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In summary, the three main tax software packages, TurboTax, H&R Block and TaxAct, offer online and computer versions to prepare federal tax returns and your company’s returns.
You can use a specific version of one of these programs to prepare W-2 forms for employees and 1099 forms for non-employees if you hire them.
A list of these forms that may be needed for your tax return are on the IRS website.
What Features Do You Need?
The software you need depends on your type of business and the federal tax return forms you must complete.
If you are a sole proprietor or a single-member LLC, you will submit Appendix C with your personal tax return. Therefore, you will need a software version that includes Appendix C.
You will need a commercial income tax preparation software package, that includes Form 1120 if it is a company or, software that includes Form 1120S if it is a corporation.
You will need software with Form 1065 if you are a member of a multi-member LLC.
What the Tax Software Includes And Does Not Include:
The three main tax preparation programs offer options to companies, but their offer differs.
The commercial option may be a commercial option (for example, TurboTax), or you may need to select a specific type of business (in TaxAct).
If you declare your business taxes, the option you get will also include forms to prepare your personal taxes for the year.
The programs also help you calculate your self-employment tax and include it in the corresponding sections of your personal tax return.
You will have to purchase a separate program for your personal taxes if you buy software for multi-member companies, corporations or limited liability companies.
These preparation programs do not always include personal tax return information, although sometimes products may be included.
If you have employees and/or non-employees who work for you, you may want to find software that prepares forms W-2 and 1099-MISC.
All these companies offer online support, but be careful who you trust.
Remember, complex business tax problems should only be resolved by CPA or registered agents.
H&R Block For Business Income Tax Returns:
H&R Block offers small businesses preparing tax returns online with their online version for freelancers, including schedules C and SE.
The cost is $79.99, with an additional cost of $36.99 for a state return.
They also have a premium online version for small businesses that spend less than $5,000 for filing C-EZ, at $49.99 plus $36.95 for a state.
The Premium and commercial download version (available only on Windows) includes the $89.95 corporate tax forms for List C companies, S corporations, associations and nonprofit organizations, and allows you to prepare five federal returns.
State software is included, but the state electronic file costs $ 19.95 each.
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