Tax Prep Software

[Ross]

Another vote for TaxAct! I used it back in the mid 90's when it was called PTE; Personal Tax Edge. I have used TaxAct for over 20 years. Easy to use, great price and great support. I believe I paid $525 for the 1040 package; unlimited e-filing and all states.

[ATSMAN]

I haven't heard anyone mention TaxAct. I have used Drakes, Crosslink, Taxwise, and others over the past 20+ years. To me, Drakes was the worse to maneuver. I am a point and click, form based user, and I found it very difficult to access the forms in Drake as I had to go outside of the page I was using to access other forms. Of all the tax software I have used over the years, I have found TaxAct to be affordable and the easiest to use, and they have excellent tech support.

If you are a form based user, Drake will not make you happy. Its form based interface is not as robust as others. It is a different.

[Toobusy]

I haven't heard anyone mention TaxAct. I have used Drakes, Crosslink, Taxwise, and others over the past 20+ years. To me, Drakes was the worse to maneuver. I am a point and click, form based user, and I found it very difficult to access the forms in Drake as I had to go outside of the page I was using to access other forms. Of all the tax software I have used over the years, I have found TaxAct to be affordable and the easiest to use, and they have excellent tech support.

[ATSMAN]

Every September the Journal of Accountancy(AICPA) publish their review of tax software. Lots of graphs and numbers as to how many use and how they like or not.

Correct, but each one of us should test a new software with our actual returns to see how it fits in our business model. Hopefully folks who were thinking of switching have already done that by now because by early December the 2020 pre-release versions will be out.

[JON]

Every September the Journal of Accountancy(AICPA) publish their review of tax software. Lots of graphs and numbers as to how many use and how they like or not.

[WICPA]

I am a Drake user that converted from Pro Systems four years ago. The conversion was fairly smooth but every return had a foreign tax credit carry forward for the same amount. There were also a few depreciation issues mainly with business autos.
I will say this on Drake. The good is obviously price. As stated earlier it is great for simple returns but I have had issues with my home state returns(Wisconsin). Usually K-1 differences or depreciation differences.I am used to it now and know that I have to make manual adjustments in these cases.
As for support, I know everyone raves about it. I probably call less than five times a year. Phone is always answered promptly but whoever I speak to is not able to solve my problem. Have had a couple of cases in which they promise to get back to me but never do. I remember my first year with the program, I was having an issue with a daycare provider and the software was over depreciating their home. Support would disagree with me and kept telling me the software was working in accordance with the IRS instructions. It took a few calls and the request to speak to a manager but they did finally correct it and apologize to me for the issue. Took about a month though.
I have thought about changing but the thought of going through another conversion does not appeal to me.
One other note between Pro Systems and Drake. I do use client organizers and send them to clients. The Pro System org was too encompassing and many times came back partial filled out if at all. Have receive positive feedback and better usage on the Drake version.

[Burke]

Nobody has mentioned ATX, but I love it's forms-based input and have used it for many, many years. I I stuck with it through 2012 and those problems are no longer an issue.
If I were just starting out, I would definitely give it a try as the learning curve would be minimal for a tax preparer. I have downgraded to a less expensive offering which satisfies my requirements due to downsizing after relocation to another area. Less than $800 for next year (without any discounts often offered for first-time buyers), it offers 75 1040 returns, e-filing, all forms and 3 states for this price. Additional states cost $30 if necessary. If you do partnerships/corporations/estates & trusts, they involve an additional fee per return. Its worth it, as opposed to the full service-every state-in-the-union price. There is also a Tax Forum (ATX Community) which is comprised of users, who are very knowledgeable, in addition to the software-provided help offerings.

[ATSMAN]

I should've said that it's been a few years since I demo-ed Drake.

I look at UT every other year or so (have colleagues that use it). And, other software when they appear to have improved in a way that would help my practice. I would like to think I'm close to retirement and should stick with ProSystem fx and not need to shop around, but I'm probably not that close to retirement, so continue to demo -- when we have an off-season!

I think some of us forget the learning curve when we switch software. If you are close to retirement (say one or two tax seasons away), it may not be a prudent decision to switch UNLESS your existing software just dropped the ball or renewal price skyrocketed. I have heard of horror stories in 2012 from friends whose staff revolted when they were forced to switch because of two major tax prep software (ATX and Taxworks) dropping the ball!

[Lion]

I should've said that it's been a few years since I demo-ed Drake.

I look at UT every other year or so (have colleagues that use it). And, other software when they appear to have improved in a way that would help my practice. I would like to think I'm close to retirement and should stick with ProSystem fx and not need to shop around, but I'm probably not that close to retirement, so continue to demo -- when we have an off-season!

[Uncle Sam]

"Drake - great for 1040s with one state."
NOT TRUE.
I have many multi-state return clients and they work out fine.
The problem I had with Drake in the year I converted was mostly with calculation of credits, especially on state returns.
I found that with some calculations you can't just override the program by forcing the correct amount in like I was able to do with Ultra Tax - but otherwise it's fine.
There's only one City calculation that's part of the state return that manually has to be adjusted - but I have that with only one return - not the whole office.

[Lion]

Use a Drake demo to re-prepare your typical returns to compare it to ProSystem fx. (I found Drake great for simple 1040s with one state, but that was not my clientele.)

[ttbtaxes]

I've been looking to switch software (from ProSystemFX) and find the posts on this thread very helpful. I am concerned about certain amounts not being calculated automatically. Does Drake provide a list of calculations it does not do automatically or does it at least provide a diagnostic if one of the calculations are not made?

I would hope so otherwise how would a new user have confidence with a Drake-prepared return unless every calculated amount on the return was rechecked?

[Rapid Robert]

Here's are a few features to look for, as a proxy for how full of features your software is. You may not need these for most of your clients, but for the high-end clients you presumably are targeting, they are valuable features to have, and they indicate the type of support for features overall that you can expect:

• Easily and semi-automatically allocate your prior year tax prep fee across all Schedules C, E, F or 4835 in the return - by percent or dollar amount
• Track non-dividend distributions reported on Form 1099-DIV over all years

[ATSMAN]

AT&T / Uverse just notified me that they are discontinuing their dial-up service in October.

Are you still using Dial-up service to access the Internet??

I was using DSL from Verizon and then switched to Cable from Comcast once our road was wired.

[dtlee]

I still have my Hayes 2400 Baud external modem and it still works though I can't do anything with it.

AT&T / Uverse just notified me that they are discontinuing their dial-up service in October.