Check Out The Best IRS Tax Filing Software: FlyFin A.I. Vs TaxAct
When you go out looking for the best tax software for your business, freelance or self-employed work you need to check for a few things highlighted in this comparison.
Author:James PierceReviewer:Camilo WoodJul 26, 2023214 Shares42.7K Views
The Best IRS Tax Filing Software for Freelancers: FlyFin A.I. Takes on TaxAct
In your quest to file and pay taxes easily, you might be on the lookout for better tax software. But with IRS tax filing, there's no one jack of all trades. Instead, you should look for software that suits your specific needs depending on your tax filing status.
One popular tax software is TaxAct, which is suited for W-2 employees with less complex taxes. FlyFin A.I. is geared towards self-employed individuals, freelancers or small business owners.
In this article, we'll thoroughly compare the two and highlight why one is better in a particular situation. We'll all list the features and benefits of different subscription packs in both FlyFin A.I. and TaxAct. But, first, let's have a look at both the competitors.
FlyFin A.I.: using artificial intelligence in taxes
When you visit FlyFin A.I., you will notice it’s tuned to do taxes for freelancers, self-employed individuals and small business entities like LLCs, S-corporations, etc. The highlight of FlyFin is that it uses cutting-edge artificial intelligence (A.I.) technology to automate time-consuming tasks like finding all tax deductions for your business expenses.
FlyFin makes Excel sheets that categorize all your business expenses as IRS tax write-offs, so you don't have to worry about writing all the information down whenever you drive to a fuel stop to fill up the vehicle you use for business purposes or share a business meal with a client. Similarly, if you are going on business trips, A.I. can track them too, including your airfare, rental car and AirBnB.
Once A.I. tracks all your business expenses, an expert CPA reviews your tax file and checks for accuracyA.I. finds deductions with great precision, and a talented CPA team ensures that everything's in order. The platform then lets you review and approve your tax file so that CPAs can file your taxes. FlyFin takes care of taxes from start to finish for anyone running their own gig.
TaxAct: The Jack of All Trades
TaxActwas founded in 1992 and was initially called 2nd Story Software, but due to a series of acquisitions and subsequent renaming, the company became TaxAct in 2013. TaxAct, in its current form and shape, offers a solution for individual filers, self-employed individuals and businesses.
When using TaxAct, you can choose between different online plans that will assist you to a certain degree based on your choice. The tax software has two categories in these plans: File on your own and Add expert help.
The first case has four different plans: Free, Deluxe, Premier and Self-employed if you add expert help, you'll pay additional money for your taxes.
Unlike FlyFin A.I., TaxAct is not automated, meaning the software needs you to put your information correctly. FlyFin A.I., on the other hand, uses A.I. to find information for you from your account and then gets approval from you – followed by a CPA verification.
The Tax Showdown: FlyFin A.I. vs. TaxAct
Let's look at the various online plans offered by FlyFin A.I. and TaxAct.
FlyFin A.I. Online Yearly Plans
- Basic (Costs $84):
- Income tracking
- A.I. finds all tax deductions automatically
- Effortless tax filing by CPAs
- All IRS tax credits qualification check
- Support with all relevant IRS tax forms that apply to you
- Covers both federal and state tax
- Standard (Costs $192): All the features of Basic plus:
- CPA files all your taxes
- Audit insurance
- Unlimited CPA advice
- Premium (Costs $348): All the features of Standard plus:
- File taxes for all business entities (LLCs, S-Corps, etc.),
- One-on-one call with CPA via Zoom
One major perk about these plansis that they will file taxes for you, unlike TaxAct, which offers direct assistance.
TaxAct Oline Plans
Because TacAct has different assistance models that users can add based on individual needs, we will mention the maximum amount you pay in each plan. With FlyFin A.I., you get all the extra additions with even the basic model.
Free ($79.9 with state filing and CPA assistance):
- W-2 Income: Basic filers
- Unemployment income
- Retirement income
- Child Tax Credits
- Earned Income Credits
- Dependents
- Current students
- Prior year import
- Personalized My TaxPlan
- ProTips
- Free account & technical support
- Assistance from live tax experts
Deluxe ($145.85 with state filing and CPA assistance): Apart from the free features, you also get:
- Itemized deductions
- Adoption credits
- Child & dependents care
- Student loan interest
- Mortgage interest
- Real estate taxes
- Health Savings Account (HSA)
- Deduction Maximizer
Premier ($169.85 with state filing and CPA assistance): Apart from the Deluxe features, you also get:
- Stock, gains and losses
- Other investments
- Sale of home
- Rental property income
- Royalty & Schedule K-1 income
- Foreign bank & financial accounts
Self-employed ($194.85 with state filing and CPA assistance): Apart from the Premier features, you also get:
- Stock, gains and losses
- Other investments
- Sale of home
- Rental property income
- Royalty & Schedule K-1 income
- Foreign bank & financial accounts
- Freelance income, including 1099-NEC
- Business & farm income
- Calculate depreciation
- Year-round planning resources
At first glance, you see a bigger list on TaxAct, but FlyFin's most basic plan also addresses these features. In addition, FlyFin addressed the tax filing and tax saving needs of self-employed individuals and small businesses, while TaxAct aims to address all taxpayers.
When comparing the two, we realize that with FlyFin, self-employed individuals need to spend much less time, as much of the heavy lifting of finding deductions is done by the A.I. Since TaxAct doesn't use A.I. automation, you have to keep records like receipts, mileage logs if you are freelance delivery driver and countless other documents to support your tax deductions.
James Pierce
Author
Camilo Wood
Reviewer
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