Navigating the complexities of partnership tax can be a daunting task, but the right tax software can make the process significantly easier. The best tax software for Form 1065 provides features for allocating income and deductions among partners, automated calculations, integration with accounting software like QuickBooks, and a user-friendly interface.
Here are our top picks for the best partnership tax software:
- TaxAct: Best overall tax software for DIY online Form 1065 preparation
- Bench: Best full-service partnership return preparation with bookkeeping
- TurboTax: Best desktop tax software with tax pro assistance for Form 1065
- ProConnect: Best for tax professionals preparing a few partnership returns
- TaxAct Professional: Best for tax pros preparing unlimited partnership returns
Taxes are easier with clean books. Get on top of your financials today with Merritt Bookkeeping. |
|
In line with the Fit Small Business Editorial Policy, we are committed to delivering trustworthy answers to your small business questions, and we do this by doing thorough research and using our first-hand experience with the platforms. We ensure our best answers are founded on the basis of accuracy, clarity, authority, objectivity, and accessibility.
Comparison of Best Tax Software for Form 1065
Federal Partnership Return | State Partnership Return | Assisted Federal Partnership Return | Assisted State Partnership Return | Full-service Federal Partnership Return | Full-service State Partnership Return | |
|---|---|---|---|---|---|---|
 | $139.99 | $54.99 | ✕ | ✕ | ✕ | ✕ |
 | ✕ | ✕ | ✕ | ✕ | $399 monthly billed annually | Included |
 | $190 | $55 | $739 | $64 | $1,749 | $64 |
 | $71.97 per 1065, plus $99 per user | Included | ✕ | ✕ | ✕ | ✕ |
 | $1,695 for unlimited 1065s | Included | ✕ | ✕ | ✕ | ✕ |
For Tax Pros Only | Accuracy Guarantee | Deduction Maximizer | Cryptocurrency Support | Data Import | Audit Guidance/Defense | |
|---|---|---|---|---|---|---|
| ✕ | ✓ | ✓ | ✕ | ✓ | ✓ |
| ✕ | ✓ | ✕ | ✕ | ✓ | ✕ |
| ✕ | ✓ | ✓ | ✓ | ✓ | ✓ |
| ✓ | ✕ | ✕ | ✕ | ✓ | ✓ |
| ✓ | ✓ | ✓ | ✕ | ✓ | ✓ |
TaxAct: Best Overall Tax Software for DIY Online Form 1065 Preparation
Pros
- Offers a choice of cloud-based or downloadable program for the same price
- Provides assistance with documents needed to file through its tax preparation checklist
- Guarantees accuracy
- Can import trial balance from a CSV file
Cons
- Includes only one Form 1065 return in price
- Lacks personalized audit support
- Lacks assistance from tax pros for Form 1065
TaxAct has a huge array of tax return packages available, but only a few of them include partnership returns. Here are your options for preparing a partnership return with TaxAct:
- Online Partnerships: $139.99 for federal Form 1065 plus $54.99 per state return (e-files included)
- Online Partnership & Home Bundle: $259.99 for Form 1065 federal and state and one 1040 federal and state (e-files included)
- Desktop Partnership & Home Bundle: $259.99 for Form 1065 federal and state and five Form 1040s federal and state (e-files included)
We selected TaxAct as the overall best tax software for Form 1065 because it is the only solution in this guide that allows for DIY preparation and filing, via either the online or desktop app. The online version avoids the headache of installation and frequent program updates required with desktop software. We also chose TaxAct as the best tax software for small businesses.
While it doesn’t offer live tax advice for business returns, it provides comprehensive technical support and guidance specific to partnership returns in its Answer Center. It even includes specific forms and schedules required for Form 1065, allowing businesses to input financial information easily. Furthermore, its robust error-checking features help identify potential errors and ensure all necessary information is provided.
If you’re seeking a program that provides live tax advice for business returns, we suggest TurboTax Business, which offers full-service filing. While it doesn’t offer an online program, you can use its desktop software for DIY filing as well.
Bench: Best Full-service Partnership Return Preparation With Bookkeeping
Pros
- Provides unlimited year-round tax support
- Lets you work with a licensed pro who will prepare and file your return
- Includes one prior month of bookkeeping in its free trial
Cons
- Doesn’t sync its proprietary software with other popular accounting software
- Only offers tax preparation and filing if you sign up for bookkeeping service
- Requires premium plan for tax preparation, which is only available as an annual contract
Bench is a popular online bookkeeping firm that offers the preparation and filing of partnership returns as part of its Premium bookkeeping plan for $399 per month if billed annually or $499 per month if billed monthly. It also provides unlimited one-on-one income tax advisory services and tax strategy planning year-round.
Add-ons:
- Individual filing for one partner or shareholder: $59 per month (paid annually)
- Historical bookkeeping: Starts at $199 per month
Bench is the best solution for full-service partnership return preparation with bookkeeping because it provides you with an expert team of tax professionals who will prepare and file your tax return. Its other features include an online platform where you can communicate with your team, tax compliance support, tax strategy planning, and a customized chart of accounts specific to partnerships.
These features are especially useful because partnership returns are the most difficult returns to prepare because of all of the special allocations to partner K-1s. They are considered more difficult than S-corps, which always allocate based on the percentage of ownership.
One drawback to Bench is that its tax features are bundled into its Premium plan, and it doesn’t offer à la carte tax services. If you don’t need bookkeeping services and are seeking a provider that offers features like audit defense and a deduction maximizer, we suggest looking into TaxAct.
TurboTax: Best Desktop Tax Software With Pro Assistance for Form 1065
Pros
- Offers assisted or full-service Form 1065 preparation
- Can import income and expenses from QuickBooks Desktop
- Includes and covers audit representation at no extra cost
- Offers unlimited business returns, including Forms 1120, 1120S, and 1065 for one price
- Can import cryptocurrency transactions
Cons
- Only offers Live Assisted Business in 29 states Alaska, Arizona, California, Colorado, Florida, Georgia, Illinois, Kansas, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, North Carolina, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, and Wyoming.
- Can be more expensive than competing tax software
- Requires an additional $64 for each state return
TurboTax Business includes Forms 1065, 1120, and 1120S:
- Business (download only): $190 for federal forms plus $55 per state return, includes five federal e-files
- Live Assisted Business: $739 for federal forms plus $64 per state return, includes unlimited expert help
- Full Service Business: $1,749 for federal forms plus $64 per state return; an expert will file your tax returns for you
We selected TurboTax as one of the best partnership tax return software because it provides the option of assisted or full-service tax preparation. In both cases, you’ll be paired with a dedicated tax expert who specializes in small business taxes.
In the case of an audit, it also includes audit representation, and TurboTax will communicate with the IRS on your behalf. You’ll also receive unlimited expert help, advice, and assistance with maximizing credits and deductions for your business.
Unfortunately, online tax filing is only available for Schedule C businesses, so if you are a partnership, you’ll need to download the software. If you want to file your partnership return online, we suggest TaxAct.
Also, TurboTax Live Assisted Business is only available in 21 states, so if you’re seeking more accessible tax advice, we recommend Bench. It provides unlimited year-round tax support.
ProConnect: Best for Tax Professionals Preparing Only a Few Partnership Returns
Pros
- Integrates with QuickBooks Online Accountant
- Offers unlimited phone and chat support
- Offers data conversion with onboarding support
ProConnect charges $71.97 for each business return (including Form 1065), although it currently offers a discounted rate for multiple returns based on a sliding scale, depending on the number of returns you purchase. Prices included unlimited state filing:
- 1 to 9 returns: $71.97 per return
- 10 to 49 returns: $65.97 per return
- 50 to 99 returns: $45.57 per return
- 100 to 199 returns: $32.97 per return
- 200 to 299 returns: $28.17 per return
- 300 to 499 returns: $23.37 per return
In addition to the per-return fee, ProConnect charges a user fee:
- $99 each for the first 10 users
- No additional charge for users in excess of 10
While ProConnect provides a discount depending on how many returns you purchase, its per-return price can be expensive—so it’s best to keep it to a few returns. It is cloud-based, enabling users to work remotely, and allows viewing of the e-file status of all clients on its dashboard.
It also offers e-signing, so clients can review and sign forms from anywhere. We also selected ProConnect as the best professional tax software for QuickBooks Online ProAdvisors because it integrates with QuickBooks Online Accountant. What’s more, ProAdvisors can try the software for free and not pay until they file.
However, if you are preparing five or fewer partnership returns, you may want to look into TurboTax, which includes up to five federal e-files with a price of $190. Although ProConnect is geared toward pro tax preparers, the cost for five federal returns with TurboTax is significantly less expensive than with ProConnect, which charges $359.85 for five federal returns.
TaxAct Professional: Best for Tax Pros Preparing Unlimited Partnership Returns
Pros
- Accuracy and maximum refund guarantees
- Unlimited returns offered at an inexpensive price
- Dedicated support for all packages
- Multiuser licenses available
TaxAct Professional offers four different subscription levels for business returns, which vary in price based on whether you need unlimited returns and need one or multiple users. Business returns include Forms 1065, 1120, 1120S, 1041, and 990.
- Business Pay-per-Return: $249.99 + $39 per state edition (45 states available) + $39.99 per business return
- Business Forty Bundle: $895 for 40 business returns with all states
- Complete Bundle (1040, 1041, Business, and 990): $1,695 for unlimited returns of any type, including all states, for one user
- Complete Enterprise Bundle (1040, 1041, Business, and 990): $2,095, same as Complete Bundle but for multiple users
We chose TaxAct Professional as the best for tax pros to prepare unlimited partnership returns because of its affordable prices for both single ($1,695) and multiple users ($2,095). It offers a wide range of features, which include dedicated support and client-facing tax documents. The software is intuitive to use and navigate and has an excellent customer support system.
You can also customize the software according to your needs by using add-ons like practice management features and payment acceptance. TaxAct Professional offers a 30-day money-back guarantee to all customers, ensuring a full refund within 30 days if you are dissatisfied with the software.
How We Evaluated the Best Tax Software for Form 1065
When evaluating the best tax software for partnership returns, we considered the needs of small businesses needing to prepare Form 1065. The price of the software is a major concern, as are its features—such as importing data, audit support and representation, document management, accuracy guarantees, and unlimited assistance from tax experts.
Based on the needs of businesses that file partnership returns, we used the following criteria to evaluate the best tax software for Form 1065:
- Pricing: We looked at how much the tax software costs and if assisted or full-service support is included. We also considered the amount you’ll need to pay for both federal and state returns.
- Features: The tool should include all of the features expected of business tax software, including automatic import, deduction maximizer, and e-file management.
- Ease of use: We looked at how efficient it is to enter data into worksheets and how easy it is to review your tax forms. We also evaluated the availability of tax support and whether the provider offered an unlimited option as well as tax advice and guidance.
- Data import and accounting software integration: We considered whether the software can automate some of the data entry, including importing data from QuickBooks or Excel and extracting data from source documents using scan-and-fill technology.
Frequently Asked Questions (FAQs)
Form 1065 is an income tax return used by partnerships to report their income, deductions, gains, losses, and other relevant information to the IRS.
Cost, accuracy and compliance, ease of use, and additional features are the factors you should consider when selecting the best partnership tax return software for your business.
You can prepare and file Form 1065 manually, but using dedicated tax software can streamline the process, help minimize errors, and ensure compliance with tax laws. Tax software often provides step-by-step guidance, automated calculations, and error checks, which saves time and effort compared with manual preparation.
While there are free tax software options for individual returns, it is less common to find completely free software specifically designed for Form 1065. Partnership tax returns tend to be more complex, requiring advanced features and support. However, some tax software providers may offer free versions or trials with limited functionality.
Bottom Line
Choosing the right tax software to prepare your partnership return can impact the efficiency and accuracy of your Form 1065 filing. After thorough analysis, TaxAct emerges as the clear winner for the best tax software for Form 1065. Its user-friendly interface, automated calculations, and seamless data integration make it a top choice for small businesses.
