Which is Better for Business Taxes? Turbo Tax or Tax Cut?

Question: Which is Better for Business Taxes? Turbo Tax or Tax Cut?

Which is better for preparing business taxs? TurboTax? or TaxCut? Here is a discussion of versions of these popular software packages.

Answer:

If you have decided to purchase software to prepare your business taxes, you may have been confused about the difference between the two most popular tax preparation programs: TaxCut from H&R Block and TurboTax from Intuit. Which software you choose depends on the type of return you are preparing.

The programs discussed in this article are:

• Turbo Tax Home and Business
  
• Tax Cut Home and Business
  
• Turbo Tax Business

Sole Proprietorship
If you are filing taxes for a sole proprietorship on Schedule C, either TurboTax Home & Business or TaxCut Home & Business will take you through an interview process, check your return, and help you e-file your personal tax return on Form 1040. So, either program will work for you.

Single-Member Limited Liability Company (LLC)
If you are filing taxes for a single-member LLC, you will use the Schedule C for a sole proprietorship. As noted above, either program will give you the information you need to prepare the form, along with your personal tax return.

Multiple-Member Limited Liability Company (LLC)
If you are filing taxes for a multiple-member LLC, you must file as a partnership. TaxCut Home & Business includes partnership returns, but TurboTax Home & Business does not. To file a partnership return on TurboTax software, you will need to purchase TurboTax Business in addition to TurboTax Home & Business for your personal tax return.

Partnership
TaxCut Home & Business includes partnership returns, but TurboTax Home & Business does not. To file a partnership return on TurboTax software, you will need to purchase TurboTax Business for the partnership, in addition to TurboTax Home & Business for your personal tax return.

Corporation or S-Corporation
TaxCut Home & Business includes corporate returns, but TurboTax Home & Business does not. To file a corporate return on TurboTax software, you will need to purchase TurboTax Business in addition to TurboTax Home & Business for your personal tax return.

In Conclusion
In terms of assistance in preparing your business tax return, both TaxCut and TurboTax do an excellent job of taking you through the interviews, checking your return for errors, and e-filing returns. If you are preparing a partnership or corporate return, though, you will need to purchase two TurboTax programs, but only one TaxCut program.