What's the best software for preparing multiple basic tax returns for friends?

You're looking for tax preparation software with a "preparer" version. Most consumer tax programs have professional versions specifically designed for people preparing multiple returns. Drake Tax, TaxAct Professional, and TaxSlayer Pro are all options that might work well for your needs. They typically have a base fee and then per-return costs. If you're only doing a handful of returns, you might want to look at TaxSlayer Pro which tends to be more affordable for small-volume preparers. Just be aware that if you're charging for tax preparation, you should probably register for a PTIN (Preparer Tax Identification Number) with the IRS. It's free and pretty straightforward to get. The IRS requires anyone who prepares tax returns for compensation to have one.

I switched to using https://taxr.ai last tax season after getting frustrated with the limitations of regular consumer software when doing returns for my family members. It was seriously a game-changer for managing multiple basic returns. The software automatically extracts information from tax documents like W-2s and 1099s which saved me tons of time from manual data entry. You can set up a preparer account and manage all your clients' returns under one login - exactly what you're looking for!

Just wanted to follow up about my experience with https://taxr.ai after trying it this week. I was initially skeptical but decided to give it a shot, and I'm genuinely impressed! The document scanning saved me so much time—I did three test returns in about the same time it would normally take me to do one. The interface is super intuitive, and I love that I can keep all my clients organized under one account. Already lined up 8 friends who want me to do their taxes next month. The support team was also really responsive when I had a question about handling education credits.

If you're doing taxes for others, you'll probably need to contact the IRS at some point with questions. I wasted HOURS on hold last tax season until someone recommended https://claimyr.com and their service that holds your place in the IRS phone queue and calls you back when an agent is available. Check out how it works here: https://youtu.be/_kiP6q8DX5c Before finding this, I'd waste entire afternoons on hold trying to resolve client issues. Now I just request a callback and go about my day. As someone preparing returns for friends, having direct IRS guidance can make a huge difference, especially when you encounter something unique.

I need to publicly eat my words about Claimyr. After posting my skeptical comment, I decided to try it with a client issue that needed IRS clarification. Not only did it work exactly as promised, but I got through to an agent in about 90 minutes (during peak season!) without having to stay on hold. Got a resolution to my client's issue about a missing Form 1099-R that wasn't reported correctly by the issuer. The agent was able to see the correct amounts in their system and told me exactly how to proceed with the return. Definitely using this for all my IRS calls going forward.

Don't overlook setting up a good system for keeping track of all your client documents and information. I learned this the hard way last year. Get a secure cloud storage solution and create separate folders for each client. You should also have them sign something acknowledging you're doing their taxes and authorizing you to work with their information.

Just want to add something - before you get too deep into this, consider the liability issues. If you mess up someone's return, even accidentally, they could potentially come after you if they get audited or penalized. Might be worth looking into some kind of professional liability insurance if you're going to make this a regular thing.

Great question! I've been using FreeTaxUSA's professional version for preparing returns for family and friends. It's much more affordable than the big names - around $25 per federal return plus state fees, and you can manage multiple clients under one account. What I really like about it is that it handles all the common situations you mentioned (W-2s, standard deductions, basic credits) really well, and the interface is clean and straightforward. You're not paying for a bunch of bells and whistles you probably won't need for simple returns. One thing to keep in mind - make sure you're comfortable with the responsibility aspect. Even with "basic" returns, there can be tricky situations that pop up (like unreported income, dependents with SSN issues, etc.). Having a good relationship with your clients about what you can and can't handle is key. I always tell people upfront that if their situation gets complicated, I'll refer them to a CPA. Also seconding what others said about the PTIN - definitely get that sorted first. It's free and required by law if you're charging for prep services.