Drake Tax Software Review: Features & Pricing 2023
Tim is a Certified QuickBooks Time (formerly TSheets) Pro, QuickBooks ProAdvisor, and CPA with 25 years of experience. He brings his expertise to Fit Small Business’s accounting content.
Danielle is a writer for the Finance division of Fit Small Business. She has owned a bookkeeping and payroll service that specializes in small business, for over twenty years.
Drake Tax is an affordable robust tax software, making it a great investment for firms that file a low volume of individual and state tax returns. It includes all state programs and allows you to prepare multiple state returns for a single business at no additional charge. It also has useful features, such as LookBack and DoubleCheck, and hardware add-ons that will save you time and streamline the process of filing tax returns. Its pay-per-return pricing starts at $345 for 10 individual returns, plus $44.99 per business return while unlimited individual and business returns cost $1,825.
What We Like
- Pay-Per-Return plan converts to Unlimited after 85 returns
- Free unlimited state returns for each federal return
- Prepare any income tax return: 1040, 1120, 1120S, 1065, 1041, 706, 709, and 990
- Create client organizers and tax planners
What's Missing
- No integrations with popular bookkeeping software
- Navigation between screens isn’t intuitive
Pricing
When To Use Drake Tax
- Firms that need accounting and payroll software: Power Bundle or Unlimited plan subscribers gain access to Drake Tax’s accounting and payroll software for free.
- Firms that want to provide their clients with a tax planner: Its tax planner shows clients how marital status, income, dependents, and more can affect their taxes. You can save multiple scenarios and tweak reporting options as needed.
- Low-volume tax preparers: Drake Tax’s attractive price of $345 for 10 individual returns makes it a good fit for tax firms wanting to save money.
When To Use an Alternative
- Firms looking for a tax research service: It doesn’t come bundled with a tax research service. We recommend CCH Axcess Tax, which includes Accounting Research Manager, a comprehensive online database.
- Firms filing complex returns: Lacerte is an excellent option for firms with complex returns, such as subsidiary tax and oil and gas returns. It gives you access to 5,700-plus forms.
- QuickBooks Online Accountant users: In our evaluation of the best professional tax software, we named ProConnect Tax Online best for QuickBooks Online ProAdvisors, specifically QuickBooks Online Accountant users.
Drake Tax Deciding Factors
Supported Bookkeeping Software | None |
Pricing | Pay-per-return costs $345 for the first 10 individual returns; unlimited returns cost $1,825 for individual and business returns |
Free Trial of Drake Tax | ✕ |
Money-back Guarantee | ✕ |
Communication Methods | Telephone and email |
Pay-per-Return Plan | ✓ |
Drake Tax Alternatives
Best for: Firms that want access to a tax research service | Best for: Filing complex returns | Best for: QuickBooks Online Accountant users |
Cost: Quote upon request | Cost: Quote upon request | Cost: Pay-per-return starting at $94.95 for individual returns and $117.95 for business returns |
Drake Tax Pricing
Drake Tax offers three packages: Power Bundle, Unlimited, and Pay-Per-Return. The main difference is that Power Bundle includes access to Drake Accounting and Payroll software, whereas the others offer it as an add-on.
Power Bundle | Unlimited | Pay-Per-Return | |
|---|---|---|---|
Total Cost | $1,975 | $1,825 | $345 |
Drake Accounting & Payroll | Included | Add-On | Add-On |
Unlimited Users | ✓ | ✓ | ✓ |
1040, 1040-NR Returns | Unlimited | Unlimited | 10 included, $29.99 each additional |
1120, 1120S, 1120-H, 1065, 1041, 990, 706 Returns | Unlimited | Unlimited | $44.99 each |
Federal & State E-File | ✓ | ✓ | ✓ |
States Per Return | Unlimited | Unlimited | Unlimited |
Drake Tax Features
Drake Tax offers several useful features, including the ability to prepare multistate returns and a DoubleCheck diagnostic tool.
- Automatic data flow: Drake Tax allows for automatic data flow from a federal return to state and city returns, with override options. It also creates automatic credits for taxes paid to other jurisdictions and auto-fills from ZIP code and employer identification number (EIN) entries.
- Multistate returns: You can create an unlimited number of state returns for each federal return at no additional cost.
- LookBack: This allows you to view the prior year’s tax return data, which can be useful for comparing information. You can use a keyboard shortcut to toggle the view between LookBack and the current view.
- Hardware add-ons: Drake Tax lets you simplify tax preparation by using optional hardware add-ons such as a barcode scanner, which enables importing data from W-2s or K-1s with 2D barcodes. You can also add an e-signature pad, which allows clients to digitally sign returns.
- DoubleCheck: It’s a diagnostic tool that can track any changes that affect verified data entry items. If it detects any changes, it will flag them for review automatically.
- SecureFilePro: If you’re seeking paperless options, SecureFilePro allows users to obtain source documents from their clients electronically for tax preparation.
Drake Tax Customer Support
Drake Tax provides customer support via telephone, email, and online forms. New users are invited to view a series of online videos, which provide more information on how to use the software. Other learning resources include Drake CPE, which offers self-study, on-demand, and annual filing season program courses, online reference guides, and a user manual.
Drake Tax Ease of Use
Drake Tax is very user-friendly, and navigation is intuitive. It has many features that help you ensure that information is accurate, including the LookBack and DoubleCheck diagnostic tool. The ability to add hardware, such as a barcode scanner and e-signature pad, also makes life easier for you and your clients as it eliminates the need for paperwork.
Drake Tax User Reviews
Drake Tax reviews show that users found the software easy to learn and use. They also appreciated its affordable price and the fact that it alerts you to any potential errors while preparing the return. However, some felt that the built-in customer relationship manager (CRM) isn’t robust enough for their practice and have felt the need to supplement it with another software, such as TaxDome.
The software earned the following average scores on popular review sites:
- Trustpilot: 4.3 out of 5 based on around 170 reviews
- Capterra: 4.1 out of 5 based on around 70 reviews
- G2: 4.6 out of 5 based on about 25 reviews
Frequently Asked Questions (FAQs)
How much does Drake Tax cost?
Drake Tax has three different pricing options: $1,975 for the Power Bundle, which includes its proprietary accounting and payroll software; $1,825 for unlimited returns; and $345 for the Pay-Per-Return option, which includes 10 individual returns. Additional individual returns are $29.99 each, and additional business returns are $44.99 each. You can file an unlimited number of state returns.
Does Drake Tax have a tax organizer?
Yes, it does.
Does Drake Tax allow multiple users?
Yes, you can add as many users as you like for free.
Bottom Line
Drake Tax is an excellent option for firms wanting the ability to prepare any type of income tax return, and it offers many of the same features as pricier software, such as a tax planner and client organizer. It also provides the ability to add hardware, including an e-file signature pad. Its affordable price and intuitive design make it an ideal fit for low-volume tax preparers looking for a flexible tax software solution.
