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Intuit TurboTax Review
Table of Contents
- TurboTax is one of the most popular and user-friendly tax software platforms; it requires little to no training for users to become proficient with the software.
- The platform offers a rules engine that checks for hundreds of business-related tax deductions and provides industry-specific guidance depending on your business type.
- Access to 24/7 online support means you can contact credentialed tax experts to make sure you’re filing correctly.
- TurboTax is relatively expensive compared to some other tax software on the market. It’s worth it if you have the budget, but very small businesses may want to look elsewhere.
- The free version is extremely restrictive and doesn’t cover most tax deductions that businesses need.
Best Overall Tax Software for Small Business
Intuit TurboTax is our best overall pick for small business online tax software because of its intuitive interface, extensive deduction and credit database, and startup-focused support. It’s an easy and comprehensive solution for small businesses of every size and type, despite costing more than other tax software programs.
We chose Intuit TurboTax from a range of online tax software options.
Intuit TurboTax Pricing
Intuit TurboTax, like other online tax software solutions, offers multiple service tiers. Each comes with its own set of features and functionality, with the higher price tiers offering a more complete experience. The right tier for you largely depends on the complexity of your business tax needs.
The first three service tiers for TurboTax’s online service are more suited for personal taxes. These three tiers, ranging from free to $90 for federal filings, increase in price and complexity as things like tax deductions and credit maximizations and taxes on investments and rental properties are included.
As a small business owner, the online tier suited to you is the fourth online service tier: Self-Employed. At $120 for federal tax filing and $50 per state with free federal e-filing capabilities included, this service is among the higher-priced offerings in our roundup. Still, you get to start the process for free. There’s also an option to choose the Self-Employed Tax Bundle, which includes QuickBooks Self-Employed, for $12 per month.
For more involved small business tax filing, there’s TurboTax Business. This option costs $170 for federal tax filing, $55 per state filing and free federal e-filing functionality. Whether you purchase a physical CD to install the software on your computer or opt to download it straight from the internet, this option still utilizes an internet connection to check for errors and file your taxes electronically.
Intuit TurboTax Features
Even though there are multiple service tiers under the Intuit TurboTax umbrella, small business owners should choose either the TurboTax Self-Employed online package or the TurboTax Business application. The following features were just some of the highlights that we found.
Filing Forms
In addition to the scores of filing forms for every kind of incorporated business, TurboTax allows you to create unlimited W-2, 1099-MISC, 1099-INT, and 1099-DIV forms for your employees, contractors, and other business associates. TurboTax also includes a K-1 form for estates and trusts.
Deduction Database
Intuit TurboTax checks your tax return against a database of over 350 deductions and credits to ensure you’re getting the most out of the U.S. tax code.
E-Filing
When you’re ready to file your taxes, you can use TurboTax’s software to send your federal tax return directly to the IRS. TurboTax transmits your sensitive data through a secure, encrypted channel, and you can track your return and receive confirmation when it’s delivered.
Rental Assets
If you’re a small business owner or a self-employed landowner who collects income from real estate and rental properties, TurboTax Business can help you manage those income taxes. Included within the software is a guided real estate and rental component that tallies income and expenses related to any rental properties you own.
Direct Deposit
Rather than wait for your tax refund check to arrive in the mail, you can choose to have it automatically deposited into your bank account.
Asset Depreciation
TurboTax’s asset depreciation feature tracks how your large purchases decrease in value year over year. Moreover, TurboTax helps you determine a specified tax strategy for your assets.
Cryptocurrency Transaction Support
If your small business accepts cryptocurrency as a payment method, you need specialized tax assistance. Last year, TurboTax introduced a feature that allows users to report cryptocurrency gains or losses.
Support for Startups
While last year’s version of TurboTax was the first to support cryptocurrency, it was also the first to offer direct startup tax assistance by finding deductions for fledgling businesses.
Accuracy
TurboTax offers a “100% Accurate Calculations Guarantee.” It runs an accuracy check on every return. Anything irregular generates an alert.
If a TurboTax filing is inaccurate, the company will pay any IRS or state penalties. Other guarantees and assurances surrounding accuracy can be found on the company’s website.
Intuit TurboTax Pros
Intuit’s online tax solution comes with features to help small businesses quickly and easily file their taxes with the IRS, whether it’s done quarterly or annually.
The software’s interface is easy to understand and walked us step by step through the tax-filing process, prompting us to enter information and double-checking that what we did was right. There’s no need to decipher complicated tax jargon or legalese. All you need to do is answer some interview-like questions; the software inputs your responses into the relevant tax document. If you’ve used the software before, your previous years’ returns are automatically transferred to the new return.
Intuit’s software gives its users peace of mind by maintaining a database of more than 350 deductions and tax credits. The program seeks out relevant deductions and credits to help you get the largest tax return possible. Once the forms are complete, TurboTax runs an accuracy check before sending your files to the IRS. An error or omission can make things especially difficult for businesses, so the ability to double-check your filing is a major feature you need from your software.
As each section of the tax return process is completed, TurboTax provides an updated calculation of how much of a tax refund you should receive from the state and federal government. These numbers change as information is added, so you’ll know right away if you owe the IRS money. At the end of the process, TurboTax lets you review both your federal and state returns before e-filing them.
Intuit TurboTax Cons
There’s plenty to like about Intuit’s TurboTax, but that doesn’t mean this online tax solution is the be-all, end-all choice for all small businesses. In our testing, we did find some drawbacks that you should be aware of.
The biggest issue we had a hard time squaring with was the price point. TurboTax’s competitors offer similar services and features at lower prices. The Self-Employed tier and TurboTax Business were well above $100 for federal filling – and that doesn’t include state taxes. It’s important to note, however, that including state tax filing in a solution’s price model is extremely rare. If you’re considering this software but are turned off by the price, it’s worth noting that the price usually decreases closer to mid-April.
Despite the higher cost, we still find TurboTax to be an exemplary offering for small business owners because of its many useful features, its simplicity and its accuracy.