Many small business owners hire a professional accountant for their taxes, but I do my S-Corp taxes online myself.
TaxAct is the biggest major tax-prep software company to offer a completely online option to complete my business form 1120S.
The biggest competitors, like TurboTax and H&R Block, only offer the ability to complete an 1120S if you have a Windows computer, leaving Mac users like me out of luck.
Using TaxAct on Tax Day 2020 could be a smart move if you’re a small business owner »
If you make money through a side hustle or run your own full-time business in the US, you have to report and file taxes for your business.
When I moved to California in 2016 and took my online business full-time, I created an S-Corporation, a business entity that gives me some big legal protections and tax benefits over running as a sole proprietor or a standard LLC.
But having an S-Corp also means some additional challenges, including filing a separate tax return for my business every year.
Taxes are a part of making money and running a business, but it’s a good idea to find the most efficient and cost-effective way to file. For my business, that has been TaxAct for the last two years, and I plan to use it again this time around. Here are some reasons why.
You don’t need an accountant to do your taxes
I hired an accountant to do my business taxes for 2016, but after finding some errors in the return he prepared, I decided to do them myself going forward. I had the exact same problem when I used to hire someone to do my personal taxes.
In most cases, you will know your money better than anyone else. While some people feel more comfortable handing over the reins to someone else to do their taxes, I have found that they are more accurate when I handle things. And because doing them myself is cheaper, I’ve switched to doing my own taxes online for all parts of my financial life: business and personal.
Picking tax preparation software
There are a handful of companies offering tax preparation apps for mobile devices, desktop and laptop computers, and the web. Picking a web-based app means you can work on your taxes with any device, at any time. That’s definitely my first choice for how to handle things.
That said, I was disappointed to find that the program I use for my personal taxes, TurboTax, doesn’t have an online option to do taxes for an S-Corp. It only lets you do it using a desktop program for Windows. As a household with two Mac laptops and no modern Windows PCs, TurboTax Business isn’t an option. H&R Block Premium & Business also requires Windows.
Apparently, these companies don’t want my money, so I was left finding some other way to do my taxes. I could have downloaded a program to run Windows programs on my Mac, but I’m not …read more
Source:: Business Insider – Finance