ATX Max vs. Drake vs. Taxact

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#1
cl2018  
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Good morning,
As a relatively new business with limited number of clients, I am now exploring options of tax software to use for 2021 tax season.
I used ATX Max this year and find that it is not cost efficient though and also find some issues when trying to do returns with international related forms. I have been testing Drake for a while now. It has good reputation and reasonable pricing, excellent support team. The thing is that when I used Drake to create a return involving foreign capital gain adjustments in 1116 form, line 1a can not be calculated automatically, I have to manually do the adjustments and enter the result there. Line 18 (specifically for AMT) does not get the correct amount. It leads to a AMT tax on 1040, which based on my understanding, should not. I contacted drake support team but they insisted the software is correct here. As I have used ATX and Taxact before, I tried those softwares to run the same return. Both gave me reasonable amount in line 18 of 1116 AMT and no AMT tax on 1040. It may be because I am still in the learning curve of drake and has not find the correct way to input foreign capital gain in 1116? Can anyone comment here?
Also, I am reconsidering Taxact, it turns out that it works better than Drake and ATX Max in this specific 1116 case.
I used to use Taxact but heard people saying that is is not sophisticated enough for tax professionals. Can anyone comment here too?
In general, what are you guys recommendations if I can to pick from ATX Max, Drake and Taxact.
Thank you so much!
 

#2
ATSMAN  
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My 2 cents! Use the software that you are most comfortable with and gives you the desired results. Almost all tax prep software have their strength and weakness on specific types of returns so if you are preparing a lot of tax returns with form 1116, you will need to zero in on that particular issue.
 

#3
wel  
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Considering its low cost, Drake really isn't too bad - however, Drake is surprisingly weak with 1116 issues.

I can't comment on the others.
 

#4
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TaxAct can be sophisticated enough, depending on your client base. I have had issues with depreciation, which required over-rides and which TaxAct would not then transmit electronically. For 2019 returns, there was an e-filing issue with SEHI if the client also has PTC. It also was incorrect in how to enter Code M on Form 8949. It is a smaller issue, but I did not like the depreciation report. More often than not, it chops off part of the last entry on each page.

All of these issues affect a large chunk of my client base, so I felt I had to move and chose Drake. TaxAct has improved over the years (I have used either consumer or professional since my 2002 return). Data entry is efficient. I like the electronic filing communication, especially the report that shows the date and time the state return was accepted. It can easily be saved to a PDF and sent to the client. I will miss that report and its ease of production.

Bottom line - if TaxAct meets your needs, use it.
 

#5
ATSMAN  
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https://www.drakesoftware.com/service-l ... s?video=68

There is a Drake video on Form 1116. Perhaps this may shed some light? Also the dividend, interest and capital gains screens have data entry boxes.
 

#6
cl2018  
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ATSMAN wrote:https://www.drakesoftware.com/service-learning/videos?video=68

There is a Drake video on Form 1116. Perhaps this may shed some light? Also the dividend, interest and capital gains screens have data entry boxes.


Thank you for sending this video! will take a look
 

#7
cl2018  
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A quick update: I talked with Drake support team again and the person is really helpful by walking through the whole logic tree and manually calculate the amount to verify the number shown in the software. There are quite a few tricky points of line 18 of 1116 calculations, especially for the AMT version. e.g., whether there is qualified dividends, whether there is 2555 exclusion, etc. all these play a role in deciding if a adjustment can be done to taxable income.
I decide to go with Drake, understanding that each software has its pros and cons.
Thank you all for your suggestions and help!
 

#8
ATSMAN  
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cl2018 wrote:A quick update: I talked with Drake support team again and the person is really helpful by walking through the whole logic tree and manually calculate the amount to verify the number shown in the software. There are quite a few tricky points of line 18 of 1116 calculations, especially for the AMT version. e.g., whether there is qualified dividends, whether there is 2555 exclusion, etc. all these play a role in deciding if a adjustment can be done to taxable income.
I decide to go with Drake, understanding that each software has its pros and cons.
Thank you all for your suggestions and help!


Good decision. Now you can do many practice returns with your actual 2019 returns that have been calculated correctly before tax season begins so that you are familiar with the input screens and the adjustments needed. You may also want to post your findings and tips on the Drake Forums.
 

#9
cl2018  
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ATSMAN wrote:
cl2018 wrote:A quick update: I talked with Drake support team again and the person is really helpful by walking through the whole logic tree and manually calculate the amount to verify the number shown in the software. There are quite a few tricky points of line 18 of 1116 calculations, especially for the AMT version. e.g., whether there is qualified dividends, whether there is 2555 exclusion, etc. all these play a role in deciding if a adjustment can be done to taxable income.
I decide to go with Drake, understanding that each software has its pros and cons.
Thank you all for your suggestions and help!


Good decision. Now you can do many practice returns with your actual 2019 returns that have been calculated correctly before tax season begins so that you are familiar with the input screens and the adjustments needed. You may also want to post your findings and tips on the Drake Forums.


Thanks for the suggestions!
 


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