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, a user-friendly interface, automated calculations, and integration with accounting software like QuickBooks.
Here are our top four picks for the best partnership tax software:
- TaxAct: Best overall tax software for 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
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Comparison of Best Tax Software for Form 1065
TaxAct: Best Overall Tax Software for Online Form 1065 Preparation
Pros
- Choice of cloud-based or downloadable program for the same price
- Tax preparation checklist provides assistance with documents needed to file
- Accuracy guarantee
- Import trial balance from comma-separated values (CSV) file
Cons
- Only one return is included in price
- Lacks personalized audit support
- No assistance from tax pros
TaxAct is available via a web browser (TaxAct Online) or a desktop program (TaxAct Desktop). It also provides three tax bundles, both for the cloud-based and downloadable options, if you plan on using TaxAct for your personal return, Form 1040.
Online:
- Free: $0 for federal forms plus $39.99 per state return
- Deluxe: $29.99 for federal forms plus $39.99 per state return
- Premier: $39.99 for federal forms plus $39.99 per state return
- Self-Employed: $69.99 for federal forms plus $39.99 per state return
- Partnerships: $139.99 for federal form 1065 plus $54.99 per state return
- S-corps and C-corps: $159.99 for federal forms plus $54.99 per state return
Add-on: Xpert Assist for $59.99 for individual plans to access unlimited help from tax experts.
Desktop:
- Basic: $44.99 for federal forms plus $60 per state return
- Deluxe: $139.99 for federal forms and includes one state return
- Premier: $149.99 for federal forms and includes one state return
- Self-Employed: $159.99 for federal forms and includes one state return
All plans include five federal Form 1040 e-files and free account and technical support. Desktop software for preparing partnership returns cannot be purchased individually. It can only be purchased via the Partnership & Home Bundle.
Bundles:
- Partnership & Home Bundle: $259.99 for Form 1065 federal and state e-files and up to five 1040 federal and state e-files
- S-corporations/C-corporations & Home Bundle: $279.99 for Form 1120 or 1120S federal and state e-files and up to five 1040 federal and state e-files
- Tax-exempt Orgs & Home Bundle: $234.99 for Form 990 federal and state e-files and up to five 1040 federal and state e-files
All plans are available online or as a download, except Tax-exempt Orgs & Home Bundle, which is only available to download.
We selected TaxAct as the overall best tax software for Form 1065 because it is the only solution in this guide that allows for do-it-yourself (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.
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 also 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
- Includes unlimited year-round tax support
- Work with a licensed pro who will prepare and file your return
- Free trial includes one prior month of bookkeeping
Cons
- Proprietary software doesn’t sync with other popular accounting software
- Tax preparation and filing only available if you sign up for bookkeeping service
- Premium plan required for tax preparation and is only available as an annual contract
Bench offers the preparation and filing of partnership returns as part of its Premium plan for $4,788 per year ($399 per month) and is unavailable as a monthly plan. 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 (annually)
- Historical bookkeeping: Starts at $299 per month
- Specialized bookkeeping, such as accounts receivable (A/R) tracking and segment-level bookkeeping: Starts at $100 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 partnership businesses.
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
- Option of assisted or full-service Form 1065 preparation
- Import income and expenses from QuickBooks Desktop
- Audit representation is included and covered at no extra cost
- Prepare unlimited business returns, including Forms 1120, 1120S, and 1065 for one price
- Ability to import cryptocurrency transactions
Cons
- Only available as desktop software; no online program
- TurboTax Live Assisted Business is only available in 21 states
- Can be more expensive than competing tax software
- State returns cost an additional $64 each
TurboTax Business: best for C-corps, S-corps, and partnerships:
- 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
Notes:
- TurboTax Live Assisted Business is only available in select states: Alaska, Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Minnesota, North Carolina, Nevada, New York, Ohio, Pennsylvania, Rhode Island, South Dakota, Texas, Utah, Virginia, Washington, and Wyoming.
- TurboTax Full-Service Business covers all 50 states.
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 and 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 TurboTax Live Assisted Business is only available in select states: Alaska, Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Minnesota, North Carolina, Nevada, New York, Ohio, Pennsylvania, Rhode Island, South Dakota, Texas, Utah, Virginia, Washington, and Wyoming. , so if you’re seeking more accessible tax advice, we recommend Bench, which provides unlimited year-round tax support.
ProConnect: Best for Tax Professionals Preparing Only a Few Partnership Returns
Pros
- Integrates with QuickBooks Online Accountant
- Unlimited phone and chat support
- Data conversion with onboarding support
Cons
- Not ideal for firms preparing a high volume of returns due to per return pricing
- Only for use by tax pros; requires the preparer to have an electronic filing identification number (EFIN)
- Limited customization options
ProConnect charges $117.95 for each business return (including Form 1065), although it currently offers a discounted rate of 30% off 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: $82.57 per return
- 10 to 49 returns: $73.47 per return
- 50 to 99 returns: $50.57 per return
- 100 to 199 returns: $41.27 per return
- 200 to 299 returns: $34.97 per return
- 300 to 499 returns: $28.67 per return
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, allowing users to work remotely, and allows viewing of the e-file status of all clients on its dashboard.
ProConnect also offers e-signing, so clients can review and sign forms from anywhere. We also selected ProConnect as the best professional tax software program for QuickBooks Online ProAdvisors because ProConnect integrates with QuickBooks Online Accountant. What’s more, they 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 towards professional tax preparers, the cost for five federal returns with TurboTax is significantly less expensive than with ProConnect, which charges $412.85 for five federal returns.
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.
While it is possible to prepare and file Form 1065 manually without tax software, 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 to 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 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.