Your dream to own a start-up business can experience serious setbacks without a well-thought-out strategy to calculate and file your tax return.
And tax return is bound to be more tiresome and open to mistakes when you put the entire business responsibility on your shoulders alone. Also, the IRS is known to cut some slack to start-ups.
Your start-up tax return denotes the tax deductions you can make from capital costs. And start-up cost could range from license subscription, legal fees, advertising expenses, and training employees.
It is important to note that your entire start-up expenses folder is categorized as capital costs to calculate tax return. And IRS deems such expenses as long-term assets. And assets, as we know, are depreciated not deducted.
The nominal cost of hiring an expert to prepare your tax return is roughly $275. It's an unfair and ridiculous amount, especially start-ups who don't have complex tax tissues.
But how does one identify which of the costs qualify for your annual tax return? The market is thriving with optimal performance software that can help you assemble deductible business expenses.
Turbotax
Turbo Tax is undoubtedly the most popularized and effective tax return software. It’s developed by Intuit that charges the program at a reasonable price of $59.99.
Tax experts and industry professionals recommend this step.The software has an impeccable user interface and import quality. The software allows you to take pictures of W-2's and 1099 forms instead of manually typing all the information.
And self-employed Individuals can benefit from the “Expense Finder” feature. Furthermore, the software can also identify, calculate, and classify your tax-deductible directly from the bank account.
If you have confusion regarding any feature, the online version grants access to chat with experts. Similarly, it’s “Smart Look” feature can be used to have a video chat with a tax expert.
And if the software malfunctions and miscalculates your data, it’s always prepared the full penalty to the IRS. Moreover, it also offers audit support.
What are the Best Tax Return Softwares in 2019?
Here are some of the most trending and used software programs that you can purchase or choose to try for free on a trial
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TaxAct Premium
TaxAct is inexpensive as compared to TurboTax. And it's arguably why the majority of small and medium-sized businesses (SMB's) prefer to use the program.
You can purchase the deluxe edition for $47.95 or get the basic plus Tax Act version for as low as $14.95.
The software calculates returns related to self-employment and investment income. And the “Life Events” feature helps compare the changes in the current and previous year tax return.
Credit Karma
Credit Karma faced interface and data input issues in the beginning. However, the current version of the software offers optimal customer service. And it would be unfair to not list the software in the same league as TurboTax and TaxAct.
Apart from calculating 1040EZ and 1040A returns, you can handle most of the IRS forms and schedule in Credit Karma. And the “help”feature makes it easier for users to search in the database.
The software has designed a series of questions that allows you to input the correct information. What's more, you can calculate the state and federal taxes without any charge.
H &R Block
The only software that can be synonymous with TurboTax, H&R Block is user-friendly as compared to other software programs.
The complex algorithm of the software often makes amateur and small business owners confuse to add the right information. Generally,users pay an expert to overview the finalized measured data, or you can also set the backup files at H&R block office.
And the software has a “tax prep checklist” that allows users to prepare tax return by tracking down the required documents in the computer.
The free version of the H&R Block, however, is marginally better than what TaxTurbo offers. Premium version of the software is available at $64.95 with all the perks. And you can purchase the basic version at just $19.95.
TaxSlayer
TaxSlayer is web-based software, which means you can access it from your choice of device.
The “Quick File” feature of the TaxSlayer allows users to switch back and forth with the data rather than follow a sequential pattern like most programs. And all users have to do is add the keyword that can cue the much-needed information.
And the error checker and searchable information database of TaxSlayer is as good as it gets.
The classic version of the software is priced at $24,whereas the premium and ultimate version range between $37 -57. You can,however, buy the premium version separately at a reasonable price of $37.
The classic and premium versions more or less have the same functions, but the premium has better support options.
Jackson Hewitt
Jackson Hewitt is one of the most efficient software available for tax filers. The software can effortlessly calculate the simplest form of data to most complex information.
The premium version of the Jackson Hewitt can take care of almost every situation, but the algorithm doesn't provide 'what' and 'how'parameters after a successful evaluation to give insight to the user.
QuickBooks
The shining trait of QuickBooks is that it can be used even by non-accountants to prepare and file taxes.
That said, it’s a professionally designed tool for all business scales. It’s functions, and secured structure is enough reason to get the software at a low price tag. And the program can be easily integrated into your bank account to inform you of the financial strength and weaknesses of your business.
Currently, QuickBooks has more than 4.3 million customers. And the software is more of a wizard for small business owners across the world.
Final Thoughts
You'd be surprised just how much time and money you can save after handling the tax priorities of your business.
The option to select the right software doesn’t necessarily mean to go with the most expensive one. Therefore, choose the program that meets your business requirements and can help you in the long run.
