Drake Tax is a robust professional tax software that is also affordable, 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 $355 for the first 10 individual returns, plus $49.99 per business return while unlimited individual and business returns cost $2,095.
Drake Tax has received positive feedback from users, who report that it is easy to both set up and use. They also appreciate the free unlimited state returns for each federal return. However, users wish that it was compatible with popular bookkeeping software and that it came with a more powerful customer relationship management (CRM) software.
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- Pros/Cons
- Deciding Factors
- Best For
Pros
- 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
Cons
- No integrations with popular bookkeeping software
- Navigation between screens isn’t intuitive
- Can’t drill down from forms to input screens
Pricing for 2023 Tax Returns | Pay Per Return costs $355 for the first 10 individual returns; unlimited returns cost $2,095 for individual and business returns |
Supported Bookkeeping Software | None |
Free Trial | Demo account |
Money-back Guarantee | ✕ |
Standout Features |
|
Pay Per Return Plan | ✓ |
Customer Support | Telephone and email |
Average User Reviews | Drake Tax users praised the software’s intuitive design and ease of use. They also liked its affordable price for unlimited returns. Users didn’t like that it’s not compatible with any bookkeeping software. |
- 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 part-time tax pros wanting to save money.
Drake Tax Alternatives & Comparison
- Comparison
- Use Cases
Unlimited Returns | Form 1040 | Forms 1120, 1120S & 1065 | Form 5500 | Form 990 | |
|---|---|---|---|---|---|
| $2,095 for unlimited business and individual returns | ✓ | ✓ | ✕ | ✓ |
| ✕ | ✓ | ✓ | ✕ | ✓ |
| Quote upon request | ✓ | ✓ | ✓ | ✓ |
| Quote upon request | ✓ | ✓ | ✓ | ✓ |
Best For | Learn More | |
|---|---|---|
| QuickBooks Online (QBO) Accountant users: ProConnect is deeply integrated with QBO Accountant and is specifically designed for ProAdvisors who also offer tax services, earning it a spot in our evaluation of the best professional tax software. | Read our ProConnect Tax Online review |
| 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. | Read our Lacerte Tax review |
| Firms looking for a tax research service: We recommend CCH Axcess Tax, which includes Accounting Research Manager, a more comprehensive research service than The Tax Book that can be added to Drake. | Read our CCH Axcess Tax review |
Hire remote preparers: QuickCloud Hosting can turn Drake Tax into cloud software starting at $25 per user, per month, allowing you to hire remote tax preparers and reviewers without compromising security or client information.
Drake Tax Pricing
Drake Tax offers three packages: Pro, 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.
Power Bundle | Unlimited | Pay Per Return | |
|---|---|---|---|
Total Cost | $2,095 | $1,695 | $355 |
Drake Accounting & Payroll | Bundle discount | Bundle discount | Add-on |
Unlimited Users | ✓ | ✓ | ✓ |
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 | ✓ | ✓ | ✓ |
Drake Tax Reviews From Users
| Users Like | Users Dislike |
|---|---|
| Easy to set up and use software | Not compatible with any bookkeeping software |
| Affordable price | Built-in CRM software could be better |
| Software alerts preparers to any potential errors while preparing the return | No free trial (resolved) |
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. Other users wished it had a free trial, which Drake has now addressed. Currently, you can sign up on Drake for a free trial and get access to a demo account.
The software earned the following average scores on popular review sites:
- Trustpilot[1]: 3.5 out of 5 based on around 210 reviews
- Capterra[2]: 4 out of 5 based on around 90 reviews
- G2.com[3]: 4.5 out of 5 based on about 25 reviews
Drake Tax New Features in 2023
Drake Tax has added new business tax enhancements for 2023, which are for Forms 1120, 1120S, and 1065:
- Tax planner and organizers for business returns
- Enhanced data entry in business returns with addition of AUTO screen
- Enhanced summary page in business returns with more efficient analysis and review
- Ability to add W-8 and W-9 for business returns
- Enhanced alerts for Schedule B-related questions
Drake Tax Features
Drake Tax offers several useful features, including the ability to prepare multi-state returns and a DoubleCheck diagnostic tool. It also allows for hardware add-ons, such as a barcode scanner or signature pad. SecureFilePro is ideal for users who prefer paperless options, and the LookBack feature lets you view the prior year’s tax return data.
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.
Multi-state 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
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.
SecureFilePro
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
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 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.
Frequently Asked Questions (FAQs)
Drake Tax has three different pricing options: $2,095 for Pro, which includes unlimited individual and business returns; $1,695 for 1040, which includes unlimited individual returns and $49.99 for each business return; and $355 for the Pay Per Return option, which includes 10 individual returns. Additional individual returns are $34.99 each, and additional business returns are $49.99 each. You can file an unlimited number of state returns.
Yes, it does.
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.
User review references:
1 Trustpilot
2 Capterra
3 G2.com
