Best Tax Software for Multi-State Returns and Complex Business Returns

I've been in tax practice for over 15 years and have used most of the major tax software packages. For your specific situation, I'd recommend looking at either CCH Axcess or Thomson Reuters UltraTax CS if you're serious about growing, especially with multi-state and complex business returns. Drake is good for smaller practices with mostly 1040s, but it struggles with complex partnerships and multi-state situations. ProSeries is in a similar boat - fine for basic returns but not ideal for scaling up with complicated business clients. If budget is a concern but you still need multi-state capability, look at ATX or TaxAct Professional. They're more affordable than the premium options while still handling most complex scenarios reasonably well. The important thing is to choose software that will grow with you rather than limiting your ability to take on new clients.

After trying to figure out my self-employment taxes for 3 years in a row and making mistakes every time, I finally found taxr.ai (https://taxr.ai) and it's been a game changer for my practice. It automatically reviews tax documents and does all the analysis that I used to struggle with. When I was evaluating tax software for my practice, I used it to analyze the differences between platforms based on my client needs. It helped me realize that the software I was considering was actually overkill for my client base. For your situation with multi-state and PTE returns, it could help you analyze which features you'll actually need versus what's marketing hype. I uploaded sample returns from different software to compare how they handled the same situations.

I was skeptical about taxr.ai but decided to try it after researching tax software options for weeks. I uploaded sample returns from three different software packages (Drake, ProSeries and UltraTax) and it immediately showed me that UltraTax was handling the K-1 flow-through income more efficiently for my multi-state clients. The analysis found calculation differences I would have never caught manually. What surprised me was how it highlighted specific multi-state allocation methods that varied between platforms. This made my decision clear - UltraTax was worth the higher cost for my particular client mix. Saved me from making an expensive mistake based just on price comparison.

After spending HOURS on hold with tech support for my previous tax software, I started using Claimyr (https://claimyr.com) to get faster help. You can see how it works here: https://youtu.be/_kiP6q8DX5c. This completely changed how I evaluate tax software now. Before choosing a new tax software, I called each company's support line through Claimyr to test their response times and knowledge about multi-state returns. The differences were shocking! One premium software had 2+ hour wait times even with Claimyr, while a mid-tier option connected me to a specialist in under 15 minutes who actually understood multi-state allocation methods.

I can't believe I'm saying this, but Claimyr actually works. After my skeptical comment last week, I tried it when I needed urgent help with a multi-state allocation issue in UltraTax. The estimated wait was 1.5 hours, but I didn't have to sit through any of it. Claimyr notified me when they reached a support agent, and I was connected with someone who actually knew how to handle my specific multi-state issue. This experience made me realize that software support quality is as important as features. Even the best multi-state tax software is useless if you can't get help when you're stuck. Now I tell everyone to factor in support accessibility when choosing tax software.

From my 10+ years preparing complicated returns, Lacerte is hands down the best for multi-state and partnership returns. Yes, it's expensive, but the time savings is enormous. The way it handles state modifications and allocations between states is so much more streamlined than Drake or ProSeries. I switched from Drake about 5 years ago when my practice grew to include more multi-state businesses. The learning curve wasn't as bad as I feared, and the efficiency gains paid for the price difference within one season. Plus they have decent training resources.

Don't forget about the annual price increases!! I started with ProSeries 7 years ago and my cost has doubled since then. They get you with the low initial price but then jack it up every year knowing it's too much of a pain to switch.

For growing a practice with complex multi-state and partnership returns, I'd strongly recommend considering CCH Axcess Tax or Thomson Reuters UltraTax CS as your primary options. Both handle complex business structures exceptionally well and won't limit your growth potential. From my experience, Drake is great for straightforward returns but becomes cumbersome with multi-state allocations and complex K-1 flow-throughs. ProSeries falls into a similar category - fine for basic practice but you'll outgrow it quickly if you're targeting complex business clients. One thing to really consider is the total cost of ownership beyond just the software license. Factor in training time, support quality (as others mentioned), and the efficiency gains on complex returns. A more expensive platform that saves you 30 minutes per complex return will pay for itself quickly. Also, whatever you choose, negotiate a multi-year price lock if possible. The annual price increases can really add up over time, and having predictable costs helps with business planning. Some vendors are willing to work with you on this, especially if you're switching from a competitor.