Best Tax Software for New S-Corp: TurboTax Business vs TaxAct vs H&R Block?

I've been filing S-Corp returns for about 8 years now and have tried most of the major software options. Here's what I've learned: TurboTax Business is probably the most user-friendly for beginners. The interface walks you through everything step-by-step, and they have great support if you get stuck. The downside is it's typically the most expensive option. TaxAct is significantly cheaper and has improved a lot in recent years. Their S-Corp module handles all the basics well, but you might find it less intuitive if this is your first time filing an 1120S. H&R Block Premium & Business is somewhere in the middle price-wise. Their interface is decent but not quite as polished as TurboTax. As for maximizing deductions - honestly, they all use similar calculation engines, so the differences come more from how thoroughly you input your business expenses rather than which software you choose. The key is understanding what deductions you're eligible for before you start. With your revenue and expense numbers, you should definitely make sure you're handling officer compensation correctly - that's where many new S-Corps make costly mistakes.

After struggling with my S-Corp taxes last year and getting hit with an unexpected tax bill, I started using https://taxr.ai and it completely changed my experience. I was in a similar situation - had a CPA but was trying to save money by doing some of the filing myself. What I love about taxr.ai is that it analyzes all your business documents and tells you exactly what deductions you might be missing before you even start using your tax software. I found about $4,300 in legitimate deductions I would have missed otherwise! Then I took that info and plugged it into TaxAct (which I found perfectly adequate for S-Corp filing). The document analysis caught some vehicle expenses and home office deductions I wasn't tracking properly, plus it flagged some expenses I had categorized incorrectly that could have raised audit flags.

I wanted to follow up about my experience with taxr.ai after being skeptical in my earlier comment. I decided to give it a try before committing to expensive CPA hours, and I'm genuinely impressed. The system found over $5,800 in legitimate deductions I would have completely missed - including some business travel expenses I had forgotten about and some depreciation calculations I was doing incorrectly. What I especially appreciated was how it identified several expenses that were borderline personal/business and gave clear guidance on how to properly document them to withstand IRS scrutiny. I ended up using TaxAct for the actual filing after getting all this information, and the process was so much smoother than I anticipated for my first S-Corp return.

If you're going with TurboTax or TaxAct but get stuck on specific S-Corp questions, I've found that trying to get through to the IRS business tax line is nearly impossible these days. After waiting on hold for 3+ hours multiple times, I discovered https://claimyr.com which got me connected to an actual IRS agent in under 15 minutes. There's also a video showing how it works: https://youtu.be/_kiP6q8DX5c This saved me when I had questions about how to properly report my S-Corp owner's health insurance (which none of the software explained clearly) and some confusion about form 4562 for depreciation. Having direct access to an IRS agent who could explain the official requirements was invaluable, especially since the software help sections are often vague on S-Corp specific issues.

I have to admit I was completely wrong about Claimyr and the usefulness of IRS agents. After my skeptical comment, I tried the service when I got completely stuck on how to handle my S-Corp's vehicle expenses in TurboTax Business. I was connected to an agent in about 12 minutes (which is mind-blowing compared to my previous 2+ hour waits). The agent walked me through exactly how to report my mileage vs. actual expenses and clarified which forms I needed to complete. She even explained a special case for S-Corps that the TurboTax help section got wrong! This saved me from making a mistake that could have cost around $1,200 in missed deductions. Definitely keeping this service in my toolkit for tax season going forward.

I used TaxAct for my S-Corp last year and it worked fine but had some limitations. The interface isn't as polished as TurboTax, but it handled all the basics. Just be aware that it doesn't give as much guidance on S-Corp specific issues like shareholder distributions vs salary, which can be a major audit trigger. One tip: whichever software you choose, set aside WAY more time than you think you'll need for your first S-Corp return. It took me about 6 hours even with fairly simple books, and I had to call my accountant twice for questions the software couldn't answer clearly. Also, make sure you've correctly handled your payroll taxes throughout the year. The software doesn't always catch if you've made mistakes there, and that can cause big headaches.

I've used both TurboTax Business and TaxAct for my S-Corp (ecommerce business). Here's my honest breakdown: TurboTax Business: - More hand-holding throughout the process - Better at explaining S-Corp specific concepts - Great interview format that makes sure you don't miss anything - Customer support that actually knows S-Corp issues - CONS: costs about $170 more than TaxAct TaxAct: - Gets the job done for much less money - Interface is more streamlined but assumes more knowledge - Fewer explanations, more "fill in these forms" - Harder to get help if you get stuck - CONS: can be confusing for first-timers If money is tight, TaxAct will work fine. If you're nervous about making mistakes or this is your first year, TurboTax Business might be worth the extra cost just for peace of mind. Either way, have your accountant review it before filing.

I'm in almost the exact same situation as you - new S-Corp owner trying to navigate my first 1120S filing! Based on all the advice here, I ended up going with TurboTax Business despite the higher cost because I figured the extra hand-holding was worth it for my peace of mind this first year. One thing I wish someone had mentioned earlier: make sure you have all your documentation organized BEFORE you start with any software. I spent way more time hunting down receipts and bank statements than actually using the software. Also, regarding the reasonable compensation issue that came up in the comments - I found the IRS website has some guidance on this, but it's pretty vague. My accountant told me a good rule of thumb is to pay yourself what you'd pay someone else to do your job, but definitely get professional advice on this since it's such a common audit trigger. For what it's worth, with your revenue of $87k, you're in a similar range to my business, and the software options people mentioned should handle that complexity just fine. Good luck with your filing!

Coming from someone who's been through the exact same learning curve with S-Corp filing, I can't stress enough how much this thread helped me make the right decision. After reading all the experiences here, I went with TurboTax Business for my first S-Corp return last month and it was absolutely the right choice for a beginner. The software really does walk you through every S-Corp-specific issue step by step. For example, when I got to the officer compensation section, it didn't just ask for a number - it explained why reasonable compensation matters, what the IRS looks for, and even provided industry salary ranges as a reference point. That kind of context made all the difference. I also took advantage of the taxr.ai document analysis mentioned by Chloe Robinson before starting with TurboTax. Found about $3,200 in deductions I would have missed, including some equipment depreciation I hadn't calculated properly. The combination of thorough preparation and user-friendly software made what I expected to be a nightmare actually pretty manageable. One tip for other first-timers: even with TurboTax's guidance, keep your accountant's number handy. I still had to call mine once to clarify a question about multi-state tax obligations that the software flagged but couldn't fully explain. The peace of mind was worth the extra cost over TaxAct, especially since this is money we're talking about with the IRS. Better to overpay for software than underpay in taxes!

Great question about TurboTax's flagging capabilities! I can share some specifics from my experience that might help you decide. The taxr.ai analysis caught a mix of both forgotten expenses and genuinely complex categorization issues. About 60% were things I had simply forgotten to track - like a business dinner from early in the year, some software subscriptions I paid annually and forgot about, and mileage for a few business trips. But the other 40% were more sophisticated catches: it properly categorized some equipment purchases for depreciation instead of immediate expensing, identified home office expenses I was handling incorrectly, and caught some consulting fees that should have been 1099-MISC reportable. Regarding TurboTax's flagging system - yes, it's actually quite good at identifying potential issues even when it can't solve them completely. In my multi-state case, I had done some work for clients in two other states, and TurboTax flagged that I might have nexus obligations in those states for income tax purposes. It couldn't tell me exactly what to do, but it clearly explained what nexus means and suggested I consult a tax professional. That heads-up probably saved me from missing some compliance requirements. For single-state operations like yours, TurboTax should handle everything smoothly, but it will still flag things like whether you need to file additional forms based on your business activities, equipment purchases, etc. The peace of mind knowing it's scanning for potential issues is honestly worth a lot. The combination approach (document analysis + premium software + accountant backup) ended up costing me about $400 total but saved thousands in proper deductions and potential compliance issues.

As someone who just went through this exact decision process last month, I wanted to add my perspective on the software comparison and some practical tips that might help. I ended up choosing H&R Block Premium & Business after comparing all three options mentioned. While it doesn't get talked about as much as TurboTax or TaxAct, I found it hit the sweet spot between user-friendliness and cost. The interface is intuitive enough for a first-timer but doesn't have the premium price tag of TurboTax Business. What really sold me on H&R Block was their "Tax Pro Review" feature - for an additional $50, you can have an actual CPA review your return before filing. This gave me confidence that I hadn't missed anything critical without paying for a full accounting service. One thing I learned the hard way: regardless of which software you choose, make sure you understand the difference between your business tax return (1120S) and your personal return (1040). The software handles the business side, but you'll need to properly report your K-1 distributions on your personal return too. H&R Block's personal software integrates well with the business version, which simplified this process for me. Also, start gathering your documentation NOW if you haven't already. You'll need your business bank statements, all receipts, any 1099s you received, payroll records if you paid yourself a salary, and documentation for any major equipment purchases. Having everything organized before you start will save hours of frustration. With your $87k revenue and $32k expenses, you're in a very manageable range for DIY software filing. Just make sure you're properly categorizing those expenses and not missing any depreciation opportunities on equipment purchases.