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Tax software: TaxAct Premium 2024 vs. Drake Tax Software 2024

Quick Verdict

TaxAct Premium is a suitable choice for individual taxpayers seeking an affordable and user-friendly solution, especially those with investments or self-employment income. Drake Tax Software is better suited for tax professionals and businesses requiring comprehensive support for various tax forms and high-volume filing.

Key features – Side-by-Side

AttributeTaxAct Premium 2024Drake Tax Software 2024
Supported Tax FormsSupports all major IRS forms and schedules. Specifically designed for taxpayers with investment income, cryptocurrency transactions, rental property, and real estate transactions.Supports 1040, 1120, 1120S, 1065, 1041, 706, 709, and 990, covering federal, state, and local taxes for individuals and businesses. Specialized support for industries like real estate, healthcare, and self-employment.
Accuracy GuaranteeOffers a '$100K Accuracy Guarantee' that covers up to $100,000 in IRS penalties, fees, or 'reasonable, documented audit costs' due to calculation errors.Includes "LookBack" to compare prior and current year activity and "DoubleCheck" diagnostic tools. Runs hundreds of return diagnostics and validation rules.
Audit SupportPartners with ProtectionPlus to offer audit defense.Offers help and representation in case of an audit. Protection Plus offers up to $1,000,000 in services to resolve IRS and state tax issues.
Price and Available DiscountsTaxAct Premium costs $94.99 for federal filing. State returns are additional, ranging from $54 to $64.99 per state. AAA members may receive a 25% discount on federal and state filings. Freelancers Union members can save 25% on federal and state filings. Discounts and promotions are frequently offered.Unlimited returns: $2,195 (one license), $2,495 (multiple licenses). Pay Per Return: $350 (first 10 individual returns) + $59.99 per business return. Economical pricing model.
State Tax Return Availability and CostState tax returns are available for an additional fee. The cost is between $54 and $64.99 per state return filed.Free unlimited state returns for each federal return. Generates any state return needed without additional add-on modules.
Ease of UseHas a user-friendly interface. Offers step-by-step guidance. Provides a tax glossary. Clean and straightforward interface.User-friendly, especially for basic 1040 returns. Intuitive interface, customizable workflows, and smart navigation with shortcuts and suggestions.
Import CapabilitiesImports prior-year returns from TaxAct, TurboTax, and H&R Block via PDF. Imports W-2s. Imports investment data via CSV files. Can manually enter or upload W-2s, but direct photo upload isn't available.Imports W-2 and 1099 data automatically from payroll and financial systems. Imports unlimited Form 4562 assets and Schedule D transactions from Excel. Imports data from Drake's import-ready trial balance sheet. Can import data from QuickBooks, Excel, and other tax software.
Deduction Finder/MaximizerLooks at hundreds of tax deductions and credits. Includes a Donation Assistant to help determine the deduction value of donated items. Offers a deduction maximizer that recommends expenses and deductions for self-employed individuals.Minimizes tax payments and maximizes tax deductions.
Customer Support OptionsPhone support. Email support. Live chat. Xpert Assist (additional cost) for one-on-one advice from tax experts.Provides customer support via telephone, email, and online chat. Offers online videos, online reference guides, and a user manual. Provides extensive training resources and customer service.
Mobile App Availability and FeaturesTaxAct no longer offers a mobile app.Enables tax preparers to access client files and work remotely.
Self-Employment Tax FeaturesThe Self-Employed version includes Schedule C and support for 1099-MISC. Tools for managing business deductions. Calculates depreciation on business assets.Offers specialized options for self-employment.
Data Security and Privacy MeasuresUses security technology and monitoring processes. Partners with the IRS to protect personal information. Employs industry-standard Secure Sockets Layer (SSL) protocol for data encryption. Requires complex passwords and multi-factor authentication.Employs encryption and security protocols to protect sensitive client data. Offers secure file exchange with clients via Drake Portals. Uses 256-bit encryption.

Overall Comparison

TaxAct Premium: $94.99 for federal, $54-$64.99 per state; Drake Tax: $2,195+ for unlimited returns, $350+ for pay-per-return. TaxAct offers a $100K accuracy guarantee. Drake Tax includes free unlimited state returns.

Pros and Cons

TaxAct Premium 2024

Pros:
  • User-friendly interface
  • Step-by-step guidance
  • Comprehensive deduction finder
  • Affordable compared to competitors
  • Strong data security measures
Cons:
  • No mobile app
  • Audit support is outsourced
  • May not have as many features as competitors

Drake Tax Software 2024

Pros:
  • Wide range of supported tax forms
  • Accuracy guarantee with built-in checks
  • Comprehensive audit support
  • Free unlimited state returns
  • User-friendly interface
  • Extensive import capabilities
  • Deduction finder/maximizer
  • Multiple customer support options
  • Mobile app availability
  • Specialized self-employment tax features
  • Strong data security and privacy measures
Cons:
  • No free version

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