Best Tax Software For Small Business (2024 Update): TaxSlayer vs TurboTax vs H&R Block vs TaxAct vs FreeTaxUSA & More

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Tax time is here and so are your W-2s or 1099s since most employers sent them out to arrive by the end of January. In fact, business taxes are due in many states in mid-March. So, it’s time to get started and get rolling, especially if you’re due a refund check.

Please note that this article has been updated with each company’s 2022 products for the 2021 tax season.

Article Overview

What Features Should Tax Software Have?

Not all tax product offerings are the same, but there are some features that you should always look out for when picking the right tax product for you.

Direct Deposit Refund

Direct deposit may not seem like such a big deal, but it’s a much faster way of receiving a tax refund, and most tax companies these days prefer it (some even offer discounts for using it). Direct deposit may not be a must-have feature on your list, but if you’re looking for a reputable tax company to go with, the chances are that they offer it as an option.

Electronic Filing

In the age of technology, utilizing electronic filing is the same as using direct deposit refund services. Most big tax service providers offer the opportunity to file your taxes electronically.

Error Checks

Error checks are an important part of tax filing for any software user. To file your taxes is one thing, but to file taxes and catch any potential errors or mistakes is another.

Often we spend so much time working on our taxes that we can neglect to notice even the most obvious mistakes, so it’s important to have a second line of defense to minimize the risk of an IRS audit (learn more about the IRS audit process). Most reputable tax products these days offer error check services.

Federal Returns

There should be no question that a tax service provides the opportunity to file federal returns.

Pay Only When You File

Where filing taxes used to mean purchasing software before filing, today tax products can often be downloaded online, and you can e-file. This usually means not having to pay until you file your taxes.

The ability to complete your taxes using a service before paying for it shows that the company has confidence enough in its product to let you try it out before paying its fee and provides you hands-on evidence as to why you should have faith in it as well.

State Returns

Not all filing software provides the opportunity to file state returns in addition to federal returns, but these days, so many do offer this feature, there really is no excuse for not having it. A state return feature makes filing taxes a much easier and more streamlined process and allows you to get everything taken care of in a single session with less hassle.

Tax Return Status Check

Filing taxes is a stressful process, and it can be particularly frustrating not knowing the status of your tax return. Most reputable tax software provides the opportunity to check your tax return status online, which makes the whole tax filing process much easier by giving you peace of mind. It also allows you to better budget when any refund money is coming into your bank account.

Best Tax Software For Small Business

Below are the top 3 online tax options for your business. We chose our winners based on cost, ease of use, professional tax prep assistance, features, and customer support.

H&R Block Tax Review

#1 H&R Block logo

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Don’t let the big brand name scare you off, this is a solid tax program and is our number one choice with a price tag that is hard to beat. H&R Block tax software supports all entities looking to file taxes, but it also offers top of the line support services, including FAQs.

H&R Block is less expensive than TurboTax and has the same features except for help forums. H&R Block released More Zero, which lets you import a tax return from any competitor, upload tax documents, and prepare and file on any device.



  • Affordable federal return filing fee for such a big name software
  • Free federal e-filing of the 1040EZ
  • Allows for 5 e-files when you purchase the software directly
  • Offers professional audit defense and a professional tax consultant service
  • Offers Affordable Health Care Act (ACA) assistance for calculating tax credits/penalties
  • Provides support via telephone, email, live chat, community, and offers tutorials and FAQs for users
  • Import W-2 forms & 1099-B forms from participating institutions
  • Mobile version available
  • Face-to-face support options by going to an office
  • Online support isn’t as detailed as others

Read Our Full Review Of H&R Block Tax

Filing Taxes Online

Need an extra “push” to file your taxes online? It’s not as scary as it sounds. Watch the short one-minute video below for the encouragement you need.

TurboTax Review

#2 TurboTax logo

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Saving lots of money on taxes is worth the few dollars more spent today on this software vs the competition. TurboTax is our second pick, with up to five e-filings per purchase, you can file taxes for the whole family. Plus, 1040EZ filings are free. The program seamlessly integrates with your specific state’s tax filing systems.

Top that with great customer support, a professional audit, and tax consultant service and you’ll find TurboTax is hard to beat. This is why it is our second choice for the best tax company, and it’s only second to H&R Block because it’s slightly more expensive.



  • Guaranteed maximum refund
  • Benefit of the best-selling tax filing software
  • Online, CD, or downloadable software available
  • 5 e-files available to cover your whole family (with CD or download software)
  • Free federal and state e-filing for 1040EZ
  • State filing available with every edition
  • Free Affordable Health Care Act assistance for calculating tax credits and penalties
  • Fully functional mobile version for iOS and Android
  • Excellent customer service via telephone, email, and live chat, and added support with user forums, tutorials, and FAQ sections
  • Expensive
  • No physical locations where you can file in-house or meet with a tax specialist
  • Additional fee for audit defense

Read Our Full Review Of TurboTax

TaxACT Review

#3 TaxACT logo

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This is another popular program you can buy at a competitive price. If you are not looking for help forums, live chat, or a tax consultant, this program has a lot to offer at a good price.

If a tax filer discovers someone else has already filed a return using their information, TaxAct will assist them via Identity Recovery powered by InfoArmor, a service that will navigate the resolution process on the customer’s behalf. TaxAct falls just above the middle of the road due to its extreme affordability and the ability to file taxes no matter what entity you are filing as, making it our third pick.



  • Price lock guarantee, accuracy guarantee, satisfaction guarantee, and maximum refund pledge
  • Free federal and state e-filing for 1040A and 1040EZ
  • 5 e-files plus 1 state return included with purchase of the higher-level download software
  • Q&A interview guide filers about previous years’ taxes and health insurance
  • Professional audit defense
  • Offers professional tax products for CPAs, accountants, and other professionals
  • Mobile version available
  • Import W-2 forms from participating institutions as well as prior year returns and charitable donations
  • Can only import 1099-B CVS file formats with Tax Act
  • No user forum feature

Comparison Table

If you need help with any of the terms we use in the table below, you can see them defined at the bottom of this article in our terminology section. All of the companies in the table below offer 1040 & itemized returns, 1040EZ & simple returns, direct deposit refund, electronic filing, email assistance, final tax review, IRS acknowledgment in 48 hours, pay only when you file, self-employed and sole proprietor, small business, state returns, and tax return status check.

1st: H&R Block 2nd: TurboTax 3rd: TaxAct E-file eSmart Tax & Liberty Tax ExpressTaxRefund FreeTaxUSA TaxSlayer
Audit Defense Checkmark Additional Fee Checkmark Additional Fee Checkmark Checkmark Premium Users Only
Big Business Checkmark Checkmark Checkmark
Error Checks or Alerts Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
Federal Filing and Program Use Cost $29.95 and up $39.99 and up $26.95 and up $24.95 and up $44.95 and up $29.95 (plus add-ons) Free $17.00 and up
Free 1040EZ Federal Tax Filing Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
W2 Import Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
1099-B Import Checkmark Checkmark Only CSV File Checkmark
Help Forums Checkmark Checkmark
Investment or Rental Property Checkmark Checkmark Checkmark Checkmark Checkmark Investment Only (Not Rental Property) Checkmark Checkmark
IRS Publication Library Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
Live Chat Checkmark Checkmark Checkmark Checkmark Checkmark
National Average Comparisons Checkmark Checkmark Checkmark Checkmark
Refund Meter Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
State Returns Cost $36.99 and up $40.00 $39.95 and up $28.95 $36.95 and up $25.00 $12.95 $29.00
Tax Consultant Available Checkmark Checkmark Checkmark Checkmark
(For higher tier packages)
Tax Data Importation Feature Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
Telephone Assistance Checkmark Checkmark Checkmark Checkmark Checkmark Checkmark
Tutorials Checkmark Checkmark Checkmark Checkmark Checkmark

What Other Options Do I Have For Tax Software Services?

E-file | eSmart Tax (Liberty Tax) | ExpressTaxRefund | FreeTaxUSA | TaxSlayer Review logoVisit Website

E-file is missing some key features we’ve come to expect from our tax software companies. E-file doesn’t offer a big business option, 1099 import, help forums, IRS publication library, live chat, and more.

Its site is not very detailed, which makes it difficult to review. Perhaps some of these features are covered, but it looks like it’s missing some big elements from what we see on the website. If you have experience with E-file, please share with us to keep this review current.



  • Free federal filing
  • W2 import
  • Website does not explain features
  • No live chat or user forums
  • Missing many key features

eSmart Tax (Liberty Tax) Review

eSmart logo

Visit eSmart Tax Website

Liberty Tax Services owns eSmart Tax, and both companies offer nearly identical products. The only difference is the cost. We recommend choosing eSmart over Liberty because its price can be $10 to $25 lower than Liberty’s.

Either way, both companies are on the less expensive side of the spectrum when compared to other tax products and services. All filing options are online, and there is no downloadable software.

Both eSmart and Liberty’s websites are designed quite similar and easy to use. If you have a larger business, you’ll have to look elsewhere, but for those of you with simple returns, have families, own a smaller business, or are investors, one of these two companies may be a good fit for you.



  • Very affordable pricing, especially for the number of features
  • Free live chat, phone, and email support
  • In-person support at Liberty Tax offices nationwide
  • Import last year’s return from most major tax services
  • 100% guarantee for biggest return, accuracy, and customer satisfaction
  • Free W-2 download
  • No larger business filing options
  • Additional fee for enhanced audit assistance
  • No downloadable software available

Read Our Full Review Of eSmart Tax

ExpressTaxRefund Review

ExpressTaxRefund logoVisit Website

Of all of the tax products compared in this article, ExpressTaxRefund offers the least amount of services for one of the highest fees. ExpressTaxRefund is not the service for you if you’re a big business, a rental property owner, or looking for consultation from a tax professional before filing your taxes.



  • Offers telephone, email, and FAQs as a means of support for users
  • Expensive price for the lack of features provided
  • Additional fee for itemized versus standardized deduction
  • Doesn’t provide free federal e-filing for 1040EZ
  • Cannot be used for those with rental property or large businesses
  • Additional fees for e-filing, business owners, various tax credit forms, self-employment, and a $39.95 fee for bank refund processing
  • Does not provide professional audit defense services or a professional tax consultant
  • Can’t import W-2, 1099, or other necessary forms into program
  • Outdated website

FreeTaxUSA Review

FreeTaxUSA logo

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FreeTaxUSA stands out due to its 100% free federal tax filing. This service also provides an automatic refund calculator.

Overall, it has the basics for those of you needing to file a simple return, but we don’t feel comfortable ranking FreeTaxUSA in our top three because there are larger companies with more prominent reputations. Check out the pros and cons below and decide how this free tax provider compares with the paid alternatives.



  • Best price we could find for federal and state filing fees
  • Easy to use
  • Automatic refund calculator
  • Support for part-year nonresident state tax returns
  • A professional tax consultant is not available
  • Deluxe edition costs an additional $6.99 for Audit Assist and Priority Support
  • Can’t import W-2, 1099, or other necessary forms into program
  • No setup to do business taxes
  • No phone support or in-office option

TaxSlayer Review

TaxSlayer logo

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TaxSlayer may have the prices you’re looking for when filing your taxes, but there are a few areas where this service falls short. TaxSlayer offers features at the premium level that competitors offer as the basic level, which is why this service isn’t in our rankings. If you aren’t concerned with audit defense, TaxSlayer could be a good option for you… unless you’re a big business.



  • Very affordable federal and state filing fees
  • Free federal e-filing for the 1040EZ
  • Professional audit defense (for higher-tier packages)
  • Mobile version available
  • Military receives 50% off, excluding Simply Free
  • Import W-2 with Classic and Premium packages
  • Cannot be used for big business returns
  • Doesn’t offer the services of a professional tax consultant
  • Can’t import 1099 forms into program


  • 1040 & Itemized Returns: For those who have 1040 forms to file or who are using itemized returns this year.
  • 1040EZ & Simple Returns: For those who have 1040EZ forms to file or who have simple tax returns this year.
  • Audit Defense: A service provided by a tax software company that assists you if the IRS audits you after using their product for the year’s tax return.
  • Big Business: Software for a corporation or LLC.
  • Direct Deposit Refund: Option to receive your tax refund directly into your bank account through a direct deposit.
  • Electronic Filing: Allows you to file your tax return online through electronic transmission. This is generally an instant process but may require the faxing or mailing of a signature form.
  • Email Assistance: The software offers direct assistance to users via email contact.
  • Error Checks or Alerts: Provides error checks and/or prompts you with alerts to let you know that there’s something in your tax return that doesn’t “add up” or that may flag you for an audit with the IRS.
  • Federal Filing and Program Use Cost: Cost for using the program and filing your federal tax return using this product.
  • Final Tax Review: Provides a final review of your tax filing to check for issues before transmitting your return.
  • Free 1040EZ Federal Filing: Gives you the option to free file if you’re filing a 1040EZ.
  • Help Forums: Offers help forums where users can ask for help in regards to using the software, as well as general tax related questions and issues.
  • Investment or Rental Property: Provides the ability to claim investment or rental property income or loss.
  • IRS Acknowledgment in 48 Hours: Lets you know within 48 hours that your return has been accepted or rejected by the IRS.
  • IRS Publication Library: Provides access to the IRS publication library which includes helpful tax publications that have been written in plain language format by the IRS to help taxpayers like you have a better understanding of specific tax concerns.
  • Live Chat: Offers a live chat service to get answers to your questions instantly. Some software companies charge an additional fee for this service.
  • National Average Comparisons: Provides comparisons to help you compare your overall tax year to others in the nation.
  • Pay Only When You File: Software doesn’t charge you until you’re ready to file your tax documents.
  • Refund Meter: A visual meter to keep track of your refund or amount owed for the tax year as you go through the tax preparation process.
  • Self Employed and Sole Proprietor: Can be used if you’re self-employed or a sole proprietor.
  • Small Business: Can be used to file a tax return for a small business. Learn more about small business tax deductions.
  • State Filing Cost: The cost of filing a state tax return with this software. The amount for state filing will vary by state for most software.
  • State Returns: Gives you the ability to file your state tax returns.
  • Tax Consultant Availability: Has a real, live tax consultant on hand to go over your return with you before you file. This option is generally an additional fee.
  • Tax Data Importation Feature: Allows you to import tax data from a previous year into the software.
  • Tax Return Status Check: Provides the opportunity to check the status of your tax return after it’s been e-filed to find out when you might get any refund back that’s due to you.
  • Telephone Assistance: Provides the opportunity to receive help from a real, live tax professional over the phone. Sometimes this is an additional fee.
  • Tutorials: Provides tutorials to help ensure that you know how to use the software and all of its components correctly.

Deciding Which Tax Software Is Right For Your Business

The key to finding the right service for your company is identifying the one that suits your most significant needs and you’re comfortable using.

  1. One of the first things to look at is whether or not you understand the interface that the service uses. Many software options now offer tutorials and walk-throughs to ensure that you don’t face any difficulty using their service.
  2. Once you find a software you’re comfortable using, you’ll need to ensure that it allows for filing as your specific entity. There is no use being proficient at a software if you’re filing as a big business and the software doesn’t allow for big business filing.
  3. The next thing you’ll need to consider is the cost of the software you’re looking at. There are a wide variety of options to select from and you should be able to find one that suits your budget.

After these minimum requirements have been met, choosing the right software for you is just a matter of which features you’re looking for when filing your annual tax return.

Are You Worried About Being Audited?

This is a fear we all have, but do you really know what happens if you get audited by the IRS? We’ve got an entire article dedicated to teaching you about what to expect if you get audited by the IRS.

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The information provided through this website should not be used to diagnose or treat a health problem or disease; it is not intended to offer any legal opinion or advice or a substitute for professional safety advice or professional care. Please consult your health care provider, attorney, or product manual for professional advice. Products and services reviewed are provided by third parties; we are not responsible in any way for them, nor do we guarantee their functionality, utility, safety, or reliability. Our content is for educational purposes only.

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