What Claude (Anthropic) with web search answered for tax preparation software (nonprofits) on 2026-09-08

Claude (Anthropic) with web search claude-opus-5 asked 2026-09-08

Coverage: Claude (Anthropic) with web search. Other engines not included.

The question asked, verbatim: best tax preparation software for nonprofits

Brands named, in the order the engine gave

1. Software Secured mentioned
   If you're a private foundation (990-PF) or a paid preparer: Drake Software's tax-exempt module.
2. TaxAct Business mentioned
   TaxAct also sells a downloadable Tax Exempt Organization edition, which is fine for a straightforward return but thinner on complex schedules.
3. New Relic mentioned
   Most of these price the federal return and charge extra - or don't support it at all - for state charitable registration and annual reports (California's RRF-1, New York's CHAR500, etc.).

Sources the engine cited

The answer, as recorded

The right answer depends almost entirely on which version of the 990 you file, so I've organized it that way. One caveat up front: a lot of the "top 10 990 software" pages that come up in search are auto-generated SEO listicles with no real testing behind them, so I'm leaning on the vendors' own pricing/feature pages and the IRS. **If you file Form 990-N (gross receipts ≤ $50,000): use the IRS's own e-Postcard system. Free.** The IRS explicitly says organizations don't need to buy software for this. It's eight data fields and takes about five minutes. The only friction is that since August 2022 you have to sign in with an IRS username or an ID.me account, which trips people up - but that's a one-time setup, not a reason to pay a vendor $55. Paid 990-N filing is close to a pure convenience fee. [irs.gov](https://www.irs.gov/charities-non-profits/annual-electronic-notice-form-990-n-for-small-organizations-faqs-how-to-file) **If you file 990-EZ or full 990 and are doing it yourself: Tax990 (formerly ExpressTaxExempt).** This is the one I'd name first for self-filers. It's IRS-authorized, covers the whole series (990-N, 990-EZ, 990, 990-PF, 990-T, 1120-POL), auto-generates the required schedules from your answers, and includes an internal review/approval flow so a board member or treasurer can sign off before transmission - genuinely useful when the person entering data isn't the person authorized to file. 990-N is free, 990-EZ runs ~$165, full 990 ~$285. Support is US-based and 990-specific, which matters because generic tax software support can't answer Schedule questions. [tax990.com](https://www.tax990.com/) · [expresstaxexempt.com](https://www.expresstaxexempt.com/) **Close alternative: TaxBandits' 990 series.** Same parent company as Tax990, similar engine, but worth looking at if you already use TaxBandits for your 1099s and W-2s - consolidating the filings in one account is a real workflow win for a small back office. [taxbandits.com](https://www.taxbandits.com/form-990-series/) **If you only need 990-N or 990-EZ and want the simplest possible thing: File 990.** Narrower than Tax990 (it doesn't do the full 990 or 990-PF), but the interface is stripped down and it stores prior-year data for rollover. $54.99 for 990-N, $84.99 for 990-EZ - cheaper than Tax990 on the EZ. Skip it for the 990-N, since that's free direct from the IRS. [file990.org/pricing](https://www.file990.org/pricing) **If you want tax filing bolted onto your bookkeeping: Aplos.** Aplos is fund accounting software for nonprofits first, with 990 preparation as a feature. Don't buy it *for* the 990 - it's expensive as a filing tool alone. But if you're also shopping for accounting software that handles fund restrictions and donor tracking, having the 990 pull from your books instead of re-keying from spreadsheets is worth a lot at year-end. **If you're a private foundation (990-PF) or a paid preparer: Drake Software's tax-exempt module.** 990-PF is meaningfully harder than the others, and Drake's pay-per-return pricing (roughly $75-90) makes it viable even for one filing. If you're a CPA doing several nonprofit returns, this is the tier where professional packages - Drake, and further up, UltraTax CS or CCH Axcess - start beating the web filers. TaxAct also sells a downloadable Tax Exempt Organization edition, which is fine for a straightforward return but thinner on complex schedules. [taxact.com](https://www.taxact.com/business-taxes/download/tax-exempt-organization/) **Two things worth knowing before you buy:** Check state filing separately. Most of these price the federal return and charge extra - or don't support it at all - for state charitable registration and annual reports (California's RRF-1, New York's CHAR500, etc.). That's the most common unpleasant surprise. And a threshold to keep in mind: if your return involves executive compensation reporting, unrelated business income, foreign grants, or a Schedule A public support test you're at risk of failing, the $500-$2,500 a CPA charges is money well spent. A botched public support calculation can cost you public charity status. Software is the right call for clean, routine returns - not for judgment calls. Sources: - [IRS - How do I file Form 990-N, e-Postcard?](https://www.irs.gov/charities-non-profits/annual-electronic-notice-form-990-n-for-small-organizations-faqs-how-to-file) - [Tax990](https://www.tax990.com/) - [ExpressTaxExempt](https://www.expresstaxexempt.com/) - [TaxBandits - Form 990 series](https://www.taxbandits.com/form-990-series/) - [File 990 - pricing](https://www.file990.org/pricing) - [TaxAct - Tax Exempt Organization](https://www.taxact.com/business-taxes/download/tax-exempt-organization/)

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