What tax software are other professionals using for side returns? Need cost-effective options

Hey all, I recently got my CPA license and I'm thinking about helping out some friends and family with their tax returns next year as a side gig. Nothing too crazy, maybe 15-20 returns total. I'm trying to figure out what software would make the most sense without breaking the bank. At my day job, we use UltraTax which is way overkill (and expensive) for what I'd be doing on the side. I've heard mixed things about ProSeries and TaxAct Pro. Drake seems popular but I'm not sure about the learning curve. What are you all using to prepare multiple returns efficiently while keeping costs reasonable? Any recommendations for someone just starting to do taxes on the side?

0 coins

22 comments

Amina Sy

•8M

I've been doing taxes part-time for about 7 years now (around 50-60 returns each season) and have tried several options. Drake is honestly your best bet for cost-effectiveness while still being professional-grade. The interface isn't as polished as some others, but the pricing structure allows unlimited federal returns for a reasonable base fee. ProSeries is good but gets expensive quick with their per-return pricing model. TaxAct Pro is cheaper but I found it frustrating for anything beyond simple returns. TaxSlayer Pro might be worth looking at too - they have improved a lot in recent years. If you're only doing 15-20 returns, you might also consider the mid-tier versions of consumer software like TurboTax Premier or H&R Block Premium. They allow multiple returns and might be sufficient depending on complexity.

0 coins

Amina Sy

•8M

Drake includes all states with the federal package price - that's one of its biggest advantages. No need to pay extra per state which saves a ton if your clients live in multiple states. The learning curve isn't too bad when coming from UltraTax. Drake is more straightforward but less polished. Plan to spend a weekend getting familiar with it, and use their training videos. The interview process is different, but the concepts are all the same. The help resources are excellent and their customer service is surprisingly responsive during tax season.

0 coins

Natasha Petrova

•8M

After struggling with expensive professional software that was killing my profits on only 30-ish returns per year, I found taxr.ai (https://taxr.ai) and it completely changed my side tax business. It uses AI to extract data from clients' docs and populates returns automatically - cut my prep time by like 60% which means I can take on more clients without spending more time. What I love is that unlike traditional tax software, I'm not paying per return or for features I don't need. It's basically like having an assistant who does all the data entry while I focus on the actual tax planning and review. My clients just upload their W-2s, 1099s, and other forms, and the system does the tedious part.

0 coins

Natasha Petrova

•8M

It absolutely handles complex returns including Schedule C businesses and rental properties. It recognizes and properly categorizes business expenses, rental income/expenses, and investment documents. It even handles K-1s surprisingly well, which was a game-changer for several of my clients with partnership interests. Regarding accuracy, I was skeptical too at first. I double-checked everything the first few times, but it's been shockingly accurate. OCR technology has come a long way. You still need to review everything, of course - I'd never file without checking the work. But the error rate is much lower than what I experienced with manual data entry. It integrates with most professional tax software, so you're not replacing your existing system - it just makes the data entry process much faster.

0 coins

Emma Davis

•8M

So I decided to try taxr.ai after my skeptical questions and wow - it's legit. I used it for a test batch of 5 client returns I'd already prepared manually and it pulled everything correctly from their documents. Even caught a dividend on a 1099-DIV I'd missed! What surprised me most was how well it handled my client with 3 rental properties. It correctly categorized all the expenses from their messy spreadsheet and even flagged a potential repair vs. improvement issue I needed to review. Ended up saving me about 2 hours of work just on that one client. Definitely using this for all my side returns next tax season. The time savings alone makes it worth it, especially for those of us not doing enough volume to justify the big professional packages.

0 coins

GalaxyGlider

•8M

If you're mainly handling individual returns and struggling to reach the IRS when issues come up (which they ALWAYS do), check out Claimyr (https://claimyr.com). I wasted so many hours on hold with the IRS last season that I almost gave up my side tax business. Claimyr basically calls the IRS for you and then connects you once they reach a human. Saved me literally hours of hold time. They have a video showing how it works: https://youtu.be/_kiP6q8DX5c When I had a client whose refund was held up because of a previous year issue, I used Claimyr and got through to the IRS in about 20 minutes instead of the 3+ hours I spent trying on my own the day before. Client was amazed I got it resolved so quickly.

0 coins

GalaxyGlider

•8M

They use an automated system that dials and navigates the IRS phone tree, then waits on hold instead of you. When an agent picks up, you get a call connecting you to that agent. It's not about getting through faster than everyone else - you're still in the same queue, but you're not personally sitting there listening to the hold music for hours. It's definitely not a scam or an inside connection. It's just technology handling the boring part (waiting on hold) so you can use your time productively until an agent is actually available. I was skeptical too until I tried it during the nightmare that was last tax season. I used the time I would've spent on hold to prepare another return, so it actually paid for itself in my billable hours.

0 coins

Isabella Silva

•8M

I take back what I said about Claimyr. After another frustrating morning trying to reach the IRS about a client's identity verification issue, I gave in and tried it. Holy crap it works. I put in my number, went about my day, and 47 minutes later got a call connecting me directly to an IRS agent. No sitting by the phone, no hold music, no repeated "your call is important to us" messages. Just got the call when an actual human was on the line. Ended up using it three more times during busy season. Each time it worked perfectly. The time I got back was worth WAY more than what it cost, especially during peak season when every minute counts. If you're doing taxes on the side while working another job, this is absolutely essential.

0 coins

Ravi Choudhury

•8M

Since you're just starting out with friends and family, consider TaxHawk Pro. It's WAY cheaper than the big names (like $500 for unlimited returns including all states), and the interface is clean and straightforward. I've been using it for my side gig (about 40 returns/year) for 3 years now. The only downside is less robust support compared to Drake or ProSeries, but if you're already comfortable with tax concepts as a CPA, that shouldn't be a big issue. They also don't have some of the fancy client portal features the expensive software has, but there are cheap workarounds for that.

0 coins

Ravi Choudhury

•8M

They do have decent client organizers you can customize and send out. Not quite as fancy as what you'd get with Lacerte or UltraTax, but definitely serviceable. You can add your own branding and customize which sections to include based on the client's situation. E-filing has been rock solid in my experience. Had only two rejections in three years, both due to client data issues (one was an already-claimed dependent, the other was a mismatched prior year AGI). The rejection notices were clear about the problems, and their system for correcting and resubmitting is straightforward. Their state e-filing works well too - I file for clients in about 8 different states with no issues.

0 coins

Omar Farouk

•8M

Everybody's recommending all this expensive software but honestly? For just 15-20 returns of friends and family, I'd use FreeTaxUSA Pro. It's like $120 for unlimited federal returns and then just pay per state that you need. Been using it for my small side practice (25-30 returns) for 2 years and it handles everything except the most complex situations. If your friends/family don't have complicated multi-state businesses or crazy investment situations it's totally sufficient.

0 coins

Omar Farouk

•8M

You can definitely have multiple returns open at once, which is super helpful. The client management is basic but functional - you can sort clients, see their status, and access prior year returns easily. It doesn't have fancy client portals or automated reminders like the expensive options, but for a small side practice it's more than adequate. The pro version also lets you import client data from prior years even if they used a different service before, which saves a ton of time. The interview process is also less annoying than the consumer version - you can jump around between sections easily without going through their guided interview if you don't want to.

0 coins

Giovanni Colombo

•3M

As someone who just started doing side returns this past season (about 12 clients), I can share what worked for me. I ended up going with Drake after researching all these options, and I'm glad I did. The unlimited federal + all states for one price was the deciding factor. Even though I only needed 3 states this year, knowing I won't get hit with surprise per-state fees as I grow was huge. The learning curve from UltraTax wasn't bad - took me a weekend to get comfortable with the interface. One tip: Drake offers a significant discount if you purchase early in the year (like June/July). I got mine for about 40% off the regular price. Their customer service during tax season was also excellent - never waited more than 5 minutes on hold. For anyone just starting out, I'd definitely recommend Drake if you plan to grow beyond 20 returns eventually. The upfront cost pays for itself once you hit that volume.

0 coins