Drake Tax is a sound, affordable software choice that I recommend for professional tax preparation of low-volume individual and state tax returns. Useful features like DoubleCheck and LookBack will help streamline the tax return preparation and filing process. LookBack helps you compare prior and current year activity, while DoubleCheck assists tax preparers with the review process.
Unlimited returns cost $2,195 for one license to prepare individual and business returns, while unlimited returns for multiple licenses cost $2,495. Pay Per Return pricing starts at $350 for the first 10 individual returns plus $59.99 per business return. Drake also offers bundled pricing, as shown in our pricing section below.
For basic 1040 tax returns, many Reddit users are fans of the software and note that it is easy to implement and use. Reviewers said that they appreciate the pricing transparency and reliable customer service. However, the no-frills interface is not a fan favorite, and users note that the software can be imprecise and clunky for complex business returns.
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- Cryptocurrency management features: I looked at whether the system supports multiple cryptocurrencies, tracks portfolios in real time, and converts crypto to fiat accurately.
- Core accounting functionality: I checked for general ledger capabilities to manage both crypto and fiat transactions in one system.
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Drake Tax Alternatives & Comparison
| Unlimited Returns | Form 1040 | Forms 1120, 1120S & 1065 | Form 5500 | Form 990 | |
|---|---|---|---|---|---|
 | $2,195$2,195 is the base price for unlimited returns for a single user license. The base price for unlimited returns for multiple users is $2,495. | ✓ | ✓ | ✕ | ✓ |
 | ✕ | ✓ | ✓ | ✓ | ✓ |
| Visit ProConnect Tax | |||||
 | Quote upon request | ✓ | ✓ | ✓ | ✓ |
| Visit Lacerte Tax | |||||
 | Quote upon request | ✓ | ✓ | ✓ | ✓ |
| Visit CCH Axcess Tax | |||||
Drake Tax has partnered with RightWorks to move your tax prep process to the cloud. This option allows you to hire remote tax preparers and reviewers without compromising security or client information. The price for this feature starts at $99 per user, per month.
Drake Tax Reviews From Users
| Users Like | Users Dislike |
|---|---|
| Easy to set up and use for basic individual tax returns | Limited compatibility with bookkeeping software |
| Affordable | Complex filings may require substantial form manipulation |
| Knowledgeable and accessible customer support | Layout is unintuitive; interface does not have an efficient presentation |
Users who left a Drake Tax review shared that they found the software easy to use for basic returns but increasingly difficult to navigate as returns increased in complexity. They also appreciate the affordable price and DoubleCheck feature.
On the flip side, some reviewers expressed that they felt that the built-in customer relationship manager (CRM) wasn’t robust enough for their practice and required supplemental software.
The software earned the following average scores on popular review sites:
- Trustpilot[1]: 3.1 out of 5 from over 220 reviews
- Capterra[2]: 3.9 out of 5 from around 100 reviews
- G2[3]: 4.5 out of 5 from about 25 reviews
Drake Tax Software Pricing
Drake Tax offers the following packages: Drake Tax Pro, Drake Tax 1040, and Pay Per Return. Pro includes unlimited returns of any type, whereas 1040 includes unlimited individual returns. All packages include unlimited state returns per federal return and e-filing.
| Drake Tax Pro | Drake Tax 1040 | Pay Per Return | |
|---|---|---|---|
| Total Cost (Single license)Total Cost (Multi-user licenses) | $2,195$2,495 | $1,995$1,995 | $350$350 |
| Drake Accounting & Payroll | Bundle discount | Bundle discount | Add-on |
| 1040, 1040-NR Returns | Unlimited | Unlimited | 10 included; $34.99 each additional |
| 1120, 1120S, 1120-H, 1065, 1041, 990, 706 Returns | Unlimited | $49.99 each | $49.99 each |
| Federal & State E-file | ✓ | ✓ | ✓ |
| States per Return | Unlimited | Unlimited | Unlimited |
| Client Status Manager | ✓ | ✓ | ✓ |
| Scheduler | ✓ | ✓ | ✓ |
| Tax Planner | ✓ | ✓ | ✓ |
| Multi-year Comparison Report | ✓ | ✓ | ✓ |
| Multi-user Option | ✓ | ✓ | ✓ |
Drake Tax New Features in 2024
Drake Tax has upgraded its software for 2024 to include the following enhancements:
- Expanded (and NISTThe National Institute of Standards and Technology is the official sector of the US government that sets cybersecurity standards for US businesses. compliant) 30-minute timeout window for tax preparers (increased from 15 minutes)
- Upgrades to the e-file acknowledgment and reporting process
- Simplification of desktop installation process
- ACH support for Drake Pay (electronic payment system for tax professionals)
Drake Tax Features
Drake Tax offers several features to help tax pros navigate the filing process, as shown in more detail below.
There are also options for hardware add-ons, such as a barcode scanner or signature pad. Drake Tax also offers SecureFilePro, which is a mobile-friendly online portal used for document transfer between tax preparers and clients.
DoubleCheck is 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. This also allows tax pros to notate errors that require follow-up.
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.
In addition to preparing tax returns, you’ll want to keep track of your production metrics to ensure you’re hitting your goals and staying on track for your deadlines. Using the report manager, you can create reports showing returns that are rejected, e-filed, accepted by the IRS, and more.
Given the sensitive nature of tax information, accounting data is a treasure trove for thieves. Drake Tax has implemented multi-factor authentication to help protect client data. This authentication may be a combination of a password/PIN, smartphone code, or biometric data.
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.
If you’re seeking paperless options, SecureFilePro allows users to obtain source documents from their clients electronically for tax preparation.
Drake Tax Ease of Use & Customer Support
For preparation of basic 1040 returns, Drake Tax is considered user-friendly and affordable. The LookBack and DoubleCheck diagnostic tools support accuracy and completeness of the tax information analyzed. In addition, the ability to add hardware—such as a barcode scanner and e-signature pad—simplifies the interaction between you and your clients.
Drake Tax provides customer support via telephone, email, and online chat. New users can choose from a series of online videos for more information on how to use the software. Other learning resources include Drake CPE, which offers self-study and on-demand program courses as well as online reference guides and a user manual.
How I Evaluated Drake Tax
I evaluated Drake Tax using criteria that users value most in tax software, as indicated by user reviews. Based on the needs indicated, relevant features were assessed as follows:
- Software cost: The software price was evaluated by comparing the software features to the cost as a benchmark for value. Competitor pricing for similar features was also considered.
- Data import: The ability to transfer accounting data fluidly to the software considerably affects the user experience. Drake Tax’s data automation features were evaluated for ease of import and auto-flow capacity.
- Document management: As part of the analysis for Drake Tax, I considered the software’s capacity for document mobility and communication between the tax preparer and client.
- Software support: I also considered the availability of Drake Tax support for tax preparers’ concerns.
- Ease of use: As a final part of my evaluation, I reviewed the overall user experience for unusual complications or exceptionally smooth processes.
Frequently Asked Questions (FAQs)
From www.drakesoftware.com, select Try It Free, and then complete the subsequent one-page form. Once you click Submit, you’ll receive a confirmation email with a link to download the trial software.
Yes, Drake tax supports multiple users. Bundled pricing may vary.
Client conversions can be done from ATX, ProSystem FX, TaxWorks, Crosslink, TaxAct, TurboTax, Lacerte, TaxSlayer Pro, UltraTax, ProSeries, and TaxWise. H&R Block conversion files are not supported.
Bottom Line
Drake Tax is a great option for firms that don’t prepare a high volume of complex tax returns. While intricate returns can still be prepared, it may not be the most efficient option. However, the affordable price makes it an ideal fit for low-volume tax preparers looking for a flexible tax software solution.
User review references: [1]Trustpilot
[2]Capterra
[3]G2
