TaxAct vs. TurboTax: Which is Better for Your Small Business in 2023?
Tax preparation software can impact tax filing processes. No business owner wants to get into trouble with the IRS, so you need a reliable software to help you achieve your goals.
There are different tax filing software available, but TaxAct and TurboTax are two popular options on the market. Each offers a suite of features designed to cater to the needs of small business owners.
So which is better between TaxAct vs. TurboTax? I wouldn’t want this to look like a sponsored review. So I took my time to visit small business owners in Texas who use either of the two software.
According to reviews from customers in the Texas, USA, TaxAct is affordable and has a user-friendly interface, making it the number one pick for those who prefer simplicity. However, TurboTax’s interactive approach, extensive features, and good customer support may be appealing to businesses with more complex tax situations.
In this article, we compare TaxAct vs. TurboTax to help business owners make informed decisions.
TaxAct vs. TurboTax: How to Get Started with TaxAct
Whether you’re a business owner or just an individual looking to simplify tax season, TaxAct’s got your back.
Step 1: Sign Up
First things first, head over to TaxAct’s website. You’ll see a bright and friendly sign-up button – give it a click. Fill in your name, email, and create a password. Remember to use something strong but memorable – like your grandma’s famous chocolate chip cookie recipe!
Step 2: Choose Your Plan
TaxAct offers a range of plans catering to different needs. Are you a small business owner, freelancer, or just need to file a basic return? They’ve got you covered. Pick the plan that matches your situation. If you’re not sure, don’t sweat it – TaxAct guides you to the right choice based on a few simple questions.
Step 3: Dive into Your Profile
You’re in! Now, TaxAct will ask you some questions to build your tax profile. Think of it like a casual chat with a tax-savvy friend. Answer things like your filing status, dependents, and any income sources. TaxAct uses these details to ensure you’re getting all the deductions and credits you deserve.
Step 4: Import Your Data
If you’re like most of us, you’re probably not too excited about manual data entry. Here’s the cool part – TaxAct lets you import your financial info from sources like W-2s, 1099s, and even some accounting software. This saves you time and minimizes those “uh-oh, did I make a typo?” moments.
Step 5: Uncover Deductions
Now it’s time for the magic! TaxAct’s built-in wizard walks you through all the deductions and credits you might be eligible for. Say goodbye to missed opportunities. It’s like having a tax expert in your corner, without the stuffy office.
Step 6: Crunch Those Numbers
As you add your income, expenses, and deductions, TaxAct does the heavy lifting – crunching numbers and doing the math. It’s like having a calculator that speaks tax lingo. You can see your refund (or what you owe) in real time as you go. No surprises here!
Step 7: Review and Polish
You’ve done the legwork, now it’s time for a quick checkup. TaxAct guides you through a review process, making sure you’ve covered all the bases. Double-check your info, make any necessary tweaks, and ensure everything’s shipshape.
Step 8: File with Confidence
Once you’re satisfied everything’s accurate and ready to roll, it’s time to file. TaxAct helps you e-file your return with confidence, and if you’re owed a refund, they’ll show you how to get it faster.
TaxAct vs. TurboTax: How to Get Started with TurboTax
let’s break it down step by step:
Step 1: Access TurboTax Website
First, head over to the TurboTax website. Just open up your browser and type in “TurboTax.com” in the address bar.
Step 2: Choose Your Plan
Once you’re on the website, you’ll see a variety of plans to choose from – like Free, Deluxe, Premier, and Self-Employed. Evaluate your tax situation and select the plan that suits your needs best.
Step 3: Create an Account
Click on the plan you’ve chosen and create a TurboTax account. It’s as simple as providing your email and creating a password.
Step 4: Answer Simple Questions
TurboTax will guide you through a series of questions about your financial situation. This helps the platform understand your tax scenario and identify potential deductions or credits.
Step 5: Upload Your Documents
You’ll be prompted to upload your tax-related documents like W-2s, 1099s, and more. Scan or take clear photos of your documents and upload them securely.
Step 6: Answer Detailed Questions
TurboTax will then ask more detailed questions based on the information you’ve provided. This helps ensure that you’re not missing any deductions or credits that apply to your situation.
Step 7: Review and Optimize
Take time to review your information and ensure accuracy. TurboTax will also optimize your deductions and credits to help you get the best possible refund.
Step 8: E-File or Print
Once you’re satisfied with the information and calculations, you can choose to e-file your tax return directly through TurboTax or print out your forms to mail in.
Step 9: Review and File
Before you finalize everything, TurboTax will walk you through a comprehensive review to catch any errors or inconsistencies. Once you’re confident everything is accurate, you can officially file your taxes.
Step 10: Keep a Copy
Make sure to keep a copy of your filed tax return for your records. You can usually download and save a PDF version for future reference.
TaxAct vs. TurboTax: Which Should You Choose?
These two tax software solutions have their unique benefits, but which one would you buy if you are asked to choose between them?
1. User-Friendly Experience
When it comes to tax software, simplicity matters. TurboTax is known for its user-friendly interface. It is a top choice for those who aren’t tax experts. The software guides you through a series of questions and ensure that you understand each step of the process. On the other hand, TaxAct offers a straightforward interface as well, but some users find its design less intuitive than TurboTax’s.
Winner: TurboTax
2. Features and Functionality
TaxAct shines in offering affordable packages for small businesses. It covers various forms, deductions, and credits that most small business owners need. While its features are comprehensive, some users have noted that certain advanced features are only available in higher-priced plans.
TurboTax, on the other hand, offers a broader range of features across its packages, making it a great choice for businesses with complex financial situations. It includes robust support for various industries and handles more intricate deductions and credits more effectively.
Winner: TurboTax
3. Customer Support
Running a small business is tough, and tax season can be a nightmare if you’re stuck with questions. Both TaxAct and TurboTax offer customer support, but TurboTax’s support options are considered more extensive and reliable. From live chat to phone support, they’ve got your back when you need assistance.
TaxAct’s customer support options are decent, but some users have reported slower response times compared to TurboTax’s quick assistance.
Winner: TurboTax
3. Pricing
Here’s where TaxAct gains an edge. Its pricing tends to be more budget-friendly, which is a significant advantage for small businesses striving to manage their expenses. TaxAct offers a transparent pricing structure, allowing you to choose the plan that best aligns with your business needs and budget.
TurboTax, while offering a wider range of features, can be pricier. It’s essential to carefully evaluate your business requirements and balance them against the extra cost.
Winner: TaxAct
4. Mobile Experience
In the digital age, having a seamless mobile experience is crucial. TurboTax takes the lead in this department, offering a well-designed mobile app that allows you to work on your taxes from your smartphone or tablet. TaxAct’s mobile app is functional but lacks some of the polished features that TurboTax provides.
Winner: TurboTax
5. Security
Ensuring the security of your financial data is paramount. Both TaxAct and TurboTax implement industry-standard security measures to protect your information. They use encryption protocols to safeguard your sensitive data, and you can rest assured that your financial information is in safe hands with either option.
Winner: Tie
6. Integration with Accounting Software
For many small businesses, integration with accounting software is a game-changer. TaxAct and TurboTax both offer integration with various accounting platforms. However, TurboTax’s seamless integration with widely-used accounting software like QuickBooks gives it an advantage for businesses looking to streamline their financial processes.
Winner: TurboTax
TaxAct vs. TurboTax: Final Verdict
So, which tax software emerges as the victor for your small business? It ultimately depends on your unique needs and budget. TurboTax excels in offering a robust range of features, excellent customer support, and a user-friendly experience. If your business is complex and you’re willing to invest a bit more, TurboTax might be your go-to choice.
However, if you’re working with a tighter budget and have relatively straightforward tax needs, TaxAct could be the right solution for you. It offers affordability without sacrificing essential features and functionality. Therefore, the decision to buy TaxAct or TurboTax should be based on the needs and preferences of your small business.
