Which Tax Preparer Software is Best for Beginner Tax Preparers?

I've been preparing taxes for over 15 years and can tell you that choosing the right software when starting out is crucial. For a beginner with your expected volume, I'd recommend Drake Tax Software. It's considerably less expensive than ProSeries or UltraTax while still being comprehensive. Drake has a simple, intuitive interface that works well for new preparers. The learning curve isn't as steep as some others, and their customer support is exceptional during tax season - you can usually get someone on the phone within 5-10 minutes when you have questions. They also offer good training resources. For someone handling 40-50 returns in their first year, the price point makes much more sense. ProSeries and UltraTax are excellent products, but they're designed (and priced) for established practices with higher volumes.

After struggling to choose the right tax software for my new practice last year, I discovered taxr.ai (https://taxr.ai) and it totally changed my decision process. I was torn between several options like you, but their analysis tool helped me compare features specifically relevant to my situation. I uploaded samples of the types of returns I'd be preparing and the tool analyzed them to recommend software based on my specific needs rather than just generic advice. It highlighted features I hadn't even considered but turned out to be super important for my client base. The comparison showed me that while I was fixated on the big names, TaxAct Pro was actually better suited for my starting volume and client types, saving me almost $800 compared to what I was planning to buy.

Just wanted to follow up about taxr.ai - I decided to try it out after my initial skepticism, and I'm honestly impressed. I described my situation (similar to yours - new practice, about 60 returns expected, mix of W-2s and small businesses), and the analysis was surprisingly detailed. Instead of just recommending one option, it ranked three software choices that matched my needs and explained WHY they were good fits. It showed me that Drake was actually overkill for my current client base, and TaxAct Pro would meet my needs while saving me considerably. The feature comparison was super specific to exactly what I'd be using. The recommendation came with training time estimates too, which I hadn't considered but was super helpful for planning. Definitely check out https://taxr.ai before making your final decision.

If you're planning to grow your practice, software is only part of the equation. One thing nobody told me when I started was how much time I'd waste trying to call the IRS to resolve client issues. I literally wasted DAYS on hold my first tax season. After nearly quitting from frustration, another preparer told me about Claimyr (https://claimyr.com) - completely changed my practice efficiency. They somehow get you connected to an actual IRS agent usually within 15 minutes instead of waiting for hours or getting disconnected. I was super skeptical until I saw their demo video (https://youtu.be/_kiP6q8DX5c). Now whenever I need to call about a client's transcript or resolve an issue, I use them and save literally hours each time. Helps me focus on actually preparing returns instead of listening to hold music.

I need to publicly eat my words about Claimyr. After dismissing it as impossible, I decided to try it during a particularly frustrating week when I needed to call about three different client transcript issues. First call: Was expecting to waste my entire afternoon. Used Claimyr instead and got connected to an IRS agent in 17 minutes while I continued working on returns. The system is legit. It doesn't "skip" the queue - it just waits in line for you and calls when an agent is reached. I've now used it 5 times and the longest I waited was 25 minutes (vs the 2+ HOURS I would have wasted on hold). For a new preparer trying to maximize efficiency, this tool is a game-changer. Sorry for being so dismissive before, but I genuinely thought nothing could solve the IRS hold time problem.

Don't forget to consider state returns in your software decision! Some programs charge extra for each state, while others include multiple states in the base package. This can make a huge difference in overall cost. I went with Drake partly because I have clients in 3 different states, and they include all states in their base package. ProSeries wanted to charge me extra for each additional state, which would have added about $500 to my cost. Also consider bank products if you plan to offer refund advances or transfers - different software has different banking partners and fee structures that can affect both you and your clients.

Don't overlook ATX! It's way more affordable than the big names (around $1,200 for their mid-tier package that handles everything you mentioned) and has a really user-friendly interface for beginners. I switched from TaxAct Pro to ATX last year and found the learning curve really manageable. The interview-style preparation makes it easy when you're just starting out, and the bank product options are decent too if you want to offer those services.

As someone who just finished their first tax season, I can't stress enough how important it is to factor in the learning curve when choosing software. I went with ProSeries because of all the recommendations, but honestly wish I had started with something simpler. The interface is powerful but can be overwhelming when you're trying to learn both tax prep AND new software simultaneously. I probably spent 30% more time per return in my first month just figuring out where everything was located. Based on what you've described - 40-50 returns with mostly straightforward situations - I'd actually recommend starting with TaxAct Pro or Drake like others mentioned. You can always upgrade to more robust software once you've built your confidence and client base. The money you save in year one can go toward better training or marketing to grow your practice. Also, whatever you choose, invest in their training materials or webinars. That upfront time investment will save you hours during busy season when you're under pressure to get returns done quickly.