Drake Tax
Drake Tax is a professional tax preparation software designed to help small to mid-sized accounting firms manage federal and state returns with integrated e-filing and practice management tools.
TaxAct
TaxAct provides DIY tax preparation software that helps you file federal and state income tax returns with accuracy guarantees and maximum refund protections for individuals and businesses.
Quick Comparison
| Feature | Drake Tax | TaxAct |
|---|---|---|
| Website | drakesoftware.com | taxact.com |
| Pricing Model | Subscription | Freemium |
| Starting Price | $99/month | Free |
| FREE Trial | ✓ 0 days free trial | ✘ No free trial |
| Free Plan | ✘ No free plan | ✓ Has free plan |
| Product Demo | ✓ Request demo here | ✘ No product demo |
| Deployment | ||
| Integrations | ||
| Target Users | ||
| Target Industries | ||
| Customer Count | 0 | 0 |
| Founded Year | 1977 | 1998 |
| Headquarters | Franklin, USA | Cedar Rapids, USA |
Overview
Drake Tax
Drake Tax provides you with a comprehensive suite of tools to handle federal and state tax returns for individuals and businesses. You can speed up your workflow using the built-in data entry shortcuts and automatic calculations that minimize manual errors. The platform includes integrated e-filing, allowing you to track the status of every return from transmission to IRS acceptance in real-time.
Beyond simple tax prep, you can manage your entire practice with included tools for document storage and client write-ups. The software is designed specifically for professional tax preparers who need a reliable, high-volume solution without the per-form costs found in other professional suites. You can choose between unlimited filing versions or pay-per-return options depending on your firm's specific volume and budget requirements.
TaxAct
TaxAct is a digital tax preparation solution designed to help you navigate the complexities of federal and state tax filing. Whether you are a simple W-2 filer, a homeowner, or a self-employed professional, you can use the step-by-step guidance to identify deductions and credits you might otherwise miss. The platform focuses on providing a clear path from data entry to e-filing while ensuring your data remains secure throughout the process.
You can import previous year data from competitors like TurboTax or H&R Block to save time on manual entry. The software scales its complexity based on your specific financial situation, offering specialized modules for investment reporting, rental property income, and small business expenses. With a focus on affordability, it provides a functional alternative to higher-priced competitors without sacrificing the essential forms and schedules you need for a complete return.
Overview
Drake Tax Features
- Lookback Tools View prior-year data instantly while working on current returns to ensure consistency and catch missed deductions for your clients.
- Automatic Calculations Update your tax results instantly as you enter data, with the software automatically choosing the most beneficial filing status.
- Integrated E-filing Submit federal and state returns directly to the IRS and track their acceptance status without leaving the application.
- Drake Documents Store and organize your client's tax records electronically to maintain a paperless office and meet record-keeping requirements.
- Multi-State Returns Generate and file multiple state returns simultaneously, with data flowing automatically from the federal return to save you time.
- Tax Planner Compare different financial scenarios for your clients to help them minimize their future tax liabilities and plan effectively.
TaxAct Features
- Step-by-Step Guidance. Answer simple questions about your life and finances while the software handles the complex math and form placement for you.
- Data Import. Upload your W-2 or import tax data from previous years and other providers to jumpstart your return and reduce manual errors.
- Maximum Refund Guarantee. File with confidence knowing the software calculates the highest possible refund or lowest tax liability based on your provided information.
- Accuracy Guarantee. Protect yourself with a guarantee that covers any penalties or interest resulting from software calculation errors during your filing process.
- Deduction Sneak Peek. Track your refund status in real-time as you enter information so you can see exactly how each entry affects your bottom line.
- ProHelp Support. Connect with tax professionals for one-on-one screen sharing and advice to resolve specific questions about your unique tax situation.
Pricing Comparison
Drake Tax Pricing
- Includes 15 tax returns
- Additional returns for $30 each
- All tax packages included
- Integrated e-filing
- Drake Documents and Scheduler
- Free online training
- Everything in Pay-Per-Return, plus:
- Unlimited individual returns
- Unlimited business returns
- Unlimited state returns
- Drake Tax Planner
- No per-return fees
TaxAct Pricing
- W-2 income filing
- Unemployment income
- Retirement income
- Child tax credits
- Stimulus credits
- Prior year data import
- Everything in Free, plus:
- Itemized deductions
- Mortgage interest reporting
- Student loan interest
- HSA contributions
- Real estate taxes
Pros & Cons
Drake Tax
Pros
- Fast data entry with keyboard-driven shortcuts
- Excellent customer support with short wait times
- All-in-one pricing includes all states and forms
- Reliable performance even during peak filing dates
Cons
- Interface looks dated compared to modern web apps
- Learning curve for navigating complex form trees
- Limited cloud-based features in the desktop version
TaxAct
Pros
- More affordable than major name-brand competitors
- Intuitive interface for simple tax situations
- Easy import of data from other providers
- Clear visibility of refund status throughout
Cons
- State filing fees are charged separately
- Customer support response times vary during peak
- Upselling prompts can be frequent during filing