TurboTax vs. Tax Cut for Corporate Taxes - An Update
I promised I would provide you with an update on TurboTax Business and TaxCut Home and Business for completing Form 1120 for corporate taxes. A few weeks ago I reported the difference in the two software applications for doing corporate tax returns:
- TaxCut Home and Business includes the forms and process to allow you to do tax returns for corporations, subchapter-s corporations, and partnerships, in addition to sole proprietorship and personal tax returns.
- TurboTax Home and Business does not include tax forms for corporations and partnerships, and you must buy a separate program to do corporate and partnership tax returns.
Turbo Tax for Form 1120:
I was able to complete a simple corporate return in TurboTax Business. As with TurboTax Home and Business, the program leads you through the various items with questions. In the Business version, a "Government Instructions" link is also included. TurboTax connects with QuickBooks (versions from 2004 to present) to import your QB data directly. This was a big time-saver, because I was able to do the import and check for accuracy in just a few minutes. Of course, this assumes that you have correctly put all your income and expenses into QuickBooks.
TaxCut for Form 1120:
When I went to TaxCut to begin work on Form 1120, I was told that the online instructions were not yet available. I went online and updated TaxCut, just to be sure, but I was not able to get to the questionnaire.
So... I will keep checking on TaxCut and I will give you a full report comparing how each application leads you through the process of completing Form 1120 for a corporation.
Comments
Please pardon me if my question is redundant, but what is the price difference in the two software packages? For example, turbo tax does not include the forms package, so when you add the cost of the forms package, how does it compare to tax cut which has the package included? Between the two, which is your favorite?
Thanks for the comparison. Very helpful. Does TaxCut offer an interview process for filling out 1120 or does it merely offer the form to input? Ditto for Turbo Tax? Without the interview process I’d be a little more timid about trying to do my own tax return for my new business.
So were you able to complete a 1120 return using tax cut? It sounds like you couldn’t do anything with it. It seems much cheaper for a small business owner since you can get corporate and personal in one bundled package and I would like to purchase my software soon. I have used turbo tax but am thinking of switching to tax cut because of the large price differential between taxcut and turbo tax for an LLC with subchapter S filing status.