It also has a massive database of all the federal and state tax forms you’ll ever need. You can edit, download, and print these forms whenever you need. Each form is also complimented with the latest tax rules and instructions to help you fill in the form correctly.

Getting started with Paychex is easy. Every user gets a scheduled demo, so they know exactly what they’re getting into. Plus, the plans are divided by business size, so you can keep scaling without switching platforms.

If there is a downside, it’s that the pricing can be rather complex, and some users would like more autonomy and transparency in how the system operates.

4. Xero — Best Tax Preparation Software for Professionals

Xero has been designed for bookkeepers and accountants to file taxes for their clients. And the good news is that your clients don’t even need to be on Xero for you to prepare their taxes. Businesses or people that already have a Xero account get pre-populated tax return forms and financial reports.

That means all the necessary information about their financial activity and other company details is automatically filled in by Xero. You just have to review the information and update the mistakes (if any).

Another feature that caught our eye was the tax management dashboard. At the center of the page, you get a progress tracker labeled as “Draft,” “Waiting To File,” or “Client Accepted.” So, at one glance, you can check what stage you are in for each client.

On the right side of the page, you get a breakdown of the calculations, divided into four categories – Tax Calculation, Tax On Taxable Income, Assessed Tax Payable, and Tax Refund.

Using these real-time calculations, you can give your clients an idea of what they may have to pay so they can prepare in advance. Doing so will certainly get you on their good side.

Xero is a complete professional tax software platform. Once your taxes are ready, you can directly file them from your Xero account. It’s a two-click process – go to your tax dashboard, click on the “Submit” button at the top-right corner, enter your ID and password, and click on “Submit” again, and you’re done.

5. Sage — Ideal Tax Preparation Software for Small Businesses

Sage has optimized its tax service for small businesses who don’t want to hire an accountant to help them with their taxes. When you get started, Sage will ask whether you charge sales tax.

If you say you do, it’ll automatically find the sales tax rate for your location and apply it to all your transactions. Also, taxes are usually paid to the state, country, and local tax agency.

Each of these institutions has a distinct tax rate. So, Sage combines these rates into a single sales tax rate before applying it to your transactions. You can always go to the sales tax settings page to see the complete breakdown of the rates. Here, you can also add additional tax rates if required.

Since Sage also doubles up as your accounting software, keeping track of all the money going in and out of your account and calculating sales tax for each period is quite easy.

All you have to do is go to the sales tax report section and enter the dates. Instantly, Sage will calculate the sales taxes you have collected and owe to the authorities. Along with these, you also get the usual benefits of automated tax calculation and compliance management.

Since tax laws are subject to change, manually filing your taxes can result in errors. Thankfully, Sage automates the entire calculation process, and all you have to do is pay the total.

If you connect your bank account with Sage, end-of-year closing before tax season will be a breeze. It’ll automatically identify unreconciled differences and help you match received payments to customer invoices.

6. Bonsai — Tax Software for Freelancers and Self-Employed Individuals

Bonsai’s Tax Assistant feature has been designed keeping self-employed individuals and freelancers in mind – those who need some expert help to manage their taxes but are on a tight budget.

It can easily help you import your expenses from your bank’s app or whatever payment app you use. To automate import, connect your bank account or credit card to your Bonsai account. Then, it automatically identifies expenses that can be classified as deductibles to maximize your write-off.

Tax deductibles are expenses taken off your total profits as they’re considered ordinary, necessary, and important to fuel the business. The more deductibles you can find, the less you’ll have to pay in taxes.

If you want to be prepared beforehand, Bonsai will analyze your expenses and income in real-time and give you an estimate of your quarterly taxes.

It also comes with a Tax Receipt scanner that digitizes paper receipts, helping you track all your expenses in one place. The simple interface of the tool further adds to its popularity.

Bonsai guides new users through the process with abundant free tax resources. One of our favorite free tools is the self-employed tax calculator. Enter some basic information about your business and expected revenue, and Bonsai will calculate your taxes for the year in seconds.

Furthermore, if you are planning to file your taxes through the 1099 form, Bonsai will send you an automated reminder when it’s due so that you never miss a deadline.

7. QuickBooks — Simplifies Taxation with a Built-in Mileage Tracking Feature

QuickBooks knows that to keep tax season stress-free, you need to track every penny you spend. Thankfully, this Intuit tax software product makes that easy with its variety of expense-tracking tools.

Along with the standard bank transaction tracking, QuickBooks also provides you with a mileage tracking tool. Connect your QuickBooks account with your phone’s GPS, and it’ll start tracking all the miles you go for business trips.

You can also categorize these trips if they are a mix of personal and business trips. This is important since you can claim gas money as a deductible, but only for business purposes and not for personal use.

There are two ways to write off car-related expenses – the actual expense method and the standard mileage method. If you want to write off the exact amount you are spending, you’ll have to pick the former filing method, and hence, you’ll need Quickbook’s mileage tracking reports.

To help you save more on taxes, QuickBooks also helps you manage your transaction receipts. All you have to do is snap and upload a picture of the receipt, and then QuickBooks will match it with the transaction records from your bank and categorize them accordingly.

By neatly organizing these receipts, you can check which payments qualify for deductions at a glance.

You can even manage your sales tax with QuickBooks. The on-demand Sales Tax Liability Report automatically classifies your sales as taxable and non-taxable, so you know which income to report. And don’t worry, these classifications are 100% reliable.

If you choose QuickBooks, you’ll also get a free guided setup where a QuickBooks expert will walk you through the initial steps. Even if you’re a beginner, getting started with QuickBooks will be a breeze.

8. TurboTax — Best Professional Tax Preparation Software with Expert Assistance

TurboTax is ideal for those who want everything done professionally. Two types of plans offer professional assistance – Assisted and Full Service. As the name suggests, the Assisted plan is when these tax experts merely help you with the process.

You’ll be connected to a tax expert who will explain the basic process and then do a final review of your taxes (fix mistakes, if any) before you submit them.

The Full Service plan is when the TurboTax experts completely take over. First, you’ll get matched with a tax expert based on your domain and their expertise. Then, you’ll have to securely share all your transaction reports with them.

They will complete the tedious task of going through every transaction report to identify your taxable income and then file it on your behalf. Meanwhile, you’ll also be able to connect with the matched expert at any time, and they, too, will keep you in the loop concerning every new development.

The biggest reason we recommend both these plans to people looking for professional taxing support is TurboTax’s guarantees. The 100% Accurate Calculation guarantee states the company will compensate you if you ever have to pay an IRS penalty due to calculation errors.

Similarly, they have a Max Refund Guarantee, so if you get a larger refund with another tax preparation method, they’ll refund the applicable TurboTax federal and/or state purchase price paid.

Last but not least, you’ll also have the option to do your own taxes, where you’ll have 100% control over the process, but you’ll still get the maximum refund guarantee and step-by-step guidance. Also, none of these plans require any upfront payment. You only pay when you file the tax.

9. Wave — Offers Full-Service Payroll Taxation Filing in 14 US States

Wave is another popular platform for managing Payroll tax. There are two models available at Wave – complete tax service and self-service, just like TurboTax. But the difference here is the model you get depends on your state.

If you’re in Florida, Georgia, Minnesota, Virginia, or ten other states, Wave will automatically file your taxes and take care of everything – the paperwork, the transaction, the forms, and everything else.

However, if you come from the rest of the 36 states, you’ll qualify for self-service tax. Under this, you’ll have to file and pay the taxes yourself, but Wave will help you by showing you the transaction history and salary details of your employees.

Wave also helps your employees file their income tax. Each member of your team gets a dedicated portal on Wave where they can access tax forms and a detailed breakdown of their salaries.

It takes full responsibility for the accuracy of the numbers in the paystubs, ensuring that you and your employees remain compliant throughout.

Speaking of taxes, Wave also helps you charge the right sales and service tax on your invoice. Usually, when you do your invoices in Excel, Word, or other DIY solutions, you have to do the taxes manually, which leaves a lot of room for error. But thankfully, with Wave, you get a built-in tax calculator that does the job for you.

10. TaxSlayer — Free Tax Filing Software for Basic Needs

TaxSlayer is the only software on the list that lets you get started for free. The free plan is obvious for basic tax filing, such as the 1040 form, which is used to declare one’s annual income.

It includes one federal and one state return. A free plan is also extended to people in the military on active duty. All tax situations will be covered for free, with no restrictions.

What makes its free plan different from the other options you might find is that you get unlimited call and email support. Tax Slayer has an in-house team of accounting and tax experts who are ready to help you through the process whether you’re on a paid plan or not.

Another unique benefit of using TaxSlayer is you don’t always have to pay upfront to avail their service. If you can’t afford to pay out-of-pocket, they’ll deduct the service charges from your tax refund.

And even if you do choose one of the paid plans, you’ll be happy to know that it’s cheaper than most of the other popular services, such as TurboTax and TaxAct. You’ll find a detailed price comparison on its website.

You also get a guaranteed maximum refund with TaxSlayer. This essentially means that you get every dollar you’re entitled to, and if you don’t, TaxSlayer will pay you the difference.

Just like TurboTax, TaxSlayer also helps you with IRS audits. Depending on the plan you choose, this support will be offered for up to 3 years of the filing year.

They can’t represent you before the IRS, obviously, but in case an audit comes up, it’ll help you prepare for the interview and help you put together all the documents you’ll need to resolve the inquiries of the IRS.

The Best Tax Preparer Software Compared

Here’s a bird’s-eye view of the key differences between our top picks so you can make a quick yet informed decision about which one is best for you.

Important Dеtails to Considеr Whеn Buying Profеssional Tax Softwarе Products

Whether you’re an accountant, tax professional, or business owner, choosing the right professional tax software is important. We’ll help you navigate the important factors that will ultimately shape your choice of tax software, whether you’re considering H&R Block Tax Software, Drake Tax Software, or ATX Tax Software.

User-friendliness

Tax professionals, accountants, and individuals alike benefit from software that offers an intuitive interface and straightforward navigation.

Look for a product that simplifies complex tax regulations and calculations, reducing the likelihood of errors and streamlining the overall tax preparation process.

User-friendly software often provides step-by-step guidance, helpful tooltips, and clear instructions, making it accessible for both seasoned tax professionals and those with limited tax knowledge.

This is also something to consider, whether you’re looking for home tax prep software or tax preparer tax software for the pros – the difference between Intuit’s ProSeries tax software and TurboTax, for example.

Compatibility and Integrations 

Ensure the software is compatible with your operating system (Windows, macOS, and the like) and meets the requirements of your computer or network infrastructure.

Additionally, consider compatibility with other software tools you use, such as accounting software or e-filing platforms.

This ensures seamless integration and reduces the risk of compatibility issues that could disrupt your tax preparation process. Be mindful of any hardware or software prerequisites outlined by the tax software provider, and choose a product that fits your existing technology stack for a smoother and more efficient tax workflow.

Security Features

Choose software that employs encryption to safeguard sensitive financial data during transmission and storage. Features like multi-factor authentication and secure data storage are crucial for preventing unauthorized access.

Regular software updates and compliance with industry security standards, such as HIPAA or IRS e-file requirements, indicate a reputable product.

Additionally, consider the software’s ability to generate secure electronic tax returns and adherence to strict security protocols when transmitting data to tax authorities. Prioritizing these security features ensures that your client’s confidential information remains safe and that your practice complies with regulatory requirements.

Features

Depending on your profession and the complexity of your tax situation, you may also require specialized features for handling deductions, credits, and industry-specific regulations.

Ensure that the tax software you choose encompasses all the necessary features to streamline your tax preparation process and helps you maximize deductions while staying compliant with tax laws and regulations.

Customer Support

Reliable and responsive customer support can be a lifesaver during tax season, especially if you encounter technical issues, need assistance with software features, or have tax-related questions.

Look for tax software providers offering comprehensive customer support, including phone support, live chat, email assistance, and a knowledge base or user community.

Assess their response times, availability during peak tax periods, and the quality of expert support they provide. A software product with excellent customer support ensures you have the assistance you need to navigate any challenges, making your tax preparation experience smoother and less stressful.

Accuracy

Moreover, it should offer built-in error-checking mechanisms that flag potential mistakes, ensuring your tax returns are accurate and compliant. Investing in tax software renowned for its precision provides peace of mind, knowing that your financial data and tax filings are in safe hands.

Pricing

When purchasing professional tax software products, pricing is a crucial factor to consider. Many tax software options offer flexible pricing models, including a one-time fee per return filed or an annual subscription. It’s essential to evaluate your specific needs and the volume of tax returns you’ll be handling.

If you’re a professional who files taxes year-round, an annual subscription might be more cost-effective, as it provides an unlimited or higher number of returns.

On the other hand, if you have occasional tax filing requirements, a pay-per-return model could be a more economical choice. Additionally, consider any hidden fees, such as e-filing charges or additional charges for support or updates.

Reputation and Review

Start by researching the reputation of the software provider within the industry.

Established and reliable companies generally produce trustworthy software that’s continuously updated to comply with changing tax laws. Additionally, delve into user reviews and testimonials to gain insights into the user experience.

Pay attention to feedback from professionals or businesses in your field to ensure the software caters to your unique tax needs. A well-regarded tax software product backed by positive reviews will more likely meet your expectations and deliver a smoother tax filing experience.

Does the Best Free Tax Software Work?

This covers returns that only require a simple return with an IRS Form 1040. This excludes returns, including itemized deductions or that report unemployment income, stock sales, rental property income, or income from crypto sales.

However, it does include guarantees for accuracy, getting the maximum refund, and supporting you in the event of an audit. It allows you to maximize tax credits for dependents and is ideal for
W-2 income.

TaxSlayer has a similar plan called “Simply Free.” There’s a catch, though. To use the free service, your total taxable income should be less than $100,000, and you shouldn’t be claiming any dependents – two stipulations TurboTax doesn’t require. Additionally, if you’re married and filing your taxes separately, have itemized deductions, or rental property income, among other situations, you’ll not be eligible for the free plan.

As you can see, free plans are generally restrictive and only meant for basic tax filing. Thus, you’ll generally need to switch to a paid plan for most returns and certainly for all business tax and accounting needs.

Paid plans support all kinds of tax situations, whether you’re a business owner, freelancer, or salaried worker. Many also offer help from professional tax experts, who can guide you through the tax process.

You’ll also have the option to outsource the work entirely to experts at a cost. This should give you peace of mind in regard to the accuracy of your tax calculations, though.

Conclusion – What’s the Best Tax Filing Software in 2024?

Our list of the best tax filing software is a comprehensive breakdown of the most reliable solutions. You’ll find everything you need to file error-free taxes here.

From platforms that provide dedicated tax professionals to help you out to providers that allow a seamless flow of accounting data to make tax calculations easy, you’ll find a product that matches your requirements.

However, FreshBooks is an all-weather tax filing solution with features like detailed financial reports and an Accounting Partner Program to connect you with tax experts to assist with filing.

You can even onboard your own accountant on FreshBooks to manage your finances. Try it out now with the security of a 30-day money-back guarantee.

Tax Software FAQs