Tax season doesn’t have to be a source of stress for small business owners. The right tax software can transform complex filing requirements into a straightforward, manageable process. This guide cuts through the confusion, presenting the top tax preparation tools of 2025 that can save you time, reduce errors, and potentially maximize your refunds.
Whether you’re a freelancer or small business owner, understanding your tax software options is crucial for financial efficiency and compliance. Read on to discover the best solutions that will simplify your tax filing and help you focus on what you do best – running your business.
What is tax software and how does it work?
Tax software automates tax preparation, calculation, and filing. It guides users through deductions, credits, and forms, ensuring compliance with tax laws. Users enter financial details, and the software calculates liabilities or refunds. Many options offer e-filing, audit support, and integration with financial tools for accuracy and efficiency.
How to choose the best tax software
Consider these key factors when selecting tax software:
- Tax Complexity – Simple returns work with free versions; self-employed or investors need advanced options.
- Ease of Use – Look for guided assistance, automation, and intuitive design.
- Support Options – Live chat, tax expert access, or audit assistance.
- Cost – Compare free vs. paid plans for your needs.
- Filing Method – Online for convenience or desktop for offline security.
- Import Features – Auto-import W-2s, 1099s, and past returns.
- Security – Ensure encryption and multi-factor authentication.
Best Free Tax Software for 2025
Here are the most used tax apps available for small business owners.
Free Tax Software Options:
IRS Free File Guided Tax Software
This program offers free electronic filing through partnered tax software providers to taxpayers with an adjusted gross income of $84,000 or less. It’s designed to simplify the tax filing process for eligible individuals.
Cash App Taxes
Formerly known as Credit Karma Tax, this service provides free federal and state tax filing for various tax situations, including itemized deductions and self-employment income.
FreeTaxUSA
Free federal tax filing covering all major forms and schedules, with a nominal fee for state returns. It’s a budget-friendly option for those seeking comprehensive free filing services.
Paid Tax Software:
TurboTax
TurboTax is a leading tax software known for its user-friendly interface, step-by-step guidance, and robust support options. Its key features are:
- Multiple Tiers – Free, Deluxe, Premier, and Self-Employed plans.
- Live Support – Access to tax experts and CPAs (with paid plans).
- Import Capabilities – Upload W-2s, 1099s, and past returns.
- Audit Support – Assistance and defense options available.
- Online & Desktop Versions – Cloud-based or offline filing.
- Mobile App – File taxes from your phone.
Ideal for individuals, freelancers, and small business owners who want guided filing with expert support.
H&R Block
H&R Block offers tax software and in-person tax services, balancing ease of use with professional support. Its key features include:
- Multiple Plans – Free, Deluxe, Premium, and Self-Employed.
- Live Expert Assistance – Option to consult tax professionals.
- Import & Auto-Fill – Upload W-2s, 1099s, and past returns.
- Audit Support – Free guidance; paid services available.
- Online & Desktop Versions – Cloud-based filing or offline software.
- In-Person Filing – Visit a local office for professional preparation.
Great for individuals, investors, and small business owners needing expert-backed tax solutions
TaxSlayer
TaxSlayer is an affordable tax software offering a balance of features and cost-effective pricing. Key features include:
- Multiple Plans – Free, Classic, Premium, and Self-Employed options.
- Low-Cost Filing – Competitive pricing compared to TurboTax and H&R Block.
- Import Features – Upload W-2s and prior tax returns.
- Audit Assistance – Included in Premium and Self-Employed plans.
- Live Support – Access to tax professionals for guidance.
- Mobile-Friendly – File taxes via desktop or mobile devices.
Best for budget-conscious filers, self-employed individuals, and those needing simple, efficient tax filing.
TaxAct
TaxAct is a tax preparation software offering cost-effective solutions for individuals, self-employed filers, and businesses. Main features:
- Multiple Plans – Free, Deluxe, Premier, Self-Employed, and Business.
- Import Options – Easily upload W-2s, 1099s, and past returns.
- Max Refund & Accuracy Guarantee – Ensures correct calculations and refund maximization.
- Audit Assistance – Guidance available for IRS inquiries.
- Professional Support – Access to tax experts (with paid plans).
- Online & Desktop Versions – File taxes via web or software download.
Best for budget-conscious filers who want an affordable yet feature-rich tax filing solution.
Other Business Management Tools to Ease Tax Season
Finli
Finli is an essential tool for small business owners looking to simplify their financial management throughout the year to make tax season a breeze. Say goodbye to manual spreadsheets and complex tracking methods. Finli connects directly with your accounting system, ensuring your financial records are accurate, up-to-date, and ready when tax time comes.
- Track Taxes Collected – Easily monitor and record sales tax and service tax collected from customers
- Comprehensive Receivables Tracking – Maintain precise records of all incoming payments
By providing robust payment and invoicing solutions our platform empowers you to focus on growing your business by eliminating time-consuming financial administrative tasks
FAQ
When are taxes due?
In 2025, the federal income tax filing deadline is Tuesday, April 15. If you require more time, you can request an extension, granting you until October 15 to file your return. However, any taxes owed are still due by April 15 to avoid penalties and interest.
What happens if I miss the tax deadline?
Missing the tax deadline can result in penalties and interest. If you owe taxes, the IRS charges a failure-to-file penalty (5% per month) and a failure-to-pay penalty (0.5% per month). Interest accrues on unpaid taxes. If due a refund, you won’t be penalized but must file within three years.
What is the standard deduction?
For the 2025 tax year, the standard deduction increases to $15,000 for single filers, $30,000 for married couples filing jointly, and $22,500 for heads of household. Additional deductions apply for those 65 or older or blind. These amounts adjust annually for inflation and help reduce taxable income, making filing simpler for most taxpayers.
When will I get my tax refund?
Tax refunds typically arrive within 21 days if you file electronically and choose direct deposit. Paper returns take six weeks or longer. Delays may occur due to errors, missing information, identity verification, or claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), which may hold refunds until mid-February.
