1. Tax Forms for S Corporations
2. Different Types of Tax Software
3. TurboTax
4. H&R Block
5. TaxAct

S corporation tax software is useful for small business owners who need to prepare and file taxes without hiring a CPA.

Tax Forms for S Corporations

If you operate an S corporation, you're responsible for filing form 1120S and Schedule K-1. For S corporations who employ shareholders who earn a salary, the business is responsible for payroll taxes, too.&

  • Form 1120S reports all of the business's credits, income, losses, and deductions.
  • Schedule K-1 is issued to company shareholders, and it reports the amount of company profits that passes through to the owners.&

Payroll taxes include the following:

  • Federal tax withheld
  • FICA tax
  • Unemployment tax

You report payroll taxes on forms 940 and 941. You file form 940 annually to report unemployment tax payments. You file form 941 every quarter to report tax withholding information from employee paychecks, specifically FICA taxes and income tax. You also include your share of FICA taxes on the form.

For S corporations who have shareholders as salaried employees, the payroll software Gusto is highly recommended for small businesses. This program makes handling payroll easier and more convenient by automating:

  • Calculating paychecks
  • Calculating payroll taxes
  • Transferring payroll data to payroll tax forms

Different Types of Tax Software

The following are a few popular tax software providers for small- to medium-sized businesses, independent contractors, freelancers, and sole proprietors. Typically, these products are easy to use and inexpensive.

TurboTax

The following individuals may find TurboTax Self-Employed Edition an ideal tax software:

  • Sole proprietors
  • Independent contractors, such as Uber drivers
  • Self-employed individuals

The TurboTax program offers suggestions on deductions that self-employed people usually take, such as vehicle and home office deductions. You're able to enter more than one source of income.

TurboTax Business Edition is more suitable for the following:

The Business Edition also offers suggestions for deductions based on entity type, and it checks for special deductions based on your industry.

One disadvantage to TurboTax is that you can't file personal taxes with the Business Edition. You can file both business and personal taxes with the self-employed edition, however.

H&R Block

You can save time using the H&R Block software since you can easily import your previous year's tax return from other software (some other tax software brands import previous tax returns, but only if it was prepared on their software). You won't have to enter basic information that hasn't changed, such as your name and address. ;

With approximately 1,2000 offices around the country, H&R Block is a trusted name. The software includes DIY add-ons, too. You can file your personal taxes using H&R Block's Premium & Business edition and the Self-employed edition.

Although it's priced lower than TurboTax, H&R Block's tax software is still one of the more expensive options. However, with the higher cost comes the ability to file up to five tax returns for one price.

The Self-employed edition is ideal for freelancers and solopreneurs. The Premium & Business edition is best suited for C corporations, S corporations, partnerships, and multi-member LLCs.

This software isn't considered to be as user-friendly as TurboTax, but you can get started at no charge. You only pay when you file.

TaxAct

TaxAct Freelancer edition is ideal for the following:

  • Freelancers
  • Self-employed individuals
  • Contractors
  • Solopreneurs

This program provides step-by-step guidance to help you take advantage of all common self-employed deductions. This one costs less, but you can only file one tax return.

TaxAct Business comes in the following editions:

  • C Corporation
  • Partnership
  • S Corporation

Pricing is for one federal tax return, with state returns costing additional fees per return. This software doesn't ask conditional questions, so you'll have to deal with numerous questions as you prepare your return, including ones that don't apply to you.

There are other tax software options, but they're designed for certain types of filers, such as Schedule C, so not all businesses are able to use them. Using tax software can save you time and money, which is important when you work for yourself. If you have complicated tax issues or you simply don't want to deal with tax preparation, you might find it more efficient to hire a tax professional.

If you need help deciding which tax software is right for your S corporation, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.